In the unprecedented circumstances of COVID-19, Colorado’s housing industry applauds the federal government for its speedy response with financial aid through the Coronavirus Aid and Economic Security Act (CARES Act). These funds will benefit thousands of residents and fuel local economies with needed financial stimulation.

However, although the CARES Act extends needed support for Colorado’s hurting residents and businesses, it does not encompass the entirety of financial aid that the housing industry will need during this pandemic. 

The intended result of the financial aid from the CARES Act is to stimulate the economy by helping residents cover monthly payments such as rent. However, the CARES Act does not include stipulations for residents to use the funds toward rent, utilities or other monthly bills, so there is no guarantee that the housing industry will be supported by this funding. As such, Colorado’s housing industry supports the joint letter to Congress by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) that outlines additional priorities needed for future COVID-19 relief packages. The letter can be read on the NMHC website: https://www.nmhc.org/advocacy/comment-letters/.

The Colorado housing industry supports approximately 50,000 jobs and houses over a million residents. If the industry does not receive additional federal support dedicated to rental housing that would aid in compensating for financial losses from those not able to pay their rent, the ramifications could affect Colorado’s housing industry beyond the COVID-19 impacts. 

This is why Colorado’s housing industry stands with NMHC and NAA in calling for the following priorities in future financial relief packages. First, the federal government should create an Emergency Rental Assistance Program to help residents who don’t currently receive federal rental subsidies but are now struggling to cover housing costs because of the COVID-19 crisis. A program of this nature ensures the financial burden of rent shortages does not fall on the shoulders of people already struggling such as residents renting and housing providers.

Furthermore, aligning the timelines of mortgage forbearance and eviction provisions, as well as providing tax relief for multifamily property owners will greatly support Colorado’s housing industry.

The federal government should also consider enacting critical infrastructure programs to support economic recovery, because the economic ramifications of the COVID-19 pandemic will extend far longer than the virus itself. 

Alongside Colorado’s health-care and grocery workers on the front lines of the coronavirus, housing industry employees are fighting for their residents in rental housing communities during the crisis. The housing industry is managing resident communication, emergency maintenance projects, online leasing services, facility cleanliness, and financial aid options with virus-impacted rental residents. Housing providers are dedicated to ensuring residents are healthy and secure, but as more residents face job loss or furloughs and cannot fulfill rent obligations, many housing providers may be unable to meet their own financial obligations to make mortgage payments, continue employee payroll, cover tax and insurance fees, pay for utility services, construction and other contracted services, and cover fees for professional services like banking, legal, and information technology. 

Many residents who rent think that mortgage payments are the only cost associated with providing rental housing, however, according to a breakdown by the National Apartment Association, only 9% of every rent dollar is returned to the housing provider. For the rest of the rental payment, 38% accounts for the property mortgage, 27% is used to cover payroll expenses, 14% goes towards property taxes which in turn support the community, and 10% covers capital expenditures like unit repairs. Halting rent payments, and even halting mortgage payments, does not account for the majority of necessities that rent payments cover. 

For this reason, Colorado’s housing industry requests prioritized aid from the federal government so they can be better equipped to support residents financially and ensure they have a safe and clean place to live. Housing providers have many financial aid options for those residents who are concerned about paying their rent for April or the upcoming May rent. County and city resources are available across Colorado to help residents determine whether they qualify for subsidies or help from the state government. Many Colorado nonprofits such as Brother Redevelopment or TRUA also provide rental aid assistance. To access the full list of these resources, visit the Apartment Association of Metro Denver website and click on the COVID-19 landing page. 

If a resident is at risk of not being able to pay the full rental amount, it is in his or her best interest to reach out to these organizations immediately as government programs and nonprofits grant funds to tenants on a first-come, first-served basis. If a resident does not qualify for subsidies, nonprofit or government aid, then the individual should discuss payment plan options with his or her rental housing provider. Such plans should be documented in writing and may take place over a one-month to six-month period or more. At this moment, Colorado’s government and housing industry are creating even more options to support the financial losses felt by of many of its residents.

The pandemic of COVID-19 is an opportunity to cast aside differences and unite to support one another, especially those who are most vulnerable in our communities. Colorado’s rental community is willing to work with residents to reach a solution and protect one another other during this economic downturn.

And, as Congress explores additional financial aid options, there is hope that Colorado residents will benefit, and rent will become less of a burden. Colorado’s housing community also asks Congress to remember to support business sustainability as we all learn how to navigate this turmoil. Colorado is doing its best to adjust daily to the economic disturbance of COVID-19, and additional federal funding would take much of the pressure off both businesses and individuals in the state. 

Colorado’s housing industry stands ready and willing to work with Colorado legislators, renters, and other businesses to find a solution fit for immediate and long-term federal aid. Along with many efforts of housing organizations, the Colorado Apartment Association and the Apartment Association of Metro Denver have published a COVID-19 Renter Resource Guide to assist residents in meeting their rent obligations. 

Through federal and local support, we believe Coloradans can weather the COVID-19 pandemic and we trust our government leaders to lead us in the right direction to do so.

Terry Simone is a founding partner and chief operating officer of real estate investment firm Four Mile Capital in Denver and serves as president of the board of the Colorado Apartment Association.