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Allen Wilson Phase III, Decatur, GA; Market Study
12. Primary Housing Void
The Subject will be phase III of the Allen Wilson redevelopment, which will be replacement
housing for demolished public housing units. The Decatur Housing Authority currently has
2,500 pre-qualified applicants on its waiting list and Allen Wilson Phase I was fully leased
within two weeks of opening. The quick absorption of phase I and the housing authority’s
lengthy waiting list indicate a need for additional subsidized units in the market. All of the
Subject’s units will operate with a public housing subsidy and the Subject’s units will help to fill
the housing void in the market.
13. Affect of Subject on Other Affordable Units in Market
All 71 of the Subject’s units will operate with a subsidy. There are no LIHTC developments
planned or under construction in the PMA that will operate with an additional subsidy.
Additionally, the vacancy rate among the existing LIHTC comparables is low at 2.5 percent,
indicating a need for additional affordable housing. The Subject will be replacement housing for
the units that will be demolished at Allen Wilson Homes. Currently, there are 2,500 prequalified
applicants on the housing authority’s waiting list. Given the significant number of
applicants on the waiting list and the fact that the Subject will be replacement housing, we do not
believe that it will negatively impact the existing or proposed affordable rental units in the
market.
Conclusions
Based upon our market research, demographic calculations and analysis, we believe there is
ample demand for the Subject property as proposed. The Subject will be replacement public
housing for the existing Allen Wilson Terrace, which will be demolished. A total of nine
buildings (56 units) at the existing Allen Wilson Terrace will remain occupied until the
completion of Allen Wilson Phase III. Of these occupied units, 21 are seniors who will relocate
to Phase II and 35 are families who will relocate to the Subject (Phase III). After all of the
current residents have moved to Phase II and the Subject, these nine buildings will be
demolished. As proposed, the Subject will contain 71 units. Tenants for the remaining 15 units
at the Subject will likely come from the housing authority’s waiting list, which contains 2,500
households, all of which have been pre-qualified to live at the Subject. Three of the LIHTC
comparables offer subsidized units, Allen Wilson I, Auburn Glenn, and Villages of East Lake I
and II. None of the comparables have any vacant subsidized units, further illustrating a need for
additional subsidized units in the market.
Overall the local affordable housing market, and the subsidized housing market in particular,
appear to be performing well. Given the low subsidized vacancy rate, the significant waiting list
for public housing, and the relocation plan in place for the current residents of Allen Wilson
Terrace, we believe that the Subject will be successful in the local market as proposed.
Novogradac & Company, LLP 100