Update: The Impact of COVID-19 |
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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.
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BIGGEST NEWS FOR AFFORDABLE HOUSING: Significant funding for multifamily tenants |
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The American Rescue Plan Act signed into law contains $58 Billion in Housing and Small Business Assistance, including $27.4B in rental assistance. Also of note are the $1,400 economic impact payments to adults and dependent children and the $300 weekly federal unemployment insurance benefit. For Dominium’s roughly 60,000 residents, the pandemic payments--alone--total $84 million. The rental assistance currently in deployment by states (as passed earlier in the year) will likely provide close to $10 billion to the counties and cities in which Dominium’s properties are located, providing an estimated 0.2% of the rental housing in those jurisdictions. The rental assistance in the just-signed American Rescue Plan will serve to more than double that amount. Dominium will be working with tenants to help them access and secure this important and significant funding to sustain their housing as the pandemic ends and the economy recovers.
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Rent Collections: COVID-19 Relief Continues to Help Residents. Rent collections are stronger than the end of 2020 |
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Through March 15th, 2021, we have collected 87.6% of resident charges. Resident receipts are:
- Up 2% compared to February 2021 through the 15th.
- Up 3% compared to January 2021 through the 15th.
- Up 5% compared to December 2020 through the 15th.
- Down (2%) compared to July 2019 through the 2nd, the last month to begin on a Monday.
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Subsidy: Cumulative subsidy receipts for the month are 90% collected, which is:
- Down (5%) compared to February 2021 through the 15th.
- Down (6%) compared to January 2021 through the 15th.
- Flat compared to December 2020 through the 15th.
- Down (3%) compared to July 2019.
Total Receipts: Cumulative receipts for the month are 88% collected, which is:
- Flat compared to February 2021 through the 15th.
- Up 1% compared to January 2021 through the 15th.
- Up 3% compared to December 2020 through the 15th.
- Down (2%) compared to July 2019 through the 15th.
Receipts at Senior properties are 96% collected, which is:
- Up 1% compared to February 2021 through the 15th.
- Up 2% compared to January 2021 through the 15th.
- Up 1% compared to December 2020 through the 15th.
- Down (2%) compared to July 2019 through the 15th.
Receipts at Family properties are 86% collected, which is:
- Up 2% compared to February 2021 through the 15th.
- Up 4% compared to January 2021 through the 15th.
- Up 6% compared to December 2020 through the 15th.
- Down (2%) compared to July 2019 through the 15th.
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The chart below shows the distribution of properties on their collection performance in March 2021 through the 15th. Out of the 198 properties, 30 have collected less than 75% of March 2021 charges representing $0.8M remaining to collect while 36 properties have collected over 96% representing $0.1M remaining to collect.
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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. |
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Previous Dominium Rent Reports can be found here.
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Marcia Fudge was confirmed as HUD Secretary with a 66-34 vote in the Senate. During her confirmation hearing, she said “My first priority as secretary would be to alleviate [the] crisis and get people the support they need to come back from the edge.” She argued that the American people need more than an eviction moratorium and rental assistance. She also plans to follow through on the Biden Administration’s plan to build 1.5 million energy-efficient and affordable housing units.
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Patients who are experiencing long-term effects of COVID-19 are often those who were asymptomatic initially, but now have aftereffects such as chest pain, abdominal pain, cough, or shortness of breath. A new study looking at records from the University of California system found that 32% of those long haulers started with asymptomatic cases of COVID. The director of NIH announced a new initiative in February to hopefully treat those patients experiencing long-term effects of the virus, who may not have had initial symptoms. Thirty symptoms have been identified, including low back pain, insomnia, rapid heart rate, anxiety, cough, chest pain, headache, and gastrointestinal issues.
The NBA and the NFL became integral parts of the scientific process as players have taken hundreds of tests throughout the year providing real time data for scientists. As the Wall Street Journal said it, “professional athletes were the world’s biggest, tallest, strongest, fastest lab rats” this year. Although the NBA had access to constrained tests, the WSJ notes that the number of positive tests for players who never felt ill provided guidance that asymptomatic cases were common. Soon daily testing began, providing data that did not exist on such a controlled group. The NBA ran nearly 120,000 tests, whereas the NFL ran nearly 1 million tests. The leagues even partnered with researchers to develop tests later authorized by the FDA. This research was not limited to last season and will continue especially as the variants continue to spread.
The March 11th episode of the Osterholm Update: COVID-19 discusses the easing of restrictions, the new CDC guidelines, and what the pandemic could look like as the vaccine rollout continues in the presence of variants.
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IHME has changed their daily infections and testing to project the trajectory of infections based on easing mandates and closures and universal mask wearing.
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The NY Times reports that lenders are struggling with a new Paycheck Protection Program rule which changed the basis on which their PPP loan amounts to small businesses were calculated from their Net Profit to their income before expenses. Previously, small businesses which reported losses in 2019 or 2020 were ineligible for the loans. Now many lenders say the time between the change, made two weeks, and when the program is set to expire in three weeks does not present enough time to adapt their application processes, and so it’s not feasible to provide loans to many of the newly eligible businesses.
Wall Street Journal broke down the newest stimulus package which President Biden signed on Friday. The $1.9 trillion American Rescue Plan Act is the largest of three major stimulus bills passed since the beginning of the pandemic. It contains spending on items including $1,400 checks for individuals making less than $75,000, vaccine and COVID testing rollout, state and local government support and expanded unemployment benefits.
Bloomberg’s US economic recovery tracker highlights positive momentum in a number of indicators this week, including a five-week ongoing trend of increased job postings, increased restaurant bookings, strongest-ever retail sales, a booming housing market and an all-time high for the S&P 500. However, it also shows applications for unemployment benefits remain three times their pre-pandemic levels and airline passengers remain depressed.
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Other Interesting & Helpful Resources |
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The Wall Street Journal highlights the silver lining of the pandemic’s effect on air travel. Construction projects at airports have finished ahead of schedule with fewer travelers passing through, including at LaGuardia and LAX. Some projects are already 18 months ahead of schedule. There is also a reduction in change fees, albeit not permanently. Older airplanes have been retired. Airport cleanliness was also exposed during the pandemic, but experts also believe that over time the frequency of cleanings may wane.
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State-by-State Actions
Reopening & Closing Status:
Construction Limits:
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California is lifting restrictions on theme parks, including Disneyland, for the first time since the pandemic hit last March. Using a tiered approach, the California Department of Public Health has set tiers to correspond with the percent capacity a theme park is allowed to open (ie. red can open at 15% capacity, orange at 25%, and yellow at 35%). The counties in which Disneyland and Universal Studios are located are currently in the purple tier, the most restrictive, but will soon be moving to red. This move will also allow outdoor sports and live performances to resume in limited capacity as well. However, only California residents will be able to visit theme parks. Disney has not yet disclosed the exact date they plan to reopen Disneyland.
The travel industry is responding to more eco-conscious travelers following the first year of the pandemic. Travelers are looking for different ways to travel that is better for the environment. Booking.com released a report that asked travelers how they planned to travel differently following the pandemic, over half of the respondents want “to travel more sustainably” as the pandemic “has opened their eyes to humans’ impact on the environment.” The tourism industry is responding by creating coalitions to follow guiding principles and getting major brands to sign on like Hilton hotels, and the tourism boards for the countries of Jordan, Columbia and Palau.
Following a year of Zoom hangouts, The Washington Post put together a list of ways to liven up your next Zoom hangout. They advise hiring a professional entertainer or trying professional trivia to encourage competition. Comedians also make a funny addition to zoom parties.
If your missing international travel, The Washington Post put together a list of 5 travel shows to “ease the pain of being stuck at home”. They recommend Stanley Tucci: Searching for Italy on CNN to explore the wine and food throughout Italy. Men in Kilts follows actors Sam Heughan and Graham McTavish around their native Scotland. Taste the Nation follows Padma Lakshmi around the US to learn the US immigrant food histories from Honolulu to Milwaukee. Zac Efron’s travel show on Netflix is also highlighted as well as PBS’s Bare Feet with Mickela Mallozzi highlighting Carnival in a year without it.
A theater critic for The New York Times reminisces about missing live performances, but what is missed most is being a part of an audience. He states, “being swept up in the chaotic, unhinged spirit of raucous patrons can be… spectacular fun, singularly joyful and even perhaps necessary for mental health.” Though during the pandemic, he notes that internet shows do provide some community, “but it’s harder to lose yourself in the show when there are other tabs open.”
The pandemic has illuminated an increased love affair with all things vintage. Shoppers in their 20s and 30s are driving this new love of vintage and hard-to-find pieces by following stores on Instagram. Rather than lusting over luxurious travel photos, many are wanting to emulate influencers’ vintage living rooms. Instagram has played an integral role in boosting sales for these vintage shops. Currently, design from the 1980s is popular with millennials often reminding them of their parents’ homes and drawing on nostalgia. One shop owner said, “people haven’t been able to travel. It kind of fulfills that need of buying something from a far-off land… It fulfills that wanderlust.”
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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.
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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.
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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
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