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could provide approximately $300 in additional weekly benefits to the unemployed. In the first month of COVID-19, we received a wave of proactive inquiries from partners regarding the ability to draw funds from the Operating Reserve if needed. Only 1% of our properties have followed through with a formal request and withdrawal from the Operating Reserve. In addition, only 3% of CREA’s portfolio was able to obtain HUD, RD or CREA approval to waive
replacement reserve deposits for three months in lieu of draws on the Operating Reserve or instances where forbearance could not be provided. This strategy was effective for some properties that could benefit from cash flow cushion and were deferring specific non-critical capital projects to 2021. Overall, our portfolio performance is strong despite the pandemic. While COVID-19 may have been a contributing factor to properties on our watchlist as of Q2, it was
not the sole factor due to IRS regulations, CARES Act and other mitigants implemented on-site by our general partners. While there is no crystal ball, a slight decrease in rent collections is anticipated within our portfolio, specifically within the family properties. Leasing may also become a challenge in certain markets for months to come. CREA will continue to work closely with our partners to provide guidance, collect and track data, and report on the portfolio’s overall performance.
*Statistics include operational and Stabilized properties only >>>
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