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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Through August 9th, 2021, we have collected 80.9% of charges for the month. Resident receipts are:
- Down (0.4%) compared to August 2021 through the 9th.
- Down (0.3%) compared to June 2021 through the 9th.
- Down (2%) compared to May 2021 through the 9th.
- Down (4%) compared to December 2019 through the 9th
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Subsidy: Cumulative subsidy receipts for the month are 83% collected, which is:
- Down (6%) compared to July 2021 through the 9th.
- Down (9%) compared to June 2021 through the 9th.
- Down (7%) compared to May 2021 through the 9th.
- Down (2%) compared to December 2019 through the 9th.
Total Receipts: Cumulative receipts for the month are 81% collected, which is:
- Down (1%) compared to July 2021 through the 9th.
- Down (2%) compared to June 2021 through the 9th.
- Down (3%) compared to May 2021 through the 9th.
- Down (3%) compared to December 2019 through the 9th.
Receipts at Senior properties are 93% collected, which is:
- Up 1% compared to July 2021 through the 9th.
- Up 1% compared to June 2021 through the 9th.
- Up 1% compared to May 2021 through the 9th.
- Down (1%) compared to December 2019 through the 9th.
Receipts at Family properties are 78% collected, which is:
- Flat compared to July 2021 through the 9th.
- Down (1%) compared to June 2021 through the 9th.
- Down (2%) compared to May 2021 through the 9th.
- Down (4%) compared to December 2019 through the 9th.
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The chart below shows the distribution of properties on their collection performance in August 2021 through the 9th. Out of the 201 properties, 17 have collected less than 55% of August 2021 charges representing $0.4M remaining to collect while 24 properties have collected over 95% 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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Germany announced that they plan to begin offering booster shots in early September. They are offering the booster to older adults with underlying health conditions, which is similar to France’s approach. In Israel, anyone over sixty who was fully vaccinated over five months ago will be eligible for the booster. However, many health experts are still saying that the priority should be to vaccinate more high-risk people around the world before booster shots are administered. (NY Times and AP News)
What makes the Delta variant so dangerous for unvaccinated people? Making up over 80% of all Covid-19 cases in the U.S., the Delta variant is suspected to be about 50% more transmissible than the Alpha variant. The increased transmission puts unvaccinated individuals at risk, who are more than 95% of Covid hospitalizations. A study of nearly 20,000 people found that after a full vaccination, the Pfizer vaccine was 88% effective at preventing symptomatic disease caused by the Delta variant and 94% effective against the Alpha variant. (WSJ)
How will the pandemic end? After months of lockdowns and then a few months of improving case numbers, July’s spike in global Covid-19 infections have discouraged those hoping to declare the end of the pandemic. The World Health Organization says that if Covid-19 persists globally at “expected or normal levels,” they will re-designate Covid-19 as an “endemic.” Last week, WHO Director Tedros Adhanom Ghebreyesus stated a goal of vaccinating at least 10% of every nation’s population by September, 40% global inoculation by year’s end, and 70% by mid-2022. (National Geographic)
The August 5th of the Osterholm Update: COVID-19 discusses breakthrough cases in vaccinated individuals, the Delta variant, the ebbs and flows of the pandemic, as well as additional ways to protect oneself.
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IHME has changed their daily infections and testing to project the trajectory of infections based on mandates and closures and universal mask wearing.
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Housing & Employment News
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The New York Times “The Daily” podcast interviewed businesses looking for workers and former employees of the hospitality industry in last week’s episode “Stories From the Great American Labor Shortage.” Those interviewed are finding it hard to fill positions in the industry and are raising wages to try to entice workers. Whereas some workers do not intend to return to hospitality for reasons ranging from low pay, 80-hour weeks, or preservation of their mental and physical health. (NY Times)
In the second quarter of this year, investors spent $53 billion on multifamily real estate, the most ever recorded for a second quarter. This is fueled by the move from spending on offices, hotels, and malls to housing due to the pandemic. The booming single family housing market has made it difficult for many would-be buyers to find a home, which is causing more to seek out apartment living and driving rents up 8.3% over last year. From June 2020 to June 2021, apartment building prices climbed 12%. (Bloomberg)
The CDC put a temporary halt on residential evictions with communities of high transmissions through October 3, 2021. However, this came 3 days after the Eviction Moratorium ended so some renters may already be in the process of getting evicted since this temporary halt is not retro-active. The agency order gave leeway to judges on how to apply the state laws along with the order, which has many courts filled with eviction cases. According to a survey done by the U.S. Census Bureau in early July more than 1.4 million Americans expect to be evicted in the next two months. National Low Income Housing Coalition complied this resource regarding evictions. (NY Times)
Wall Street is raising starting salaries for its youngest employees to try to combat burnout and heavy workloads. The long hours were more difficult throughout the pandemic as young employees missed the camaraderie and networking that comes with working in the office. Many major players are paying the same, making salary no longer a competitive advantage. Other perks like flexible work, zoom-free Fridays, and other non-monetary perks could help entice and retain talent. Jefferies announced a vaccine mandate for those returning to the office, whereas JP Morgan Chase reinstated its mask requirements. (NY Times)
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Other Interesting & Helpful Resources
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As more places are requiring proof of vaccination, many are wondering how to prove vaccination status without carrying vaccination cards. One option is to make a copy of your vaccination paper and laminate it. You can also take a photo of it and store it in a secure file on your phone. There are also apps that allow you to store your scanned vaccination card (Clear, VaxYes, and Airside). Lastly, the iPhone Health App will offer a vaccination proof feature with the iOS 15 update, coming this fall. As an important note, cities, states, and countries may have different requirements or regulations, so make sure to research what is required of you. (Washington Post)
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State-by-State Actions
Schools:
Stay at Home/Shelter in Place:
Construction Limits:
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After a brief period of dining indoors while vaccinated and without masks, the Delta variant is changing masking guidelines causing many Americans to think twice before dining at an indoor restaurant. Epidemiologists and public health experts state, “there is no such thing as zero risk.” One epidemiologist said you should look at three factors when deciding to dine out: “your vaccination status, the level of coronavirus transmission in your community… and your personal risk assessment.” Some restaurants and even New York City (starting in September) are requiring employees and even customers to show proof of vaccination. (Washington Post)
The spread of the Delta variant in the US is causing a drop in airline travel, with Southwest Airlines reporting weaker booking numbers this month as cases rise. Southwest is only the second airline, behind Frontier, to report a decline in bookings as Delta, United, and American Airlines declined to comment this week. Many Americans returned to traveling this summer as vaccinations increased and cases were down, but as cases rise leisure travel appears to be declining. This is likely due to the transmission rate of the Delta variant even among the vaccinated as well as people postponing trips to new hot spots or those destinations reimposing restrictions, i.e. Florida and Hawaii respectively. (Washington Post)
After a period of optimistic reopening around the world, the Delta variant has forced many countries to halt the loosening of restrictions. Bloomberg’s Travel Reopening Tracker is tracking 1,538 travel combinations between 40 major business and tourism destinations and rating them based on Covid-19 travel restrictions, vaccination levels, and public health rules. (Bloomberg)
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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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