Update: The Impact of COVID-19
#24 — June 23, 2020
Dominium has been focused on our business and operations during this pandemic cri sis. The following update provides information on our operations as well as 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 .
New ALL IN Initiative
As part of our work to support residents and the economic recovery, Dominium is adding to its ALL IN campaign around the COVID-19 pandemic by pledging to increase employment by 10%. Dominium is ALL IN for hiring talent. Please watch for additional information on this initiative to add new talent to the Dominium team.
Rent Collections
Dominium Rent Collection Report: Through June 21, 2020 we have collected 92% of charges for the month.

  • Cumulative receipts are flat compared to May through the 21st.
  • Cumulative receipts are flat compared to July 21st, 2019, the most recent month with the 1st falling on a Monday.

In terms of types of properties or receipts:

  • Resident receipts are at 91%, which is flat compared to May through the 21st and also flat compared to July 21, 2019.
  • Subsidy receipts are at 95%, which is down (1%) compared to May through the 21st and up 1% compared to July 21, 2019.
  • Senior total receipts are 96%, which is up 1% compared to May through the 21st and up 1% compared to July 21, 2019.
  • Family total receipts are 91%, which is flat compared to May through the 21st and down (1%) compared to July 21, 2019.
The chart below shows the distribution of properties on their collection performance in June through the 21st. Out of the 210 properties, 19 have collected less than 75% of June charges representing $0.5M remaining to collect while 80 properties have collected over 97% representing $0.2M 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.
Housing & Employment News
Express Employment Professionals published a monthly newsletter that breaks down the jobs added and lost by industry between April and May. Construction, manufacturing, and retail trade added the most jobs over the last month, whereas government lost the most.

MRI Software released its Market Insights in a document titled, The impact of COVID-19 on the Multifamily Industry: Comparing February through May 2019 to 2020. They found that traffic has returned to pre-pandemic numbers, whereas lease pricing has dropped an overage of 5%. The biggest impact to these numbers is the high unemployment rate due to the pandemic.

Due to the high unemployment rate related to the pandemic, many young adults (18-25 years old) are moving home to live with their parents, which could lead to an estimated $726 million in lost rent . Due to the nature of this crisis, if jobs are slower to return this could mean that more rental units will remain vacant leading to lower prices.
Economic News
The New York Times reports that Congress is at an impasse as to whether to extend jobless benefits for unemployed workers past the July 31 cutoff. Some legislators believe that it is preventing recovery as some are discouraged from returning to work, whereas others believe that there should be some form of an extension to assist those still jobless.

The highest earning 25% of Americans have cut their spending during the pandemic, which has had a devasting impact on lower wage workers many of whom depend on them spending their money. Service based workers rely on tips from higher earning patrons.
Pandemic News
The newest episode of the Osterholm Update: COVID-19 is titled, “ A Tale of Two Countries.” They explore the public perception of COVID-19, the recent outbreak in Beijing, the trends across the US, and vaccine development.

Dr. Michael Osterholm was recently featured on an episode of Fresh Air with Terry Gross where he discussed the reopening of the US and anticipating a second wave of the virus. He addresses the risk of transmission from recent protests, the risk of indoor rallies, and why he wouldn’t recommend an antibody test.

A recent Oxford University study has found that a generic steroid, dexamethasone, improves survival of some of the most severe COVID-19 patients. The steroid reduced the number of deaths by one third. The results of the study have yet to be published in a peer reviewed journal and US doctors are interested in seeing the detailed data. Dr. Fauci commented that he is pleased that “we now have another modality that works.”

Forbes details a study from Proceedings of the National Academy of Sciences that states that face masks may be “ the central variable that determines the spread of the virus.” Comparing the mitigation responses in Wuhan, Italy and New York, scientists found that social distancing alone did not slow the spread of the virus, but it was the enforcement of face coverings that was a turning point. Face coverings prevent uninfected persons from breathing in aerosols and prevents infected persons from coughing droplets into the air.

Coronavirus cases continue to rise as parts of the country begin to reopen. This past week, ten states reached new highs for hospitalized patients. Director of the National Institutes of Health, Francis Collins, said, “The virus is still out there. I do support the idea that it’s time to try to get people out in the workplaces and public spaces, but let’s do that with the utmost care.”

A new study shows that kids and teenagers are only half as likely to get infected by COVID-19 as adults over the age of 20. Although children are rarely dying due to COVID, they can spread it to family members who could be more susceptible. This is also a factor to consider when reopening schools, as teachers and school staff are at high risk of infection.
A new study found that patients with underlying conditions were 12 times more likely to die of COVID-19 than healthy people . They were also hospitalized at a rate 6 times higher than those without underlying medical conditions. Statistics collected by the CDC also show that Black, Hispanic, Asian, and Native American populations make up a majority of the total COVID cases, even though their representation in the total population is lower than that of White Americans.
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:
Other Interesting & Helpful Resources
Europe reopens its borders to neighboring European countries but is not yet allowing tourists from the US, Asia, Latin America or the Middle East to return. Many areas of Europe rely on tourist income and are hoping to see more visitors over the summer. Spain has piloted a test with thousands of German tourists allowed to travel to the Balearic Islands and forgo the two-week quarantine. Many European countries are lifting border checks within the next week.
State-by-State Actions
Schools:  Education Week

Reopening Status:

Construction Limits:
The Points Guy put together information you need to know about Disney World reopening. They alert readers that advanced reservations are required, there will be no parades, no shows, and no meet-and-greets, and temperature checks and masks will be required. Disney will also heavily rely on contactless payments and their touchless Magic Bands.

Some NBA players are hesitant to return to playing in Orlando, not only because of the pandemic, but they feel it could be a distraction from the current protests following George Floyd’s death. Other players disagree and feel they could use the platform of basketball’s return to fight systemic oppression. Not returning to play could have consequences on the players collective bargaining agreement.

Following recent unrest throughout the country due to police brutality and George Floyd’s death , the President signed an executive order that encourages police departments to improve officer training. The order bans the use of chokeholds unless the officer fears their life is in danger, asks departments to use social workers and mental health professionals on calls related to homelessness, addition and mental illness, and also create a database to track officer misconduct claims.

The New York Times details how training priorities, department culture, and police unions make police reform more complicated. They also interview former police chief Scott Thompson of Camden, New Jersey, a city that has recently been put in the spotlight as it abolished and rebuilt its police force in 2013.

Brookings discusses improving police culture in the US following an expert panel in October 2019. The panel discussed the major issues facing policing today, including toxic culture that affects recruitment, training and leadership. One panelist noted that “police training often pits officers against the community they serve.”
Resident 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.
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