HOW WORKFORCE HOUSING OWNERS CAN PROVIDE TENANTS FINANCIAL AID, HEIGHTENED SANITATION Many workforce housing tenants perform essential services. Here’s how landlords can thank them. By Rick Guttman of Dakota Enterprises M ultifamily developers across the country know that these are unprecedented and uncer-tain times for nearly everyone due to COVID-19. Houstonians making up what many consider “the essential class” of the workforce include teachers, police offi -cers, nurses and firefighters who invest in other peoples’ betterment every day. These are the people who are working day in and day out to provide us with various fundamental needs during this time of mandated quarantine. Many of these individuals are ten-ants of workforce housing properties, and to the relief of developers, are most essential to the world right now. However, not all jobs can be kept, and with more than 36 million Americans having filed for unemployment as of mid-May, establishing necessary pro-cesses and procedures about working with residents who may be in financial binds due to COVID-19 have become a requirement. In early March, developers includ-ing our firm, began to work with both the National Apartment Association and the Houston Apartment Associa-tion for recommended guidelines to effectively help our tenants who need it most. Additionally, several landlords came together to better understand what other property owners are doing on the ground to best serve residents. Landlords typically cannot forgive rent, but we can ad-just late fees. While we are trying to do what is best to help our residents during this time, it is also important for devel-opers to consistently communicate to residents the various ways in which they Rick can receive aid. Guttman Although various Dakota workforce hous-Enterprises ing developers have taken different approaches with their residents, at Dakota Enterprises’ prop-erties, those who have been laid off or are struggling financially due to COV -ID-19 have the option to split rent into bi-monthly payments that do not incur late fees or penalties. We have also re-duced standard late payment fees by 50 percent. Additionally, Dakota has taken pro-active steps to ensure our tenants and employees are safe and healthy. These implementations are practices that oth-er workforce housing developments will continue to or should implement as well. Dakota Enterprises completed Magnolia Park, a 160-unit workforce housing community in Houston’s East End, in 2019. Developers across the city are finding creative ways to work with tenants and maintain occupancy rates at their properties. Rent payments: Rent payments should be only paid online or with a day drop. The doors of leasing offices should be locked, not to prevent ten-ants from entering, but to comply with social distancing. Amenities: All pools, clubhouses, gyms and other public amenities and shared spaces should be closed to, again, eliminate the spread of germs. Maintenance requests: Maintenance staff are considered essential employ -ees and are still working. However, they should always wear masks, gloves and booties, ensure no one in the unit is sick before entering and work in dif-ferent rooms from tenants at all times. Along with internal efforts, develop -ers are experimenting with new exter-nal strategies that align with COVID-19-related orders. Several developers have gone completely digital with their marketing efforts through virtual web -site tours and even Skype calls to see the insides of units. At our properties, we are still giving potential residents unit tours in-person if requested. Showing units virtually will never supersede actually stepping foot in a unit, but we are taking neces-sary care to maintain appropriate dis-tances between leasing staff and pro -spective tenants. To that end, it is important to re-member that we are all in this together. These are unchartered waters for us all, and we should help each other navi-gate them, because tomorrow there is hope. Rick Guttman is CEO of Dakota Enterprises, a Houston-based multifamily developer primarily focused on the rehabilitation and ground-up construction of market-rate workforce housing. Agency Lending Update Annual Fannie Mae DUS Lenders Guide Design & Engineering Post-COVID-19 UPCOMING JUNE FEATURES MARKET HIGHLIGHT TBD EDITORIAL OPPORTUNITIES: Taylor Williams twilliams@francemediainc.com (404) 832-8262 ADVERTISING OPPORTUNITIES: Craig McIntosh craig@francemediainc.com (404) 832-8262 D.J. Orndorff dorndorff@francemediainc.com (404) 832-8262 www.REBusinessOnline.com Texas Real Estate Business • May 2020 • 17
Texas Real Estate Business May 2020: Page 17
