The Department of Treasury and IRS has announced the July 15 tax-filing and payment deadline will not be extended a second time due to the coronavirus pandemic. The IRS originally extended the April 15 deadline as a result of the pandemic. However, individuals taxpayers unable to meet the July 15 due date can request an automatic extension of time to file until Oct. 15.

To obtain the automatic extension to Oct. 15, taxpayers filing Form 1040 series returns must file Form 49868 by July 15. The extension provides additional time to file the tax return — it is not an extension to pay any taxes due.

View the IRS news release.

Founded in 1984 by Jim McShane, McShane Construction Company built its first multifamily project in 1998 and has now built nearly 18,000 units. McShane’s expansive multifamily portfolio includes luxury, market-rate, affordable and mixed-income residences; supportive housing, independent living, assisted living and memory care senior living communities; and off-campus student housing.

McShane Construction Company President Jeff Raday, PE

The McShane Construction Company is part of larger organization that also comprises another construction company and a commercial real estate group. The construction company is known nationally as a premiere multifamily general contractor serving clients in 33 states from its headquarters in Chicago and additional offices in Phoenix, Irvine, Calif., Auburn, Ala., and Madison, Wis. President Jeff Raday, PE, articulates the company’s goals: “Exceed client expectations, deliver high-quality projects, and build lasting relationships.”

That’s supported by the fact that 75% of its projects are for repeat clients. Since 2016, overall revenue has grown 69%, with revenue from its multifamily segment increasing by 78%. McShane’s culture cultivates homegrown talent; many of its leaders joined McShane as interns or new college graduates and developed their careers with the company. Its voluntary turnover rate is 7.2%, compared to the industry average of 26.4%.

The company actively looks for talent through multiple pipelines, and implements formal internship, mentorship and future leader programs to help develop that talent. It also looks for opportunities to employ local residents to work on its projects through existing community groups that can offer opportunities for residents to participate in the construction process.

The firm also is committed to collaborating with minority and women business enterprises, and regularly hires minority and female candidates. In 2019, 13.7% of its staff were members of minority groups. Women comprise 21% of its workforce — compared to an industry average of 9.1% — with 18.8% of those women in leadership roles.

“As a family-owned company, workplace culture is very important to us and something we’ve worked to cultivate over the years,” Raday stated. “Each of our employees play an important role in the success of our firm, so we strive to provide them with an environment that fosters growth, learning and a sense of community.”

The company credits its success to adhering to the values that have guided it since its founding: honesty, integrity and partnership. It’s helped make the company a winner — specifically the 2019 Builder of the Year for the Multifamily Pillars of the Industry Awards.

If you are or know another successful builder in the multifamily industry, submit an application today for the next awards cycle. 2020 Multifamily Pillars of the Industry applications are due Aug. 31. Apply today.

The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac (the Enterprises) are allowing servicers to extend forbearance agreements for multifamily property owners with existing forbearance agreements for up to three months, for a total forbearance of up to six months.

While the properties are in forbearance, the landlord must suspend all evictions for renters unable to pay rent. The forbearance extension is available for qualified properties with an Enterprise-backed multifamily mortgage experiencing a financial hardship due to the coronavirus national emergency.

If a forbearance is extended, once the forbearance period concludes the borrower may qualify for up to 24 months to repay the missed payments.

Additionally, if the forbearance is extended, the repayment schedule is modified, or a new forbearance agreement is executed, the borrower is required to provide the following tenant protections during the repayment period:

• Give the tenant at least a 30-day notice to vacate;
• Not charge the tenant late fees or penalties for nonpayment of rent; and
• Allow the tenant flexibility to repay back rent over time and not in a lump sum.

View the FHFA news release.

For further information, contact Michelle Kitchen at NAHB at 1-800-368-5242 x8352.

This July, National Log Homes Open House month might look a little different. In the wake of the COVID-19 pandemic, log-home companies have had to re-approach their open house process with new health and safety protocols in mind, and broaden their education and outreach through online tours, social media seminars and more.

Although most had a number of virtual assets already in place, including online tours and marketing materials, companies are using them to engage with customers in new ways. Many of these companies are seeing traffic increase on their sites by as much as 600%. These assets also afford customers greater flexibility to explore their options.

“The tours allow the sales staff to take someone on a tour instantly and not have to make appointments to get into different homes,” shared Mark Elliott, vice president of Coventry Log Homes. “Because it is available 24/7, our customers are spending time really looking at the details inside the home as they can stay as long as they want.”

“While no media will ever replace a face-to-face meeting, these tools yielded educational opportunities and ways to engage our clients during the isolation,” added Bobbi Landis, marketing manager for Timberhaven Log & Timber Homes. “As a result, we were able to keep them informed and their projects on track.”

Educating Customers

Open houses have not been the only customer outreach practice impacted; log and timber home show events — a frequent customer traffic source in the fall and spring seasons — were canceled as well. By taking many education programs online, companies could engage and educate customers on the log-home buying process through multiple platforms — and reach an even broader audience in the process.

“We usually have anywhere between 80-140 people attend the live event. For the online series, we had over 350 sign up,” noted Josh Beasley, president at Honest Abe Log Homes, Inc., regarding the online series the company launched in April. “Those would be individual contacts, so it would be like having 850+ people at a live event. That was very encouraging.”

The company opted not to do a live virtual event to allow users to watch the videos when they were available, while others are exploring streaming options to allow real-time questions from prospective customers. Golden Eagle Log Homes, for example, launched its first virtual log and timber home show through YouTube on June 24.

“The Virtual Log and Timber Home Show was an effort to bring the environment of a home show into the viewer’s living room virtually,” stated Golden Eagle Log Homes’ Shon Flaherty. “This way they get to have real-time interaction with several members of our staff and get instant responses to their questions.”

Companies have been impressed with the feedback they’ve received from such events as well. Satterwhite Log Homes, which soft launched a virtual seminar to test out the option, noted that customer retention was particularly strong for the two-day event, with most attendees staying the entire time.

Looking Ahead

Virtual events and assets will continue to play a vital role in log-home company operations — both externally and internally, as sales reps connect with customers and other team members, and virtual tours and seminars become even more commonplace.

“I believe online resources like this will continue to grow in popularity, particularly because most folks are now more comfortable with the tools’ accessibility, flexibility and functionality,” Landis observed.

Expect to see more online events as companies explore what platforms and formats work best for engaging their audiences.

For more information on National Log Homes Open House Month, visit loghomes.org.

NAHB Chairman Chuck Fowke and CEO Jerry Howard held a virtual discussion with Treasury Secretary Steve Mnuchin today and urged the secretary to expand eligibility under the Paycheck Protection Program (PPP) to allow more workers in the residential construction sector to access the loan program.

Specifically, NAHB called on Secretary Mnuchin to provide a waiver from eligibility restrictions in the existing Small Business Administration 7(a) loan program to allow single-family and multifamily home builders, land developers, multifamily property owners and 501(c)(6) organizations access to the PPP.

Those 7(a) guidelines contain a list of ineligible businesses for 7(a) loans including, among others, businesses engaged in building “homes for future sale,” land developers and multifamily property owners.

The NAHB leaders said that the guidance should reflect congressional intent that all small businesses in the residential home construction and remodeling industry should have access to these critically important PPP funds during the COVID-19 crisis.

“Builders have been denied loans because of the guidance and many more have not bothered to apply for fear of wasting their time,” said Fowke. “And some who build spec and contract homes have received money but fear their loans will not be forgiven. Again, we believe this runs counter to the congressional intent of the CARES Act to help the broadest universe of small businesses through the COVID-19 disaster.

“We need your help to ensure all small businesses in the residential construction and remodeling sector have access to these funds and we need your help providing certainty to the small businesses in our sector that were lucky enough to receive funds.”

NAHB is also working with Congress to achieve a legislative solution.