Update: The Impact of COVID-19

#44 — May 24, 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: Rent collections stay consistent with pandemic levels; Still depressed from non-pandemic levels

Through May 17th, 2021 we have collected 87.3% of charges for the month. Resident receipts are:

Down (0.4%) compared to April 2021 through the 17th
Down (0.2%) compared to March 2021 through the 17th
Up 1% compared to February 2021 through the 17th
Down (3%) compared to February 2020 through the 17th

Subsidy: Cumulative subsidy receipts for the month are 96% collected, which is:

Down (3%) compared to April 2021 through the 17th.
Down (2%) compared to March 2021 through the 17th.
Up 3% compared to February 2021 through the 17th.
Up 4% compared to February 2020 through the 17th.

Total Receipts: Cumulative receipts for the month are 91% collected, which is:

Down (1%) compared to April 2021 through the 17th.
Down (1%) compared to March 2021 through the 17th.
Up 1% compared to February 2021 through the 17th.
Down (2%) compared to February 2020 through the 17th.

Receipts at Senior properties are 95% collected, which is:

Down (1%) compared to April 2021 through the 17th.
Down (1%) compared to March 2021 through the 17th.
Flat compared to February 2021 through the 17th.
Down (2%) compared to February 2020 through the 17th.

Receipts at Family properties are 88% collected, which is:

Down (1%) compared to April 2021 through the 17th.
Down (1%) compared to March 2021 through the 17th.
Up 2% compared to February 2021 through the 17th.
Down (2%) compared to February 2020 through the 17th.

The chart below shows the distribution of properties on their collection performance in May 2021 through the 17th. Out of the 201 properties, 27 have collected less than 72% of May 2021 charges representing $0.7M remaining to collect while 36 properties have collected over 96% 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.

Pandemic News

Over 700 epidemiologists discuss when and how the US may return to normal as states begin to lift restrictions across the country. As case counts continue to decrease and lifting of the mask mandate, the US will still need to see at least 70% of the US population fully vaccinated to return to the normal we are used to. Johns Hopkins chair of epidemiology says that “children are key to ending the pandemic.” As more children are vaccinated, scientists see coronavirus more like the flu, than an endless pandemic, with fewer deaths and transmitting at lower rates. (New York Times)

The CDC updated its mask guidelines last week as well as guidance for those fully vaccinated. Those fully vaccinated can resume activities without social distancing or wearing a mask including gathering in large groups. This update prompted the lifting of many mask mandates around the country. However, local guidelines may still be in place at businesses and places of work and the CDC recommends following those guidelines. (CDC)

As mask mandates lifted last week around the country, many local governments chose to keep some restrictions in place, at least for now. As Minnesota lifted the mask mandate last week, Minneapolis kept it in place. Some states, however, decided to keep the mandate in place stating that they are “not there yet.” The mayor of Rochester, Minnesota is quoted stating, “The people that have been pushing the limits on not wearing a mask, as it is, are also the ones that tend to not be vaccinated… To say vaccinated people can take their masks of will not give us any assurance that the person next to us has been vaccinated.” (New York Times)

The US avoided major surges of the coronavirus variants even though they were the most predominant versions of COVID in the country. Current cases have fallen more than 85% since January, and this can be attributed to mask wearing, social distancing, and vaccinations. One epidemiologist at Yale said, "I think we got lucky, to be honest… We’re being rescued by the vaccine.” The B.1.1.7 variant made up 72% of cases in the US, according to the CDC director last week. (New York Times)

Pfizer-BioNTech’s Covid vaccine was approved for kids ages 12 to 15 last week. The New York Times interviewed kids in Kentucky about their thoughts about getting vaccinated and being able to return to some of their favorite activities with friends and family. Kids mentioned sleepovers, building Legos with friends, and pep rallies as normal activities that they are ready to experience again. (New York Times)

Colorado Mesa University utilized an app developed by the Broad Institute of M.I.T. to track COVID symptoms and outbreaks across campus, and it worked. The app, Scout, allowed students to enter in symptoms to determine if they had COVID and if so, they would move into quarantine housing. Scout was their “wellness passport,” where they entered in their symptoms daily and whether they traveled to determine if they were allowed on campus. If they had no symptoms and had not traveled, their app screen would turn green, becoming their ticket to enter class. This data was then viewed on the back end by school administrators to see what was happening on campus. They even tested wastewater from the dorms, which proved beneficial in locating additional cases. (New York Times)

Patients hospitalized with COVID-19 are getting younger, as older Americans are vaccinated at higher rates. Doctors believe that the variants are “making younger people sicker.” People ages 18-49 now make up 36% of COVID hospitalizations, compared to 20.5% of hospitalizations at the beginning of 2021. Whereas Americans over the age of 65 now make up only 28.5% of hospitalizations compared to over 53% in January of this year. (Wall Street Journal)

The May 13th episode of the Osterholm Update: COVID-19 discusses the updated CDC guidance, Pfizer-BioNTech’s use in kids age 12 to 15, and how to move forward with the virus.

IHME has changed their daily infections and testing to project the trajectory of infections based on easing mandates and closures and universal mask wearing.

Housing & Employment News

A new Federal Reserve survey shows that the pandemic affected women, minorities, and those without a high school diploma the most. The annual Survey of Household Economics and Decision making polled 11,000 Americans and illustrated that those “who retained their jobs during the pandemic generally had stable or improving finances in 2020… however, those who suffered a layoff and an extended period of unemployment saw a deterioration of their financial circumstances.” (Wall Street Journal)

NMHC released its Rent Payment Tracker showing that as of May 6th, 80% of apartment households had made a full or partial rent payment. This is only 0.1% below the amount collected in May 2020 and 1.7% below the amount collected in May 2019. Total rent payments made in April 2021 were 95.0%. (NMHC)

The May 18th episode of The Daily podcast by The New York Times describes what is happening in the US economy as jobs are left unfilled, used car prices are increasing, and the jobs report baffled experts.

US Jobless claims fell to 444,000 for the week ended May 15, 34,000 less than the week prior and another new low since the beginning of the pandemic. After the weaker than expected April jobs report sparked concerns over a labor shortage, many states are beginning to opt-out of the $300 supplemental unemployment benefit, extended benefits and benefits for gig-economy workers, starting in mid-June to mid-July, depending on the state. (Wall Street Journal)

Economic News

On July 15th, the IRS will send out its first monthly child tax credit payment to nearly 39 million US families. Those with children ages 6 to 17 may receive checks up to $250 a month per child, whereas those with children age 6 and under could receive up to $300 a month. The amount received will depend on the income of an individual, head of household, and married couples. The credit will also be fully refundable. (Wall Street Journal)

The Federal Reserve has begun to signal a move toward tapering of its bond buying program as evidence shows a robust economic recovery and mounting inflation. Fed officials told reporters that the fed would consider adjusting its monetary policy when they were comfortable the pandemic was largely in the rearview, and that they needed to remain nimble in the face of changing economic conditions. (Wall Street Journal)

Despite widespread vaccinations, recent survey data shows a majority of consumers are still in a “pandemic mindset,” with a minority of respondents saying they would feel comfortable flying commercial airlines, staying in hotels, or dining indoors in a restaurant. These rates increased only slightly for people who reported being fully vaccinated, with nearly 70% of respondents saying they expected a new outbreak to be around the corner. (Reuters)

Other Interesting & Helpful Resources

As vaccines continue to roll out, and the US returns to some semblance of normalcy, The New York Times recommends not booking every weekend as slowing down is good for your brain. Even putting away your phone and spending time outside can help. Easing back into plans and vacations will help “apply the lessons you learned during the pandemic.” (New York Times)

The pandemic is finding more workers working from home, allowing them to move to more rural areas, but many are finding broadband internet connections to be much slower. Companies in rural areas are finding it harder to recruit younger talent due to this disparity. The new infrastructure bill aims to close this gap, by providing reliable broadband connection to all Americans, including 35% of rural America that does not have it. (New York Times)

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 the COVID housing assistance program. Those needing support can call 211 or toll free at 1-800-543-7709.

Dominium Resident Resources

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

DOMINIUMAPARTMENTS.COM