In this time of uncertainty I repeat to myself my favorite line from the movie Draft Day “Slow Down to Speed Up” ~ DeLea

NOTE:

WE ARE NOT TAX OR LAW PROFESSIONALS. DO NOT RELY ON ANY INFORMATION ON THIS PAGE WITHOUT CONSULTING WITH YOUR CPA, ATTORNEYS, & LENDERS.

Office Retro-fitting: How much will COVID Really cost?

As employers across Austin scramble to make their office space safe for employees to return to work, a rapidly growing market of “touch-free” and other hygiene-minded appliances and gadgets are helping to retro-fit office space.

This new tech, paired with more frequent and deeper cleans, is what’s necessary to keep businesses open while mitigating the pandemic’s impact. Still, they aren’t cheap! Though, it may not all be as expensive as you expected.

Our friends at Loopnet have put together a rough calculation in $/sq ft terms for several of these new office space must-haves, and how much they could add to operating costs. Find the full article here.

COVID-19 and The Ongoing Legal Fallout

As COVID-19 continues to wreak public health and economic havoc on Central Texas, the full legal ramifications of this slow-motion disaster are far from being completely understood.

As contracts fall into default, Force Majeure Clauses will become key in navigating lawsuits associated with the pandemic.

Similarly, as employers attempt to re-open businesses amidst heightened risks, mitigating one’s liability as a private employer regarding a host of potential issues is paramount. These potential liabilities could be anything from worker’s compensation laws to workplace safety and health measures or paid sick leave.

Luckily, our friends at Practical Law have provided the public with two handy checklists covering both of these issues - Force Majeure and Liability Mitigation. Click the links below to read up on their best practices.

Austin Small Business Relief Grants

Application Opens July 7

The City of Austin has approved an additional $10 million in funding for their Small Business Relief Grant program.

Applications open July 7th at 10am. Elligible businesses include -

• Business able to demonstrate an economic loss associated with the COVID-19 global pandemic 
   

• Business with 25 employees or fewer  
   

• Business with under $5 million in annual revenues  
   

• Business has been in continuous operation for at least 2 years 
   

• Business organized as partnerships, sole proprietorships, LLCs, cooperatives, or other business structures  
   

• Business able to provide one (1) year of federal income tax returns  
   

• Business headquartered in a City of Austin Council District

Find more information on eligibility and covered expenses here.

New Mask Order for All Austin Businesses

Austin’s Mayor Adler has issued a new order compelling all businesses to require their employees and customers wear face masks. Businesses are also required to develop and display public health policies for their business by June 23rd. The mandate is in effect until August 15th.

Travis County Thrive: Small Business Grant Program

In response to the ongoing economic fallout caused by COVID-19, the Business & Community Lenders of Texas are initiating a grant program to help local small business. Currently, grants are being offered to qualifying business registered in Travis County but outside Austin’s city limits. The city of Austin is expected to offer its own small business grant program, with details set to come out in early July. Those hoping to apply within the city limits are encouraged to start by compiling the information requested by the Travis County Thrive program.

The Thrive grant program pre-application eligibility questionnaire pdf is linked below. For those registered outside the city of Austin, this application is being accepted until July 3rd, 2020.

The program will provide 10 million dollars worth of grants, up to $40,000 for individual qualifying businesses, to be used for the following eligible expenses:

• Expenses from March 1, 2020 to November 30, 2020

• Rent, lease or mortgage payment for real property used for business purposes, like storefront or warehouse

• Rent, lease or purchase payment for business property (e.g., delivery vehicle; food truck; kitchen equipment; technology, payment, and communications systems and equipment)

• New or expanded technology applications and WiFi services

• Utility payments for business properties

• Supplier and Vendor payments

• PPE, sanitation supplies and equipment, testing for employees

• Eligible Taxes and Fees (specifics to be identified in the invoicing materials)

• Payroll expenses

Businesses applying for a Travis County Thrive grant are elligible if they meet the following requirements:

• Businesses located and headquartered within Travis County and further, located in unincorporated Travis County, in any city’s extraterritorial jurisdiction (ETJ), or in another city or village within the county outside the City of Austin incorporated limits.

• The business address identified on legal documents is used to determine the location of the business.

• Have no outstanding tax liens or legal judgments. If on a payment plan, must be current. Exceptions may be made for businesses that have outstanding recent quarter 941s or sales tax reports to the Texas Comptroller due to financial difficulties related to COVID-19.

• Have been in business since March 1, 2019

• Fewer than 25 Full Time Equivalent Employees on March 1, 2020

• Maximum net income of $500,000 annually

• Businesses that use a Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number

FILING DEADLINE STILL APRIL 15th

Texas Business Tax Rendition Filing

Texas Comptroller Glenn Hegar reminds business owners that for many property types, April 15 is the deadline to file property tax renditions with their county appraisal districts. Different deadlines apply for certain regulated property.

Business owners affected by the COVID-19 pandemic may request, in writing to the chief appraiser, an extension of the deadline to May 15. Some appraisal districts already have extended the deadline for filing rendition statements or property reports to May 15, so please check with your local appraisal district first.

UPDATED GUIDeLINES ON 1031 Exchanges and Opportunity Zone investments

Coronavirus and Like-Kind Exchanges (including 1031)

IRS issued Notice 2020-13 : The IRS has updated guidelines concerning Like-Kind exchanges & Opportunity Zone Investments in the wake of COVID-19, which include deadline extensions for qualifying transactions. Read up on the newest information released by the IRS via our friends at the National Law Review.

OWNER & TENANT #COVID19 Newsletters

Commercial Real Estate

Though some of this information is outlined on this page in other sections, for consolidated versions of owner and/or tenant-specific information, see our COVID-19 newsletters below.

For Landlords Navigating Tenant Requests:

Our friends at Chamberlain Hrdlicka Attorneys at Law have put out a Quick Response Guide for landlords navigating all kinds of new tenant requests in light of COVID-19. Click the link below to see their recommendations (we always appreciate a legal perspective when considering questions regarding lease amendments).

COMMERCIAL REAL ESTATE CONTRACTS AND ADDENDUMS FOR COVID - 19

Commercial Tenants and Owners

Texas REALTORS has released a standard commercial COVID-19 Lease addendum to address extensions, abatements, and other contractual amendments in light of the crisis. They have also released an official property access amendment template. Contact your broker if you require a lease adjustment and need legal documentation. See below for Landlord and Tenant information from Texas REALTORS

NEW SHOWING PROTOCOL

As Austin begins the process of re-opening, we have seen individuals and businesses alike approach the situation with varying degrees of severity. At Beck-Reit, we are dedicated to safety. This instance is no different. That’s why we’ve implemented strict showing procedures to ensure our agents, property managers, tenants, and buyers (both current and potential) can tour properties and negotiate deals in the safest way possible. Click the link below for a PDF of our updated showing procedures.

Regarding Business Interruption Insurance…

If you hold business interruption insurance, submit a claim in response to COVID-19. Our friends at RE Journals shined light on this issue in a recent installment of their “Breaking Through the Disruption” webinar series, linked below. When state and local authorities began shuttering businesses to slow the spread of COVID-19, insurance companies quickly began constructing a national narrative - that no damages caused by COVID-19 would be covered. These talking points distributed to agents were crafted specifically to discourage claims altogether, and not because every contract had pre-existing language outlining coverage in the event of a global pandemic. The fact is, this is uncharted territory and policies very well SHOULD cover COVID losses depending on the language of the contract.

If you hold business interruption insurance, review your policy and submit a claim. More info available via this eye-opening webinar below.

Shelter In Place

Austin

UPDATE : "Stay Home - Work Safe" orders until May 8

New regulations take effect at 11:59 p.m. on April 13

March 24th, 2020 11:59 PM until April 13th, 2020

Stay at Home or Place of Residence unless terminated or modified by a subsequent Order, the Mayor of the City of Austin, Texas, deems it in the public interest to issue this Order and ORDERS that all individuals currently living within the City of Austin shelter at their place of residence except as allowed by this Order. All persons may leave their residences only

• To perform certain Essential Activities

• To perform work in or obtain services from an Essential Business

• Essential Government Service

• Or in Critical Infrastructure

• Or to engage in Essential Travel or Minimum Basic Operations all as defined in Section 6 below.

Beck-Reit Commercial Real Estate and Beck-Reit Asset Management will be working from home offices, but will deploy staff to Properties for emergencies.

Beck-Reit & Sons, Ltd will continue to work normal hours in the field on TxDOT contracts. Per TxDOT “Work on projects to improve our transportation system continues, as does TxDOT’s ongoing work to maintain and operate our state’s transportation system, to include ferry operations.” Road and Bridge repair is deemed to be essential for State Operations.

FAMILIES FIRST CORONAVIRUS RESPONSE ACT

which goes into effect on 04/2/2020.

Requirement for employers with less than 500 employees to provide Paid Sick Leave and Family Medical Leave to their employees in specific situations associated with COVID-19. To offset the cost to businesses, Employer Social Security Tax will be reduced by the amount of Paid Sick and Family Medical Leave costs covered by employers.

Paid Sick Leave for Workers:

For COVID-19 related reasons, employees receive up to 80 hours of paid sick leave and expanded paid child care leave when employees' children's schools are closed or child care providers are unavailable.

Employers receive 100% reimbursement for paid leave pursuant to the Act.

• Health insurance costs are also included in the credit.

• Employers face no payroll tax liability.

• Self-employed individuals receive an equivalent credit.

• Reimbursement will be quick and easy to obtain.

• An immediate dollar-for-dollar tax offset against payroll taxes will be provided

• Where a refund is owed, the IRS will send the refund as quickly as possible.

Click to View the complete article online

Click to View the related IRS News Release

City Of Austin

Small Business Development Dept

Free On-Line Classes

The Economic Development Department is offering services for businesses who may find themselves struggling in the coming weeks. They include free business coaching, emergency planning resources, and a Family Business Loan Program.

The Economic Development Department is also is waiving the charge for their online Small Business Classes. These classes usually cost $35. Residents and business owners can register for any of the following online classes for free:  

• BizAid Business Orientation

• How to Write a Business Plan

• Human Resources Basics

• Marketing Essentials

• Small Business Recordkeeping

• Manage Your Cash Flow

• Small Business Accounting

• Strategic Pricing

• Supervisory Excellence

• BizOpen: Commercial Property Requirements Webinar

• Grow Your Business with A to Z Research Database

  Texas Workforce Commission is where you can apply for unemployment benefits. They also have a helpful tutorial to guide you through the process. 

  Workforce Solutions Capital Area can assist you in finding new work. Call them at 512-485-3792.

More City of austin resources

See Website

http://austintexas.gov/article/covid-19-community-resources

Available Services

As the new COVID-19 Orders on community gatherings, restaurants and bars are implemented, Austin-Travis County are highlighting the range of services provided by public sector and community and economic development partners to help people in the service, events, music and other industries who are likely to be impacted most by the restrictions.

Homeless Resources

As part of the City’s COVID-19 response, the Homeless Strategy website has been repurposed to share critical information directly with people experiencing homelessness. For more information, visit www.AustinTexas.gov/Homelessness.

We are also working closely with local authorities and experts to establish guidelines and protocols for operating within this rapidly evolving situation. At this time, we are continuing to provide services. We are working with our outreach teams who make contact with those experiencing homelessness and we ensure that our staff has the protections they need. We have also been working with our partners who operate the shelters. HUD is providing the City additional guidelines to be able to put some measures in place at our emergency shelters as well as any kind of short-term places where people are going through transitional type housing.

CDC provided Interim Guidance for Homeless Shelters for which Austin-Travis County are complying.

Utility Services  

The City of Austin has taken steps to ensure customers have uninterrupted access to utility services. Immediate assistance is available to all our customers. Austin Energy, which manages customer care and billing for all City of Austin utilities, also offers several programs that help customers stay on track with their utility bills: 

• Deferred payment plan: This will ensure the customer receives uninterrupted utility services as they work with utility representatives to develop a long-term plan that meets their financial needs. 

• Customer Assistance Programs: Limited income customers and medically vulnerable customers may receive assistance for immediate and lasting utility bill relief for customers. 

Both City of Austin Utilities Payment Centers are closed as of March 18. Click here to learn more about other ways customers can pay their utility bill.

Residential and commercial customers can contact the Customer Care Contact Center at 512-494-9400 with any questions.

The following companies have temporarily suspended natural gas service disconnections due to non-payment for Coronavirus situation:

• Atmos Energy

• CenterPoint Energy

• Texas Gas Service

Internet Accessibility

Charter is offering free Spectrum broadband and Wi-Fi access for 60 days to households with K-12 and/or college students who do not already have a Spectrum broadband subscription at any service level up to 100 Mbps. To enroll call 1-844-488-8395. Installation fees will be waived for new student households.

AT&T is offering Internet access to qualifying limited income households for $10/month through the Access from AT&T Program. Eligibility has been expanded to households participating in the National School Lunch Program and Head Start.

Childcare Assistance

The Workforce Solutions Child Care Services (CCS) at 512-597-7191 can help provide some information regarding subsidized child care for eligible families.

No Evictions 

The Travis County Justices of the Peace have a standing order posted indicating there will be no eviction settings held until after April 1, 2020. 

Eviction Resources are available to assist residents with legal assistance, emergency grants for rent or utilities, alternate housing, short-term motel vouchers, or placement in a local shelter.   

Austin Tenants Council provides counseling related to the eviction process, tenant-landlord issues, mediates disputes, provides workshops, and identifies fair housing issues to resolve or minimize discriminatory housing practices.

Help prevent disease. Cover coughs and sneezes with your bent elbow or tissue, wash your hands often with soap and water for 20 seconds, don't touch your face with unwashed hands and stay home when you are sick.

Immediate Housing Needs 

The Neighborhood Housing and Community Development (NHCD) Department offers information and referrals to assist impacted community members with immediate housing needs including resources for homeowners and resources for renters.

Avoiding Mortgage Foreclosure website provides information about refinancing or modifying mortgage loans, lowering payments, or other solutions to avoid foreclosure

Rental Payment Assistance website provides resources to help pay rent and utilities.

Food Assistance

Local food pantries and school districts are providing emergency food access in our community. If you are in need of food assistance, please call 211.

The information contained herein was obtained from sources deemed reliable. Beck-Reit Commercial, however, makes no guarantees, warranties or representations as to the accuracy.