The U.S. Occupational Safety and Health Administration (OSHA) is considering a new standard on tree care operations that could add additional requirements to workers when dealing with trees, including those on construction sites.

OSHA says that the fatality and injury rates for tree trimmers and pruners are extraordinarily high and that there is no existing OSHA standard for Tree Care Operations. Some of the work requirements OSHA may include in a new standard include written safety and health programs, job hazard analyses, and guidance on personal protective equipment.

OSHA next week will complete a Small Business Advocacy Review (SBAR) Panel to explore the impact of a new standard on small businesses as required under the Small Business Regulatory Enforcement Fairness Act (SBREFA).

Home builder and remodeler Carl Chretien, owner of Maine-based Chretien Construction and Vice President of the Home Builders & Remodelers Association of Maine, served as a Small Entity Representative on OSHA’s SBAR panel for the potential new standard.

Chretien noted in a detailed letter to OSHA that the current scope of the standard it is considering is overly broad and potentially harmful to small home builders like his company.

“The general requirements of Tree Care Operations Standard are burdensome and much too expensive for a residential home builder that only performs work on smaller trees,” he wrote.

Chretien is urging OSHA to better define a “tree” and exempt from the requirements of the standard work that is done on smaller trees. He proposes exempting work done on trees under 6 inches in diameter and shorter than 20 feet.

“If OSHA does not agree with this exemption, the Agency needs to develop some other approach that exempts this routine, low-risk work, which home builders routinely perform,” he notes.

OSHA’s SBAR panel report will be entered into the docket on Regulations.gov and the rulemaking will move to the next phase, which will involve public comment. NAHB will closely monitor the advancement of the potential new standard and provide appropriate comment.

For more information on OSHA safety regulations, contact Rob Matuga.

NAHB would like to understand how COVID-19 continues to impact business for multifamily builders and developers. Responses will help NAHB advocate for policy changes to keep the housing sector running with as little disruption as possible during this difficult time.

The latest survey, which will run from May 11-17, is available here.

April’s survey results indicated that the most widespread problems related to the coronavirus pandemic among multifamily developers were:

• Supply of N95 respirator face masks (86% of respondents);
• Traffic of prospective buyers/renters (85%); and
• Costs related to renters’ health and safety (82%).

Rent collection has also been a source of concern. As of the close of the last survey on April 9, respondents noted on average that 18% of tenants missed their last payment. That average was higher (24%) among members of the Affordable Housing Group. As unemployment continues to increase, May will likely be a more telling indicator of the effects of coronavirus on this component of the market.

To see NAHB’s most recent COVID-19 advocacy efforts surrounding the multifamily industry, visit nahb.org.

In response to concerns raised by a bipartisan group of lawmakers, the IRS has reversed guidance to allow employer-paid health insurance costs to be eligible for the employee retention tax credit, even if the employer has furloughed workers and is not otherwise paying wages.

The IRS has updated its FAQ to state that “[e]ligible employers may treat health plan expenses allocable to the applicable periods as qualified wages even if the employees are not working and the eligible employers does not pay the employees any wages for the time they are not working.”

The tax credit is designed to support eligible employers whose businesses are disrupted due to COVID-19 and was included in the CARES Act that was recently enacted into law.

In general, eligible employers are allowed a credit equal to 50% of up to $10,000 in qualified wages with respect to each employee.

To claim this credit, the business must experience one of these two events:

• The operation of the trade or business is fully or partially suspended during the appropriate calendar quarter due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings due to COVID-19; or
• The trade or business experiences a significant decline in gross receipts, with a 50% decline in gross receipts when compared to the same quarter in the prior year.  Businesses remain eligible until their gross receipts recover to 80% when compared to the same quarter in the previous year.

However, employers receiving a loan under the Payroll Protection Program are not eligible for the employee retention credit.

For more information, contact J.P. Delmore at 1-800-368-5242 x8412.

NAHB is providing this information for general information only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question.

Employment plunged in April, with a record total of 20.5 million jobs lost for the month. The unemployment rate increased to 14.7%. This level of loss and the unemployment rate are post-World War II highs, and represent a partial reflection of the 33.5 million jobless claims that have been filed over the last seven weeks.

While the numbers are staggering, it is important to note that they are due to government-imposed public health strategies. For example, there are now 18 million people on temporary furlough. Hopes for a faster rebound in economic activity lay with this number. While NAHB’s forecast is more U-shaped for the overall economy (we see continued economic weakness persisting into the third quarter due to small business issues and elevated unemployment), these temporary layoff totals give a sense of the number of people who believe their job will return as the economy reopens.

Residential construction employment and remodeling declined by 415,000 positions in April. This decline places the industry employment total at 2.54 million, which is near November 2015 levels. Unlike the Great Recession, housing enters this downturn underbuilt, with a housing deficit of approximately 1 million residences. This potential demand means that housing is a sector that can provide economic momentum in a recovery. However, there are limiting factors such as the availability of builder financing. Indeed, banks reported net tightening for commercial real estate lending conditions, as well as declines for demand for such loans.

Despite the labor market plunge in April, housing demand showed some recent signs of optimism. Purchase applications for mortgages staged a small but positive set of improvements over the last three weeks as a sign of latent housing demand. Purchase application volume remains 19% lower than a year ago, however, due to both job losses and tighter credit conditions. Yet, housing held considerable momentum as we began 2020, so any recovery will feature renewed residential construction hiring and economic activity.

For more information and resources about the economic impact of the coronavirus, visit nahb.org/coronavirus.