Update: The Impact of COVID-19
#38 — January 8, 2021
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:
As the new year begins, rent receipts continue at a depressed level similar to what has been experienced since September, when COVID-19 CARES Act funding expired for most residents. To date, January rent receipts are 6+ percentage points below collections of the same date in May of 2020, which was the first wave of COVID-19 infections.

Through January 7th, 2021, we have collected 79% of resident charges. Resident receipts are: 
  • Up 3% compared to Dec 2020 through the 7th.
  • Up 1% compared to Nov 2020 through the 7th.
  • Up 1% compared to Oct 2020 through the 7th.
  • Down (6%) compared to May 2020 through the 7th.
Subsidy: Cumulative subsidy receipts for the month are 78% collected, which is:
  • Down (8%) compared to Dec 2020 through the 7th.
  • Down (8%) compared to Nov 2020 through the 7th.
  • Down (8%) compared to Oct 2020 through the 7th.
  • Down (16%) compared to May 2020 through the 7th.

Total Receipts: Cumulative receipts for the month are 79% collected, which is:
  • Up 1% compared to Dec 2020 through the 7th.
  • Down (1%) compared to Nov 2020 through the 7th.
  • Down (1%) compared to Oct 2020 through the 7th.
  • Down (8%) compared to May 2020 through the 7th.

Receipts at Senior properties are 92% collected, which is:
  • Flat compared to Dec 2020
  • Down (2%) compared to Nov 2020
  • Flat compared to Oct 2020
  • Down (3%) compared to May 2020

Receipts at Family properties are 76% collected, which is:
  • Up 1% compared to Dec 2020
  • Down (1%) compared to Nov 2020
  • Down (2%) compared to Oct 2020
  • Down (10%) compared to May 2020
The chart below shows the distribution of properties on their collection performance in January 2021 through the 7th. Out of the 203 properties, 17 have collected less than 55% of January 2021 charges representing $0.4M remaining to collect while 21 properties have collected over 95% representing $0.1M remaining to collect.
The lowest collection category is primarily made up of Section 8 properties which are impacted by timing with changes between resident and subsidy owed charges. The below distribution excludes these properties and follows the expected trends.
Previous Dominium Rent Reports can be found here.

NMHC published their rent tracker through December 20th showing that 89.8% of apartment households paid full or partial rent. This reflects a 3.4% decrease from this time last year and compares to 90.3% paid by November 20, 2020.
Housing & Employment News
The Wall Street Journal reports that the US has recouped 12 million of 22 million jobs lost in 2020. The recovery has been uneven across sectors. For example, while many sectors still have not recovered to pre-pandemic levels and may not for some time after the end of the health crisis, courier and messenger positions are up by 20% from pre-pandemic levels.
The newly signed COVID-19 stimulus bill includes $25 billion in rental assistance and extends the moratorium on evictions through January 31st. According to Forbes, the aid is targeted towards those earning a household income of less than 80% of AMI who have lost income and can demonstrate a risk of housing instability.

December data shows that company payrolls decreased 123,000, with the number of employees at US businesses declining for the first time since April. Much of this loss was felt in the leisure, hospitality and retail sectors. The virus continues to surge across the country, this trend is only expected to continue.

The Washington Post chronicled the views of several workers and their thoughts about returning to the office, some are anxious to get back to the social aspects to the office, whereas others are enjoying the renewed productivity working at home can bring. Price Waterhouse Cooper surveyed 1200 office workers in June and found that about a third would prefer to continue working from home and only 9% said they do not want to work at home at all. University of California Irvine researchers found that on average the typical office worker is interrupted, or switches tasks every 3 minutes and 5 seconds, taking over 7 times as long to fully re-engage after each interruption.

Brookings Institute illustrates how COVID-19 has exacerbated housing inequities via their Socioeconomic Impacts of COVID-19 Survey with the Social Policy Institute at Washington University in St. Louis, showing that these inequities have only worsened especially with Black and Hispanic households and young adults. From June to August, 9% of Black households and 11% of Hispanic households faced eviction or foreclosure compared to only 5% of white households. From June to August, 13% of young adults (18-39) faced eviction or foreclosure compared to only 5% of middle-aged adults (40-54).

RISMedia has a piece on the newly signed coronavirus relief and spending package and the response it garnered from the Real Estate Industry. Provisions in the bill include $25 billion in rental assistance, $600 direct stimulus checks, $300 per week in enhanced unemployment benefits through March, and $284 billion for a second round of Paycheck Protection Program loans.
Pandemic News
As the vaccines roll out across the country, The Washington Post is keeping track of how many doses have been administered in each state. Nearly 7.7 million Pfizer-BioNTech vaccines and nearly 8 million Moderna vaccines will be en-route by New Year’s Day equating to covering nearly 5% of the US population. This article breaks down each states priority list for who will receive their first vaccines.

Over the holidays, the US hit a devastating milestone during the pandemic with over 337,000 American deaths due to COVID-19. This means that of 1000 Americans alive at the beginning of 2020, one has died due to COVID-19. One person in the US is dying every 38 seconds. Non-white populations in the US are still disproportionately dying, with Black Americans dying at a rate 1.6 times higher than white Americans.

The US has set another record with more Americans hospitalized with COVID-19 than ever. This week hospitalizations reached 130,834 people. The total number of cases is likely to surpass 21 million as well. States are in the process of administering the vaccine, and some are leaning on the National Guard to help distribute the vaccine.

The end of 2020 is seeing some of the strictest lockdowns around the world as a new, more contagious strain of the coronavirus is spreading. The CDC says that the new strain could be up to 70% more transmissible than the previous strain. Dr. Anthony Fauci said on CNN this past weekend that holiday travel will ultimately make the next few weeks worse.

Using University of Minnesota Hospitalization Tracking project data, NPR set up a tool to allow people to search their home county hospital capacity, illustrating that they are becoming dangerously full across the country. Comparing the total number of beds to the COVID hospitalizations can illustrate the strain on the hospital. According to framework set out by IHME, any percentage over 20% represents “extreme stress” on the hospital.

New data show that disinfecting surfaces may not be necessary to prevent contracting COVID-19. When an infected person sneezes or coughs, droplets containing the virus will travel and land on surfaces, but according to microbiologist at Rutgers, Emanuel Goldman, the risk of contracting the virus is low. The virus is fragile in the environment and decays quickly.

The Novavax vaccine has started its late stage trial in the US and Mexico last week. This new trial will include up to 30,000 people in the US and is the 5th vaccine to enter the final stage of testing. Two thirds of the volunteers will receive the vaccine, while one third will receive a placebo.

The December 23rd episode of the Osterholm Update: COVID-19 the new COVID variants, vaccine prioritization, more information about vaccinating pregnant women, and the holidays.
IHME has changed their daily infections and testing to project the trajectory of infections based on easing mandates and closures and universal mask wearing.
Economic News
President Trump signed a $900 billion stimulus bill into law on Sunday. The bill, which runs nearly 5,600 pages, includes a wide range of measures aimed at addressing various sectors, from individuals to small businesses, schools, nursing homes, as well as providing support for expanded unemployment insurance, access to broadband internet, vaccine funding, rental assistance, and expanded food stamp benefits, among a litany of other provisions.

It’s no surprise that the pandemic has hit small businesses hard with many closing at the beginning, but optimism about the vaccine is making some seek bankruptcy protections rather than shuttering. With some of small businesses receiving relief from local governments, bank and landlords have also been willing to work with struggling business during this time, which has helped stave off closures and bankruptcy proceedings.

The Federal Reserve extended the Main Street Lending Program from December 31st to January 8th in order to allow more time to process loans submitted before December 14th. The program aimed to help small- and medium-sized businesses and since its termination was announced in November by Treasury Secretary Steven Mnuchin, the volume of applications surged.

Oil prices dropped severely during the pandemic dropping to negative dollars per barrel with demand dropping to levels never experienced before. Global consumption of crude and liquid fuels fell to 92.4 million bpd for the year, a 9% drop from 2019.
Other Interesting & Helpful Resources
TSA screened the highest number of air travelers over the Christmas holiday weekend since the beginning of the pandemic. Sunday alone saw nearly 1.28 million people across the country travel through checkpoints. Over 700 TSA agents currently have “active” COVID cases, which TSA spokesperson said were not contracted at work.

Bloomberg put together a COVID Winter Survival Guide with links to articles compiled from “Nordic philosophies, cold-weather aficionados and urban planners” to help readers get through the coldest and darkest part of the year.
State-by-State Actions
Schools: Education Week

Reopening & Closing Status:

Construction Limits:
The Dominican Republic’s tourism and service industries have been hit hard by the pandemic, but their cigar and tobacco industry has seen a 6% increase this year selling nearly $1 billion worth of tobacco products in 2020. As smoke shops closed, online sales began to boom. Hendrik Kelner, president of the Association of Dominican Cigar Manufacturers said, “A cigar is like a loyal friend who accompanies you when times are tough and you’re lonely.”
Resident Resources
National Low Income Housing Coalition put together a State and Local Rental Assistance guide for COVID-19 Emergency Rental Assistance Programs around the country.

Fannie Mae put together a “Here to Help Renters” resource guide. It includes tips for talking to your landlord, top things to know, and options for those in need of financial assistance. Other resources are linked to HUD, CARES Act, and state and local resources.

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

HUD has put together a guide and FAQ for Renters during the pandemic.

The United Way is assisting residents in Minnesota with COVID housing assistance program. Those needing support can call 211 or toll free at 1-800-543-7709.

Information on filing for unemployment

Family Housing Fund has put together resources for households impacted by COVID-19, ranging from legal help, utilities, food, unemployment insurance and more.

Housing Link has provided tips for emergency assistance in the Twin Cities with contact information by county.

National Alliance on Mental Illness Minnesota also has a list for families of financial and housing resources. You can also search for reduced cost services by zip code on their website.
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 month 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