KEY FINDINGS

There has been little improvement in stabilized June rent collections (i.e., collections above 95%).

  • Only half (49%) of respondents indicated they have received greater than 95% of collections (a level considered stable by the industry) for the month of June 2021.
    • This is statistically the same level (46%) of respondents who indicated this level of collection in March 2021.

There has also been little improvement in the tail-end of owners who indicated their buildings are at risk of foreclosure (i.e., collections below 85%).

  • 30% of respondents indicated they have received less than 85% of collections (i.e., they risk foreclosure) for the month of June 2021.
    • This is statistically the same level (27%) of respondents who indicated this level of collection in March 2021.

While the majority of all respondents indicated either they or their tenants applied for ERA, only 1/3 of smaller housing providers (fewer than 20 units) applied for ERA.

  • 60% of respondents indicated that either they or their tenants applied for ERA.
    • 35% indicated neither they or their tenants applied for ERA.
    • 5% indicated this was the first time they had heard about the program.
  • Further, only 36% of housing providers who own or operate fewer than 20 units indicated that either they or their tenant applied for ERA.
    • Over half – 57% of respondents – indicated that neither they nor their tenants applied for ERA.
    • The remaining 7% indicate this was the first time they were aware of the ERA Program.

As of late July, over half of all respondents indicated they are still awaiting a decision on their ERA funding.

  • 55% of respondents indicated they are awaiting a decision on all or some of their ERA applications.
  • 8% of respondents indicated they were denied funding for all their applications.
  • Only 11% of respondents indicated they are fully funded for all their ERA applications.

To further complicate matters, tenants (for whom housing providers applied for ERA) are not completing their portion of the application.

  • Only 38% of respondents indicated that they had full compliance of their tenants (for whom housing providers applied) in completing their portion of the application.
  • Almost 1/4 (23%) of respondents indicated that fewer than half of their applications submitted had a co-application from their tenant.

Few housing providers expect ERA to stabilize their outstanding delinquency after receiving anticipated funds.

  • Prior to receiving any ERA aid, only 45% of respondents indicated they currently have less than 5% delinquency in their portfolio—a level considered to be stable.
  • Post ERA aid, only 53% of respondents indicated they are expecting to have less than 5% delinquency in their portfolio, meaning that almost half of all housing providers expect to have unstable levels of delinquency even after ERA.

However, only 1 in 10 respondents indicated they received enough ERA as of late July to cover the entire cost of all their COVID-19 related hardships, indicating a gap between funding expectations and actual funds received.

  • Only 11% of respondents (who indicated they did receive ERA funds) indicated they received enough ERA to cover the entire cost of all previous rental delinquencies since the onset of the Covid 19 pandemic.
    • 81% of respondents indicated they did not receive enough ERA to cover the entire cost of all previous rental delinquencies since the onset of the Covid 19 pandemic.
      • This percentage is fairly consistent across both small and large housing providers
    • The remaining 8% of respondents indicated they are still awaiting a response (or other).

Through late July 2021, ERA funding was largely unreceived by housing providers.

  • Less than 1 in 5 (18%) ERA dollars applied for have been received.
  • On average, while 1 in 3 (33%) of applicants applied for aid greater than 6 months, only 1 in 9 (12%) of all respondents actually received ERA funds for greater than 6 months.
  • For small housing providers (less than 100 units in total portfolio), almost half (45%) of applicants applied for aid greater than 6 months, while only 15% of small housing providers received ERA funds for greater than 6 months.

Housing providers have indicated they have not had enough cash on hand to meet their 2021 mandates.

  • 58% of respondents made fewer capital improvements.
  • 40% of respondents cut their repairs & maintenance budget.
  • 25% of respondents were forced to make personnel cuts.
  • 13% of respondents don’t expect to pay their property taxes on time or in full.
  • 4% of respondents don’t expect to pay their mortgage on time or in full.

About the Survey

The Neighborhood Building Owners Alliance (NBOA), in cooperation with its affiliate members, and Kiser Group conducted an online survey of more than 150 Chicago housing providers to determine the effect of the Emergency Rental Assistance (ERA) program on the City’s (and surrounding MSA) rental housing market. The survey was conducted July 16th through July 28th, 2021.

As a continuation of several quarterly NBOA surveys conducted since October 2020, this survey focused primarily on the effect of the ERA program and its progress on delivering much-needed financial aid for housing providers. In addition, the survey continued to collect important data on rent collections and the neighborhood housing landscape since the onset of the COVID-19 pandemic. The survey also asked the respondents about the type of buildings they owned, the size of their portfolio (by number of housing units) and the location of those buildings.

Profile of Survey Respondents

The respondents collectively own approximately 27,000 rental units throughout Chicagoland. As was the case with previous survey iterations, over two-thirds (approx. 70%) of the respondents consisted of small- and mid-sized housing providers who own fewer than 100 rental units and/or own ten (10) or fewer buildings. Further, more than half the respondents (52%) reported owning five or fewer properties. As such, this survey is representative of Chicago’s smaller to medium-sized housing providers who make up the bulk of the City’s rental housing stock.