Many affordable housing developers and operators have remained stable so far during the pandemic. But once the CARES Act expired in July leaving many unemployed without additional benefits, rent delinquencies began to rise significantly. With so many service industries affected by the shutdowns, these residents have few options. And if laid-off workers begin to completely run out of unemployment benefits, the crunch will spread across more properties and affect more tenants more deeply.
How will these properties fare if their residents no longer have access to emergency benefits? And even if the market recovers quickly, will it be fast enough to prevent evictions? How much non-payment impact will affordable housing properties suffer if their residents can’t get back to work soon?