Update: The Impact of COVID-19
#15 — May 13, 2020
Dominium has been focused on our business and operations during this pandemic crisis. As we move past the critical rent collection part of each month, we will focus our updates on information that we have found useful in the work we are doing. We hope that our friends and partners in affordable housing find it helpful as well and will send other information our way as well. A collection of all previous updates can be found at  COVID-19 Impact Update .
Rent Collections
Dominium Rent Collection Report: Through May 11, 2020 we have collected 89% of charges for the month.

  • Cumulative receipts are up 2% compared to April through the 11th.

  • Cumulative receipts are up 4% compared to November 11th, 2019, the most recent month with the 1st falling on a Friday.

In terms of types of properties or receipts:

  • Resident receipts are at 89%
o Up 3% compared to April through the 11th.
o Up 3% compared to November 11, 2019.

  • Subsidy receipts are at 94%
o Flat compared to April through the 11th.
o Up 9% compared to November 11, 2019.

  • Senior total receipts are 95%
o Down (1%) compared to April through the 11th.
o Down (1%) compared to November 11, 2019.

  • Family total receipts are 89%
o Up 3% compared to April through the 11th.
o Up 5% compared to November 11, 2019.
Out of the 211 properties, 27 have collected less than 75% of May charges while 86 properties have collected over 90% of May charges. The large percentage in the below 75% category is comprised primarily of section 8 properties where lower incomes have resulted in lower resident receipts and higher expected/outstanding receipts from subsidies.
Previous Dominium Rent Reports can be found here.

According to Leaselock , May seems to be on a similar rent payment trajectory to April, including a slight bump in first-of-the-month payments — roughly 4% more total rent was collected on the first day of May compared to the trailing three month average.

Leaselock updated their report on rent payments on May 7th. They note that May payments are still holding, but there is still a decrease of 6 percentage points from the pre-COVID three-month trailing average and a 7 percentage point decline compared to April. 

GlobeSt.com discussed the status of Multifamily rent collections with Walker & Dunlop CEO, Willy Walker. He predicts that May collections will be better than April citing Walker & Dunlop data as well as LeaseLock’s May 1st collections data.
Housing News
 The Housing Coalition sent a letter to Congressional Leadership from over 40 organizations across the housing industry that highlighted the need for Rental Assistance and articulated a set of agreed upon principles to guide lawmakers in their conversations going forward.

NMHC has a map outlining state and city essential businesses, stay-at-home orders, exempt housing construction, and which areas are allowing residential construction projects to continue.

HUD’s Office of Multifamily Housing released an updated COVID-19 Questions and Answers Guidance . The vast majority of the questions concern the CARES Act. The document also provides and updated list of available additional resources and new guidance on asset management including updates to questions on Financing Requirements, Implementation of Forbearance Under the Cares Act and Moratorium on Evictions under the Cares Act.  

Novogradac’s working group wrote a letter to the Office of Chief Counsel of the IRS and the Office of Tax Policy at the US Department of Treasury requesting relief from various low-income housing tax credit requirements due to COVID-19. Twelve specific requests were made including extension of deadlines and moratorium on inspections and tenant file reviews, among other requests. 

Novogradac also continues to update resources for their clients with legislative updates and client services. 

CoStar discusses how brokers are changing tactics as the COVID-19 pandemic shakes the market. Development projects have halted and many sales are being put on hold. Looking at the markets in Boston, New York, Washington D.C., Denver, Seattle, CoStar interviewed brokers in each city most of whom are optimistic about the market and are using this time to prepare for the future.  

NCSHA wrote about Senator Reed introducing a $75 billion Housing Assistance Fund on May 6th that would provide resources to state housing finance agencies allowing them to be able to support homeowners and renters struggling due to the pandemic.
Pandemic News
The CDC’s tracker of confirmed cases of and deaths from COVID-19 across the US provides the most up to date information on the spread of the virus. 

IHME’s COVID-19 Projections page shows trends and projections of deaths and hospital resource usage. The graph below shows their projection for hospital resource use:
The University of Minnesota School of Public Health hosted a webinar explaining the Science behind COVID-19 Mathematical Models , which included input from Abraham Flaxman, one of the mathematicians behind IMHE’s projections.
Economic and Employment News

This Bloomberg article discusses the debate among economists and analysts over the future effects of COVID-19 on prices going forward . The debate focuses on if the pandemic-driven decrease in demand will cause deflation or if governments’ expansionary fiscal and monetary policy will cause inflation.

The NY Times reports that government figures show that job losses in April were the worst ever . But they could provide key hints about the recovery. This report also details the ways collecting employment data has been complicated by the pandemic.

Bloomberg reports many layoffs previously labelled “temporary” have been changed to “indefinite” or “permanent,” signaling a shift in companies’ expectations in terms of the time economic recovery will take.

SunTrust Bank provides a weekly Interest Rate Commentary prepared by their Financial Risk Management team. They note that FOMC left the target rate unchanged. Also, they note fears of a potential trade war between the US and China. 

Baker Tilly has a resource center that includes COVID-19 response and recovery resources for the construction and real estate industries. Featured articles focus on COVID-19 legislation, PPP loans, relief programs, tax summaries, and the CARES act.
Other Interesting & Helpful Resources
Cushman & Wakefield’s newsletter on recovery readiness and COVID-19 . Linked articles in the newsletter examine the current and future state of the hotel industry, retail readiness, warehouse readiness, and provide how-to guides for reopening workplaces. 

The Points Guy explores the future of loyalty programs following COVID-19. They note that credit card partnerships are large revenue drivers for travel brands and will likely play a key role in recovery from the current crisis.
State-by-State Actions
Schools:  Education Week

Stay at Home/Shelter in Place: The New York Times

Construction Limits:
Resident Resources

Freddie Mac offers a Renter Helpline , which provides counseling for renters on budgeting, credit improvement and debt management. Their flyer for the program is available in multiple languages.

HUD provides a guide and FAQ for Renters during the Pandemic.
IRS Information on COVID-19 Checks 
Information on filing for unemployment
In an attempt to share what we know and are doing during this crisis, we are publishing a set of periodic updates for our partners and friends in affordable housing. We likely will do this twice a week or as interesting events dictate. Please let us know if you would like to be removed from this list.

Thank you,
Paul Sween & Mark Moorhouse