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Allen Wilson Phase III, Decatur, GA; Market Study
households in the PMA. The Decatur Housing Authority currently has 2,500 applicants on the
waiting list who are pre-qualified for the Subject’s units.
Analysis of “Market Rents”
Per DCA’s market study guidelines, “average market rent is to be a reflection of rents that are
achieved in the market. In other words, the rents the competitive properties are currently receiving.
Average market rent is not “Achievable unrestricted market rent.” In an urban market with many tax
credit comps, the average market rent might be the weighted average of those tax credit comps. In
cases where there are few tax credit comps, but many market rate comps with similar unit designs
and amenity packages, then the average market rent might be the weighted average of those market
rate comps. In a small rural market there may be neither tax credit comps nor market rate comps with
similar positioning as the subject. In a case like that the average market rent would be a weighted
average of whatever rents were present in the market.”
When comparing the Subject’s rents to the average market rent, we have not included rents at
lower AMI levels given that this artificially lowers the average market rent as those rents are
constricted. Including rents at lower AMI levels does reflect an accurate average rent for rents at
higher income levels. For example, if the Subject offers 50 and 60 percent AMI rents and there
is a distinct difference at comparable properties between rents at the two AMI levels, we have
not included the 50 percent AMI rents in the average market rent for the 60 percent AMI
comparison.
The overall average and the maximum and minimum adjusted rents for the market properties
surveyed are illustrated in the table below in comparison with net rents for the Subject.
Subject Comparison To Market Rents
Surveyed Surveyed Surveyed Subject Rent
Unit Type Subject Min Max Average Advantage
1 BR 50% BOI $516 $1,295 $765 N/Ap
2 BR 50% BOI $565 $1,595 $822 N/Ap
3 BR 50% BOI $725 $1,479 $896 N/Ap
1 BR 60% BOI $516 $1,295 $779 N/Ap
2 BR 60% BOI $565 $1,595 $867 N/Ap
3 BR 60% BOI $743 $1,479 $940 N/Ap
The Subject will operate with 100 percent public housing subsidy and therefore will have a rental
advantage over the comparables that do not offer a subsidy.
9. LIHTC Competition – Recent Allocations within Two Miles
According to information on Georgia Department of Community Affairs LIHTC allocation lists,
Retreat at Edgewood II was allocated tax credits in 2010 and is currently under construction.
This property will contain 40 units and will be located approximately 3.0 miles from the Subject
site. The following table illustrates the proposed rents and unit mix for the property.
Novogradac & Company, LLP 97