Denver Metro Real Estate Continues All-Time Records as Demand for Home in COVID-19 Increases

With months of inventory dropping to an even more historic low, the most coveted gift this holiday season is a new home.

In November, the Greater Denver Metro housing market continued to boost all-time records, with median days in MLS for detached single-family homes at a very speedy five days, representing a tie of the lowest number on record, having seen five days only five times ever before.  

Active listings for both attached and detached single-family homes came in at 3,415, surpassing the previous low set in December 2017 of 3,854. There was additionally a record-high for November average close price for combined single-family detached and attached properties, and detached single-family homes at $549,756 and $615,766 respectively. The previous record for combined single-family detached and attached properties was in 2019 at $486,012. 

While the holiday months do generally see a decline in inventory, months of inventory this particular November hit another record-low at just .71, easily beating October 2020’s former lowest record at .81. For the single-family detached market, Denver only had 1,755 houses currently available for sale, representing just .51 months of inventory. This means, in theory, if no houses were put on the market for two weeks, there would be nothing left to sell.

2 Colorado Cities Among Money's Best Places To Live In 2020

Colorado is once again home to two of the 50 best places in the United States to live, according to a new ranking by Money Magazine. The annual list, released last week, ranks communities based on factors such as safety, cost of living and diversity.

Out of communities on this year's list, Parker ranked No. 2, and Broomfield ranked No. 18.

To determine this year's Best Places To Live, Money analyzed a list of 1,890 communities with a population of at least 25,000. The publication then analyzed 115 separate data points on each community's economy, housing market, education system, employment, weather and more.

Reporters then researched each location to ensure the statistics were an accurate representation of each community. 

Here is the top 20 list:

1. Evans, Georgia
2. Parker, Colorado
3. Meridian, Idaho
4. Rockwall, Texas
5. Columbia, Maryland
6. Westfield, Indiana
7. Syracuse, Utah
8. Franklin, Tennessee
9. Woodbury, Minnesota
10. Morrisville, North Carolina
11. Ashburn, Virginia
12. South Windsor, Connecticut
13. St Peters, Missouri
14. Chelmsford, Massachusetts
15. Menomonee Falls, Wisconsin
16. Mount Laurel, New Jersey
17. Woodstock, Georgia
18. Broomfield, Colorado
19. Abington, Pennsylvania
20. Midlothian, Virginia

Metro Denver Has Two Spots in Top Ten 'Work From Home' Counties in U.S.

Colorado is in the top 10 again, twice. The real estate industry is closely watching the remote work trend as it could have a big influence on clients' future homebuying decisions. More Americans have been working from home due to the COVID-19 pandemic, but some areas of the country may offer more prime remote work conditions.

Colorado has 2 spots in the top 10 according to a new study on the best places to work from home, released Tuesday by the National Association of REALTORS®.

NAR assigned “Work from Home” scores to 3,142 U.S. counties, identifying the best places for working remotely. The study considers internet connectivity, the percentage of workers in office-related jobs, home affordability, urbanization, and a county’s population growth.

“The coronavirus pandemic greatly accelerated the number of workers who are able to work from home,” says NAR Chief Economist Lawrence Yun. “Possibly a quarter of the labor force may be permitted to work from anywhere outside of the office even after a vaccine is discovered—compared to only 5% prior to the pandemic—and this will greatly change the landscape of where people buy homes.”

Texas leads all states with seven counties among the top 30 for remote work, followed by Virginia with four, and Colorado and Georgia with three each.

NAR identified the following top 10 counties for working from home, out of 3,142 counties:

1. Forsyth County, Ga.
2. Douglas County, Colorado
3. Los Alamos County, N.M.
4. Collin County, Texas
5. Loudon County, Va.
6. Hamilton County, Ind.
7. Williamson County, Tenn.
8. Delaware County, Ohio
9. Broomfield County, Colorado
10. Dallas County, Iowa

“With some organizations expanding remote work options and as more people show an ability to remain productive from home, we may see buyers see larger properties that offer space for a potential home office and other features that have become more valuable as a result of this pandemic,” says Vince Malta, NAR’s president. “The growing trend and historically low mortgage rates are spurring potential home buyers to consider a broader range of options and rethink what’s important to them in the long term.”

The growth of remote work will undoubtedly have an impact on the commercial real estate and office sector too, potentially changing the future office sizes and locations.

“The commercial real estate outlook appears uncertain as office spaces may get smaller and organizations consider moving from having a central business district headquarters to several suburban satellite offices,” Yun says. “However, in the retail sector, one can reasonably expect to see some growth in the number of smaller stores in the top 30 counties coming at the expense of similar establishments near downtown office buildings.”

-National Association of REALTORS, Realtor Magazine

Denver Among Top 5 Markets in US Doing Better Now Than Before the Pandemic

There's no point in sugarcoating it: The U.S. economy is a hot mess. The continuing coronavirus pandemic has led to scores of business closures, the worst unemployment since the Great Depression, and the steepest economic contraction on record. 

Yet, despite it all, the U.S. housing market has come back—and then some. After monthslong pauses in many parts of the country, bidding wars and offers over asking price have returned. Cooped-up buyers seeking larger homes and wanting to cash in on record-low mortgage interest rates are battling it out over a very limited supply of properties for sale. Median list prices are up more than 9% over last year, a result of the lack of homes on the market, according to weekly realtor.com® data. (The median home price nationally rose to an all-time high of $349,000 in July.)

“Housing tends to be immune from economic downturns and slowdowns," says realtor.com Director of Economic Research Javier Vivas. That's excluding the past recession, which was caused by a housing bubble. “Right now we’re seeing markets recover faster where they’re able to contain the virus better. Markets with strong technology sectors have been more resilient.” 

So where are these comeback kids—the housing markets rebounding the most since the start of the COVID-19 crisis? 

Realtor.com found that more than half of the largest metropolitan areas have recovered from their pandemic lows.

A score of 100% means the market is performing the same as it was in January. Anything higher shows how much better it's doing. (The list was narrowed to just two metropolitan areas per state to ensure geographic diversity.)

These are the markets that have recovered the most since the beginning of the COVID-19 crisis:

1. Boston, MA, 122.52%
2. Seattle, WA, 113.73%
3. New York, NY, 112.74%
4. Philadelphia, PA, 112.35%
5. Denver, CO, 111.66%
6. San Francisco, CA, 109.27%
7. Los Angeles, CA, 108.78%
8. Las Vegas, NV, 107.710%
9. Rochester, NY, 106.61%
10. Memphis, TN, 105.9%

-Realtor.com

June 2020: Most Pendings in Denver HISTORY (!?)

Metro Denver hit an all-time record in June: highest number of homes that went under-contract EVER, with 7,676 homes/townhomes/condos that went pending in June. That is 27% more than June 2019, and the most in any month in Denver HISTORY! I'm seeing this first-hand as I've been in constant bid-wars for buyers and receiving multiple competing offers for sellers, all $15,000 to $30,000 over asking-price! It's a ruthless shark-frenzy out there, but fortunately I've been able to make my buyers the winning offer, and get my sellers extremely high offers and excellent terms for their homes. One of my listings had 12 extremely strong offers in less than 30 hours! This is actually not a seller's market: it is a hyper-seller's market. 

What is causing this HUGE demand for housing
in an unstable economy?

I think one of the main reasons for this huge demand in housing is the experience of the quarantine. Families and roommates are much more aware of the need for the security of a home during things like a global pandemic, and the necessity and functionality of different spaces in a post-COVID world: spaces where kids can play or do school work, offices where adults can actually work in peace (which aren't the master bedroom...or bathroom lol!), basements which can provide a whole other recreational flex space, backyards to be able to get out of the house, garden, and enjoy sunsets and cooler evenings. The psychology of a home and our understanding of it is returning back to its original value and essentiality: it is so much more than a place to store your stuff and sleep, or be "tiny": it is your safe place where much of life actually happens.

A few other interesting stats:

• There were 57% more closings in June than May (COVID-induced lull for May)
• There is half a month of inventory from $200k to $500k which is about as scarce as it gets in real estate. There is 1 month of inventory from $500k to $750,000.  $750k-$1MM has 2 months of inventory (still a hot seller's market), and $1MM+ has 4.3 months of inventory, which actually represents a "balanced market."
• The averaged closed price was 2% higher than June 2019 at $509,736
• The average number of active listings from 1985 to 2019 was 16,376. There were 6,383 active listings at the end of June.
• 2,427 homes went pending in the last 7 days. There are currently 8,237 homes under contract. June's all-time record may be broken by July. 
• There are only 5,573 active homes for sale right now.
• Interest rates are at 3.125% today for a 30-year loan! 

Who is this market good for: renters to get in at lowest interest rates in history, and sellers to upgrade from small home to bigger home, realize serious equity, and have a similar monthly payment on the bigger home because of their equity and low interest rates. 

Some Economists Claiming this as Shortest Recession in History

Jobs Numbers and Unemployment rocked the news this week with numbers that defied the recession.  ADP Jobs Report came out first on Wednesday SIX million lower than expected pushing the Nasdaq just shy of a record high and recouping all of its losses for 2020.  

​

Thursday's Jobless Claims released on Thursday on the other hand showed while initial claims dropped again, the continuing claims rose as some returned to work, but others are hanging onto their COVID unemployment pay.

​

Friday's May Unemployment Rate took the prize though.  Surprising almost everyone by dropping from 14.7% in April to 13.3% in May.  Many economists were expecting the bottom to hit in May.  The report showed we hit the bottom in April instead.  We had a gain of 2.5 million jobs as restaurants, hotels, and yes.. even Universal Studios reopen.  Let's face it.. American's want to travel, we want to be entertained.  

Did the stock market know before the economists?  Seems so!  Watch out though.. Greed returns to Wall Street as the Fear-Greed Index just tipped over to Greed this week.  Are we in store for a correction? 

Regardless, the metro Denver housing market is still strong, with less than 2 months of inventory, and buyers and sellers coming back quickly, seen by multiple offers on many new listings.   

Lending Programs RETURN

As the economy settles, the forbearance curve flattens and the financial markets become more stable, we are seeing loan programs return.  Such GOOD NEWS for our clients. 

• Jumbo loans are back for buyers and refinance clients up to an 80% loan to value and a 720 credit score
• CHFA and our other state DPA programs return with NO restrictions!  This is the program I am most excited about as we help more people move into home ownership and building wealth.
• Renovations loans are back in full hammer swing!
• Broker loans and Non-QM are slowly returning as well.

All of those first time home buyers did NOT go away!  In fact, loan applications for FTHB had a 50% less decline than move-up buyers in April, and are DOUBLE the amount of repeat homebuyers in May. Inventory is low, and demand is high. The housing market is as strong as ever. 

Fannie Mae, Freddie Mac will allow borrowers who took forbearance to refinance their mortgage

While many people were speculating that the millions of mortgage forbearances would lead to a foreclosure wave, this is more evidence against that assumption. 

-Housing Wire: The most recent data shows that there are approximately 4.1 million borrowers in forbearance on their mortgage, but a lack of clarity in the wording of the CARES Act was leaving many of those borrowers unable to take advantage of the recent record lows in interest rates.

But that’s not the case anymore.

The Federal Housing Finance Agency announced Tuesday morning that Fannie Mae and Freddie Mac will now allow borrowers who went into COVID-19 forbearance to refinance their loan or buy a new home with the support of the GSEs as long as they’ve made three straight months of payments after their forbearance ends.

That’s much different from the previous thinking that a borrower may not be able to get another GSE mortgage for as many as 12 months after they exit forbearance.

The CARES Act stipulates that mortgage servicers “shall report the credit obligation or account as current” on any loan that goes into COVID-19-related forbearance.

But, as HousingWire’s Kathleen Howley reported last week, some borrowers were seeing notations on their credit reports like “Account in forbearance, payment deferred.’’

That was creating a problem for borrowers who were ready to exit forbearance or those who got put into forbearance by accident. As Howley wrote, the sentiment among loan officers was that any notation of “forbearance” on a borrower’s credit file would prevent them from getting another GSE-backed mortgage, either through a refi or buying a new home, for 12 months.

Now, the GSEs are shaving nine months off of that waiting period, which would allow more borrowers to take advantage of the market’s low interest rates instead of being shut out for a year.

According to the FHFA, borrowers are now eligible to refinance or buy a new home with GSE backing three months after their forbearance ends as long as they’ve made three consecutive payments under their repayment plan, or payment deferral option or loan modification.

Also, borrowers who went into forbearance (either of their own volition or by accident, as happened to some borrowers) but continued to make their mortgage payments are eligible to refinance or buy a new home as long as they are current on their mortgage.

Here, from Fannie Mae, are more details on how borrowers who either requested and/or accepted forbearance may be eligible for a refi or new mortgage:

Under the temporary eligibility guidelines, effective immediately, homeowners who missed payments and entered into a loss mitigation solution – such as a repayment plan, payment deferral, or loan modification – are eligible for a new refinance or purchase mortgage after three timely payments.

There is no waiting period for borrowers who missed payments due to a COVID-19 financial hardship but have since completed reinstatement by repaying the full amount of the outstanding payments missed during the forbearance period.

There also is no waiting period for borrowers who requested forbearance due to a COVID-19 financial hardship but ultimately were able to make all their payments in full and on time.

“Homeowners who are in COVID-19 forbearance but continue to make their mortgage payment will not be penalized,” FHFA Director Mark Calabria said. “Today’s action allows homeowners to access record low mortgage rates and keeps the mortgage market functioning as efficiently as possible.”

But that’s not the only change the GSEs announced today.

Last month, Fannie and Freddie announced that they would begin buying loans that went into first-payment forbearance, meaning those where the borrower went into forbearance within one month of the loan closing.

That policy was set to expire on May 31, but the FHFA said Tuesday that the GSEs are extending it through August 31, 2020.

“The Enterprises are now able to buy forborne loans, with note dates on or before June 30, 2020, as long as they are delivered to the Enterprises by August 31, 2020 and have only one mortgage payment has been missed,” the FHFA said Tuesday. “FHFA and the Enterprises will continue to monitor the impact of the coronavirus national emergency on the housing finance market and update our policies as necessary.”

2019 vs 2020: Let's Compare Showings and Newly Added Listings

Good chart from First Alliance Title of showings this time 2019 vs 2020, and newly added listings this time 2019 vs 2020. After stay-at-home orders were lifted showings sky-rocketed even passed 2019 numbers (because of less houses to see), and newly added listings started increasing.

The "New Normal": Denver Buyers Buying Homes with Virtual Tours

Understand How the Coronavirus Stimulus Package Can Help You

The National Association of Realtors made an easy-to-understand summary of all the relief and aid in the $2 trillion Coronavirus Stimulus Package.  

Whether you are a home-owner, business-owner, employee, renter, or student, THIS CAN HELP YOU. 

Check out details below:

Click here for NAR Stimulus PDF

Housing

Provides For:

• Mortgage Forbearance - Borrowers of government-backed mortgages ((Fannie Mae, Freddie Mac, HUD, VA and USDA) can request up to 360-day payment forbearance without proof of hardship. No additional fees, interest, or penalties can be assessed for the forbearance. Except for abandoned or vacant property, there may be no foreclosure actions for 60 days from 3/18/2020.
• Owners of multifamily properties who were current on their mortgage payments as of February 1, 2020, and have federally insured, assisted, or supplemented loan (Fannie Mae, Freddie Mac, FHA or any loans backed or assisted by any branch of the federal government, including LIHTC) may request forbearance for 30 days due to financial hardship, with extensions of up to a total of 90 days. Borrowers receiving the forbearance may not evict or charge late fees to tenants for the duration of the forbearance period.
• Moratorium on eviction filings, or fees or penalties for tenants for nonpayment of rent for 120 days on properties insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, covered by the Violence Against Women Act of 1994.
• $1.25b for Section 8 voucher rental assistance for seniors, the disabled, and low-income working families, who will experience loss of income from the coronavirus.
• $5b for CDBG to help communities and states address COVID-19.
• $1 billion for project-based rental assistance to make up for reduced tenant payments as a result of coronavirus.
• $50m for Section 202 Housing for the Elderly to maintain housing stability and services for low-income seniors.
• $15 million for Section 811 Housing for Persons with Disabilities to make up for reduced tenant payments as a result of coronavirus.

Credit Reporting & Student Loans

Credit Reporting

• If furnishers provide an accommodation and the customer makes their payment or if no payment is required, then the furnisher must report customer as current.
• If the customer was delinquent before the accommodation, but brings account current, then the furnisher must report customer as current.
• Furnishers may maintain status of written off accounts.
• These provisions apply from January 30, 2020 to 120 days after enactment of this bill or the end of the national emergency.

Student Loans

• Suspends all payment due on federal student loans for 6 months.
• Interest shall not accrue on these during this forbearance.
• For the purpose of loan forgiveness, loans will be deemed paid during the forbearance.
• Prohibits negative credit reporting or involuntary debt collection during forbearance period.

Small Business Administration Provisions

Economic Injury Disaster Loans (EIDL) and 7(a) Payroll Protection Plan

The CARES Act dramatically increased the role of the Small Business Administration (SBA) in efforts to assist U.S. businesses impacted by the COVID-19 crisis. The two main vehicles for these relief efforts are the SBA 7(b)(2) loans – Economic Injury Disaster Loans – and the SBA 7(a) loan program. Both loans are available to businesses with 500 or fewer employees that have been negatively impacted by the crisis.

Emergency Economic Injury Disaster Loan (EIDL) Grants (Section 1110)

• Businesses with 500 employees or fewer, including sole proprietors, independent contractors, and cooperatives are eligible for Economic Injury Disaster Loans (EIDL) during the covered period of January 31st to December 31, 2020 in response to COVID-19.
• The business must show hardship due to the Coronavirus.
• The Economic Injury Disaster Loans are available for up to $2 million dollars for businesses.
• During the covered period, SBA can determine loan eligibility based solely on the applicant’s credit score or use of an alternative appropriate method for determining an applicant’s ability to repay.
• The SBA must waive any personal guarantee on loan advances or loans under $200,000.
• Legislation provides $10 billion in funding to provide an emergency advance of up to
• $10,000, which is forgivable debt, to small businesses within 3 days of the business applying for the Economic Injury Disaster Loan (EIDL).
• Economic Injury Disaster Loans may be used for the following:
  • Paid sick leave to employees impacted by COVID-19
  • Payroll
  • Rent/Mortgage Payments
  • Debt obligations due to loss revenues
  • Increased costs for due to chain supply disruptions and materials.

SBA 7(a) Payroll Protection Program (Section. 1102 & 1106)

• Businesses with 500 employees or fewer, including sole proprietors and independent contractors, are eligible for SBA 7(a) loans in response to COVID-19 covering expenses for the period of February 15, 2020 through June 30, 2020. The CARES Act appropriates $349 billion to cover these loans.
• The loan amount will be 250% of the average salary expenditures/month for the year prior to the loan, up to $10 million. For businesses not open yet in that period, the SBA will look at earlier receipts from 2020.
• 7(a) loans can be used for:
  • o    Payroll, including for independent contractors and employees who work on commission;
  • o    Rent/Mortgage interest;
  • o    Utilities.
• All or a portion of these loans will be forgivable for businesses that maintain at least 75% of the average payroll levels as in the previous year; forgivable amounts phase out as employers payroll levels drop below that.
• The bill also increases the SBA “Express Loan” limit from $350 thousand to $1 million.

Infrastructure

• Expands broadband by providing $100 million for the reconnect pilot program, which provides grants, overseen by the Department of Agriculture, to fund construction and upgrade costs of broadband networks in rural areas. This will promote economic growth and increase opportunities for home sales. Studies have concluded that in communities where there is access to high speed internet, property values are 6 percent higher.
• Provides $20,000,000,000 for ‘‘Transit Infrastructure Grants’’. Of this, $4,000,000,000 shall be available for formula grants for rural areas and $16,000,000,000 shall be available for urbanized area formula grants.

Tax

Highlights - What the tax changes mean for REALTORS® and their clients and businesses:

• REALTORS® and their families and their clients, as well as most Americans, with incomes below the thresholds will receive cash payments from the federal government in the amount of $1,200 per adult plus $500 for each child under the age of 17. These payments should be sent out starting in April.
• REALTORS® with retirement accounts, including IRAs, can take early withdrawals of up to $100,000 from those accounts without having to pay the 10% early-withdrawal penalty. Those who withdraw such funds can recontribute them to the plan over three years or can keep the money and pay the tax on the withdrawals over a three-year period.  
• REALTORS® aged 70 1/2 or older do not have to worry about taking required minimum distributions from retirement plans in 2020, or to pay the taxes on those distributions.
• REALTORS® who make donations of up to $300 in charitable contributions in 2020 can deduct them whether they itemize or not.  
• If your business has 100 or fewer employees, you can claim a refundable employee retention tax credit against payroll taxes of up to $5,000 per employee under certain circumstances.  Larger employers also can claim the credit, but with more restrictions.
• Employers and self-employed individuals can delay the payment of the employer-portion of the FICA (Social Security) payroll taxes or one-half the SECA (self-employment taxes) until after 2020 – one half is due in 2021 and the other half in 2022.
• Businesses with losses can carry back net operating losses (NOLs) to prior taxable years and get refunds of earlier taxes paid.

Details:

2020 Recovery rebates for individuals (Section 2201):

• Tax credits are provided for individuals in the amount of $1,200 for single returns and $2,400 for joint returns
  • plus $500 for each child (under age 17 and qualifying for the child credit);
• Credits are reduced by 5% of the excess of adjusted gross income (AGI) over these thresholds:
  • $75,000 for a single return;
  • $150,000 for a joint return; and
  • $112,500 for a head of household return:
    • Thus, the credits would be fully phased out for income higher than the following amounts:
• $99,000 for a single person with no qualifying child;
• $198,000 for a couple filing a joint return with no qualifying children;
• $218,000 for a couple filing a joint return with two qualifying children;
• $146,500 for a single parent with one qualifying child:
  • (in all cases, the level of income before the phaseout is complete increases by $10,000 per child).
    • For limitation purposes, AGI is based on the 2019 tax return, if filed.  If not, then AGI on the 2018 return would be the limit.
• There is no income floor or phase-in – all whose income does not exceed the thresholds will receive the same amount.  Non-tax filers generally need not file a tax return to claim a rebate.
• The credits are not available to anyone who can be claimed as a dependent on another’s return.
• If a tax return has not yet been filed for 2019, the 2018 tax return will be the point of reference.  If no tax return was filed for either year, rebates can still be sent based on information on Social Security benefit statements.
• The rebates are fully available to residents of U.S. Territories, including Puerto Rico.
• The IRS will send out the payments electronically if any tax refund was sent in such a manner for the 2018 or 2019 tax return – also there will be a notice by mail to the last known address that the payment has been made electronically.  If not, a paper check will be sent.
• Also, the act calls for a public awareness campaign to inform people about the rebates.
• No credit allowed if correct ID numbers (Social Security numbers) were not on tax returns, except in cases of spouses of active military personnel.
• IRS and Social Security Administration are appropriated extra funds to carry out the rebates.

Special Rules for Withdrawals from Retirement Funds (Section 2202):

• The 10% extra tax on early withdrawals from IRAs and qualified retirement plans shall not apply to distributions of up to $100,000 related to coronavirus:
  • These are distributions made in 2020 to an individual diagnosed with COVID-19 or whose spouse or dependent is diagnosed or who experiences adverse financial consequences as a result of being quarantined, furloughed, or laid off due to such virus or is unable to work due to lack of child care or closing or reduced hours of his or her own business.
• Such amounts can be repaid to the retirement plan over a 3-year period;
• If not repaid, the regular tax on the distribution can be paid over a three-year period;
• Certain coronavirus-related loans up to $100,000 from defined contribution plans are not treated as distributions and the repayment of such loans is extended.

Temporary Waiver of Required Minimum Distribution Rules for Certain Retirement Plans and Accounts (Section 2203):

• The required minimum distribution (which requires people who turned age 70 ½ in 2019 to include a portion of their IRA or other defined contribution retirement account in their income) is waived for 2020.

Allowance of Partial Deduction for Charitable Contributions (Section 2204):

• For 2020, charitable contributions of up to $300 are deductible for those who do not itemize deductions;
• Must be cash contributions to charities (but not to private foundations or donor advised funds).

Modification of Limitations on Charitable Contributions During 2020 (Section 2205):

• The 60% of AGI limit for cash contributions is increased to 100% for charitable donations made in 2020. For corporations, the 10% of taxable income limitation is increased to 25%. For donations of food inventory, the limitation increases from 15% to 25%.

Tax Exclusion for Employer Payments of Student Loans (Section 2206):

• Payments by employers on student loans of employees are not subject to tax in 2020, up to $5,250 per employee.  This cap also includes other educational assistance paid by the employer.

Employee Retention Credit for Employers Subject to Full or Partial Closure Due to COVID-19 (Section 2301):

• Eligible employers (including certain tax-exempt organizations) can receive a refundable tax credit against payroll taxes for 50% of wages paid to certain employees during the COVID-19 crisis.
  • Wages subject to the credit for any employee cannot exceed $10,000, including health benefits.
  • The credit cannot exceed the employer’s amount of Social Security (OASDI) taxes paid by the employer, reduced by any credits allowed for paid sick leave and paid FMLA leave (enacted in earlier coronavirus legislation).
  • Eligible employers are those:
    • carrying on a trade or business and that suffer a full or partial suspension of operations due to orders from a government authority to limit commerce, travel, or group meetings due to COVID-19; or that suffer a decline in quarterly gross receipts of more than 50%, measured against the same period in the prior year.
    • For employers with 100 or fewer full-time employees, all employee wages are eligible for the credit, regardless of whether an employee is furloughed or has hours reduced.
    • For employers with more than 100 full-time employees, wages eligible for the credit are those paid to employees when they are not working due to COVID-19-related circumstances.
    • The credit is not available to employers receiving Small Business Interruption Loans.
    • The credit is provided for wages paid or incurred from March 13 through December 31, 2020.

Delay of Payment of Employer Payroll Taxes (Section 2302):

• Employers and self-employed individuals are allowed to defer payment of the employer share of the Social Security taxes of employees (this is one-half of the self-employment taxes of a self-employed individual) that arise between the effective date of the act and the end of 2020.  The deferred tax can be paid over the following two years, with half required to be paid by December 31, 2021, and the other half due by December 31, 2022.
  • Employers who take advantage of SBA 7(a) loans designated for payroll are not eligible.

Modifications for Net Operating Losses (Section 2303):

• Allows businesses to carry back net operating losses from 2018, 2019 or 2020 against profitable years, up to five years, and get immediate refunds. The current taxable income limitation is also temporarily removed to allow an NOL to fully offset income.

Modification of Limitation on Losses for Taxpayers Other Than Corporations (Section 2304):

• Retroactively modifies limitation on loss provision passed in TCJA for individuals and pass-through businesses so they can utilize excess business losses and access cash flow through net operating loss carrybacks.

Modification of Credit for Prior Year Minimum Tax Liability for Corporations (Section 2305):

• The corporate alternative minimum tax (AMT) was repealed by the Tax Cuts and Jobs Act, but corporate AMT credits were made available as refundable credits over several years, ending in 2021.  The provision accelerates the ability of companies to recover those AMT credits.

Modifications of Limitation on Business Interest (Section 2306):

• Temporarily increases the amount of interest expense that businesses are allowed to deduct by increasing the 30% limitation to 50% of taxable income for 2019 and 2020. Special rules apply for partnerships.  This will provide relief for larger businesses (including commercial real estate firms) with interest expense (firms with average annual gross receipts of $25 million are generally exempt from the interest deduction limitation rules).

Technical Amendment Regarding Qualified Improvement Property (Section 2307):

• Technical fix for Qualified Improvement Property – allows businesses to write off immediately the costs associated with improving internal improvements to certain real estate (including restaurants and retail stores), instead of having to depreciate them over the 39-year life of the building. This corrects an error in the Tax Cuts and Jobs Act and allows companies to file for refunds with an amended tax return for 2018 and access cash and also encourages them to continue to invest in internal improvements to buildings.

Unemployment Benefits for Self-Employed

• Self-employed individuals, independent contractors, and other individuals who are unable to work as a direct result of COVID-19 public health emergency, and would not qualify for regular unemployment benefits under state law may be eligible to receive “Pandemic Unemployment Assistance.”
  • This excludes individuals who have an ability to telework with pay or individuals who are receiving sick leave or other paid leave benefits.
• The unemployment assistance is available to individuals who are unemployed, partially unemployed, or unable to work for the weeks impacted as a result of COVID-19 between Jan. 27- December 31, 2020.
• These benefits will be administered by the states, in accordance with this new Federal law.
• There is a maximum of 39 weeks of assistance, where the amount is equal to what is authorized under the state unemployment compensation law, plus an additional $600 per week for up to four months.

Families First Coronavirus Response Act (FFCRA) Amendments

Limitation on Paid Leave (Section 3601)

• Amends the Family and Medical Leave Act (FMLA) expansion in the FFCRA to ensure that no employer is required to pay more than $200 per day and $10,000 in the aggregate for each employee.

Paid Leave for Rehired Employees (Section 3606)

• Expands the FMLA leave in FFCRA to include as eligible employees, those that were employed for 30 days but were laid off by that employer after March 1, 2020, had worked for the employer for not less than 30 of the last 60 calendar days, and was rehired by the employer.

Emergency Paid Sick Leave Act Limitation (Section 3602)

• Amends the emergency paid sick leave provisions in the FFCRA to
  • ensure that no employer is required to pay more than either $511/day and $5,110 in the aggregate for direct COVID-19 impact or $200/day and $2,000 in the aggregate for care of others related COVID-19 impact.

Colorado Resources for COVID-19 Unemployment, Jobs, Rent, Bills, Mortgage and Other Assistance!

Here is an excellent list of resources for anyone in need to tap into! Pass it on!

(Disclosure: claiming unemployment or asking for mortgage or rent forbearance may negatively impact your ability to qualify for a loan in the future). 

Unemployment Assistance - FAQs, Info
U.S. Department of Labor: https://www.dol.gov/newsroom/releases/eta/eta20200312-0

Colorado Unemployment Insurance Info and App: https://www.colorado.gov/pacific/cdle/file-claim

Find a Job: Many companies are looking for employees now!

https://www.connectingcolorado.com/

Mortgage Assistance:

Information from the Consumer Financial Protection Bureau: https://www.consumerfinance.gov/ask-cfpb/if-i-cant-pay-my-mortgage-loan-what-are-my-options-en-268/

On March 18, 2020, the Department of Housing and Urban Development (HUD) suspended all foreclosures and eviction actions on mortgages insured by the Federal Housing Administration (FHA) for the next 60 days. The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac will also suspend all foreclosures and evictions for the same 60 day period.

Denver and Greater Metro Area: https://search.211colorado.org/search?terms=mortgage%20payment%20assistance&page=1&location=colorado&service_area=colorado

Rent Assistance:

Housing Counseling from HUD: https://www.hudexchange.info/programs/housing-counseling/

On March 18, 2020, the Department of Housing and Urban Development (HUD) suspended all foreclosures and eviction actions on mortgages insured by the Federal Housing Administration (FHA) for the next 60 days. The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac will also suspend all foreclosures and evictions for the same 60 day period.

Denver: https://www.denvergov.org/content/denvergov/en/housing-information/resident-resources/stay-in-your-home/rent-utility-help.html

Denver and Greater Metro Area: https://search.211colorado.org/search?terms=rent%20payment%20assistance&page=1&location=colorado&service_area=colorado

Utility Assistance:

Many utility and service providers across the nation are suspending disconnections and offering special allowances or payment plans at this time. First and foremost, reach out directly to your service provider to ensure no disruption in service and to make necessary arrangements.

Denver: https://www.denvergov.org/content/denvergov/en/housing-information/resident-resources/stay-in-your-home/rent-utility-help.html

Small Business Assistance and Loans:

Small Business Disaster Loan Assistance Program: The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Washington small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). For more information or to apply: https://disasterloan.sba.gov/ela

SCORE is a nationwide nonprofit organization of thousands of volunteer business counselors trained to serve as advisors to business owners. https://www.score.org/

Federal Income Tax Filing and Payment Deadline Extension: The federal tax return filing deadline is now July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses to July 15, 2020. Estimated tax payments for 2020 originally due on April 15 will now be due on July 15.

Facebook Small Business Grants Program: Facebook is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries due to the effects of COVID-19. Not much information is currently available, but sign up to be included as more comes available here: https://www.facebook.com/business/boost/grants?ref=alias

Denver Small Business Emergency Relief, program offers cash grants up to $7,500 to business in industries particularly hard-hit by COVID-19, including restaurants, retail shops, babershops and nail salons. Grants will be distributed monthly and the first applications are due by March 31. Interest Form here: https://www.denvergov.org/content/denvergov/en/environmental-health/news/coronavirus-info/support-services/small-business-emergency-relief-program-form.html

Other (Student Loans, Food, Internet Resources):

Student Loans Deferment: Student Loan Deferment or Forbearance
Information from the Department of Education: https://studentaid.gov/announcements-events/coronavirus

Internet Resources:Xfinity WiFi hotspots across the country are available to anyone who needs them for free, including non-Xfinity Internet subscribers. For a map of Xfinity WiFi hotspots, visit www.xfinity.com/wifi. Once at a hotspot, you can select the "xfinitywifi" network name in the list of available hotspots and then launch a browser.

Industry-Specific Assistance:Bartender Emergency Assistance Program Grant through the United States Bartending Guild Foundation for eligible industry workers that have been displaced during COVID-19: https://www.usbgfoundation.org/

If you are a bartender, barback, bar server, or are otherwise engaged in the service or preparation of alcoholic beverages, you are eligible.

Restaurant Workers' Community Foundation (RWCF), its COVID19 Crisis Relief Fund has been established to:
i) Immediately direct money to organizations leading on-the-ground efforts in the restaurant community, ii) To bolster our impact investing budget to provide zero-interest loans to businesses to maintain payroll during closure or re-open once this crisis has passed. iii) To establish a relief fund for individual workers facing economic hardships or health crises as a direct result of COVID-19. https://www.restaurantworkerscf.org/news/2020/3/15/restaurant-workers-community-foundation-announces-the-formation-of-restaurant-workers-covid19-crisis-relief-fund

RWCF has assembled an impressive list of resources for restaurant workers here: https://www.restaurantworkerscf.org/news/2020/3/15/resources-for-restaurants-and-workers-coping-with-the-covid-19-emergency

One Fair Wage, Emergency Coronavirus Tipped and Service Worker Support Fund, providing free, cash assistance to restaurant workers, delviery drivers and other tipped workers and service workers. https://ofwemergencyfund.org/help

Air Force Aid Assistance, Air Force Aid Society, offering no-interest loans and/or grants to members of the Air Force, Airmen, and families; https://afas.org/how-we-help/emergency-assistance/

American Guild of Musical Artists (AGMA), American Guild of Musical Artists Relief Fund, offering financial assistance for rent, utilities, mental health, and medical care; as well as other basic living expenses for any AGMA member in good standing or on honorable withdrawal; https://agmarelief.org/eligibility/

And many many more. Great collection of nationwide industry specific programs available here: https://www.fool.com/the-ascent/research/where-find-financial-help-during-coronavirus-pandemic/

Food Assistance/Meals
Denver: https://www.denvergov.org/content/denvergov/en/environmental-health/news/coronavirus-info/support-services.html#food

Statewide: http://www.cde.state.co.us/nutrition/nutriemergencyfeeding

Emergency Childcare for First Responders: https://covidchildcarecolorado.com/

Eviction or Foreclosure Information:

On March 18, 2020, the Department of Housing and Urban Development (HUD) suspended all foreclosures and eviction actions on mortgages insured by the Federal Housing Administration (FHA) for the next 60 days. The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac will also suspend all foreclosures and evictions for the same 60 day period.

While there is not yet a statewide shutdown of the court system, many counties are individually deciding to postpone hearings. Additionally, many Sheriff's offices, including Denver County are delaying evictions. Cases may still be filed however the timeframe to process will likely be drawn out. The Governor and Attorney General have called upon Landlords and banks to refrain from displacing tenants until this has passed.

Useful Websites and Other Resources:

211.org - Get Connected. Get Help. A national network providing a wealth of resources and assistance spanning from food assistance to monthly housing needs. Visit http://211.org/services/covid19 to find your local 211 and learn the assistance available to you.

Salvation Army, check in with your State's Salvation Army for what is being coordinated near you: https://www.salvationarmyusa.org/usn/covid19/