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

Allen Wilson Phase III, Decatur, GA; Market Study
With regards to affordability, we believe the following percent differentials are warranted.
Rent Adjustment
Differential Applied
0-5% 1.00
6-10% 0.75
11-15% 0.50
16-20% 0.25
20%+ 0.00
Competitive Property Analysis
Allen Wilson Terrace I - Comparable 1 Percent Comments
1 Location 1.00 Similar Location
2 Affordability 1.00 Similar Affordability
3 Property Type 1.00 Similar Amenities
4 Quality 1.00 Similar Condition
Comparability Factor 1.000
Competitive Property Analysis
Retreat at Edgewood - Comparable 4 Percent Comments
1 Location 0.75 Slightly Inferior location
2 Affordability 0.00 Less Affordable
3 Property Type 1.00 Similar Amenities
4 Quality 1.00 Similar Condition
Comparability Facto 0.000
Allen Wilson I and Retreat at Edgewood are the only LIHTC comparables in our analysis that
are located in the Subject’s PMA. We have not deducted units from demand that are located
outside the PMA.
All of the market rate comparables are located in the PMA. Competitive tables for these
properties are below.
Comparables six, seven, and eight are unrestricted properties that will have rents more than 20
percent above tenant paid rents at the Subject, as the Subject’s units will all operate with a public
housing subsidy and tenants will pay a portion of their income towards rent. These properties
are located in the same PMA and offer a similar product type and unit mix; therefore they were
included as comparables as they are indicative of the overall performance of the rental market.
However, it should be noted that these properties will not compete for tenants given the rental
rate disparity.
Novogradac & Company, LLP 48