The “Russian Ripple”

 The last thing a recovering economy needs is worldwide instability due to a maniac’s dreams of grandeur…

Wenston DeSue

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access, purpose and often times, power.  These articles represent aspects that affect the business of real estate. 

Russia-Ukraine War May Affect Housing, Economy

Stocks and cryptocurrencies lost value, which can impact luxury sales – but a general drop in economic confidence can affect every level of the real estate market.

NEW YORK – Russian airstrikes battered Ukrainian cities this week, and the conflict is being felt around the globe. Financial markets worldwide likely will feel the impact from the Russian invasion of Ukraine, the largest military operation in Europe since World War II. Economists are warning that the U.S. housing market should brace for some possible changes in consumer behavior.

The luxury real estate market may feel the disruption the most, as financial resources homebuyers use to pay for home purchases, such as stocks and cryptocurrency, have been volatile since the conflict began. The global unrest also could give American consumers the jitters and prompt them to cut back on spending and economic activities, The New York Times reports.

But aspiring homebuyers in all price ranges may become more hesitant to make large purchases amid stock market uncertainty and fears of how a potential full-blown war in Europe might affect U.S. inflation – which is already at a 40-year high. Escalating inflation is hurting renters, buyers, and homebuilders who are facing rising construction costs, realtor.com reports.

“It’s all bad for the economy and housing. It’s just a matter of how bad,” Mark Zandi, chief economist at Moody’s Analytics, told realtor.com. “There’s a number of different ways in which Russia’s actions will hurt housing.”

The conflict could put more pressure on rising oil and food prices, which, in turn, could weigh more heavily on consumers’ household budgets. Russia is the second-largest oil producer in the world, and although the U.S. imports little Russian oil, the conflict could roil global energy markets, the Times reports.

“If oil prices go up, that raises costs throughout the economy,” says Danielle Hale, realtor.com’s chief economist. “It means more inflation.”

Higher oil and gas prices likely will affect home heating costs and cause even more global supply-chain disruptions, which are being felt widely in the homebuilding industry. Inflation and supply chain problems likely will prompt even higher construction costs.

Prices for construction materials have already climbed 22% annually because of inflation, according to the National Association of Home Builders. Lumber prices have jumped 40% over the past 13 months alone. Higher material costs coupled with higher mortgage rates, which are likely looming in the next few weeks, will hamper housing affordability, economists say.

“Higher mortgage rates will slow homebuying demand over the course of 2022, and the Russia-Ukraine crisis will add short-term volatility to the bond market,” says Robert Dietz, NAHB’s chief economist.

Source: “How Russia’s Invasion of Ukraine Is Already Rippling Through the U.S. Housing Market,” realtor.com® (Feb. 24, 2022); “Watch Out for the ‘Angry U.S. Consumer’ as Russian Invasion of Ukraine Threatens America’s Fight Against Inflation,” MarketWatch (Feb. 25, 2022); “What Does Russia’s Invasion of Ukraine Mean for the U.S. Economy?” The New York Times (Feb. 23, 2022)

What is zombie debt…don’t be the VICTIM!

Don’t let “zombies debt” invade your space…knowledge is power.  Wenston DeSue

When you’ve paid off a debt or the statute of limitations expired, you might think the debt can no longer impact you. After all, once a debt reaches a certain age, a debt collector can no longer sue you in court to satisfy the debt. Plus, old debt usually falls off your credit report after seven years.

However, sometimes you still have to be on the lookout for zombie debt. It’s debt that you thought was dead and gone but that a debt collector is trying to revive. In some cases, the zombie debt that a creditor is attempting to collect doesn’t even belong to you.

How zombie debt works

Although debt collectors can’t take you to court to collect on zombie debts, they may be allowed to contact you to collect the money. Since the cost to purchase expired debt is often low — sometimes pennies per dollar — zombie-debt collectors can earn decent profits when consumers agree to repay old debt. Unless the state you’re living in requires a debt collector to disclose that it can’t sue you to collect the debt, you might take actions that revive the debt.

For example, if you pay an expired debt off in part or in full or acknowledge that it’s yours, this could reset the clock on the debt. That means the collector can sue you or report the debt to the credit bureaus, depending on the debt collection laws in your state.

Debts that zombie-debt collectors try to collect

While debt collectors can attempt to collect on any type of debt, here are some of the most common types of debts:

Discharged or settled debts

If you’ve gone through Chapter 7 bankruptcy, some of your debts may be discharged, which means you’re no longer responsible for paying them back. With a settled debt, you should have a written agreement stating you’re no longer legally responsible for the debt.

Time-barred debt

Most types of debt have a statute of limitations, except for federal student loans. This means after debt reaches a certain age, a debt collector can’t sue you for it. The statute of limitations on debt varies according to which state you live in, but it usually ranges from three to six years.

Debt that has fallen off your credit reports

If you have a negative item on your credit report, such as a collection or late payment, a collector can report it to the credit bureaus for up to seven years. However, if you make a payment on a zombie debt or agree to do so, the collector can report the debt to the credit bureaus, restarting the seven-year clock.

Debt that doesn’t belong to you

A debt collector could mistake you for someone else, or someone could steal your identity and make fraudulent charges in your name. If the latter occurs, report the identity theft to the Federal Trade Commission (FTC) immediately and notify your bank and creditors.

How to protect yourself from zombie debt

If debt collectors continue to call you even though your debt is time-barred or the debt isn’t yours, consider taking one of the following approaches.

1. Tell the debt collector to stop contacting you

Under the Fair Debt Collection Practices Act(FDCPA), you have the right to tell a zombie-debt collector not to contact you. To do this, the FTC recommends that you send the collector a certified letter with a return receipt so you can confirm it has been received. If you need help creating a letter, the Consumer Financial Protection Bureau (CFPB) has sample letters on its website.

If a zombie-debt collector violates the FDCPA by harassing or threatening to sue you, file a complaint with the CFPB, report the violation to your state’s attorney general office or sue the debt collector in state or federal court.

2. Validate and dispute the debt

If you don’t think the debt doesn’t belong to you, ask the creditor for a validation notice containing how much the debt is, who the original creditor is and when the debt was incurred. Check this against your records to confirm whether the debt is yours. Afterward, send a dispute letter to the creditor if the debt isn’t yours.

Additionally, if the debt is listed on your credit report, dispute it directly with the three major credit bureaus: TransUnion, Experian and Equifax.

3. Pay off time-barred debt on your credit report

Just because a collector can’t sue you for a debt doesn’t mean it has fallen off of your credit report. Check whether it’s still there by viewing your credit reports for free at AnnualCreditReport.com. Although you can normally only view one free report from each of the three major credit bureaus each year, due to the coronavirus pandemic, you can check all three of your reports for free weekly through April 20, 2022.

If you have a debt that’s still listed, consider negotiating with your creditor to settle for less than you owe. Just make sure to get the collector to agree in writing that it can’t sue you to collect the remaining amount.

4. Don’t pay or acknowledge the zombie debt

If the zombie debt isn’t listed on your credit report, consider not making any payments toward it or acknowledging that it’s yours. Remember that In some states, you’ll be legally responsible for the debt if you take one of those actions.

5. Pay your existing debts off on time

To prevent current debt from becoming zombie debt, pay it on time and keep records of your payment history. If you’re struggling to repay multiple debts, consider using a debt consolidation loan to consolidate your debt into one monthly payment, ideally with a lower interest rate.

You can also use a debt payoff calculator to come up with a repayment plan that fits your budget.

The bottom line

When a debt collector contacts you about a debt that has expired, has already been paid off or doesn’t belong to you, you aren’t legally responsible for repaying it. If you’re unsure whether the debt is yours or if it’s expired, ask the collector to provide you with the age of the debt or do your own research. Dispute the debt with the credit bureaus or creditor if you find that an error has been made.

However, if the zombie debt does belong to you and is still listed on your credit report, consider paying it off or settling with the original creditor or debt collector to pay less than what’s owed.

Cited:  BankRate

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access, purpose and often times, power.  These articles represent aspects that affect the business of real estate. 

DROP!

 

NAR: Jan. Pending Home Sales Drop 5.7%

The interesting part is that the “great squeeze” is not being reported.  Wenston DeSue

Buyers have difficulty finding a home, says NAR’s chief economist. He won’t be surprised to see demand decline given current “mortgages, home costs and inventory.”

WASHINGTON – Pending home sales slumped in January, continuing what is now a three-month decline in transactions, according to the National Association of Realtors®’ (NAR) monthly report.

Of the four major U.S. regions that make up NAR’s full report, only the West registered an increase in month-over-month contract activity, and all regions posted a year-over-year decline.

The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – fell 5.7% to 109.5 in January. Year-over-year, transactions decreased 9.5%. An index of 100 is equal to the level of contract activity in 2001.

“With inventory at an all-time low, buyers are still having a difficult time finding a home,” says Lawrence Yun, NAR’s chief economist.

Alongside persistent supply constraints, Yun says house hunters are contending with a number of additional market issues, including escalating home prices and rising interest rates. Rates jumped by nearly a percentage point in January compared to December, further adding to monthly mortgage costs.

“Given the situation in the market – mortgages, home costs and inventory – it would not be surprising to see a retreat in housing demand,” Yun adds.

NAR expects economic conditions to be volatile in the coming months. The impending conclusion of the Federal Reserve’s asset purchase program in March paves the way for higher interest rates. Russia’s aggression in Ukraine is also likely to affect global oil supply, imposing further burdens on inflation and bringing about more aggressive rate hikes.

“There’s also the possibility that investors may flee toward safer U.S. Treasury bonds, which may result in temporary short-term relief to interest rates,” Yun says.

Realtor.com’s Hottest Housing Markets data in January showed that of the largest 40 metros, the most improved markets over the past year were Orlando-Kissimmee-Sanford, Fla.; Tampa-St. Petersburg, Fla.; Jacksonville, Fla.; Nashville-Davidson-Murfreesboro-Franklin, Tenn.; and Las Vegas-Henderson-Paradise, Nev.

January regional breakdown: Month-over-month, the Northeast PHSI dropped 12.1% to 84.3 in January, a 16.7% decrease from a year ago. In the Midwest, the index fell 5.9% to 104.4 last month, down 5.9% from January 2021.

Pending home sales transactions in the South slipped 6.3% to an index of 134.6 in January, down 8.7% from January 2021. The index in the West increased 1.5% in January to 95.2, down 9.7% from a year prior.

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access, purpose and often times, power.  These articles represent aspects that affect the business of real estate. 

NY Public Radio Settlement

 NEW YORK PUBLIC RADIO

jiSAG-AFTRA

Ultimately, worker morale is boosted when organizations recognize errors in pay and benefits   Wenston DeSue

SAG-AFTRA and New York Public Radio have reached a global settlement that withdraws the complaints issued to the National Labor Relations Board. A pay increase is included in the settlement.

The settlement includes an extension of just cause protections to reporters and on-air hosts and a one-time 3% wage increase in July 2022 for all bargaining unit employees making under $100,000 per year. Also included are enhancements to NYPR’s parental leave policy; and a resolution of claims brought by the union regarding personnel issues pertaining to individual staff members.

A press release on the settlement states, “Both parties look forward to working together to continue to resolve workplace matters cooperatively, and to serving our audiences across the region and around the world with trusted news, classical music and cultural programming, and the New York conversation.”

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access, purpose and often times, power.  These articles represent aspects that affect the business of real estate. 

NEW FL DBPR Mask Rules

 For all of us certified professionals out there…NO MASK REQUIRED…Wenston DeSue

On Thursday, February 24, 2022, Governor Ron DeSantis and Florida Surgeon General Dr. Joseph Ladapo announced updates to the Florida Department of Health’s COVID-19 Guidance Recommendations.  For your reference, the Department of Business and Professional Regulation is sharing this updated guidance with you as a current and active license holder.  

 

Among other recommendations, the updated guidance provides that businesses are advised to no longer require facial coverings for employees, as there is no proven significant clinical benefit for facial coverings among the general population.  Please visit the link below to access and review the complete FDOH Guidance Recommendations as updated this week:

 

Florida Department of Health COVID-19 Guidance Recommendations (02.24.2022)

 

For questions regarding these recommendations or other resources related to Florida’s COVID-19 response, please visit FLORIDAHEALTHCOVID19.gov or contact the Florida Department of Health at (866) 779-6121.

 

The Department of Business and Professional Regulation looks forward to continuing to work with you and all of our valued stakeholders to ensure that Florida remains the best place in the nation to do business.

Non-Union Contractors CAN Gain Federal Contracts

 Biden has solidified Union labor’s importance in the US   

Wenston DeSue

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access, purpose and often times, power.  These articles represent aspects that affect the business of real estate. 

Despite Biden PLA order, non-union contractors can win federal projects

Although more federal projects will require labor agreements, firms with no union experience can compete for those jobs, attorneys say.

With the stroke of a pen, President Joe Biden doubled down on his support of unions on federal construction projects.

On Feb. 4, Biden (pictured above at the signing) issued an executive order instituting a project labor agreement requirement on federal construction projects worth more than $35 million.

The move aligns with one of Biden's chief policies — strengthening unions at a time when membership in organized labor has declined for decades. Construction's union membership is higher than the nationwide average, but numbers still have steadily dropped since the 1970s.

What is a PLA?

A PLA is similar to a collective bargaining agreement between a union and its employer, but differs in that it applies to a single project and is agreed upon by all parties: general contractors, subcontractors and labor groups.

Typically, the areas a PLA covers include:

• Wages and benefits.
• Apprenticeship and training programs. 
• Jobsite rules, like alcohol and drug policies, harassment policies and break rules.
• Work hours and overtime.
• Jobsite safety. 

A PLA will also cover procedures for resolving any employment disputes and prohibit strikes or work stoppages for the entirety of the agreement, Liz Cappiello, attorney for Washington, D.C.-based law firm Miller & Chevalier, told Construction Dive.

Typically, the GC and trade unions initially agree upon the PLA, under guidance from the agency or owner. Then other subcontractors agree to abide by the PLA when they join the project,  according to Chris Bailey, attorney for St. Louis-based firm Greensfelder. 

"A PLA will generally be in place before bidding on the project begins, so that contractors considering submitting their bids are aware of the requirements of the project," Bailey said.

In recent years, some public agencies have progressed toward Community Workforce Agreements (CWA), a specific type of PLA that promotes public policy, such as prioritizing training, employment or hiring of businesses run by women and minorities, Mark Johnson, labor relations consultant for Seattle-based labor consulting firm M. L. Johnson & Associates, told Construction Dive. 

With the Biden order, some PLAs on these federal projects will also be CWAs, Johnson said. 

What's in the executive order?

Labor groups say PLAs protect workers and prevent work stoppages to help deliver projects better, but builders and employer groups claim they disadvantage contractors that don't typically work with unions.

However, the executive order requires organizations to allow all contractors and subcontractors to compete for work, regardless of their collective bargaining experience, according to Cappiello.

Notably, only projects that receive money directly from federal procurement will fall under the executive order, meaning construction projects financed through grant dollars to non-federal organizations such as states will be exempt. 

That doesn't mean, however, that other entities won't require PLAs, Terry said. Some agencies and groups can still require them on projects funded indirectly, or under the $35 million cost threshold.

"That would be a blue state inclination," Terry said of agencies requiring PLAs even when exempt. 

It's still unclear whether the federal government will mandate uniform aspects of the PLAs, or if stakeholders will decide details on a project-by-project basis. 

Getting ready

For a contractor with no familiarity or experience entering a PLA, "the scariest thing is you won't know what you don't know," Bailey said.

"Obviously, you'll want to read the PLA carefully before entering into it to see if it’s something that works for you and your company because those are the rules under which you’ll be operating for the duration of the project," he said.

GCs will need to carefully document their adherence to the PLA terms from all subs on the project.

When it comes to determining wages, Terry said, look to the Davis-Bacon Act. Contractors already must meet prevailing wage requirements for public works projects. With a PLA, expect wages slightly higher than the area's prevailing wage, he said.

Terry encouraged builders without PLA experience to "sharpen their pencils" to find ways to save money, especially because trade unions may add riders that benefit their skilled workers. For example, a group may try to secure wages for their graveyard shift workers higher than those wages agreed upon in the PLA. 

"Every PLA I've been involved with — and I've been involved with a lot — have a lot of riders, that are trade-specific riders that affect the PLA," Terry said.

Favorability

Opponents of the PLA enforcement say non-union builders would have to drop more cash than usual to staff these projects.

"By mandating PLAs on these large-scale projects, the EO gives an advantage to union contractors because those contractors' labor costs are unlikely to change and those contractors are already familiar with unions and operating under such agreements," Bailey said, indicating non-union builders are less likely to bid on projects.

But Johnson said that non-union builders can, and likely will, bid on and win projects that fall under this executive order. 

Terry echoed that idea, and emphasized the prevailing wage issue. 

"You can continue to be a non-union company, just realizing that this is the way the federal government intends to do business from now on, with the discretionary aspects," he said. "My primary advice is to appreciate the Davis-Bacon aspect, this is not tremendously dramatic."

Regardless, for the foreseeable future, "entering a PLA will be part of doing business with the federal government on certain projects," Cappiello said.

Cited: Construction Dive

PLEASE Recognize The Shift!

 Collaboration in the Workforce means SUCCESS!

Wenston DeSue

CERIDIAN Recognizes!

In today’s talent landscape, the balance of power has shifted in favor of job seekers and employees. As the pandemic has made clear, workers do not fear leaving their jobs if employers won’t meet their expectations. 

To build a resilient workforce, logistics and construction firms must start by investing in the employee experience. When employees feel heard, supported, and valued by their employers, they are more likely to remain engaged, motivated, and invested in successfully steering the company through disruption. 

Our essential playbook will help you address the three main barriers to attracting and retaining talent in today’s environment. You will learn:

• How to appeal to Millennial and Gen Z workers
• The importance of employee recognition
• How to cultivate a connection among gig workers and distributed employees

Wenston DeSue is a realtor, organizational consultant, design, construct, build expert and developmental networker.  Real estate is the business of exchange and affects every person on the planet.  Real estate on all levels represents resources, access, purpose and often times, power.  These articles represent aspects that affect the business of real estate.