a market conditions and project evaluation summary of - Georgia ...

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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
Allen Wilson Phase III, Decatur, GA; Market Study Retreat at Edgewood II Number of Asking Unit Type Units 50% AMI Size Rent 1BR 3 753 $487 3BR 1 60% AMI 1,500 $613 1BR 25 753 $584 3BR 9 1,500 $703 1BR Market Rate 2 753 $725 Total 40 All of the Subject’s units will operate with a public housing subsidy and all tenants will pay 30 percent of their income towards rent. None of the units at this property will operate with an additional subsidy. Therefore, these units will not directly compete with the Subject. Allen Wilson II, the second phase of the Subject, was allocated in 2010 and is under construction. This development will target seniors and will not directly compete with the Subject. Currently, the Decatur Housing Authority has 2,500 applicants on its waiting list that are prequalified to live at the Subject. Given the extensive waiting list and the additional subsidy on the Subject’s units, we believe there is adequate demand to support these two LIHTC developments as well as the Subject. 10. Rental Trends in the PMA The following table is a summary of the tenure patterns of the housing stock in the PMA. TENURE PATTERNS PMA Owner-Occupied Percentage Owner- Renter-Occupied Percentage Renter- Year Units Occupied Units Occupied 1990 17,018 51.57% 15,979 48.43% 2000 18,966 51.82% 17,637 48.18% 2010 Projected Mkt Entry 19,434 49.25% 20,027 50.75% June 2014 19,783 48.67% 20,864 51.33% 2015 19,879 48.51% 21,096 51.49% Source: ESRI Demographics 2010, Novogradac & Company LLP, May 2012 As the table illustrates, households within the PMA are split almost 50/50 between owneroccupied and renter-occupied residences. Renter-occupied residences account for 1.5 percentage points over owner-occupied units. Owner-occupied units are projected to decrease by June 2014 and renter-occupied units are slated to increase. Nationally, close to two-thirds of households are homeowners and one-third are renters according to the US Census Bureau. The PMA has a higher portion of renter households than the national average which bodes well for the subject. In addition, the renter-occupied market still does not fully promote the demand for affordable housing choices for low and moderate-income people. Novogradac & Company, LLP 98
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A MARKET CONDITIONS AND PROJECT EVA
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Mr. Douglas S. Faust Executive Dire
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author or the firm with which he or
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TABLE OF CONTENTS A. EXECUTIVE SUMM
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EXECUTIVE SUMMARY AND CONCLUSIONS A
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Allen Wilson Phase III, Decatur, GA
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B. PROJECT DESCRIPTION
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Comp # Subject Effective Rent Date
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C. SITE EVALUATION
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Novogradac & Company LLP 21 Allen W
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D. MARKET AREA
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Comparable Properties Allen Wilson
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F. EMPLOYMENT TRENDS
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PROJECT-SPECIFIC DEMAND ANALYSIS
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Page 65 and 66: Allen Wilson Phase III, Decatur, GA
Page 69 and 70: Novogradac & Company, LLP 61 Allen
Page 71 and 72: Allen Wilson III, Decatur, GA; Mark
Page 73 and 74: Comparable Rental Property Map Alle
Page 75 and 76: SUMMARY MATRIX Comp # Project Dista
Page 77 and 78: Effective Rent Date 5/23/2012 Locat
Page 79 and 80: Allen Wilson Phase I, continued Tre
Page 81 and 82: Auburn Glenn, continued Unit Mix (f
Page 85 and 86: Columbia Village, continued Trend R
Page 89 and 90: Retreat At Edgewood, continued Amen
Page 91 and 92: Robins Landing Apartments, continue
Page 95 and 96: Archstone Decatur Crossing (fka Gra
Page 97 and 98: Ice House Lofts, continued Amenitie
Page 101 and 102: Jackson Square, continued Trend Rep
Page 103 and 104: Villages Of East Lake I And II, con
Page 105 and 106: Villages Of East Lake I And II, con
Page 107 and 108: 2. The following information is pro
Page 111 and 112: Allen Wilson Phase III Allen Wilson
Page 115: Allen Wilson Phase III, Decatur, GA
Page 133 and 134: I. Education STATEMENT OF PROFESSIO
Page 135 and 136: H. Blair Kincer Qualifications Page
Page 137: STATEMENT OF PROFESSIONAL QUALIFICA
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