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Observations and Opportunities: Meridian
Like Boise, and in some ways even more so, Meridian has been experiencing significant growth over the past several years.
Observations and Opportunities: Affordable Housing
July 1, 2020
This week, ULI Idaho reached out to Idaho Housing and Finance Association (IHFA) and Northwest Real Estate Capital Corporation (NWRECC). Both say it’s a little too early to tell what the true impacts of COVID-19 will be on affordable housing demand and solutions here in Idaho.
Noel Gill
Executive Vice President, Northwest Real Estate Capital Corporation
Can you describe the impacts you’ve seen on demand for affordable housing from COVID-19?
Going into March, most of our affordable housing communities had waiting lists that were 6 months or longer. Through June 2020, we’ve seen a less than 10% increase in applications. I feel that with the stimulus, expanded unemployment and individual states providing rend and utility support we may not see increased demand and need until August.
I’m currently on the National Affordable Housing Management Association board and many members are still reporting rent collections above 90% through June 2020. Most of my company’s communities are above 95% collections.
I think that we’ll see the affects in August as expanded unemployment expires, families use up their stimulus and PPP loan funds are expended. Recently, many states have funded rent and utility support programs that may extend the potential affects by a month or two.
What programs, assistance, or other advice are you sharing with clients right now?
Take advantage of the Paycheck Protection Program loan (we assisted one of our clients with application and obtaining a PPP loan), review and create cost control measures, eliminate unnecessary expenses, delay capital expenditures if possible, establish operating reserves if possible, defer distributions, communicate state renter relief programs and assist residents in navigating the process and communicating to residents in subsidized communities the ability to report zero income transferring rent burden from residents to the federal programs.
Have there been any innovations that your industry has made as a result of the pandemic?
On May 26, 2020, HUD issued guidance on utilization of eSignatures for HUD programs. Yardi Systems created a general practices workflow for clients utilizing RentCafé that would allow for paperless workflows (we hope to have our families capable of managing their tenancy online in the next 90 days). Currently residents can pay rent, check their resident ledger and submit work orders; we are working toward the ability to have them process certifications online.
What future changes or innovations/opportunities do you expect to see in the affordable housing industry as a result of this pivotal moment?
Our goal is to create the capacity to have a resident perform every aspect of applications, move ins, rents, re-certifications, work orders, communication, resident services in an electronic environment. This will protect our teams and residents during this time but also create long lasting efficiencies in our business.
Cory Phelps
VP Project Finance, Idaho Housing and Finance Association
Can you describe the impacts you’ve seen on demand for affordable housing from COVID-19?
I think it’s a bit too early to tell what the impacts will ultimately be on the demand for affordable housing. That said, recent market studies for two new proposed projects show a significant need for more affordable housing. Stated another way, those who qualify for affordable housing (60% AMI or below) far exceed the supply that’s currently in the market. From the few owners/developers who I’ve spoken with, their vacancy rates are still extremely low, and most have waiting lists if/when a unit becomes available.
Idaho Housing and Finance Association has a list of resources including rental assistance available at https://www.idahohousing.com/covid-19/
What future changes or innovations/opportunities do you expect to see in the affordable housing industry as a result of this pivotal moment?
Again, I think it’s too early to tell. I think come fall we’ll have a better understanding on the needs/issues and at that point we can maybe try and assess what new products/services are needed to address affordable housing.