Galveston Market Study Report for MBS

Transcription

APPRAISAL CONSULTING ASSIGNMENT
C11-AHA-176
INVOLVING AN APARTMENT MARKET ANALYSIS
ANALYZING THE DEMAND FOR A MIXED-INCOME FAMILY APARTMENT
DEVELOPMENT
GALVESTON, GALVESTON COUNTY, TX
AUTHORIZED BY
MS. JULIE DEGRAAF VELAZQUEZ
MCCORMACK BARON SALAZAR
720 OLIVE STREET, SUITE 2500
ST. LOUIS, MISSOURI 63101
BY
AFFORDABLE HOUSING ANALYSTS
507 VINCENT STREET
HOUSTON, TEXAS, 77009
EFFECTIVE DATE OF THE MARKET ANALYSIS
SEPTEMBER 7, 2011
DATE OF THE REPORT
OCTOBER 27, 2011
Affordable Housing Analysts
Appraisers/Analysts/Consultants
October 27, 2011
Ms. Julie DeGraaf Velazquez
McCormack Baron Salazar
720 Olive Street, Suite 2500
St. Louis, Missouri 63101
Reference: 684-unit mixed income multifamily project to be located in one or more yet-to-bedetermined sites in the City of Galveston, Galveston County, TX to be constructed
in multiple phases.
Greetings:
At your request, I have completed an Appraisal Consulting Assignment for the purpose of
providing a market analysis for the above-referenced property. The effective date of the study is
September 7, 2011. The date of the report is October 27, 2011. Robert O. Coe, II visited the
subject neighborhood on numerous occasions including August 25, 2011.
The analyses provided herein are subject to the assumptions and contingent and limiting
conditions contained within both the body of this report and the addenda section. Based on my
analysis of the subject property's primary market area, there is sufficient demand to successfully
construct and absorb the proposed 684-unit mixed income multifamily project to be located in
one or more yet-to-be-determined sites as of September 7, 2011. As of the date of this report, the
subject development is proposed to be developed in five phases ranging from 100 units to 160
units.
No other persons provided significant real property appraisal consulting assistance in the
preparation of the market analysis.
I am not qualified to detect or identify hazardous substances, which may, or may not, be present
on, in, or near this property. The presence of hazardous materials may negatively affect
feasibility. I have analyzed the subject property as though free of hazardous materials. I urge the
user of this report to obtain the services of specialists for the purpose of conducting an
environmental audit to ensure that the subject property is free of hazardous materials.
507 Vincent, Houston, TX 77009
www.Affordablehousinganalysts.com
281-387-7552
McCormack Baron Salazar
Ms. Julie DeGraaf Velazquez
October 27, 2011
Page – 2
I certify that I have no interest, present or proposed, in the subject property, that the conclusion
contained herein has been reached after a careful study, investigation, analysis, and interpretation
of the pertinent data, and that my fee is in no way contingent upon the conclusion. I am neither
part of the development team, owner of the subject property, nor affiliated with any member of
the development team engaged in the development of the property. This market analysis is
prepared subject to my current assumptions and limiting conditions. Your attention is directed to
the following report and accompanying data, which form, in part, the basis of my conclusions.
All occupancy levels cited throughout this report refer only to physical occupancy unless
otherwise specified in the text.
Respectfully submitted,
AFFORDABLE HOUSING ANALYSTS
Robert O. Coe, II
TX-1333157-G
State Certified General Real Estate Appraiser
Associate Member of the Appraisal Institute
City of Galveston Market Study
TABLE OF CONTENTS
1. SUMMARY AND CONCLUSIONS
9
EXECUTIVE SUMMARY
IDENTIFICATION OF PROPERTY
PURPOSE OF APPRAISAL CONSULTING ASSIGNMENT
SCOPE OF APPRAISAL CONSULTING ASSIGNMENT
EFFECTIVE DATE OF THE ASSIGNMENT
10
13
15
16
16
2. PRIMARY MARKET AREA DEFINED
SUBJECT MARKET AREAS
PHYSICAL LOCATION ANALYSIS
AREA DEVELOPMENT AND GROWTH TRENDS
ECONOMIC VIABILITY
18
19
23
35
38
PRIMARY MARKET AMENITIES MAPS
39
COMPARABLE PROPERTY ANALYSIS
RENT COMPARABLES
CONCLUDED MARKET RENT SUMMARY
41
53
65
DEMAND ANALYSIS
ELIGIBLE RENTER ANALYSIS - RENT-RESTRICTED UNITS
66
67
HISTA DEMOGRAPHICS CAPTURE ANALYSIS
75
CONCLUSIONS OF MARKET ANALYSIS
CAPTURE RATE CONCLUSION
78
79
APPENDICES
81
CERTIFICATION OF MARKET ANALYSIS
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ASSUMPTIONS AND LIMITING CONDITIONS
This report is subject to the following assumptions and limiting conditions:
1)
Any legal description or plats reported herein are assumed to be accurate. Any sketches,
surveys, plats, photographs, drawings, or other exhibits are included only to assist the
intended users to better understand and visualize the subject property the environs, and
the competitive data. I have made no survey of the subject property and assume no
responsibility associated with such matters.
2)
The value assumes responsible ownership and competent management. The subject
property is assumed to be free and clear of all liens, except as may be otherwise herein
described. No responsibility is assumed by the appraiser(s) for matters legal in character,
nor is any opinion on the title rendered, which is assumed to be good and marketable.
3)
The information contained herein has been gathered from sources deemed to be reliable,
but I assume no responsibility for its accuracy. The value/opinions rendered herein are
based on preliminary analyses of the proposed subject property and the market area.
4)
Any leases, agreements or other written or verbal representations and/or communications
and information received by the appraiser(s) have been reasonably relied upon in good
faith but have not been analyzed for their legal implications. I urge and caution the user
of this report to obtain legal counsel of his/her own choice to review the legal and factual
matters, and to verify and analyze the underlying facts and merits of any investment
decision in a reasonably prudent manner.
5)
I assume no responsibility for any hidden agreements known as "side reports", which
may or may not exist relative to this property, which have not been made known to us,
unless specifically acknowledged within this report.
6)
This report is to be used in whole, and not in part. Any separate valuation for land and
improvements shall not be used in conjunction with any other valuation and is invalid if
so used. Possession of this report or any copy thereof does not carry with it the right of
publication nor may the same be used for any purpose by anyone but the client without
the previous written consent of the appraiser(s), and in any event, only in its entirety.
7)
I, by reason of this report, are not required to give testimony in court with reference to the
property unless notice and proper arrangements have been previously made therefore.
8)
Neither all nor any part of the contents of this report shall be conveyed to the public
through advertising, public relations, news, sales or other media without prior written
consent and approval of the author.
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Assumptions and Limiting Conditions – Continued
9)
No subsoil data or analysis based on engineering core borings or other tests were
furnished to me. I have assumed that there are no subsoil defects present that would
impair development of the land to its maximum permitted use, or would render it more or
less valuable.
10)
No responsibility is assumed for hidden defects or for conformity to specific
governmental requirements, such as fire, building, safety, earthquake, or occupancy
codes, except where specific professional or governmental inspections have been
completed and reported in this report.
11)
The construction and physical condition of the improvements described herein are based
on a site visit. No liability is assumed by us for the soundness of structural members
since no engineering tests were conducted. No liability is assumed for the condition or
adequacy of mechanical equipment, plumbing or electrical components.
No
responsibility is assumed for engineering, which might be required to discover such
factors. I urge the user of this report to retain an expert in this field.
12)
Unless otherwise stated in this report, the existence of hazardous substances, including
without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural
chemicals, which may or may not be present in or on the property, or other environmental
conditions were not called to the my attention nor did I become aware of such during my
site visit. I have no knowledge of the existence of such materials on or in the property
unless otherwise stated. I, however, am not qualified to test such substances or
conditions. No responsibility is assumed for any such conditions, nor for any expertise or
engineering knowledge required to detect or discover them. I urge the user of this report
to retain an expert in the field of environmental impacts on real estate if so desired.
13)
The projections of income, expenses, terminal values or future sales prices are not
predictions of the future; rather, they are the best estimate of current market thinking of
what future trends will be. I assume no responsibility for any changes in economic or
physical conditions which occur following the effective date of this report that would
influence or potentially affect the analyses, opinions, or conditions in the report. Any
subsequent changes are beyond the scope of this report. No warranty or representation is
made that these projections will materialize.
14)
The client or user of this report agrees to notify the appraiser(s) of any error, omission or
inaccurate data contained in the report within 15 days of receipt, and return the report and
all copies thereof to the appraiser(s) for correction prior to any use.
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Assumptions and Limiting Conditions – Continued
15)
The acceptance of this report, and its subsequent use by the client or any other party in
any manner whatsoever for any purpose, is acknowledgment by the user that the report
has been read and understood, specifically agrees that the data and analyses, to their
knowledge, are correct and acceptable.
16)
This assignment was not based upon a requested minimum valuation, a specific
valuation, or the approval of a loan.
17)
This report has been prepared in a “non-disclosure” state. Real estate prices and other
data, such as rents, prices, and financing are not a matter of public record. Although
extensive effort has been expended to verify pertinent data with buyers, sellers, brokers,
lenders, lessors, lessees, and other sources considered reliable, it has not always been
possible to independently verify all significant facts. In these instances, I may have relied
on verification obtained and reported to us by persons outside my office. Also, as
necessary, assumptions and adjustments have been made based on comparisons and
analyses using data in the report and on interviews with market participants. It is
suggested that the client consider independent verification as a prerequisite to any
transaction involving sale, lease or other significant commitment of funds to the subject
property.
18)
The Americans With Disabilities Act (ADA) became effective January 26, 1992. I have
not made a specific compliance survey and analysis of this property to determine whether
or not it is in conformity with the various detailed requirements of the ADA. It is
possible that a compliance survey of the property together with a detailed analysis of the
requirements of the ADA could reveal that the property is not in compliance with one or
more requirements of the act. If so, this fact could have a negative impact upon the value
of the property. However, since I have no direct evidence relating to the issue of
compliance, I did not consider possible noncompliance with requirements of ADA in
forming an opinion of the value of the property.
19)
Acceptance or use of this report constitutes agreement by the client and any other users
that any liability for errors, omissions or judgment is limited to the amount of the fee
charged for this report. Use of this report constitutes acknowledgement and acceptance
of the general assumptions and limiting conditions, special assumptions (in any),
extraordinary assumptions (if any), and hypothetical conditions (in any) on which this
report is based.
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ENVIRONMENTAL ASSUMPTIONS
This report is subject to the following environmental assumptions:
1)
There is a safe, lead-free, adequate supply of drinking water.
2)
The subject property is free of soil contamination.
3)
There is no uncontained friable asbestos or other hazardous asbestos material on the
property. The appraiser is not qualified to detect such substances.
4)
There are no uncontained PCB's on or near the property.
5)
The radon level is at or below EPA recommended levels.
6)
Any functioning underground storage tanks (UST's) are not leaking and are properly
registered; any abandoned UST's are free from contamination and were properly drained,
filled and sealed.
7)
There are no hazardous waste sites on or near the subject property that negatively affect
the value and/or safety of the property.
8)
There is no significant urea formaldehyde (UFFI) insulation or other urea formaldehyde
material on the property.
9)
There is no flaking or peeling of lead-based paint on the property.
10)
The property is free of air pollution.
11)
There are no wetlands/flood plains on the property (unless otherwise stated in the report).
12)
There are no other miscellaneous hazardous substances and/or detrimental environmental
conditions on or in the area of the site (excess noise, radiation, light pollution, magnetic
radiation, acid mine drainage, agricultural pollution, waste heat, miscellaneous chemical,
infectious medical wastes, pesticides, herbicides, and the like).
C11-AHA-176
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1. SUMMARY AND CONCLUSIONS
C11-AHA-176
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EXECUTIVE SUMMARY
(A)
Disclosure of Competency: Affordable Housing Analysts is a professional real estate
appraisal and consulting firm, providing service to a variety of corporate, institutional,
governmental, and private clientele. In the past 12 months, Affordable Housing Analysts
or its principal has completed numerous consulting assignments involving similar
properties. Robert O. Coe, II is a State Certified General Real Estate Appraiser with the
State of Texas, and has prepared/reviewed numerous market studies and appraisal
consulting assignments of properties similar to this assignment.
(B)
Identification of Property: A proposed 684-unit mixed-income multifamily
development to be constructed in multiple phases to be located in the City of Galveston,
Galveston County, TX. A subject site or sites have not been selected as of the effective
date of this report. At the time of this report, the project is anticipated to contain
approximately 24.4% Housing Tax Credit units, approximately 34.4% Public Housing
units, and 41.2% market rate units. The subject sites include sites owned by the
Galveston Housing Authority including the former Magnolia Homes, Cedar Terrace,
Oleander Terrace, and other site to be identified in the City of Galveston.
(C)
Primary Market: The subject’s primary market is generally defined as that area
contained within census tracts 48167724000, 48167724100, 48167724200,
48167724300, 48167724400, 48167724500, 48167724600, 48167724700, 48167724800,
48167724900, 48167725000, 48167725100, 48167725200, 48167725300, 48167725400,
48167725500, 48167725600, 48167725700, 48167725800, 48167725900, and
48167726000. This area is contained in all or part of Zip Codes 77550, 77551, 77552,
77553, 77554, and 77555. The area is generally Galveston Island, with boundaries of
Galveston Bay to the north, and the Gulf of Mexico to the east, west and south. The
average rental rate for apartments in the subject’s primary market area is reported at
$0.982 per square foot per month. Based on my analysis of the rental rate PSF by decade
built in Galveston versus those in the remainder of Galveston County and versus those in
Houston, the average rent in the Galveston submarket are unusually high given the age of
the complexes. The average rental rate PSF ranged from 14.79% to 41.57% higher than
in the remainder of Galveston County or Houston. The unusually high rent PSF is likely
a significant contributor to the currently relatively-high vacancy in the older properties in
Galveston. The average physical occupancy in the subject’s primary market area was
reported at 87.62% based on my personal survey (excluding down units, closed
complexes, and complexes which would not confirm occupancy). Occupancy rates have
varied since Hurricane Ike, and rental rates in this primary market area have increased
approximately 13% during the same time period.
Comparable Properties: The most comparable apartments (those used in the rent grid
analysis) in the primary market area of the subject generally exhibited strong occupancy
rates, with an average occupancy level of 94%, and an average rental rate of ±$1.03 per
square foot per month.
C11-AHA-176
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Demand: The primary market area for the subject property had an estimated 22,529
households in 2011 and is projected to have 22,750 households by 2016. Approximately
56.39% of these families were renter households in 2011. The population growth in the
primary market area between 1990 and 2000 was -2.11% and between 2000 and 2016 is
projected to be -9.76%. The large population drop between 2000 and 2016 was
significantly impacted by the drop resulting from Hurricane Ike.
Evaluation of Subject Property: The subject properties are proposed to have a
combined total of approximately 21.64% one-bedroom units (148 units) , 57.89% twobedroom units (396 units), and 20.47% three-bedroom units (140 units). Based on
discussions with leasing agents and my own analysis of the selected comparables in the
primary market, the unit mix is appropriate for a mixed-income Family project, and will
complement the local multifamily housing market.
The average household size in the primary market area is 2.24 persons. Based on the
demographics for the PMA, the proposed unit mix, which is a combination of 1BR, 2BR,
and 3BR units, is considered appropriate.
(D)
Need for Affordable Housing: Occupancies of the newer and more affordably-priced
housing projects are high, with some maintaining waiting lists. Therefore, the subject
property need only achieve moderate penetration to be feasible. This is a realistic
scenario considering the limited supply of quality mixed-income Family housing in the
subject’s primary market area.
The Hurricane Ike Impact Recovery Report, December 2008, reported “the pre-Ike
housing shortage coupled with the loss of existing housing supply, has placed barriers to
continuing the expansion projects, thus impacting the economic stability and stimulus of
the region.” The 2009-2011 Comprehensive Economic Development Strategy report
from the Gulf Coast Economic Development District, reported middle income housing as
a major priority in Galveston.
Capture Rate: Based on my research, there is one affordable Family housing project approved
by the TDHCA (Champion Homes @ Marina Landing – 256 units, all HTC), one Family
TDHCA project currently under construction (Champion Homes @ Bay Walk – 192 units, all
HTC), and one approved CDBG-funded adaptive-reuse Family complex (2101 Church Street –
83 units) with 46 units at 80% of Adjusted Median Income (AMI) levels. and 37 market-rate
units. There are currently three proposed or non-stabilized PHA developments in Galveston:
The Oaks, a 40-unit development which is in lease-up; 50-unit scattered site new construction
(proposed), and 150-unit scatteredextra site acquisition/rehab (proposed). Costa Mariposa is a
252-unit Private Activity Bond (PAB) project located within the SMA in Texas City. Since
demand from the Secondary Market Area (SMA) is limited to 25% of total demand, 25% of the
units in Costa Mariposa (63 units) were included in the capture analysis. The subject is proposed
to contain 684 units, of which 167 (24.4%) will be HTC units, 235 (34.4%) will be Public
Housing units, and 282 (41.2%) will be market rate units. Therefore, a total of 1,518 units
(including the subject) require absorption, of which 678 units will be HTC units. There are
approximately 8,292 potential households (relevant to the HTC rent restricted units) based on
income eligibility and housing preference.
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Capture Rate for 678 HTC Family Units
HISTA Capture Rate Affordable Units
Capture Rate for Public Housing Units
Capture Rate for Market Rate Units
8.18%
9.15%
5.49%
4.71%
PHASE I – The first phase of this multi-phase project is proposed to have 160 units with 32
HTC units (20%) at the 60% AMI level, 64 PHA units (40%) and 64 market-rate units. The
capture rate for the HTC units is 0.39% for the subject 60% HTC units under the traditional
methodology. The capture rate under the traditional method was 6.55% for all 60% HTC
units and 5.30% under the HISTA methodology. The capture rate for the 101 total market
units (64 subject market units and 37 market units at 2102 Church) was 1.49%. The capture
rate of the 304 PHA units was 3.51%.
Absorption: Absorption in the subject’s primary market area over the past twelve months
ending June 2011 totals 220 units. Absorption has ranged from positive 254 units to a
negative 160 units in the past year. The greatest amount of absorption taking place is in the
Class B and A properties.
There have been no new multifamily rental complexes constructed in Galveston since 2005.
The Club of the Isle was the most recent complex constructed in Galveston (2005). It
reportedly attained stabilized occupancy within a few months of completion.
Ashton Place was completely closed for renovations after Hurricane Ike, and reportedly
leased to stabilized occupancy within 6 month of completion of the renovations, which
equates to an average absorption of approximately 26 units per month.
Certification of Interest: The individuals performing this study do not have any interest
or prospective interest in the development of the subject property.
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IDENTIFICATION OF PROPERTY
The proposed subject property will be located on one or more yet to be determined sites within
the City of Galveston, Galveston County, TX.
Description of Subject Property
As of the date of this report, the proposed subject project is a 684-unit mixed income multifamily
project to be located in one or more yet-to-be-determined sites with approximately 24.4% of the
units being Housing Tax Credit units, approximately 34.4% Public Housing units, and
approximately 41.2% of the subject at market rate (unrestricted). As of the date of this report,
the proposed subject development is proposed to be developed in five phases ranging from 100
units to 160 units. It is anticipated that the property will be separately metered for electricity,
and the landlord will pay for water/sewer and trash pickup. The development is anticipated to be
of good quality construction. A unit mix has not been finalized for the proposed property. I
have prepared a unit mix for the total 684-unit development based on a preliminary mix provided
by the Master Developer Partner. The following tables exhibit the proposed unit mix for Phase I
and the total for the proposed project.
SUBJECT UNIT MIX PHASE I
No. Units
14
3
19
14
26
32
1
2
1
2
12
2
1
21
10
160
Type
1 BR / 1 BA HTC
1 BR / 1 BA PHA
1 BR / 1 BA Mkt
2 BR / 1 BA HTC
2 BR / 1 BA PHA
2 BR / 1 BA Mkt
3 BR / 2 BA HTC
3 BR / 2 BA PHA
3 BR / 2 BA Mkt
2 BR / 1.5 BA HTC
2 BR / 1.5 BA PHA
2 BR / 1.5 BA MKT
3 BR / 2.5 BA HTC
3 BR / 2.5 BA PHA
3 BR / 2.5 BA Mkt
Size (SF)
650
650
650
895
895
895
1,080
1,080
1,080
960
960
960
1,235
1,235
1,235
919
Total Net Rentable Area (SF):
C11-AHA-176
Total Area
9,100
1,950
12,350
12,530
23,270
28,640
1,080
2,160
1,080
1,920
11,520
1,920
1,235
25,935
12,350
147,040
147,040
Page 13
SUBJECT UNIT MIX TOTAL
No. Units
52
28
68
42
132
155
7
21
9
9
44
14
57
10
36
684
Type
1 BR / 1 BA HTC
1 BR / 1 BA PHA
1 BR / 1 BA Mkt
2 BR / 1 BA HTC*
2 BR / 1 BA PHA*
2 BR / 1 BA Mkt*
3 BR / 2 BA HTC
3 BR / 2 BA PHA
3 BR / 2 BA Mkt
2 BR / 1.5 BA HTC
2 BR / 1.5 BA PHA
2 BR / 1.5 BA MKT
3 BR / 2.5 BA HTC
3 BR / 2.5 BA PHA
3 BR / 2.5 BA Mkt
Size (SF) Total Area
650
33,800
650
18,200
650
44,200
895
37,590
895
118,140
895
138,725
1,080
7,560
1,080
22,680
1,080
9,720
960
8,640
960
42,240
960
13,440
1,235
70,395
1,235
12,350
1,235
44,460
910
622,140
Total Net Rentable Area (SF):
622,140
* Some of the 2BR/1BA units may change to 2BR/2BA.
The net rentable area of the five phase subject project is projected to be ±622,140 square feet.
Condition:
The complex will be in new condition when completed. The buildings
are estimated to have a useful life of 55 years.
Functional Utility:
The subject improvements are anticipated to be adequately functional
when compared with competing properties in the neighborhood.
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Purpose of Appraisal Consulting Assignment
The purpose of this assignment is to analyze the subject property’s multifamily market and
determine whether sufficient potential demand exists to justify acquisition and construction of
the subject property. For the purposes of this report, potential demand is the pool of households
that are income qualified (household income does not exceed applicable program limits for the
rent-restricted units), and can afford the proposed development's rents (rents are no more than
35.0% of household income).
Definitions
The following applicable definition was abstracted from The Appraisal of Real Estate, Thirteenth
Edition, by The Appraisal Institute.
Appraisal Consulting
“The act or process of developing an analysis, recommendation, or opinion to solve a problem,
where an opinion of value is a component of the analysis leading to the assignment results.”
Market Rent
Market Rent is defined by The Dictionary of Real Estate Appraisal, Fourth Edition, copyright
2002, page 176 as:
"The most probable rent that a property should bring in a competitive and open market reflecting
all conditions and restrictions of the specified lease agreement including term, rental adjustment
and revaluation, permitted uses, use restrictions, and expense obligations; the lessee and lessor
each acting prudently and knowledgeably, and assuming consummation of a lease contract as of
a specified date and the passing of the leasehold from lessor to lessee under conditions whereby:
1.
2.
3.
4.
5.
Lessee and lessor are typically motivated.
Both parties are well informed or well advised, and acting in what they
consider their best interests.
A reasonable time is allowed for exposure in the open market.
The rent payment is made in terms of cash in United States dollars, and is
expressed as an amount per time period consistent with the payment
schedule of the lease contract.
The rental amount represents the normal consideration for the property
leased unaffected by special fees or concessions granted by anyone
associated with the transaction.”
Market Analysis
“A macroeconomic analysis that examines the general market conditions of supply, demand, and
pricing of the demographics of demand for a specific area or property type.”
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SCOPE OF APPRAISAL CONSULTING ASSIGNMENT
Use of the Assignment
The use of this assignment is understood to be for decision-making purposes of the client.
Development and Reporting Process of the Assignment
Market data, including sales and lease information, was obtained from sources deemed to be
reliable, including, but not limited to, on-site personnel. This report fully discusses all pertinent
data, descriptions, and discussions germane to the subject of this report. A copy of this report
and the data included herein have been retained in my files.
Effective Date of the Assignment
The descriptions, analyses, and conclusions of this report are applicable as of September 7, 2011.
Date of the Report
The preparation of this report was completed on October 27, 2011.
Data Sources
OConnorData.com and Apartment MarketData were consulted for apartment statistics. All
rental occupancy information for the comparable properties has been personally verified by the
market analyst. Census data was obtained from Claritas and Ribbon Demographics, recognized
sources of demographic data throughout the United States and the U.S. Census Bureau.
Housing Tax Credit, Multifamily Bond, and Section 8 – Summarized
The Housing Tax Credit (HTC), originally formulated as the “Low Income Housing Tax Credit,”
was created by the Tax Reform Act of 1986 to spur the development of affordable housing for
residents of moderate means. It is not federally subsidized housing. It is not housing for the
impoverished, unemployed, or homeless. The Tax Credit Program was instituted to provide
quality housing at reasonable costs.
The Multifamily Revenue Bond program (MRB) is similar to the HTC program in that it
provides quality housing at affordable costs for residents of moderate means. The TDHCA
issues tax-exempt and taxable Multifamily Revenue Bonds (MRBs) to fund loans to for-profit
and qualifying nonprofit organizations for the acquisition and/or development of affordable
rental units. Bond properties typically receive some tax credits as well as bonds. A
recommendation is made to the TDHCA governing board and, if approved, additional approval
is required by the Texas Bond Review Board. Properties financed through the programs are
subject to unit set aside restrictions for lower income tenants and persons with special needs,
tenant program initiatives, maximum rent limitations, and other requirements as determined by
TDHCA and its board.
Tenants at HTC and bond properties must be income qualified. The income qualifications will
adjust annually based on the median income for the Houston MSA.
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The following table illustrates the maximum 2011 income for HTC projects.
Houston MSA Housing Tax Credit
2011 Income Ceilings For Qualifying Tenants
Median Income
Size of Household
1 Person Household
2 Person Household
3 Person Household
4 Person Household
5 Person Household
6 Person Household
30%
$13,680
$15,630
$17,580
$19,530
$21,120
$22,680
40%
$18,240
$20,840
$23,440
$26,040
$28,160
$30,240
50%
$22,800
$26,050
$29,300
$32,550
$35,200
$37,800
60%
$27,360
$31,260
$35,160
$39,060
$42,240
$45,360
80%
$36,960
$42,240
$47,520
$52,800
$57,040
$61,280
In addition, HTC and bond projects will limit rents to an annually adjusted cap that is keyed to
the median income for the Houston MSA. The cap for a project can go up annually over time,
but can never be reduced below the cap that was in effect upon placing the project in service.
The subject structure is designed to operate below the cap, so that increases in operating
expenses may be met with corresponding increases in rental rates, without immediate limitation
imposed by the rent cap.
The following chart illustrates the maximum 2011 rents for HTC and bond projects for families
at 30%, 40%, 50%, 60%, and 80% of median income. Handicapped units are no longer
separated by the Texas Department of Housing and Community Affairs (TDHCA).
2011
30%
40%
50%
60%
80%
MAXIMUM PERMITTED RENTS
Efficiency
1 BR
2 BR
3 BR
$346
$371
$445
$514
$462
$495
$594
$686
$577
$618
$742
$858
$693
$742
$891
$1,029
$924
$1,373
$990
$1,188
4 BR
$574
$766
$957
$1,149
$1,532
5 BR
$634
$845
$1,056
$1,268
$1,691
The Housing and Community Development Act of 1974 authorized the Housing Assistance
Payments Program (Section 8). Section 8 provides rental assistance to low-income families,
elderly, disabled, and handicapped individuals. This Program provides financial assistance to
eligible families whose annual gross income does not exceed 80% of HUD's median income
guidelines (in most instances). Demographic projections indicate a continuing population and
household growth in segments that generally create the largest demand on affordable housing
supply.
C11-AHA-176
Page 17
2. PRIMARY MARKET AREA DEFINED
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Page 18
SUBJECT MARKET AREA
Subject Primary Market Area
For the purposes of this report, the subject’s primary market area is generally defined as that area
contained within census tracts 48167724000, 48167724100, 48167724200, 48167724300,
48167724400, 48167724500, 48167724600, 48167724700, 48167724800, 48167724900,
48167725000, 48167725100, 48167725200, 48167725300, 48167725400, 48167725500,
48167725600, 48167725700, 48167725800, 48167725900, and 48167726000. The area is
Galveston Island, with boundaries of Galveston Bay to the north, and the Gulf of Mexico to the
east, west and south, and is within all or part of Zip Codes 77550, 77551, 77552, 77553, 77554,
and 77555.
Due to an adequate network of highways and primary thoroughfares, the subject property will be
readily accessible from the populated areas within the primary market area.
OConnorData.com’s Houston Market Report, September 2011, segments the Greater Houston
apartment market into 53 individual submarkets. The subject property is located in the
Galveston submarket, which consists of the subject’s primary market area. According to the
September 2011 O’ConnorData’s report, there were 5,032 operating apartment units in 29
complexes in this market area. The overall occupancy rate for all operating apartment projects in
this market area was 72.85%, with Class A complexes at 94.20%. The average rental rate for all
properties was $0.982 per square foot.
The above-mentioned occupancy does not take into account the down units. Based on my
personal survey of the existing complexes in Galveston, occupancy excluding down units, closed
complexes, and the two complexes which would not confirm their occupancy, occupancy was
87.62%. The table on the following page depicts my research.
C11-AHA-176
Page 19
Complex
Antiqua
Ashton Place
The Broadwater
Captain's Landing
Carelton Coutyard
Casa Caribe
Champion Homes @ Bay Walk
Champion Homes @ Marina Landing
Chateau LaFitte
Club of the Isle
Coastal Breeze
Driftwood
Ebbtide
Fort Crockett
Gulf Wind
Island Bay Resorts (Up Uts.)
Lakeside @ Campeche
Newport @ Campeche Cove
Newport @ West Beach
The Park @ Cedar Lawn
Stewart's Landing
Summerset
The Oceanfront
The Seaside Village
The Seasons
Villa Maria
Village by the Sea
William B. Travis
Units
Occupancy Vac Uts.
162
172
205
174
240
165
192
256
73
248
36
238
98
130
66
268
320
267
133
192
216
120
102
92
258
184
241
60
84%
90%
98%
75%
26
17
4
44
83%
18%
28
WNC
Closed
100%
96.40%
94%
87%
Closed
80%
89%
80%
87%
93%
97%
59%
81%
80%
86%
93%
WNC
86%
90%
84%
Exc closed complexes, under reno, &
3,983
WNC complexes, & 190 down units @ Island Bay
& 105 down units at The Park @ Cedar Lawn
0
9
2
31
0
26
7
54
42
19
4
36
41
24
14
6
26
24
10
Confirmed With
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
8-Sep
7-Sep
25-Aug
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
Freddie
Adriana
Christina
Laquita
Becky
Dana
Olivia
Under Renov.
John
Demoine
Evette
Terri
Chris
Andrea
Christina
Robert
Jenay
Claudia
Ashley
Laquita
190 uts down
105 uts down
Vicki
Amy
Linda
Adriana
Jennifer
Kathy
493
12.38%
87.62%
* WNC = “would not confirm”
C11-AHA-176
Page 20
PRIMARY MARKET AREA MAP
C11-AHA-176
Page 21
146
20
20
19
19
you
a
B
son
kin
c
i
D
Dickinson
San
Station
San Leon
Leon Station
Hulen
Park
Hulen Park
3
45
AREA MAP
77650
77650
87
77591
77591
15
15
Algoa
Algoa
108
6
Arcadia
Arcadia
12
12
Nadeau
Nadeau
Loma
Alta
Alta Loma
77517
77517
77510
77510
6
Heights
Heights
North
Jetty
North Jetty
87
10
10
Texas
City Junction
Junction
Texas City
Hitchcock
Hitchcock
Texas
Junction
City Terminal
Terminal Junction
Texas City
Bolivar
Port
Port Bolivar
Galveston
Galveston
77590
77590
146
La
La Marque
Marque
City
Texas
Texas City
6
Ft
Ft Travis
Travis
Pelican
Reservation
Spit Military
Military Reservation
Pelican Spit
South
Jetty
South Jetty
3
45
44
Pier
Pier Twentytwo
Twentytwo
44
Elevator
B
Elevator B
1A
1A
77563
77563
1C
1C
77551
77551
Galveston
Galveston
Ft
Ft Crockett
Crockett
Anderson
Ways
Anderson Ways
77577
77577
77554
77554
Galveston Island State Park
Sea
Sea Isle
Isle
Bay
Bay Harbor
Harbor
Red
Cove
Red Fish
Fish Cove
01/2001
Rel.
Inc.,
GDT,
2001
©
USA;
Street
Atlas
DeLorme.
2001
©
01/2001
Rel.01/2001
Inc.,Rel.
GDT,Inc.,
2001GDT,
©2001
USA;©
StreetAtlas
AtlasUSA;
DeLorme.Street
2001DeLorme.
©2001
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01/2001
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Inc.,
GDT,
2001
©
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Street
Atlas
DeLorme.
2001
©
Mag 11.00
Tue Sep 13 20:44 2011
Scale 1:250,000 (at center)
5 Miles
5 km
Local Road
Park/Reservation
Lake
Major Connector
Exit/Gas
Land
State Route
Exit/Lodging
Water
Interstate/Limited Access
Exit/Food
National Park
Exit
Exit/Other Services
River/Canal
Point of Interest
Locale
Zipcode Boundary
Small Town
County Boundary
Large City
Population Center
GALVESTON ANALYSIS
The first American colonists arrived in what would become Galveston Island in 1827. In 1836,
the same year that Texas gained its independence from Mexico and became a republic, the city
of Galveston was born. Canadian fur trader Michel B. Menard purchased seven square miles of
land for $50,000. That land became the city of Galveston.
The City of Galveston is located on a barrier island 32 miles long and approximately 2.5 miles
wide just off the Texas Coast in the Gulf of Mexico. The island city is approximately 50 miles
southeast of Houston. Galveston is accessible by a causeway that links the island to the
mainland on the northern end of the city, a toll bridge on the western end of the island, and a
ferry service at the east end of the island.
Over the years, the island was battered by a number of tropical storms, yellow fever and the Civil
War, but those adversities couldn't slow Galveston's growth. With its natural seaport leading to
business opportunities in shipping, imports and rail, Galveston's population boomed and the city
thrived. In 1885 it was the largest and richest city in the state. In the late 1800s the “Strand” was
the banking, retail and shipping hub of the area and was known throughout the country as the
"Wall Street of the Southwest." When the railroad connected Galveston to the mainland in the
1860s, the City became the major trade center west of the Mississippi.
The island was riding a tide of prosperity when a torrential hurricane hit in 1900. The swelling
seas and high winds leveled many blocks and took over 6,000 lives. Despite the horrific loss,
islanders didn't delay in rebuilding their island and ensuring its protection from future storms.
Islanders approved a plan to build a 17-foot-high seawall along the beachfront. Behind the
seawall, all structures, including offices, homes, and churches had to be raised to this new
elevation. The structures were carefully raised and a total 25 million cubic yards of fill was
pumped in. Construction of the seawall and the grade-raising were phenomenal feats of
engineering and incredibly expensive even by today's standards. The grade-raising cost
Galveston taxpayers and individual homeowners $8 million. The 10.4-mile seawall cost almost
$14.5 million.
In the beginning of the 20th century, Galveston's premiere status as the major seaport for the
region diminished as the Houston Ship Channel was completed and Houston aggressively sought
rail and shipping business while Galveston still recovered from its tragedy. The Strand didn't
recover for many years from the economic and physical lashing Galveston took. But 95 years
later, The Strand experienced a revival. The Strand Historical District is noted nationally for its
restored Victorian architecture. With an infusion of millions of dollars to restore historical
buildings for new uses, The Strand was once again a bustling center for retail and tourist trade.
Hurricane Ike left most of The Strand area inundated by 10+ feet of water which receded back
from Galveston Bay. A significant portion of the businesses in the Strand area have rebuilt and
reopened.
Galveston again experienced the effects of an intense hurricane on September 13, 2008 when
Hurricane Ike made landfall at 2:10AM, with the eye of the storm over the east end of the island.
The storm had sustained winds of 110 mph, gusts of 125 mph, and an eye that was 46 miles
C11-AHA-176
Page 23
wide. The Galveston Seawall protected much of the City from storm wave action. However,
Galveston was flooded by a storm surge that entered Galveston Bay and came into the City from
the north. The highest storm surge has been estimated at 17 to 20 feet. Hurricane Ike was the
third costliest storm to ever make landfall in the United States.
Hurricane Ike did damage to approximately 75% of the housing on the island leaving 1,400
families displaced. A property damage assessment survey conducted by the City of Galveston,
reported that 17,179 housing units had been damaged with 182 units completely destroyed by the
storm and approximately 2,000 homes recommended for demolition (including the 569 units
owned by the Galveston Housing Authority, which were demolished).
Multifamily
developments generally sustained a higher percentage of damage than single-family residences.
According to the Hurricane Ike Impact Report, December 2008, “much of the housing that
sustained over 50% damage was “affordable” housing necessary to attract and maintain a
sufficient workforce.” Hurricane Ike also damaged many of the businesses in the downtown, the
Port, Harborside, and beachfront area. According to the Hurricane Ike Impact Report, December
2008, “it is estimated that up to 85% of the city’s business base is gone.” UTMB, the largest
employer on the island was severely damaged by Ike and subsequently laid-off almost 2,500
workers. Tourism, which provided approximately 30% of the employment on the island, was
also negatively affected by Ike. Depending on which statistics are relied upon, it appears that
15% to 27% of the population of Galveston has not yet returned to the island.
While its port is still active, the island economy is more diverse now. Medical research, the
insurance industry, education and tourism give the economy more stability and strength.
Galveston plays host to five-to-seven million visitors a year. They are attracted to the same
features that brought visitors 100 years ago - the island's natural beauty, first-class hotels and
restaurants, the arts, cultural activities and recreational attractions.
Attractions and Recreation
Recreation is plentiful on the island. As of May 1995, the beaches between 10th and 61st Streets
were enhanced by the Beach Renourishment Project. This project, the first of its kind in the state
of Texas, resulted in 150 feet of usable beach along a 10.4 mile area of Galveston's world famous
Seawall. The Galveston beaches were again damaged by Hurricane Ike, but with State and
Federal assistance, have been again replenished. Citizens and tourists alike can now enjoy an
extended evening walk along the new shoreline or picnic in the sun during a day's outing with
the family.
Moody Gardens is a lush, tropical setting for a world-class educational and recreation complex.
The 10-story-tall, framed glass Rainforest Pyramid transports visitors into a jungle representative
of Asia, Africa and the Americas, with hundreds of exotic plants and a landscape of waterfalls,
cliffs and ponds inhabited by birds, butterflies and fish. The IMAX Theater offers 3-D movies
on a 6-story-high screen. "Palm Beach" is open Memorial Day to Labor Day while the rest of
Moody Gardens is open year-round. The Moody Gardens Aquarium, and nearby full-service
hotel, are also popular destinations.
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Page 24
A ship that occasionally sails from Galveston is the Elissa, a 19th-century square-rigged iron
baroque that called twice on the bustling port city during a long sailing career. Purchased in the
1970s by the Galveston Historical Foundation, the ship was restored to its former majesty and is
open for tours at Pier 21.
Highlighting Elissa is the adjacent Texas Seaport Museum, vividly illustrating Galveston's
maritime history through interactive exhibits and a multi-media show. Visitors can search a
computer database, containing 130,000 entries, for ancestors who may have immigrated to the
U.S. through the Port of Galveston, "the Ellis Island of the West."
The Galveston Historical Foundation, which was chartered in 1954 to preserve Galveston's
history, operates a number of attractions, in addition to the Elissa and the Seaport Museum. They
include the 1859 Ashton Villa house museum, the 1839 Williams Home, Bishop’s Palace, the
Galveston County Historical Museum and the "Great Storm" multi-media show on the infamous
1900 hurricane.
Ships, planes, trains and automobiles - all have museums in their honor in Galveston. The
Railroad Museum, at the beginning of the historical Strand District, houses 40 rail cars and
locomotives. Strolling through the sleeper and restaurant cars, one gets a sense of what it was
like to travel by rail in years past. In the David Taylor Classic Car Museum gleaming rows of
restored classic cars illustrate the history of automobiles in the U.S. The Lone Star Flight
Museum, near Moody Gardens and the Galveston Municipal Airport, displays a rare collection
of restored period aircraft, many from the World War II era. The Lone Star Flight Museum has
been designated by the 74th Legislature of the State of Texas as the official home of the Texas
Aviation Hall of Fame. The Lone Star Flight Museum recently announced it would move off the
island to Ellington Field.
In almost any month of the year, you can find a festival on Galveston Island. The first weekend
in December brings "Dickens on The Strand" each year. A celebration of Charles Dickens's
Victorian London during the Christmas season, the festival features authentic British foods,
crafts and costumes. Festival-goers dressed in Victorian costume are admitted free.
Festivals and unique events throughout the year celebrate Galveston's diverse culture and history.
The Octoberfest, hosted by the Galveston Chamber of Commerce, the first weekend in October,
is a celebration of the island's ethnic and cultural make-up - Hispanic, African American,
German, Greek and many more.
Old-fashioned railroad handcar races are a part of the rites of spring on the island. The Galveston
Railroad Museum hosts dozens of teams from the Houston-Galveston area. They pump a handcar
down the city trolley tracks through The Strand to compete for the fastest time and the privilege
of representing Texas in the national competition held each fall in California.
Arts and entertainment is as much a part of the island's history as its port and Victorian
architecture. From theater, music, and dance in historic and traditional settings to reggae, rock
and country in the city's nightspots, Galveston sparkles at night.
The restored Grand 1894 Opera House, designated the official opera house of the state of Texas
by the 73rd Legislature and has been called one of the finest theaters in the world by veteran
C11-AHA-176
Page 25
actor Hal Holbrook. Each season, The Grand hosts a line-up of international stars, touring
Broadway productions, classical music and dance.
The Grand also is home to the Galveston Symphony Orchestra, one of the finest orchestras for a
city of this size. Summer brings Galveston Island Outdoor Musicals and full-scale musical
productions. The restored Strand Theater entertains theater-goers with first-class plays and
musicals in an intimate, 200-seat setting. Upper Deck Theater at Galveston College is another
venue for area theatrical talents.
Reggae, jazz, blues and rock keep The Strand hopping at night. After dinner at one of the fine
restaurants in the area, live music and a waterfront stroll in the new Harborside area can
complete the evening, just one block north of the Strand.
Art galleries keep their doors open late on Saturday evening every six weeks and invite visitors
to view their offerings while snacking on complimentary wine and cheese. Known as the
Artwalk, this event has become quite popular. A number of galleries have sprung up in the
downtown area as artists are drawn to Galveston's laid-back lifestyle. A cluster of galleries on
the Strand nestled in various historically restored buildings as well as in the 2200 block of Post
office - known as Gallery Row - are housed in brightly painted Victorian buildings.
Galveston Island is known for its great restaurants, historical charm and first-rate attractions, but
it's also a popular place to take it easy. The seawall, a 10.4-mile-long stretch of sidewalk on the
Gulf of Mexico, attracts walkers, joggers, bicyclists, surfers, sunbathers, skaters and sightseers
year-round. It's a great place to exercise or just sit to watch a flock of brown pelicans skim across
the waves at sunset.
The Galveston Bay area hosts more sports fishermen than any other spot on the Texas Coast for
good reason. More than 100 species of fish are caught here regularly. Fishermen can cast their
lines wade fishing, from piers, or boats in either the bay or the Gulf. Seawolf Park on Pelican
Island is an especially busy fishing spot when the flounder are running from the bay to the Gulf
when the weather begins to cool in the fall. The Galveston Island Yacht Basin and a number of
area marinas are hotspots of maritime activity.
On dry land, outdoor sports enthusiasts can play tennis at one of 20 public courts, golf at the
municipal course or private country club, baseball at one of 10 ball fields or picnic at one of 12
public parks.
Recent additions include a Holiday Inn – Sunspree Resort, a Quality Inn, a La Quinta and a
Hampton Inn, which all have been built to handle the influx of visitors in direct relation to the
Schlitterbahn Waterpark development, the completion of a new convention center, the increased
number of cruise ship passengers embarking/disembarking on Galveston Island; and continued
redevelopment on the Seawall and in the historic Strand area. Schlitterbahn Galveston Island
Waterpark opened summer 2006. The park features more than 28 state-of-the-art attractions and
is the world’s first waterpark with a retractable roof system. This allows for indoor or outdoor
year-round operation. Schlitterbahn includes more than a dozen heated waterpark attractions
inside the 70,000-square-foot indoor / outdoor climate-controlled area including four tube slides,
three speed slides, three kids’ activity areas containing a variety of children’s play elements and
C11-AHA-176
Page 26
pint-sized slides, a secluded beach, a hot tub and a tidal pool. The outdoor area includes water
coasters, a wave lagoon, three beaches, body slides, a kids’ area, and family raft rides and three
different rivers that all connect to form the park’s river system that allows transportation from
one attraction to another. New retail opportunities are occurring all over Galveston: construction
of Piazza Blanca (70,000 square foot retail plaza); new high-end stores such as Chico’s in the
Strand; new construction of CVS and Walgreen stores near 61st and Stewart Roads; and, “bigbox” tenants at the old K-Mart building. Newer luxury high-rise condominium projects include
Palisade Palms, Ocean Grove and Emerald By The Sea. Beachtown, on Galveston’s East Beach,
and Beachside Village, single-family resort subdivisions developed in the neo-urbanism
traditional neighborhood style, and two single-family canal resort developments, Sunset Cove
and Anchor Bay, have likewise attracted interest from all over. Pointe West, a Centex
destination resort on both the beach and bay sides of the island, also is attracting a lot of
attention. The downtown submarket is seeing increased activity in loft development. The
Panama Lofts, Electric Company Lofts, Lofts at the Texas Building, Harborside Condos, the
Telephone Exchange Building Lofts and the Sergeant Building Lofts are attracting more
permanent residents and second-home owners to the area and providing additional opportunities
for stores, galleries and restaurants. In addition, Evia, a traditional neighborhood, is being
developed on the largest remaining tract of land behind Galveston’s Seawall. Encompassing 93
acres, it is anticipated to add almost 400 new homes to Galveston’s inventory; furthermore, the
development already is re-attracting those who left the island for new housing. Campeche
Shores, a new townhome community, is located in close proximity to this project. A
redevelopment of the 25th Street pier (formerly housing The Flagship hotel) into the Historic
Pleasure Pier is under construction.
Economy
Major employment sectors in Galveston are education, tourism and health care. Just a 30-minute
drive up Interstate Highway 45 is Johnson Space Center and many support industries with
opportunities in engineering, electronics and aeronautical research. And just a little further up the
highway is Houston, the fourth largest city in the United States. For those who don't mind a
commute, working in Houston and living in Galveston may seem to be the best of both worlds.
According to the UTMB website, on the island the University of Texas Medical Branch is the
largest employer with over 11,500 employees and growing, of which a reported 60.5% live on
the island and approximately 70% earn $60,000 or less per year. Of those UTMB employees
earning $60,000 or less, 60% also live on this island. Galveston's impressive medical complex
has a $1.2 Billion expenditures budget. With health care, research and education arms, the
medical branch has job opportunities in a wide range of areas for all skill levels.
As a major vacation destination with more than 4,000 hotel rooms and condominiums, as well as
many dozens of fine restaurants and great attractions, Galveston's hospitality industry generates
more than $350 million annually and a growing number of jobs.
Education is another major employer in Galveston. In addition to four colleges and two institutes
at UTMB, Galveston is home to the Texas A&M University at Galveston, Galveston College and
Galveston Independent School District.
C11-AHA-176
Page 27
The island also supports significant maritime activity. Home of the Port of Galveston, the island
is recognized as the ideal base of operations for offshore gas and oil support facilities. The port
boasts a modern container terminal, vast warehousing space and four railroad companies serving
every state west of the Mississippi.
Trains cross Galveston Bay on a bridge adjacent to the Causeway, the major link to the
mainland. The San Luis Pass Bridge on the west end and a public ferry service at the east end
provide additional access.
Major air service is available at two Houston airports - Hobby Airport, typically less than 45
minutes from Galveston, and Houston Intercontinental Airport, typically less than one and a half
hours from Galveston. Galveston also has a municipal airport, Scholes Field, used for private
commuter flights between Dallas Love Field and Austin airports, as well as for private flying and
helicopter services.
Convention Center
In addition to the aforementioned circumstances that drive the Galveston economy, the City of
Galveston constructed a convention center at the intersection of 57th Street and Seawall
Boulevard. The convention center is a project of Landry’s Restaurants (Tillman Fertita) and the
City of Galveston and opened in Spring 2004. Landry’s was also involved in the construction of
the Rainforest Café along the seawall.
Cruise Ships
Galveston is also benefiting from cruise traffic. Based on projections for passenger statistics, the
Port of Galveston ranks as the 12th-largest cruise port in the world, the number-five U.S. port,
and the number-one cruise port on the Gulf of Mexico. The port continues its investment of $45
million in cruise facilities. Currently, Carnival Cruise Lines and Royal Caribbean International
set sail from Galveston. Disney’s Magic ship will begin passenger service from Galveston this
fall. Princess Cruises has also announced that it will resume seasonal cruise ships from
Galveston this fall. In 2010, the cruise services from the Port of Houston reportedly produced
nearly 500,000 visits amounting to an estimated $34.7 million in passenger and crew onshore
spending. Carnival Cruise Lines is replacing both ships which have Galveston as their homeport.
The new ships (Magic and Triumph) have a combined capacity of 7,117 passengers, which is
1,526 passengers more than the ships being replaced (Conquest and Ectasy). Adding the
additional Carnival capacity to that generated from Disney’s Magic and Princess’s Crown
Princess results in a 28%+ increase in passenger capacity to over 800,000 potential embarkations
annually The economic impact is a projected $70 million in passenger and crew onshore
spending. The resulting $25MM+ increase in tourism spending translates into approximately
528 new direct jobs and 113.5 additional indirect jobs.
The Port has also promoted industrial growth as Agriliance LLP and Gulf Copper Manufacturing
join existing customers Del Monte Fresh Produce, ADM Grain, “K” Line, Galveston Terminals,
Holcim Cement, Smith-Hamm, and Wallenius Wilhelmsen Logistics along the Galveston
Harbor.
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Page 28
Medical
Galveston Island is recognized worldwide for its health care and medical research advances.
Island residents have the peace of mind in knowing that the most advanced health care
technologies and the best-trained medical staffs are easily accessible.
The University of Texas Medical Branch (UTMB) is the island’s largest employer and is in the
process of repairs/renovation from Hurricane Ike damage totaling over $1.2 Billion.
Additionally, it was recently announced that the Jeannie Sealy Hospital would be demolished
and replaced with a new $438MM, 254-bed surgical hospital. The new hospital will leave
UTMB with slightly more hospital beds than before Hurricane Ike.
With over 11,500 employees, the university is the largest employer in Galveston County, and
among the largest employers in the Houston-Galveston area. Jobs attributable to UTMB
numbered 19,000 in 2002, and the university’s impact on Galveston County business volume
topped $305 million. Employment at UTMB is anticipated to increase by 1,500 to 2,500 jobs
subsequent to the completion of the new Jeannie Sealy Hospital, which is anticipated to be in
2016.
The Galveston National Laboratory, a $300 million investment completed in 2003, is one of just
two national biocontainment laboratories constructed under grants from the National Institute of
Allergy and Infectious Disease/National Institute of Health. The University of Texas Medical
Branch hospital complex, located on 84 acres at the eastern end of Galveston Island, includes
eight hospitals and 140 outpatient clinics specializing in almost every major medical field. The
state-funded facility is one of the principal medical centers in the Southwest for patient care,
research and medical education. Historically, UTMB has dedicated considerable resources to
scientific inquiry. Today, researchers explore a wide range of fields, including new approaches
to prevention and treatment of disease and disabling conditions.
UT-MED is the faculty physician group practice at UTMB. UT-MED represents a broad range
of physician specialties to meet virtually all health care needs. In addition to the super-specialist
physicians one would expect to find in an academic medical center setting like UTMB, the group
practice includes a number of physicians in the primary care areas of family medicine general
internal medicine, and general pediatrics. Primary care physician offices are located both on the
UTMB campus and at several locations throughout Galveston County.
The Galveston Institute was the first of three burns facilities in the country funded by the
Shriners of North America. Children with severe burns are flown from around the world to
Galveston Island for specialized treatment at Shriners Burns Institute. The research and
treatment center opened its new eight-story, 30-bed facility in March 1992. The institute treats
children with severe burns, serving an average 650 patients a year, in both acute care and
reconstructive treatments. The hospital and its medical staff are renowned throughout the world
for their innovative research and excellent progressive treatments that accelerate healing. The
Burn Institute sustained significant damage from Hurricane Ike. There was talk of permanently
C11-AHA-176
Page 29
closing the facility; however, the decision was made to renovate the facility. The facility was
renovated and reopened in 2009.
Columbia Mainland Medical Center is comprised of the 320-bed Mainland Center Hospital in
Texas City, just 15 miles from Galveston. Mainland Medical Center, on the west side of Texas
City, is the site of all emergency and medical/surgical services. The Women's Center at
Mainland Medical Center Hospital offers obstetrical care for women and newborns. The
Mainland campus also houses the Center for Performance, dedicated to the rehabilitation of
orthopedic, neuro-muscular and muscular/skeletal injuries, as well as diagnostic, strength and
conditioning equipment, and The Institute for Living offering treatment programs for substance
abuse and mental health issues. The newest project at Mainland Medical center is the
construction of an $8 million medical office building adjacent to the hospital, a three-story
structure provides 60,000 square feet of new office space connected to the hospital by a climatecontrolled walkway.
Education
Galvestonians place high regard on education as the means of improving their city and its
residents. The city has a strong public school system and eight private schools. Each year high
school graduates of Ball High School, O'Connell High School, a private Catholic school, and
Heritage Christian School are accepted by the top colleges and universities in the state.
Some graduates continue their education right on Galveston Island at one of three institutes of
higher learning - Galveston College, the University of Texas Medical Branch ,and Texas A&M
University at Galveston.
Considered one of the most progressive school districts in the state, Galveston Independent
School District has an ethnically and culturally diverse student population totaling about 6,500.
The district employs ±1,000, of which about half are teachers. The district average for the
student/teacher ratio is 13:1. Subsequent to Hurricane Ike, approximately 1,900 students were
displaced and did not re-enroll in Galveston ISD.
The district offers a number of special programs to meet the needs of its students. These include
bilingual education, the Special Activities in Gifted Education (SAGE) for students who excel
academically, dual credit with Galveston College, honors-level courses, the Banks Special
Learning Center for handicapped students, and the Johns Hopkins University’s “Success for All”
reading program.
Private education also is available to students in grades K-12. There are eight private schools,
with most providing an education for students at the elementary level. Galveston Catholic School
encompasses pre-kindergarten through eighth grade on two campuses and has enrollment of
around 350. O'Connell High School has students in grades 9-12. Trinity Episcopal School
enrolls 275 students, pre-school through eighth grade. The school offers caring teachers and
challenging academics in a value-centered environment.
For students who want to get an affordable education at an excellent two-year college, Galveston
College is the choice. Founded in 1966, the college offers a variety of general academic courses
as well as specialized classes to meet the needs of the community. Many students attend
C11-AHA-176
Page 30
Galveston College to earn credit on courses before transferring to a four-year school. Others seek
careers in nursing, medical technology, culinary arts and other fields after completing a two-year
program at the college. The college also offers a full range of non-credit courses for fun and
personal improvement. The college is working with the community to develop programs to
strengthen the Galveston workforce, such as employee training programs to provide a steady
supply of qualified job applicants. Galveston College reported a current enrollment of 2,400
students and 5,000 individuals in continuing education programs.
Texas A&M University at Galveston is the "coastal campus" of the Texas A&M University's
College of Geosciences and Maritime Studies. This college of is one of the largest and most
comprehensive concentrations of ocean, atmospheric and earth sciences programs in the world.
TAMUG offers academic degrees in marine and maritime-related fields, research and continuing
education, and public service in marine science, engineering, business and transportation. It is
one of only six maritime training schools in the United States and the only one on the Gulf of
Mexico. Each summer TAMUG students continue their education aboard the training ship Texas
Clipper II as it travels to distant corners of the world. Enrollment is over 1,350. Most continuing
education facilities are housed at the Offatts Bayou Campus in Galveston. The Center for Marine
Training and Safety provides professional development of employees in the coastal and off-shore
maritime industries. The Oil Spill School and the Oil Spill Response Center serve to provide
protection against disasters. Programs for youth and senior citizens offer other marine education
opportunities.
Texas A&M University at Galveston is dedicated to excellence, as it strives to improve its
facilities. In March of 2002, TAMUG made plans to build a $14.8 million, 35,000 square foot
building to attract top-notch engineering faculty and students. In addition, TAMUG is
renovating a 44,000 square foot vacant office and manufacturing facility next to the campus to be
used for office administration, research, and classroom space. Enrollment for 2011 was
reportedly 2,058 students.
A large number of doctors throughout the state have either studied or interned at the University
of Texas Medical Branch, home of the first medical school in the state. Founded in 1891, UTMB
is a major academic health science center with major emphasis in three areas - research, health
care and education. More than 2,500 students are enrolled in UTMB's four schools and two
institutes: the School of Medicine, School of Nursing, Graduate School of Biomedical Sciences,
School of Allied Health Sciences, Institute for the Medical Humanities, and the Marine
Biomedical Institute. A house staff of about 550 interns, residents and fellows receive graduate
training at UTMB.
Location
The subject property will be located on one or more unspecified sites within the City of
Galveston, Galveston County, TX.
Floodplains
Since a specific site or sites have not yet been determined, I was unable to determine the
floodplain status. The majority of the City of Galveston is located within the floodplain.
Therefore, it is likely that at least part of the subject would be located within the floodplain. All
improvements constructed within a floodplain must be properly elevated.
C11-AHA-176
Page 31
Utilities/Public Services
Police and fire protection are provided by the City of Galveston. The City also provides water
and waste water services. Electricity is provided by various providers including Reliant Energy.
Natural gas is provided by Texas Gas Service. Local telephone service is provided by AT&T.
The neighborhood is served by the Galveston Independent School District, with schools of all
levels located throughout the area. The Sheriff's Office, the Fire Department and EMS are
connected to the Emergency Enhanced 911 System and can respond to an emergency within
minutes. Medical services are located on the island including those associated with UTMB.
Soil and Sub-Soil Conditions
No soil engineer's report was available to us and no recent soil tests are known to have been
performed. Based on my observation of surrounding development in the immediate area and
lack of further evidence to the contrary, I have assumed a stable soil condition that would ensure
the structural integrity of any improvement which may be constructed. My value conclusions
could change should these assumptions prove incorrect. I caution and advise the user of this
report to obtain engineering studies which may be required to ascertain any structural integrity.
Environmental Conditions
No environmental report was available to us and no recent environmental tests are known to
have been performed. Because I have no evidence to the contrary, I have assumed that the
property is free of any material which would adversely affect the value, including, but not
limited to, asbestos and toxic waste. I caution and advise the user of this report to obtain
environmental studies which may be required to ascertain status of the property with regard to
asbestos and other hazardous materials
PMA Major Thoroughfares
East/West Arteries: Seawall Boulevard/FM 3005 and Interstate Highway 45/Broadway
North/South Arteries: 51st Street, 61st Street, and 25th Street.
Development and Land Use Patterns
Land uses in the neighborhood of the three former public housing sites consist of a variety of
office (both 1-4 stories and higher), light commercial/industrial, retail and service, and
residential land uses, including, but not limited to, single-family residential subdivisions, and
multifamily. Residential development is located in various subdivisions throughout the
neighborhood, with commercial development located along the aforementioned thoroughfares.
The majority of housing in the area was constructed during or prior to the 1980's with more than
20% built before 1940. However, a limited amount of both new residential and commercial
construction has taken place in the subject neighborhood over the past few years. The general
consensus among real estate professionals is that this growth trend will revitalize as the economy
stabilizes.
Commercial developments are found primarily along the major thoroughfares. Prevalent forms
of commercial uses include neighborhood shopping centers, free-standing retail facilities, and
office/service development.
C11-AHA-176
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Trends
The subject’s neighborhood is mature in nature and is experiencing relatively stable property
values. The land values in the PMA had been relatively stable over the five years prior to
Hurricane Ike. The real estate market in the Greater Houston area, including the subject’s
neighborhood, has enjoyed relative stability over the past few years. The stability of the
neighborhood had been primarily attributable to a stable local economy, fueled by low inflation
and low unemployment. However, due to the state of the current economy, the market, as have
most markets, has stagnated. The real estate market is expected to improve as the economy
improves.
The following table depicts the anticipated job growth in and around Galveston:
NEW JOBS
UTMB
CRUISE TOURISM
GHA PROJECT
LOWE'S
PET SMART
TANGER OUTLET
C11-AHA-176
DIRECT INDIRECT TOTAL
2,000
429.8
2,429.8
528
113.5
641.5
114
24.5
138.5
200
43.0
243.0
40
8.6
48.6
900
193.4
1,093.4
3,782
813
4,595
Page 33
Summary
In conclusion, the neighborhood locations have average accessibility to area services and
employment centers, as well as surrounding communities. Area growth has occurred over the
past few years but has stagnated due to the state of the economy. The real estate market (both
residential and commercial) is expected to improve as the economy improves. The subject’s
neighborhood is considered to have a stable, positive influence on the subject property being
appraised.
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Page 34
AREA DEVELOPMENT AND GROWTH TRENDS
The real estate market in the General Houston area, including the City of Galveston, has
experienced a recent rise in foreclosures and falling property values predominantly in the
residential market.
Demographic Profile
The primary market area has an estimated 2011 population of 53,053. The following table
displays historical and projected population growth based on Claritas data (which is based on
census data).
Population
Primary Market Area
Overall Growth
Annual Growth
1990
60,054
-
2000
58,789
-2.11%
-0.21%
2011
53,053
-9.76%
-0.89%
2016
49,016
-7.61%
-1.52%
1
The primary market area’s population (segmented by age) is depicted in the following table. The
market area has a relatively balanced population in terms of age distribution.
Market Area Population By Age (2011)
Age Group
Under Age 5
Age 5-14
Age 15-24
Age 25-34
Age 35-44
Age 45-54
Age 55-64
Age 65-74
Age 75-84
Age 85 +
Total (may not add to 100% due to rounding)
Median Age of Total Population
Primary (%)
6.83
12.87
12.82
14.99
13.42
13.72
11.54
7.20
4.67
1.93
99.99
36.85
2
Households
Claritas estimates 22,529 households in the primary market area for 2011, and a projected 22,750
households for the year 2016. It is interesting to note that although the population is projected to
1
Claritas Demographics Pop-Facts: Demographic Snapshot Report for Primary Market Area; Page 1:
www.ClaritasMarketPlace.com
2
Claritas Demographics Pop-Facts: Demographic Snapshot Report for custom market area (PMA); Page 2:
C11-AHA-176
Page 35
decrease slightly in the next five years, households are anticipated to increase. This is likely due
to the continued trend of smaller family size.
Tenure (Number of Persons By Household)
Data on the number of persons per household in the primary market area is presented in the
following table.
Market Area # of Persons Per Household (2011)
No. of Persons
Primary (%)
With 1 Person
36.89
With 2 Persons
31.37
With 3 Persons
14.70
With 4 Persons
9.47
With 5 Persons
4.73
With 6 Persons
1.85
With 7+ Persons
0.99
100.00
Average Household Size
3
2.24
Tenure (Owner-Occupied vs. Rental Units)
In 2011, the primary market area had ±9,825 (43.61%) owner-occupied housing units and
±12,704 (56.39%) renter occupied units, according to Claritas estimates.
Market Area Income Per Household
The primary market area had an estimated 2011 average household income of $52,143 with a
median household income of $34,734, and a per capita income of $22,646. The following table
delineates income per household in the subject’s market areas.
Market Area Income/Household (2011)
Under $15,000
$15,000 - $24,999
$25,000 - $34,999
$35,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 +
2010 Average Household Income
2010 Median Household Income
2010 Per Capita Income
Primary (%)
22.85
15.21
12.26
16.47
14.18
7.43
6.80
4.80
100.00
$52,143
$34,734
$22,646
4
3
C11-AHA-176
Page 36
As illustrated in the preceding chart, ±66.79% of the households living in the primary market
area earn less than $50,000 per year, with ±50.32% earning less than $35,000 per year, and
±38.06% earning less than $25,000 per year. Approximately 22.85% of the primary market area
households earn less than $15,000 per year.
4
C11-AHA-176
Page 37
ECONOMIC VIABILITY
Unemployment
The national unemployment rate declined in August 2011 to 9.1% from July 2011’s 9.3%, which
was down as compared to the 9.5% recorded in August 2010. According to the Texas Workforce
Commission, the Texas unemployment rate declined slightly to 8.5% in August from 8.7% in
July 2011, which was up from the reported in 8.3% in August 2010. The Houston MSA
unemployment rate declined slightly to 8.6% in August 2011 from 8.9% in July 2011, which was
higher than the 8.6% reported in August 2010.
Market Area Employment
The 2011 workforce by occupation data, as estimated by Claritas, is presented in the table below.
Market Area Workforce by Occupation (2011)
Occupation
Primary (%)
For-Profit Private Workers
55.02
Non-Profit Private Workers
7.56
Local Government Workers
9.22
State Government Workers
19.59
Federal Government Workers
1.82
Self-Emp Workers
9.18
Unpaid Family Workers
0.24
Civilian Workforce
22,637
5
Given the characteristics of the subject’s neighborhood (including its employment base,
occupational distribution, as well as development composition, adequate recreational,
educational, and cultural facilities, and access to major transportation routes), the outlook for the
area is generally stable.
5
C11-AHA-176
Page 38
PRIMARY MARKET AMENITIES MAPS
C11-AHA-176
Page 39
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W
School
District
School
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Independent
Galveston
Galveston
C
A
P
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RO
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TC
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FOR
LM
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Eckerd Drugs
Store Information
Information
Stores // Store
Drug Stores
Walgreen
Walgreen Drug
Ft
Ft Crockett
Crockett
N
RO
HE
Rel.
01/2001
Inc.,
GDT,
2001
USA;
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Street
Atlas
DeLorme.
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2001GDT,
USA;©
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AtlasUSA;
DeLorme.Street
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2001DeLorme.
©2001
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01/2001
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GDT,
2001
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Street
Atlas
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2001
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Mag 14.00
Fri Oct 28 12:24 2011
2000 Feet
1000 Meters
W
PK
WY
GTI
TODD RD
RA
BAR
SE
A
D
NR
Pier
Pier Ten
Ten
ST
CRE
LYN
1ST
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Texas
At Galveston
Galveston
A&
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University At
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Texas A
SR 1 6 8
ING
HIT
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RD
IL
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L
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SEA
SHELL
AMENITIES MAP
Local Road
Locale
Major Connector
Cemetery
State Route
Population Center
Lake
Railroad
Land
Point of Interest
Water
Large City
River/Canal
Hospital
COMPARABLE PROPERTY ANALYSIS
C11-AHA-176
Page 41
Multifamily Development Trends
The following pages detail apartment trends within the submarket. The data referenced was
prepared by O’Connor & Associates research department via ongoing surveys involving each
property included in the data set. The data is “live” data, which is updated as information is
received for these properties; therefore, the data is current as of the date of my report preparation.
According to the most recent 2011 O'Connor and Associates O’Connor Data –Houston Area
Apartment Survey, there were 29 operating apartment projects in Galveston containing a total of
5,032 units. The overall occupancy rate for all operating apartment projects in this market area
was 72.85%. The average rental rate for these properties was $0.982 per square foot.
The above-reported occupancy does not paint the total picture. Excluding down units, closed
complexes, and the two complexes which would not confirm their occupancy, the more accurate
occupancy is 87.62%. I personally contacted all complexes of over 50 units in Galveston. The
following table depicts the result of those surveys:
C11-AHA-176
Page 42
Complex
Antiqua
Ashton Place
The Broadwater
Captain's Landing
Carelton Coutyard
Casa Caribe
Champion Homes @ Marina Landing
Chateau LaFitte
Club of the Isle
Coastal Breeze
Driftwood
Ebbtide
Fort Crockett
Gulf Wind
Island Bay Resorts (Up Uts.)
Lakeside @ Campeche
The Park @ Cedar Lawn
Stewart's Landing
Summerset
The Oceanfront
The Seaside Village
The Seasons
Villa Maria
Village by the Sea
William B. Travis
Units
Occupancy Vac Uts.
162
172
205
174
240
165
192
256
73
248
36
238
98
130
66
268
320
267
133
192
216
120
102
92
258
184
241
60
84%
90%
98%
75%
26
17
4
44
83%
18%
28
WNC
Closed
100%
96.40%
94%
87%
Closed
80%
89%
80%
87%
93%
97%
59%
81%
80%
86%
93%
WNC
86%
90%
84%
Exc closed complexes, under reno, &
3,983
WNC complexes, & 190 down units @ Island Bay
& 105 down units at The Park @ Cedar Lawn
0
9
2
31
0
26
7
54
42
19
4
36
41
24
14
6
26
24
10
Confirmed With
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
8-Sep
7-Sep
25-Aug
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
7-Sep
Freddie
Adriana
Christina
Laquita
Becky
Dana
Olivia
Under Renov.
John
Demoine
Evette
Terri
Chris
Andrea
Christina
Robert
Jenay
Claudia
Ashley
Laquita
190 uts down
105 uts down
Vicki
Amy
Linda
Adriana
Jennifer
Kathy
493
12.38%
*WNC = “would not confirm”
The following table depicts an overview of the most recent O’Connordata information in the
primary market area.
C11-AHA-176
Page 43
Absorption
Absorption is defined as the “change in the number of occupied units within a given time frame”
and can be used as a proxy for market demand. Thus, positive absorption indicates strong
demand, while negative absorption implies decline in demand.
Absorption in the subject’s primary market area over the past twelve months ending June 2011
totals 220 units. Absorption has ranged from positive 254 units to a negative 160 units in the
past year. The greatest amount of absorption taking place is in the Class B and A properties.
There have been no new complexes constructed in Galveston since 2005. The Club of the Isle
was the most recent complex constructed in Galveston. It reportedly attained stabilized
occupancy within a few months of completion.
Ashton Place was completely closed for renovations after Hurricane Ike, and reportedly leased to
stabilized occupancy within 6 month of completion of the renovations, which equates to an
average absorption of approximately 26 units per month.
The table on the following page illustrates the most current O’Connor & Associates, O’Connor
Data apartment market data program absorption data for the subject’s primary market area.
C11-AHA-176
Page 45
Occupancy
The occupancies of the most comparable rentals (those used in the rent grids) included in this
study range from 90% to 98% The average occupancy for apartments in the subject’s primary
market area was reported at 72.85% in the most recent O’Connor Data apartment market data
program for the subject’s primary market area. The above-reported occupancy is understated
since it includes units that are not leasable. Excluding down units, closed complexes, and the
two complexes which would not confirm their occupancy, the more accurate occupancy is
87.62%. I personally contacted all complexes of over 50 units in Galveston. Based on my
analysis of the market and the limited amount of incoming product, occupancy is projected to
improve for this market.
Data apartment market data program occupancy percentages for the subject’s primary market
area.
C11-AHA-176
Page 47
Rental Rates
The average rental rate for apartments in the subject’s primary market area is reported at $0.982
PSF per month in the most recent O’Connor Data market survey for the subject’s primary
market area.
Data apartment market data program rental rates for the subject’s primary market area.
Despite the fact that only one complex in Galveston was constructed in the 2000s (2005), none in
the 1990s, 11 in the 1980s, 12 in the 1970s, and 7 prior to 1970, the average rental rate PSF was
$0.982, which is unusually high. I ran the rental statistics in O’ConnorData.com for all
conventional complexes in Galveston County (excluding Galveston) and all complexes in
Houston, by decade built. The following table depicts the results of that research:
Age of Bld Rent PSF % Higher than Galv Co. Rent PSF
% Higher than Houston Rent PSF
Galveston
Galv Co, exc CoG
Houston
1980s
$1.018
21.48%
$0.838
24.75%
$0.816
1970s
$0.908
14.79%
$0.791
18.85%
$0.764
pre-1970
$1.025
41.57%
$0.724
18.77%
$0.863
The average rental rates for the older Galveston complexes was 14.79% to 41.57% higher than
those in the remainder of Galveston County, and 18.77% to 24.75% higher than the average
rental rates PSF of the complexes in Houston. It is likely that the current relatively higher
current vacancy rate in Galveston is not a function of lack of demand, but rather the fact
that cheaper and/or higher quality at the same price apartment rentals are available off the
island.
C11-AHA-176
Page 49
Evaluation of the Existing Low-Income Housing
The primary market area was estimated to have 22,529 households in 2011. The projected
number of households in the year 2016 is 22,750. Considering that 56.39% of the population
lived in rental housing in the subject’s market area in 2011, there is sufficient demand for the
subject property.
Comparable Housing Conclusions
The majority of the apartment facilities in the subject’s primary market are older, less appealing
projects. It is my opinion that rental rates will show flat growth or nominal increases over the
next few years. With continued demand and moderate new construction, the supply of available
apartment product is stable. This trend is expected to continue, which will likely result in
occupancies increasing in the area. Although rents are increasing, there are limited indications of
external obsolescence in the market.
With respect to affordable housing projects, due to the overall lack of recently-constructed
Family affordable housing projects in the subject’s primary market area, and based on the
performance of the current low income housing developments in the general area, it appears as
though there is pent-up demand in the subject’s primary market area. With average rental rates
in all projects at $0.982 PSF, and occupancy rates averaging 72.85% overall or 87.62%
excluding the down units and complexes which would not confirm occupancy, it is reasonable to
project that a newly-constructed mixed-income complex with competitive amenities, such as the
proposed subject property, would perform favorably in this market. The comparable rentals used
in the rental analysis indicated an average rent PSF of $1.03 and an average occupancy of 94%,
which are also supportive of the likely success of the proposed subject property.
The map on the following page shows the rental comparables utilized in my analysis of market
rent.
C11-AHA-176
Page 51
RENT COMPARABLES MAP
C11-AHA-176
Page 52
3
6TH ST N
TEXAS
Nadeau
Nadeau
77590
77590
146
OP
LO
La Marque
88
10
10
M
F-
10
10
9
51
7
19
Baffle
Point
Baffle Point
Danforth
Hospital
Danforth Hospital
City
Texas
Texas City
RENTAL MAP
6TH ST S
RD
Heights
Heights
S PINE RD
N PINE RD
ll
N
Galveston
Galveston
Texas City Ship Channel
77
inal
inal Junction
Junction
87
North
Jetty
North Jetty
RD
Ft
Travis
Ft Travis
LOO
P1
97
S
6
Horseshoe Lake
Snake
Island
Snake Island
Texas
City Junction
Junction
Texas City
Swan Lake
45
Oyster Lake
108
Bolivar Roads
Inner Bar Channel
Pelican
Reservation
Spit Military
Military Reservation
Pelican Spit
Campbell Bayou
Ft
Ft Point
Point
South
South JJ
Pelican
Island
Pelican Island
3
77
F
WOL
SEA
44
44
1C
1C
The Lagoon
Y
East
Beach
East Beach
Galveston Channel
Elevator
B
Elevator B
Galveston
Galveston
RENT 3
SEASIDE VILLAGE
87
4925 FORT CROCKETT
L
1A
1A
RENT 4
Teichman
Point
Teichman Point
Middle
Deer Island
Island
Middle Deer
THE BROADWATER
South
Deer Island
Island
South Deer
6315 CENTRAL CITY
A
SE
77551
77551
87
25TH
45
North
Deer Island
Island
North Deer
PKW
D
T
51S 53R
E
SID
OR
RB
A
H
Wilson
Point
Wilson Point
PEL
IC
Jones Bay
AN
IS
45
AL
W
Ft
Ft Crockett
Crockett
Greens Bayou
Anderson
Ways
Anderson Ways
RENT 1
CLUB OF THE ISLE
Sweetwater Lake
3433 COVE VIEW
West Bay
Scholes Field
L
AL
AW
SE
F-
30
RENT
RD 2
Galveston
Beaches
Galveston Beaches
@ CAMPECHE COVE
NEWPORT
3428 COVE VIEW
Galveston
Island
Galveston Island
Hoeckers Cove
Lake Como
SA
arancahua Cove
M
RENT 5
VILLAGE BY THE SEA
6424 CENTRAL CITY BLVD.
005
M3
Hoeckers
Point
Hoeckers Point
Dana Cove
F-
05
D
SR
AS
P
S
UI
NL
West
Beach
West Beach
77554
77554
Galveston Island State Park
D
M
F-
R
05
30
D
Rel.
01/2001
Inc.,
GDT,
2001
USA;
©
Street
Atlas
DeLorme.
2001
©
Rel.01/2001
01/2001
Inc.,Rel.
GDT,Inc.,
2001GDT,
USA;©
©2001
StreetAtlas
AtlasUSA;
DeLorme.Street
©
2001DeLorme.
©2001
Rel.
01/2001
Inc.,
GDT,
2001
©
USA;
Street
Atlas
DeLorme.
2001
©
Mag 12.00
Tue Sep 13 20:43 2011
2 Miles
2 km
Local Road
Large City
Locale
Major Connector
Geographic Feature
Public Airport
State Route
Hospital
Cemetery
Park/Reservation
Population Center
Exit
Exit/Gas
Lake
Railroad
Exit/Lodging
Land
Point of Interest
Exit/Food
Water
Small Town
Exit/Other Services
River/Canal
RENT COMPARABLES
The subject site is proposed to be improved with a separately-metered for electricity mixedincome apartment project with good overall market appeal. The general market area was
researched for properties which would be most similar to the subject in all categories. I have
utilized five market-rate complexes. The following pages detail rent comparables which best
represent the competition for the subject property. These included apartment projects as similar
as possible to the subject property in terms of unit mix, age, physical condition, and property
type.
The comparable rentals utilized are:
Comparable 1
Club of the Isle
Comparable 2
Comparable 3
Seaside Village
Comparable 4
The Broadwater
Comparable 5
Village by the Sea
The comparable rentals are more fully described on the following pages.
C11-AHA-176
Page 53
APARTMENT RENT COMPARABLE ONE
Name:
Location:
Year Built:
Construction:
Club of the Isle
3433 Cove View Blvd
2005
Date Surveyed:
Contact:
Total No. of Units:
Average Unit Size (SF):
Average Month Rent (PSF):
Occupancy:
Units
Garden-style, two/three-story, stone and siding, pitched roofs
September 2011
Demoine 409-744-2582
248
1,019
$1.12
96.4%
Size
Monthly
Rent
Potential
(SF)
Rent
PSF
Rent
SF
Type
48
765
$912
$1.19
$43,776
36,720
1 BR / 1 BA
42
777
$822
$1.06
$34,524
32,634
1 BR / 1 BA
44
873
$997
$1.14
$43,868
38,412
1 BR / 1 BA
2 BR / 2 BA
24
1,112
$1,287
$1.16
$30,888
26,688
2 BR / 2 BA
42
1,213
$1,337
$1.10
$56,154
50,946
3 BR / 2 BA
36
1,336
$1,512
$1.13
$54,432
48,096
3 BR / 2 BA
1,595
$1,605
$1.01
$19,260
19,140
12
248
1,019
$1,141
$1.12
$282,902
252,636
Amenities/Comments: This is the newest market-rate project, and features washer/dryer connections and units in all
units. Tenant pays electricity and water/sewer. Heat and water heating is electric. This complex does not offer
concessions at this time.
Unit Amenities
Balcony/Patio
AC: Central/Wall
Range/Refrigerator
Microwave/Dishwasher
Washer/Dryer
Floor Coverings
Window Coverings
Cable/Satellite
Special Features
C11-AHA-176
Y
C
R/F
MD
Units
C/T
B
C
N
Site Amenities
Parking ($ Fee)
L/$0
Extra Storage
Y
Security
Y
Clubhouse/Meeting
C
Pool/Rec. Area
P/R/E
Business Center
BC
Service Coordination
N
Non-shelter Services
N
Utilities
Heat (in rent?/type)
Cooling (in rent?/type)
Cooking (in rent?/type)
Hot Water (in rent?/type)
Other Electric
Water/Sewer (in rent?)
Trash/Recycling
N/E
N/E
N/E
N/E
N
N
Y
Page 54
APARTMENT RENT COMPARABLE TWO
Name:
Location:
Year Built:
Construction:
Date Surveyed:
Contact:
Total No. of Units:
Occupancy:
Newport at Campeche Cove
3428 Cove View Blvd.
1987/2010
Garden-style, two/three-story, Brick and Hardiplank, pitched
roofs
September 2011
Jenay 409-744-5477
267
698
$0.97
93%
Type
Units
Size
Monthly
Rent
Total
Total
(SF)
Rent
PSF
Rent
SF
1 BR / 1 BA
93
506
$550
$1.09
$51,150
47,058
1 BR / 1 BA
72
605
$607
$1.00
$43,704
43,560
1 BR / 1 BA
42
768
$725
$0.94
$30,450
32,256
2 BR / 1 BA
36
1,011
$870
$0.86
$31,320
36,396
2 BR / 2 BA
24
1,130
$1,012
$0.90
$24,288
27,120
267
698
$678
$0.97
$180,912
186,390
Amenities/Comments: This property was constructed in 1987 and renovated in 2010. The complex features
washer/dryer connections, clubhouse, pool, and gated access. The Landlord pays for water/sewer and trash
collection. Current concessions of 3 weeks to 1.5 month free on a 12-month lease.
Unit Amenities
Balcony/Patio
AC: Central/Wall
Range/Refrigerator
Washer/Dryer
Floor Coverings
Window Coverings
Cable/Satellite
Special Features
C11-AHA-176
N
C
R/F
M/D
Conn
C/VT
B
C
N
Site Amenities
Parking ($ Fee)
Extra Storage
Security
Clubhouse/Meeting
Pool/Rec. Area
Business Center
L/$0
N
Y
Y
P
BC
N
N
Utilities
Other Electric
Trash/Recycling
N/E
N/E
N/E
N/E
N
Y
Y
Page 55
APARTMENT RENT COMPARABLE THREE
Name:
The Seaside Village
Location:
4925 Fort Crockett
Year Built:
1987/2000
Construction:
Three-story, stucco/hardiplank veneer
Date Surveyed:
September 2011
Contact:
Amy 409-763-5890
Total No. of Units:
126
1,104
$0.91
Occupancy:
93%
Units
Size
Monthly
Rent
Total
Total
(SF)
Rent
PSF
Rent
SF
6
887
$792
$0.89
$4,752
5,322
1 BR / 1 BA
6
970
$780
$0.80
$4,680
5,820
1 BR / 1.5 BA
8
985
$760
$0.77
$6,080
7,880
1 BR / 1.5 BA Study
8
985
$855
$0.87
$6,840
7,880
2 BR / 2 BA
2 BR / 1 BA Loft
12
1,036
$940
$0.91
$11,280
12,432
2 BR / 2 BA TH
12
1,036
$940
$0.91
$11,280
12,432
2 BR / 1.5 BA TH
16
1,099
$1,000
$0.91
$16,000
17,584
2 BR / 2.5 BA TH
12
1,302
$1,365
$1.05
$16,380
15,624
2 BR / 2.5 BA TH
1,384
$1,279
$0.92
$15,348
16,608
12
92
1,104
$1,007
$0.91
$92,640
101,582
Amenities/Comments: This property features washer/dryer units, microwave ovens, a pool, fitness center, and gated
entry. Tenants pay electricity. No current concessions.
Unit Amenities
Balcony/Patio
N
AC: Central/Wall
C
Range/Refrigerator
R/F
MD
Washer/Dryer
Units
Floor Coverings
Wood
Window Coverings
B
Cable/Satellite
Y/C
Special Features
N
C11-AHA-176
Type
Site Amenities
Parking ($ Fee)
Extra Storage
Security
Clubhouse/Meeting
Pool/Rec. Area
Business Center
L/$0
N
Y
Y
Y
Y
N
N
Utilities
Other Electric
Trash/Recycling
N/E
N/E
N/E
N/E
N
Y
Y
Page 56
APARTMENT RENT COMPARABLE FOUR
Name:
Location:
Year Built:
Construction:
Date Surveyed:
Contact:
Total No. of Units:
Occupancy:
Units
The Broadwater
6315 Central City Blvd.
1986/2003
Garden-style, two/three-story, brick and siding, pitched roofs
September 2011
Christina 409-744-6400
205
788
$1.00
98%
Size
Monthly
Rent
Total
Total
(SF)
Rent
PSF
Rent
SF
26
552
$614
$1.11
$15,964
14,352
1 BR / 1 BA
35
675
$664
$0.98
$23,240
23,625
1 BR / 1 BA
20
700
$709
$1.01
$14,180
14,000
1 BR / 1 BA
42
712
$694
$0.97
$29,148
29,904
1 BR / 1 BA
8
777
$824
$1.06
$6,592
6,216
1 BR / 1 BA
12
898
$844
$0.94
$10,128
10,776
1 BR / 1 BA
20
933
$999
$1.07
$19,980
18,660
2 BR / 2 BA
24
1,013
$1,006
$0.99
$24,144
24,312
2 BR / 2 BA
1,092
$1,014
$0.93
$18,252
19,656
18
2 BR / 2 BA
205
788
$788
$1.00
$161,628
161,501
Amenities/Comments: Tenants pay electric and water/sewer. Amenities include a swimming pool, clubhouse, and
gated entry. Unit amenities include washer/dryer connections and microwave ovens in all units. Parking is open.
Manager reported no concessions.
Unit Amenities
Balcony/Patio
AC: Central/Wall
Range/Refrigerator
Washer/Dryer
Floor Coverings
Window Coverings
Cable/Satellite
Special Features
C11-AHA-176
Type
Y
C
R/F
MD
Conn
C/VT
B
C
N
Site Amenities
Parking ($ Fee)
Extra Storage
Security
Clubhouse/Meeting
Pool/Rec. Area
Business Center
L/$0
N
Y
C
P
Y
N
N
Utilities
Other Electric
Trash/Recycling
N/E
N/E
N/E
N/E
N
Y
Y
Page 57
APARTMENT RENT COMPARABLE FIVE
Name:
Location:
Year Built:
Construction:
Date Surveyed:
Contact:
Total No. of Units:
Occupancy:
Village by the Sea
6424 Central City Blvd.
1985
Three-story, siding veneer, pitched roofs
September 2011
Jennifer 409-744-7152
241
776
$1.14
90%
Type
Units
Size
Monthly
Rent
Total
Total
(SF)
Rent
PSF
Rent
SF
1 BR / 1 BA
108
645
$757
$1.17
$81,756
69,660
1 BR / 1 BA
36
704
$872
$1.24
$31,392
25,344
2 BR /1.5 BA
72
885
$940
$1.06
$67,680
63,720
2 BR / 2 BA
16
1,068
$1,187
$1.11
$18,992
17,088
2 BR /2.5 BA
9
1,238
$1,425
$1.15
$12,825
11,142
241
776
$882
$1.14
$212,645
186,954
This property features pools, business center, fitness center. Tenants pay electricity and water/sewer. No current
concessions.
Unit Amenities
Balcony/Patio
AC: Central/Wall
Range/Refrigerator
Washer/Dryer
Floor Coverings
Window Coverings
Cable/Satellite
Special Features
C11-AHA-176
N
C
R/F
D
L
C/VT
B
C
N
Site Amenities
Parking ($ Fee)
Extra Storage
Security
Clubhouse/Meeting
Pool/Rec. Area
Business Center
L/$0
N
Y
y
P
N
N
N
Utilities
Other Electric
Trash/Recycling
N/E
N/E
N/E
N/E
N
N
Y
Page 58
RENT ADJUSTMENT GRIDS
C11-AHA-176
Page 59
Housing and Urban Development
Office of Housing
Attachment 9-2
OMB Approval # 2502-0507 (exp. 09/30/2011)
Rent Comparability Grid
Subject
705-unit mixed income
Data
multifamily project to be
located in one or more yet-tobe-determined sites
on
Subject
Galveston, Galv. Co.
A.
1
Rents Charged
$ Last Rent / Restricted?
Unit Type
Comp #1
Comp #2
Comp #3
Comp #4
Comp #5
Club of the Isle
Newport @
Campeche Cove
Seaside Village
The Broadwater
Village by the Sea
6315 Central City
Galveston, Galv.
Co.
Data
$ Adj
$664
N
Sep-11
N
98%
6424 Central City
Galveston, Galv.
Co.
Data
$ Adj
$757
N
Sep-11
N
90%
3433 Cove View
Data
$912
Date Last Leased (mo/yr)
Rent Concessions
4 Occupancy for Unit Type
Effective Rent & Rent/ sq.
5 ft
$ Adj
N
Sep-11
N
96%
2
3
Subject's FHA #:
1 BR
3428 Cove View 4925 Fort Crockett
Galveston, Galv.
Galveston, Galv.
Co.
Co.
Data
$ Adj
Data
$ Adj
$725
N
$792
N
Sep-11
Sep-11
Y
($73)
N
93%
93%
$912
$1.19
$653
$0.85
$792
$0.89
$664
In Parts B thru E, adjust only for differences the subject's market values.
45
Design, Location,
Condition
Data
Structure / Stories
WU/3
Yr. Built/Yr. Renovated
Prop
2005
Condition /Street Appeal Good/Good Gd/Gd
Neighborhood
Good
Good
Same Market? Miles to Subj
Unit Equipment/
Data
# Bedrooms
1
1
# Baths
1
1
Unit Interior Sq. Ft.
650
765
Balcony/ Patio
Y
Y
AC: Central/ Wall
C
C
Range/ refrigerator
R/F
R/F
Microwave/ Dishwasher
MD
MD
Washer/Dryer
Units
Units
Floor Coverings
C/VT
C/T
Window Coverings
B
B
Cable/ Satellite/Internet
C
C
Special Features
N
N
N
N
Site Equipment/ Amenities
Data
Parking ( $ Fee)
L/$0
L/$0
Extra Storage
Y
Y
Security
N
Y
Rooms
CR
C
Pool/ Recreation Areas
P/R/E
P/R/E
Business Ctr / Nbhd Netwk
BC
BC
N
N
N
N
Neighborhood Networks
N
N
Utilities
Data
Heat (in rent?/ type)
N/E
N/E
Cooling (in rent?/ type)
N/E
N/E
Cooking (in rent?/ type)
N/E
N/E
Hot Water (in rent?/ type)
N/E
N/E
Other Electric
N
N
Cold Water/ Sewer
Y
N
Trash /Recycling
Y
Y
Adjustments Recap
Pos
# Adjustments B to D
Sum Adjustments B to D
Sum Utility Adjustments
$26
Net
Net/ Gross Adjmts B to E
($32)
Adj. Rent
Adjusted & Market Rents
$881
Adjusted Rent (5+ 43)
Adj Rent/Last rent
46
Estimated Market Rent
B.
6
7
8
9
10
C.
11
12
13
14
15
16
17
18
19
20
21
22
23
D
24
25
26
27
28
29
30
31
32
E.
33
34
35
36
37
38
39
F.
40
41
42
43
G.
44
Appraiser's Signature
$890
$1.37
09/07/11
Date
Grid was prepared:
$ Adj
$ Adj
($58)
$ Adj
$ Adj
$26
Neg
1
($58)
Gross
$84
$757
$1.17
Data
WU/3
1985
Avg/Avg
Good
$ Adj
Data
$ Adj
Data
1
1
1
1
($119)
675
($13)
645
Y
N
C
C
R/F
R/F
MD
MD
HU,L
$40
HU,L
C/VT
C/VT
B
B
C
C
N
N
N
N
$ Adj
Data
$ Adj
Data
L/$0
L/$0
N
N
Y
Y
C
C
P/R/E
P/R/E
BC
BC
N
N
N
N
N
N
$ Adj
Data
$ Adj
Data
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N
N
$26
N
$26
Y
Y
Y
Neg
Pos
Neg
Pos
1
2
1
3
($119)
$206
($13)
$232
$26
Gross
Net
Gross
Net
$343
$220
$245
$232
Adj. Rent
Adj. Rent
$ Adj
$0.98
Data
$ Adj
Data
$ Adj
Data
$ Adj
WU/3
WU/3
WU/3
1987/2010 $181 1987/2000 $198 1986/2003 $166
Avg/Avg
Avg/Avg
Avg/Avg
Good
Good
Good
Data
1
1
768
Y
C
R/F
M/D
HU,L
C/VT
B
C
N
N
Data
L/$0
N
Y
C
P/R/E
BC
N
N
N
Data
N/E
N/E
N/E
N/E
N
Y
Y
Pos
2
$221
Adj
Data
1
1
($59)
887
Y
C
R/F
MD
$40
Units
C/VT
B
C
N
N
$ Adj
Data
L/$0
N
Y
C
P/R/E
BC
N
N
N
$ Adj
Data
N/E
N/E
N/E
N/E
N
N
Y
Neg
Pos
1
1
($59)
$198
$26
Net
Gross
Net
$162
$280
$106
Adj. Rent
Adj. Rent
$815
97%
$ Adj
$898
125%
$884
113%
$189
$3
$40
$ Adj
$ Adj
Neg
Gross
$232
$989
133%
131%
Estimated Market Rent/ Sq. Ft
Attached are
explanations of :
Manually
a. why & how each adjustment was made
b. how market rent was derived from adjusted rents
c. how this analysis was used for a similar unit type
Using HUD's Excel form
form HUD-92273-S8
This form is to be used for completing Rent Comparabilty Studies in accordance with Chapter 9 of the Section 8 Renewal Guide
Office of Housing
Subject
Data
on
Subject
A.
1
Rents Charged
Attachment 9-2
OMB Approval # 2502-0507 (exp. 09/30/2011)
Unit Type
Comp #1
Comp #2
Comp #3
Comp #4
Comp #5
Club of the Isle
Newport @
Campeche Cove
Seaside Village
The Broadwater
Village by the Sea
3433 Cove View
3428 Cove View
4925 Fort Crockett
6315 Central City
6424 Central City
Galveston, Galv. Co. Galveston, Galv. Co. Galveston, Galv. Co. Galveston, Galv. Co.Galveston, Galv. Co.
Data
$ Adj
N
$1,287
Rent Concessions
5 ft
Sep-11
N
96%
2
3
Subject's FHA #:
2 BR
Data
$870
Sep-11
Y
93%
$ Adj
N
($73)
Data
$855
$ Adj
N
Sep-11
N
93%
Data
$999
Sep-11
N
98%
$1,287
$1.16
$798
$0.79
$855
$0.87
$999
45
Design, Location,
Condition
Data
Structure / Stories
WU/3
Prop
2005
Neighborhood
Good
Good
Unit Equipment/
Data
# Bedrooms
2
2
# Baths
1
2
895
1112
Balcony/ Patio
Y
Y
AC: Central/ Wall
C
C
Range/ refrigerator
R/F
R/F
MD
MD
Washer/Dryer
Units
Units
Floor Coverings
C/VT
C/T
Window Coverings
B
B
C
C
Special Features
N
N
N
N
Data
Parking ( $ Fee)
L/$0
L/$0
Extra Storage
Y
Y
Security
Y
Y
Rooms
CR
C
P/R/E
P/R/E
BC
BC
N
N
N
N
N
N
Utilities
Data
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N/E
Other Electric
N
N
Cold Water/ Sewer
Y
N
Trash /Recycling
Y
Y
Adjustments Recap
Pos
$38
Net
($96)
Adj. Rent
$1,192
Adj Rent/Last rent
46
Estimated Market Rent $1,190
B.
6
7
8
9
10
C.
11
12
13
14
15
16
17
18
19
20
21
22
23
D
24
25
26
27
28
29
30
31
32
E.
33
34
35
36
37
38
39
F.
40
41
42
43
G.
44
$ Adj
$ Adj
($25)
($109)
$ Adj
$ Adj
$38
Neg
2
($134)
$1.33
09/07/11
Date
Grid was prepared:
Gross
$172
$ Adj
N
Adj
Data
$ Adj
2
2
($25)
($58)
985
($45)
Y
C
R/F
MD
$40
Units
C/VT
B
C
N
N
$ Adj
Data
$ Adj
L/$0
N
Y
C
P/R/E
BC
N
N
N
$ Adj
Data
$ Adj
N/E
N/E
N/E
N/E
N
N
$38
Y
Neg
Pos
Neg
1
1
2
($58)
$214
($70)
$38
Net
Gross
Net
Gross
$200
$316
$182
$322
Adj. Rent
Adj. Rent
$997
93%
$1,037
125%
$940
$1.06
Data
WU/3
1985
Avg/Avg
Good
$ Adj
Data
$ Adj
Data
2
2
2
($25)
1.5
933
($19)
885
Y
N
C
C
R/F
R/F
MD
MD
HU,L
$40
HU,L
C/VT
C/VT
B
B
C
C
N
N
N
N
Data
$ Adj
Data
L/$0
L/$0
N
N
Y
Y
C
C
P/R/E
P/R/E
BC
BC
N
N
N
N
N
N
Data
$ Adj
Data
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N
N
N
$38
Y
Y
Y
Pos
Neg
Pos
2
2
3
$290
($44)
$280
$38
Net
Gross
Net
$284
$372
$270
Adj. Rent
Adj. Rent
$ Adj
$1.07
$1,283
121%
$ Adj
N
Sep-11
N
90%
Data
$ Adj
Data
$ Adj
Data
$ Adj
WU/3
WU/3
WU/3
1987/2010 $218 1987/2000 $214 1986/2003 $250
Avg/Avg
Avg/Avg
Avg/Avg
Good
Good
Good
Data
2
1
1011
Y
C
R/F
M/D
HU,L
C/VT
B
C
N
N
Data
L/$0
N
Y
C
P/R/E
BC
N
N
N
Data
N/E
N/E
N/E
N/E
N
Y
Y
Pos
2
$258
Data
$940
$235
($10)
$5
$40
$ Adj
$ Adj
Neg
1
($10)
Gross
$290
$1,210
128%
129%
Attached are
explanations of :
Manually
form HUD-92273-S8
Office of Housing
Subject
Data
on
Subject
A.
1
Rents Charged
Attachment 9-2
OMB Approval # 2502-0507 (exp. 09/30/2011)
Unit Type
Comp #1
Comp #2
Comp #3
Comp #4
Comp #5
Club of the Isle
Newport @
Campeche Cove
Seaside Village
The Broadwater
Village by the Sea
6315 Central City
Galveston, Galv.
Co.
Data
$ Adj
$1,014
N
Feb-10
N
98%
6424 Central City
Galveston, Galv.
Co.
Data
$ Adj
$1,187
N
Feb-10
N
90%
3433 Cove View
Data
$1,512
Rent Concessions
5 ft
$ Adj
N
Sep-11
N
96%
2
3
Subject's FHA #:
3 BR
3428 Cove View 4925 Fort Crockett
Galveston, Galv.
Galveston, Galv.
Co.
Co.
Data
$ Adj
Data
$ Adj
$1,012
N
$940
N
Sep-11
Sep-11
Y
($84)
N
93%
93%
$1,512
$1.13
$928
$0.82
$940
$0.91 $1,014
45
Design, Location,
Condition
Data
Structure / Stories
WU/3
Prop
2005
Neighborhood
Good
Good
Unit Equipment/
Data
# Bedrooms
3
3
# Baths
2.5
2
1,235
1336
Balcony/ Patio
Y
Y
AC: Central/ Wall
C
C
Range/ refrigerator
R/F
R/F
MD
MD
Washer/Dryer
Units
Units
Floor Coverings
C/VT
C/T
Window Coverings
B
B
C
C
Special Features
N
N
N
N
Data
Parking ( $ Fee)
L/$0
L/$0
Extra Storage
Y
Y
Security
N
Y
Rooms
CR
C
P/R/E
P/R/E
BC
BC
N
N
N
N
N
N
Utilities
Data
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N/E
Other Electric
N
N
Cold Water/ Sewer
Y
N
Trash /Recycling
Y
Y
Adjustments Recap
Pos
1
$10
$56
Net
$16
Adj. Rent
$1,528
Adj Rent/Last rent
46
Estimated Market Rent $1,525
B.
6
7
8
9
10
C.
11
12
13
14
15
16
17
18
19
20
21
22
23
D
24
25
26
27
28
29
30
31
32
E.
33
34
35
36
37
38
39
F.
40
41
42
43
G.
44
$1.23
09/07/11
Date
Grid was prepared:
$ Adj
$ Adj
$10
($51)
$ Adj
$ Adj
$56
Neg
1
($51)
Gross
$117
$1,187
$1.11
Data
WU/3
1985
Avg/Avg
Good
$ Adj
Data
$ Adj
Data
2
$100
2
2
$10
2
1092
$72
1068
Y
N
C
C
R/F
R/F
MD
MD
HU,L
$40
HU,L
C/VT
C/VT
B
B
C
C
N
N
N
N
Data
$ Adj
Data
L/$0
L/$0
N
N
Y
Y
C
C
P/R/E
P/R/E
BC
BC
N
N
N
N
N
N
Data
$ Adj
Data
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N/E
N
N
N
$56
Y
Y
Y
Pos
Neg
Pos
5
5
$475
$530
$56
Net
Gross
Net
$531
$531
$530
Adj. Rent
Adj. Rent
$ Adj
$100
$10
$84
$0.93
Data
$ Adj
Data
$ Adj
Data
$ Adj
WU/3
WU/3
WU/3
1987/2010 $253 1987/2000 $235 1986/2003 $254
Avg/Avg
Avg/Avg
Avg/Avg
Good
Good
Good
Data
2
2
1130
Y
C
R/F
M/D
HU,L
C/VT
B
C
N
N
Data
L/$0
N
Y
C
P/R/E
BC
N
N
N
Data
N/E
N/E
N/E
N/E
N
Y
Y
Pos
5
$456
Adj
$100
$10
$53
Data
$ Adj
2
$100
2
$10
1036
$100
Y
C
R/F
MD
$40
Units
C/VT
B
C
N
N
$ Adj
Data
$ Adj
L/$0
N
Y
C
P/R/E
BC
N
N
N
$ Adj
Data
$ Adj
N/E
N/E
N/E
N/E
N
N
$56
Y
Neg
Pos
Neg
4
$445
$56
Net
Gross
Net
Gross
$456
$456
$501
$501
Adj. Rent
Adj. Rent
$1,383
101%
$1,441
149%
$1,545
153%
$297
$40
$ Adj
$ Adj
Neg
Gross
$530
$1,717
152%
145%
Attached are
explanations of :
Manually
form HUD-92273-S8
Explanation of Adjustments and Market Rent Conclusions
A Rent Comparability Grid was prepared for each of the subject’s unit types. Whenever
sufficient data was available, adjustments were based on a matched-pair analysis of the
comparables. Adjustments were also based on conversations with leasing agents and real estate
professionals in the area, information in my files, as well as personal observation and experience
of the analysts in the subject’s market area.
Line 1. Last Rented / Restricted. All of the rents utilized in this analysis represent market rents
currently quoted at the comparable properties. None of the rentals has rent restrictions on any
units.
Line 2. Date Last Leased. As all rents used in this analysis reflect current rates, no adjustments
were necessary for this line item. The rental rates are considered to be representative of current
market conditions.
Line 3. Rent Concessions. Only Rental 2 is currently offering concessions, which range from 3
weeks to 1.5 months of free rent on a 12-month lease. The adjustment was based on the prorated concession over the lease term.
Line 4. Occupancy for Unit Type. According to data collected, the market area has historically
maintained an occupancy level of 90%+ for all units over the past few years. The occupancy of
the comparables currently ranges from 90% to 98%. No adjustment was required in this regard.
Line 6. Structures / Stories. The subject improvements are currently proposed to consist of
low-rise elevator buildings and townhouse-style row buildings. All of the rentals are considered
functionally generally similar to the subject. Thus, no adjustment is applicable to the rentals for
this line item.
Line 7. Yr. Built/Yr. Renovated. The subject improvements are proposed. The comparable
properties have years of construction ranging from 1985 to 2005. Also included in this category
would be any allowances for functional utility. Based on an analysis of the comparables, as well
as similar complexes in comparable markets, an adjustment of $5 per year of age difference was
considered reasonable and was applied in my analysis.
Line 8. Condition / Street Appeal. The subject will be in good condition and will have good
street appeal. Adjustments in this category are based on the observed effective age and physical
condition of the projects. Adjustments in this category were based on a matched pairing of the
rental rates for Rental 1, which is considered generally similar to the subject in this regard, and
Rentals 2 through 5, which are considered inferior to the subject. The matched pairing indicated
an adjustment in the range of 25% for this inferiority. A 25% adjustment was considered
reasonable, and was applied to Rentals 2 through 5.
Line 9. Neighborhood. The subject property and all of the comparable properties are generally
affected by similar influences within their individual neighborhoods. Each of the comparables is
located in an area of mixed-use (residential & commercial), and no adjustment was required.
Line 10. Same Market? Miles to Subject. No adjustment is applicable for this line item.
C11-AHA-176
Page 60
Line 11. Bedrooms. No adjustment was necessary with the exception of the 3BR analysis.
Only Rental 1 features 3BR units. In order to determine an appropriate adjustment for an
additional bedroom, I performed a matched pair analysis on the comparable rentals. The
following table depicts that analysis.
Bedroom
Differential
Complex
Name
Rental 1
Rental 2
Rental 3
Unit Type
Square
Footage
SF Diff
Rent
$ Diff
$/SF
Adjustment
3b/2b
2b/2b
1595
1213
382
$1,605
$1,337
268
$0.70
$77
2b/1b
1b/1b
1011
768
243
$870
$725
145
$0.60
$24
2b/1.5b
1b/1.5b
1099
970
129
$1,000
$780
220
$1.71
$156
$64
An adjustment of $100 for a third bedroom was considered reasonable, and was applied to
Rentals 2, 3, 4 and 5.
Line 12. Bathrooms. Adjustment was necessary for the townhouse units and in the 2BR/1BA
analysis. The following table depicts my matched pair analysis.
Complex
Name
Bathroom
Differential
Rental 2
Rental 3
Rental 5
Unit Type
Square
Footage
SF Diff
Rent
$ Diff
$/SF
Avg Rent
2b/2b
2b/1b
1130
1011
119
$1,012
$870
$142
1.19
$83
2b/2.5b
2b/1.5b
1384
1099
285
$1,279
$1,000
$279
0.98
$137
2b/2b
2b/1.5b
1068
885
183
$1,187
$940
$247
1.35
$156
Due to the limited number of pairings available, I also consulted local leasing agents/managers,
who indicated that an adjustment in the range of $10 for a half bath and $25 for a full bath was
typical, which was used in this analysis.
Line 13. Unit Square Footage. A matched-pair analysis was performed using the comparables
in this report. Comparing Rental 1's largest 1BR versus the smallest 1BR unit indicated an
adjustment of $0.79 per square foot. The following table depicts the matched-pair analyses
performed.
C11-AHA-176
Page 61
Complex
Name
Rental 1
Rental 1
Rental 2
Rental 3
Rental 4
Rental 4
Rental 5
Unit Type
Square
Footage
SF Diff
Rent
$/SF
$ Diff
1b/1b
1b/1b
873
765
108
$997
$912
$85
$0.79
2b/2b
2b/2b
1213
1112
101
$1,337
$1,287
$50
$0.50
1b/1b
1b/1b
768
506
262
$725
$550
$175
$0.67
2b/2b
2b/2b
1036
985
51
$940
$855
$85
$1.67
1b/1b
1b/1b
898
552
346
$844
$614
230
$0.66
2b/2b
2b/2b
1092
933
159
$1,014
$999
15
$0.09
1b/1b
1b/1b
704
645
59
$872
$757
115
$1.95
Avg Rent Adj
$0.90
A matched-pair analysis in other similar market areas have indicated a range of $0.25 to $1.00
per square foot adjustment. Based on my experience, an adjustment of $0.50 PSF is appropriate
for one-bedroom, two-bedroom units, and the three-bedroom units.
In other markets, it is often found that no size adjustment is applicable within a size range of
approximately 10%. The comparables included in this analysis were supportive of an adjustment
to the subject for all size differences.
Line 14. Balcony/Patio. The subject complex will offer a private patio for each unit. Some of
the comparables offer balcony/patio. Based on the opinions of local leasing agents, although
considered an amenity, the presence of a balcony/patio does not typically translate into additional
rent. Thus, no adjustment was applicable for this line item.
Line 15. AC: Central/Wall. The subject apartment units feature a central heating system and
air conditioning. All of the comparables offer central AC and heat units. Thus, no adjustment
was applicable for this line item.
Line 16. Range/Refrigerator. The subject, as well as the rentals, are equipped with a range and
refrigerator. Thus, no adjustment was applicable for this line item.
Line 17. Microwave/Dishwasher. The subject will feature a dishwasher and microwave. All of
the rentals are equipped with a dishwasher, with some featuring a microwave. Managers
C11-AHA-176
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interviewed indicated no premium for a microwave. Thus, no adjustment was applicable for this
line item.
Line 18. Washer/Dryer. The subject will offer washer and dryer connections and units in each
apartment. All of the comparables also offer washer/dryer connections. Rentals 1 and 3 also
include washer/dryer units in the base rent. None of the comparables used in the rental grids
offer washer/dryer units for rent. I was able to located the following complexes in Galveston
which do offer washer/dryer units for rent:
Carleton Courtyards
Gulf Winds
Lakeside at Campeche
Park @ Cedar Lawn
$45 per month
$35 per month
$40 per month
$30 per month
$40 per month
An adjustment of $40 per month was considered reasonable, and was applied in my analysis.
Line 19. Floor Covering. The subject units will feature tile and carpet. All of the comparables
feature similar flooring. Thus, no adjustment was applicable for this line item.
Line 20. Window Coverings. The subject property and all of the rentals provide window
coverings. Thus, no adjustment was applicable for this line item.
Line 21. Cable / Satellite / Internet. The subject property and all of the rentals provide cable
access to the tenants although at a tenant expense. Thus, no adjustment was applicable for this
line item.
Line 22. Special Features. No adjustment was required.
Line 23. Daily Activities. N/A
Line 24. Parking. The subject complex will feature open parking. All of the comparables are
feature open parking with some offering carport and/or garage spaces for an additional change.
No adjustment was required in this regard.
Line 25. Extra Storage. The subject will have additional storage for some units. Some of the
comparables also feature extra storage. Based on the opinions of local leasing agents; although
considered an amenity, the presence of extra storage does not typically translate into additional
rent. Thus, no adjustment was applicable for this line item.
Line 26. Security. The subject property will offer perimeter fencing and access gates. All of
the rentals also offer perimeter fencing as well as access gates. No adjustment was required in
this regard.
Line 27. Clubhouse / Meeting Rooms. The subject property will feature a community room.
All of the rentals offer a community room or clubhouse. Thus, no adjustment was applicable for
this line item.
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Line 28. Pool / Recreation Areas. The subject will feature recreation area and a pool. All of
the rentals offer these amenities. Thus, no adjustment was required for this line item.
Line 29. Business Center/Neighborhood Network. The subject property will offer a business
center. All of the rentals offer a business or internet center. No adjustment was required for this
line item.
Line 30 and 31. No adjustments were applied for these categories.
Line 33. Heat. The subject will have electric heat, which is a tenant expense. All of the rentals
feature electric heat, which is a tenant expense. No adjustment was required.
Line 34. Cooling. The subject will have electric cooling, which is a tenant expense. All of the
rentals feature electric cooling, which is a tenant expense. No adjustment was required.
Line 35. Cooking. The subject will have electric cooking, which is a tenant expense. All of the
comparables feature electric cooking, which is a tenant expense. No adjustment was required.
Line 36. Hot Water. The subject will have electric hot water heaters, which is a tenant expense.
All of the comparables feature electric hot water, which is a tenant expense. No adjustments
were required.
Line 37. Other Electric. An adjustment was not applicable for this line item.
Line 38. Cold Water/Sewer. The subject property will include water and sewer service as part
of the rent. Only Rentals 2 and 5 includes water/sewer in the rent. Rentals 1, 3 and 4 required
upward adjustment. Adjustments for this line item are based on the HUD Utility Allowance for
Galveston for Water and Sewer.
Line 39. Trash/Recycling. The subject property will include trash service as part of the rent as
do all of the comparables. No adjustment was required in this regard.
Line 46. Conclusion of Market Rent – 1BR/1BA Units. The adjusted rents for the subject’s
650 square foot 1BR/1BA unit range from $815 to $989 per month. Based on the above
analysis, a concluded market rent of $890 per month for the subject’s 1BR/1BA 650 square foot
units is reasonable and well supported by the market data. Given the limited amount of recent
construction of market-operated apartments in the subject’s area, a limited number of truly
comparable properties were available, which resulted in relatively high adjustment percentages.
Consequently, Rentals 2 through 5 required in excess of 15% gross adjustment.
Line 46. Conclusion of Market Rent – 2BR/1BA Units. The adjusted rents for the subject’s
895 square foot 2BR/1BA unit range from $997 to $1,283 per month. Based on the above
analysis, a concluded market rent of $1,190 per month for the subject’s 2BR/1BA units is
reasonable and well supported by the market data. Given the limited amount of recent
construction of market-operated apartments in the subject’s area, a limited number of truly
C11-AHA-176
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Consequently, all of the Rentals required in excess of 15% gross adjustment.
Based on the above analysis, a concluded market rent of $1,215 per month for the subject’s
2BR/2BA 895 square foot units is reasonable and well supported by the market data.
2BR/1.5BA 960 square foot units is reasonable and well supported by the market data.
Line 46. Conclusion of Market Rent – 3BR/2.5BA Units. The adjusted rents for the subject’s
1,235 square foot 3BR/2.5BA unit range from $1,383 to $1,717 per month. Based on the above
analysis, a concluded market rent of $1,525 per month for the subject’s 3BR/2.5BA 1,235 square
foot units is reasonable and well supported by the market data. Given the limited amount of
recent construction of market-operated apartments in the subject’s area, a limited number of truly
Consequently, all of the rentals required in excess of 15% gross adjustment.
3BR/2BA 1,080 square foot units is reasonable and well supported by the market data.
Concluded Market Rent Summary
No. Units
36
72
4
16
32
Type
1 BR /
2 BR /
3 BR /
2 BR /
3 BR /
1BA
1 BA
2 BA
1.5 BA TH
2.5 BA TH
Size (SF)
650
895
1,000
960
1,235
Mkt
Rent/Mth
$890
$1,190
$1,440
$1,235
$1,525
Mkt
Rent
(PSF)
$1.37
$1.33
$1.44
$1.29
$1.23
It should be noted that the market rents for the subject units may vary slightly among the
different phases due to locational difference.
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Page 65
DEMAND ANALYSIS
C11-AHA-176
Page 66
Capture Rate
Eligible Renter Analysis – HTC Rent-Restricted Units
Based on typical standards of apartment management companies in the Greater Houston area, to
qualify for a Family rent-restricted apartment, the annual rental should not exceed 35.0% of the
annual gross income of the household. Utilizing the most recent demographic data, the
following are calculations of the number of qualified residents in the immediate market area.
The developer’s minimum gross rent level at the subject property is $371 per month (HTC unit
rent assuming that some of the units will be 9% HTC units at 30%, 50% and 60% AMI levels),
which at 35% equates to an annual income of $12,720 in order to qualify for the HTC rentrestricted units at the subject property. The maximum income level is estimated to be $42,240,
which is the maximum household income for a family of five making 60% of the area median
income. Those earning below $12,720 and above $42,240 are not solid candidates for the
subject project. Thus, based on the above calculations, the total percentage of households
eligible on an income basis in the subject’s primary market is 18.05%.
Likely Renters Based on Primary Market Area Income Per Household
Income Bracket
Percent
<$14,999
$15,000 to $24,999
$25,000 to $34,999
$35,000 to $49,999
22.85%
15.21%
12.26%
16.47%
Income
Eligible %
Renter %
X
X
X
X
74.82%
65.99%
57.49%
51.92%
X
X
X
X
Total Household Percent Eligible to Rent
15.19%
43.33%
99.03%
48.27%
Eligible Renter
%
=
=
=
=
2.60%
4.35%
6.98%
4.13%
18.05%
*Columns may not add exactly due to decimal rounding
C11-AHA-176
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DEMAND FROM SECONDARY MARKET AREA (SMA)
The subject will likely draw from outside its primary market area. Based on my research and
interviews with existing HTC managers and leasing agents, a significant portion of the existing
HTC complexes are leased to tenants from outside the PMA, and even outside the state.
The 2010 TDHCA Real Estate Analysis rule allow for up to 25% of total demand to come from
outside the PMA. A SMA demand analysis was performed. The SMA was determined to be the
southern portion of Galveston County excluding Galveston Island, which included Census Tracts
48167720600 through 48167723900. The population within the SMA was 186,156, which
added to the population within Galveston Island, is well below the TDHCA maximum of
250,000 persons for the PMA and SMA. The HISTA demand analysis indicated demand for
5,891 HTC units within the SMA, which is well above the allowable 25% of total demand.
Demand from Section 8 Housing
The Housing and Community Development Act of 1974 authorized the Housing Assistance
Payments Program (Section 8). Section 8 provides rental assistance to low-income families,
elderly, disabled, and handicapped individuals. This Program provides financial assistance to
eligible families whose annual gross income does not exceed 50% of HUD's median income
guidelines (in most instances). Demographic projections indicate a continuing population and
household growth in segments that generally create the largest demand on affordable housing
supply.
Section 8 vouchers will be accepted at the subject property. Galveston Housing Authority’s
PHA reports that the agency administers 697 HCV vouchers which are used in Galveston.
Houston Housing Authority administers an additional 192 HCV vouchers which are used in
Galveston, resulting in a total of 889 HCV used in Galveston currently, which was used in my
analysis.
The Galveston Housing Authority surveyed their tenants who lived in the PHA housing prior to
their demolition after Hurricane Ike. 186 of those living off the island (approximately 1/3 of the
569 prior residents) indicated they had a desire to return to the island when new replacement
housing was available.
Demand Calculations
All demographic information, including projected growth rates, has been obtained from Claritas,
Inc. Several variables are utilized in my demand calculations. Percent Income Qualified
represents the percentage of renters who meet both the minimum and maximum income criteria
outlined above. Percent Renters was obtained from table HCT11 from the Census Bureau for
the PMA. Appropriate Household Size is based on a maximum of ±1.5 persons per bedroom at
the subject complex (which offers one, two, and three-bedroom units).
Demand from Other Sources encompasses households moving from outside the market area.
Demand from other sources represents new demand that will be created by the development of
the subject property. The addition of a quality affordable housing community will increase the
desirability of the primary market area, resulting in a potential influx of renters that is not
otherwise accounted for in the census projections.
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DEMAND FROM NEW HOUSEHOLD GROWTH HTC Units
Avg Annual Household Growth - 5 year Projection
X Percent Income Qualified
X Appropriate Household Size (1.5 people per bedroom)
X Appropriate Age Range (Family)
Demand From New Household Growth
Primary Market
221
18.05%
96.29%
100.00%
38
DEMAND FROM EXISTING HOUSEHOLDS
Total Existing Households
X Percent of Households in Turnover
Demand From Turnover
Total Demand from Other Sources
Total Demand From New Household Growth & Turnover
Demand from Section 8 Vouchers
Demand from SMA
TOTAL THEORETICAL DEMAND FOR AFFORDABLE RENTAL HOUSING
* Columns may not multiply exactly due to decimal rounding
22,529
100.00%
18.05%
96.29%
100.00%
3,916
2,000
3,954
889
1,449
8,292
Demand from other sources for the subject will likely come from a number of sources.
Former Galveston Mayor, Lyda Ann Thomas, was quoted in an article stating that “some 13,000
families still aren’t able to return to the island because of a housing shortage.” This quote was
from March 2009; however, there has been little new construction, and no where near 13,000
existing units repaired and brought back on-line. Demand still exists for households who left the
island due to Hurricane Ike’s Damage. Putting an exact number to this demand source is
difficult.
In addition to the increased Galveston employment from UTMB and cruise ship tourism
increases discussed earlier, several other project in Galveston or surrounding areas have been
announced. Tanger Outlet has begun construction on the first phase of a Tanger Outlet Mall to
be located on the west side of Interstate 45 near mile marker 17. The 90 store, 350,000 sf facility
is projected to employ 900 employees. Due to the relatively high occupancy in the immediate
area, it is likely that a significant percentage of those employed at the new mall will choose
Galveston as the place to live. An economic impact study conducted on the proposed subject
project reported that it would generate 114 direct jobs and 24.5 indirect jobs. Lowe’s has
announced that they will construct a 117,000 square foot Lowe’s Home Improvement store near
the intersection of 57th and Broadway. Based on industry standards, the store should create
approximately 200 direct jobs. Petsmart is constructing a retail pet products store in the Galvez
Shopping Center, which will reportedly create 40 new direct jobs.
The following table depicts the estimated number of direct and indirect jobs to be created in the
area from known sources.
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NEW JOBS
UTMB
CRUISE TOURISM
GHA PROJECT
LOWE'S
PET SMART
TANGER OUTLET
DIRECT INDIRECT TOTAL
2,000
429.8
2,429.8
528
113.5
641.5
114
24.5
138.5
200
43.0
243.0
40
8.6
48.6
900
193.4
1,093.4
3,782
813
4,595
A significant percentage of these jobs will be in the income range which would qualify the
tenants to live in the HTC units. Not all of the new employees will be new to the island, nor will
all choose to rent rather than purchase. However, given the tight current credit market and the
relatively low wage scale for these workers, it is highly likely that the majority would be renters.
I have conservatively projected that out of the 4,595 estimated new jobs created, 2,000 would be
potential tenants for the subject development.
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Capture Rate – Rent-Restricted Units
The TDHCA defines the Gross Capture Rate as “the Relevant Supply divided by the Gross
Demand.” Relevant Supply is defined as “The Relevant Supply of proposed and unstabilized
Comparable Units includes: (a) The proposed subject Units; (b) Comparable Units with priority
over the subject, based on the Department’s evaluation process…”; (c) Comparable Units in
previously approved but Unstabilized Developments in the Primary Market Area (PMA); and (d)
Comparable Units in previously approved but Unstabilized Developments in the Secondary
Market Area (SMA), in the same proportion as the proportion of Potential Demand from the
SMA that is included in Gross Demand. Gross Demand is defined as “The sum of Potential
Demand from the PMA, demand from other sources, and Potential Demand from a SMA to the
extent that SMA demand does not exceed 25% of Gross Demand.”
Based on my research, there is one affordable Family housing project approved by the TDHCA
(Champion Homes @ Marina Landing – 256 units, all HTC), one Family TDHCA project
currently under construction (Champion Homes @ Bay Walk – 192 units, all HTC), and one
approved CDBG-funded adaptive-reuse Family complex (2101 Church Street – 83 units) with 46
units at 80% of Adjusted Median Income (AMI) levels and 37 market-rate units. There are
currently three proposed or non-stabilized PHA developments in Galveston: The Oaks, a 40-unit
development which is in lease-up; 50-unit scattered site new construction (proposed), and 150unit scattered site acquisition/rehab (proposed). Costa Mariposa is a 252-unit Private Activity
Bond (PAB) project located within the SMA in Texas City. Since demand from the Secondary
Market Area (SMA) is limited to 25% of total demand, 25% of the units in Costa Mariposa (63
units) were included in the capture analysis. The subject is proposed to contain approximately
684 units, of which 167 (24.4%) will be HTC units, 235 (34.4%) will be Public Housing units,
and 282 (41.2%) will be market rate units. Therefore, a total of 1,518 units (including the
subject) require absorption, of which 678 units will be HTC units. There are approximately
8,292 potential households (relevant to the HTC rent restricted units) based on income eligibility
and housing preference.
Capture Rate for 678 HTC Units
8.18%
(assuming all 678 HTC units would be coming online in the next 18-24 months)
MARKET RATE CAPTURE
The subject will feature 282 market rate units (built in five phases, as of the date of this report).
The only other “like” project with market rate units proposed, under construction, or nonstabilized is 2101 Church Street, which will feature 37 market-rate units.
The minimum market rent level at the subject property is $810 per month (developer proforma
market rent), which at 35% equates to an annual income of $27,771 in order to qualify for the
market-rate units at the subject property. There is no maximum income level for the market
units. Those earning below $27,771 income level are not solid candidates for the subject project.
Thus, based on the above calculations, the total percentage of households eligible on an income
basis in the subject’s primary market is 30.89%.
The following tables depict my market rate capture analysis.
C11-AHA-176
Page 71
Although tenants could technically use a Section 8 voucher for a market rate unit, it is more
likely that those prospective tenants would use a voucher for a HTC unit. Fair Market Rent for
2012 in Galveston is as follows:
1 Bedroom - $776
2 Bedroom - $977
3 Bedroom - $1,250
After deduction for utility allowances, the proposed market rents are above the Fair Market
Rents for the subject market rate units.
The following tables depict my market rate capture analysis.
Likely Renters Based on Primary Market Area Income Per Household MARKET
Income
Eligible Renter
Income Bracket
Percent
Renter %
Eligible %
%
<$14,999
$15,000 to $24,999
$25,000 to $34,999
$35,000 and up
22.85%
15.21%
12.26%
49.68%
X
X
X
X
74.82%
65.99%
57.49%
51.92%
X
X
X
X
0.00%
0.00%
72.28%
100.00%
=
=
=
=
0.00%
0.00%
5.09%
25.79%
30.89%
DEMAND FROM NEW HOUSEHOLD GROWTH MARKET
* Avg Annual Household Growth - 5 year Projection
Primary Market
221
30.89%
96.29%
100.00%
66
22,529
100.00%
30.89%
96.29%
100.00%
6,701
6,767
-
TOTAL THEORETICAL DEMAND FOR MARKET RATE RENTAL HOUSING
Capture Rate for the 319 Market Units
C11-AHA-176
6,767
4.71%
Page 72
The following table depicts the HISTA Data capture analysis for the subject market-rate units.
CAPTURE MARKET RATE UNITS
Type
No. Units Turnover Demand
1-1
30%
0
100.0%
1-1
40%
0
100.0%
1-1
50%
0
100.0%
1-1
Mkt
101
100.0%
1352
2-2
30%
0
100.0%
2-2
40%
0
100.0%
2-2
50%
0
100.0%
2-2
Mkt
173
100.0%
1300
3-2
30%
0
100.0%
3-2
40%
0
100.0%
3-2
50%
0
100.0%
3-2
Mkt
45
100.0%
309
4-2
30%
0
100.0%
4-2
40%
0
100.0%
4-2
50%
0
100.0%
4-2
60%
0
100.0%
319
HISTA
319
100.0%
2,962
Growth
1352
1300
309
2962
SMA/Other Total Demand Capture Rate Capture Rate
0
0
0
1352
7.5%
7.47%
0
0
0
1300
13.3%
13.30%
0
0
0
309
14.6%
14.55%
0
0
0
0
0.00%
500
1142
4604
6.93%
6.93%
PHA UNITS
The subject is proposed to contain approximately 34.4%, or 235 Public Housing units. There is
one non-stabilized Public Housing project (The Oaks with 40 units), one proposed newconstruction PHA project (50 scattered sites), and one proposed acquisition/rehab PHA project
(150 units) in Galveston. PHA units require the tenant to pay 30% of their household income for
housing.
The minimum gross rent level at the subject property is $25 per month (GHA PHA unit
minimum rent), which at 35% equates to an annual income of $857 in order to qualify for the
PHA rent-restricted units at the subject property. The maximum income level is estimated to be
$39,060 , which is 60% of the AMI for the area. Those earning below $857 and above $39,060
are not solid candidates for the subject project. Utilizing the most recent demographic data, the
following are calculations of the number of qualified residents in the immediate market area.
Likely Renters Based on Primary Market Area Income Per Household PHA Units
Income Bracket
Percent
Renter %
Income
Eligible Renter
<$14,999
11.25%
$15,000 to $24,999
13.94%
$25,000 to $34,999
19.04%
$35,000 to $49,999
16.47%
$50,000 to $74,999
14.18%
X
X
X
X
X
74.82%
65.99%
57.49%
51.92%
39.47%
X
X
X
X
X
94.29%
100.00%
100.00%
27.07%
0.00%
=
=
=
=
=
7.94%
9.20%
10.95%
2.31%
0.00%
30.40%
Thus, based on the above calculations, the total percentage of households eligible on an income
basis in the subject’s primary market is 30.40%.
C11-AHA-176
Page 73
DEMAND FROM NEW HOUSEHOLD GROWTH PHA PHASE 1
* Avg Annual Household Growth - 5 year Projection
Primary Market
221
30.40%
96.29%
100.00%
65
22,529
100.00%
30.40%
96.29%
100.00%
6,594
2,000
6,659
-
TOTAL THEORETICAL DEMAND FOR AFFORDABLE RENTAL HOUSING
Capture Rate for the 304 PHA Units
8,659
5.49%
The following table depicts the current waitlist and displaced households expressing desire to
return to Galveston Island according to the Galveston Housing Authority.
Unit Size Unit Mix of Prior GHA Sites
1-BR
2-BR
3-BR
4-BR
5-BR
C11-AHA-176
74
252
189
48
6
13%
44%
33%
8%
1%
Displaced GHA HH Wish to Return
Public Housing Waitlist
Section 8 Waitlist
41 22%
501 44%
90
76 41%
434 38%
167
51 27%
140 12%
95
14 8%
49 4%
8
4 2%
14 1%
3
Page 74
25%
46%
26%
2%
1%
C11-AHA-176
Page 75
I have calculated the capture rates per bedroom type, utilizing HISTA data. HISTA takes
Claritas demographics, and with the aid of some custom Census tables, calculates the renter
numbers on a per-person household within the different income bands. HISTA does not provide
population; therefore, both HISTA and an additional demographic source must be used.
The tables below depict the income bands for the subject’s proposed HTC unit mix/AMI levels.
Income overlaps were eliminated by setting the minimum of the next higher AMI level which the
subject proposes to serve as the maximum for the lower AMI units.
Income Ranges
1BR
1BR
1BR
30%
50%
60%
Min
Max
$12,720 $15,840
$21,189 $26,400
$25,440 $31,680
30%
50%
60%
Min
Max
$15,257 $17,820
$25,440 $29,700
$30,549 $35,650
30%
50%
60%
Min
Max
$17,623 $21,390
$29,417 $35,650
$35,280 $42,780
Income Ranges
2BR
2BR
2BR
Income Ranges
3BR
3BR
3BR
The next step is to project the bedroom type which various renter households would likely
choose to rent, which was based on surveys of existing complexes in the general area.
HH Size
1 BR
2 BR
3 BR
4 BR
OCCUPANCY ASSUMPTIONS
1
2
3
71%
29%
0%
29%
71%
80%
0%
0%
20%
0%
0%
0%
4
0.00%
0%
90%
10%
5+
0.00%
0.00%
90%
10%
The following table depicts the results of my capture analysis utilizing HISTA Data.
C11-AHA-176
Page 76
CAPTURE HTC UNITS TOTAL
Type
No. Units Turnover Demand
1-1
30%
23.25
100.0%
321
1-1
40%
0
100.0%
1-1
50%
40
100.0%
369
1-1
60%
151.25
100.0%
416
2-2
30%
36
100.0%
254
2-2
40%
0
100.0%
2-2
50%
51
100.0%
335
2-2
60%
285
100.0%
342
3-2
30%
6
100.0%
144
3-2
40%
0
100.0%
3-2
50%
22
100.0%
196
3-2
60%
60
100.0%
217
674.5
HISTA
675
100.0%
2,593
Growth
321
3
369
416
254
-2
-5
-10
335
342
144
-3
-15
-17
196
217
1
5
2593
-43
Sec 8/SMATotal Demand Capture Rate Capture Rate
324
7.2%
0
367
10.9%
411
36.8%
19.47%
244
14.8%
0
332
15.4%
327
87.1%
41.21%
127
0
197
11.1%
222
27.0%
16.12%
2,989
1828
7368
9.15%
9.15%
Detailed tables depicting the analysis summarized above are located in the addenda of this
report.
HISTA Capture Rate – Rent-Restricted Units
The TDHCA defines the Gross Capture Rate as “the Relevant Supply divided by the Gross
Demand.” Relevant Supply is defined as “The Relevant Supply of proposed and unstabilized
Comparable Units includes: (a) The proposed subject Units; (b) Comparable Units with priority
over the subject, based on the Department’s evaluation process…”; (c) Comparable Units in
previously approved but Unstabilized Developments in the Primary Market Area (PMA); and (d)
Comparable Units in previously approved but Unstabilized Developments in the Secondary
Market Area (SMA), in the same proportion as the proportion of Potential Demand from the
SMA that is included in Gross Demand. Gross Demand is defined as “The sum of Potential
Demand from the PMA, demand from other sources, and Potential Demand from a SMA to the
extent that SMA demand does not exceed 25% of Gross Demand.” In the following analysis,
only Family projects are included, since Seniors projects are not “like” projects to the subject,
and do not compete for the same tenant group.
Based on my research, there is one affordable Family housing project approved by the TDHCA
(Champion Homes @ Marina Landing – 256 units, all HTC), one Family TDHCA project
currently under construction (Champion Homes @ Bay Walk – 192 units, all HTC), and one
approved CDBG-funded adaptive-reuse Family complex (2101 Church Street – 83 units) with 46
units at 80% of Adjusted Median Income (AMI) levels. and 37 market-rate units. There are
currently three proposed or non-stabilized PHA developments in Galveston: The Oaks, a 40-unit
development which is in lease-up; 50-unit scattered site new construction (proposed), and 150unit scattered site acquisition/rehab (proposed). Costa Mariposa is a 252-unit Private Activity
Bond (PAB) project located within the SMA in Texas City. Since demand from the Secondary
Market Area (SMA) is limited to 25% of total demand, 25% of the units in Costa Mariposa (63
units) were included in the capture analysis. The subject is proposed to contain 684 units, of
which 167 (24.4%) will be HTC units, 235 (34.4%) will be Public Housing units, and 282
(41.2%) will be market rate units. Therefore, a total of 1,518 units (including the subject) require
absorption, of which 678 units will be HTC units. There are approximately 7,368 potential
households (relevant to the rent restricted units) based on income eligibility, housing preference
in the subject’s primary market.
HISTA Capture Rate for 678 HTC Family Units
C11-AHA-176
9.15%
Page 77
684-unit mixed income multifamily project to be located in one or more yet-to-be-determined
sites
CONCLUSIONS OF MARKET ANALYSIS
C11-AHA-176
Page 78
sites
Occupancy
The most comparable rentals (those used in the adjustment grids) reported current occupancies
ranging from 90% to 98%, with an average occupancy of 94%. Given the physical
characteristics of the subject (i.e. location, good curb appeal, new condition, amenities, etc.), the
strong occupancies reported at nearby HTC apartments, and that the subject will offer
competitive rents at a new property, a stabilized occupancy rate of 93% is reasonable and
achievable for the subject property.
Evaluation of Need of Affordable Housing
As the competing projects in the subject property’s primary market area have high occupancy
rates, and the nearest existing affordable projects (outside the PMA) reported occupancy rates at
or near 100%, it appears there is a shortage of affordable housing. The subject property should
be highly competitive in this market, and should achieve stabilized occupancy within 9 to 15
months after completion for each phase. As with most new projects, pre-leasing will take place
during the construction phase. Based on my analysis of the subject property's primary market
area, there is sufficient demand to construct and successfully absorb the 684-unit mixed income
multifamily project to be located in one or more yet-to-be-determined sites to be constructed in
five phases.
Capture Rate Conclusion
The TDHCA defines Capture Rate as “the sum of the proposed units for a given project plus any
previously approved but not yet stabilized new units in the submarket divided by the total
income-eligible targeted renter demand identified by the market analysis for the specific
project’s primary market or submarket.” Based on my research, there is one affordable Family
housing project approved by the TDHCA (Champion Homes @ Marina Landing – 256 units all
HTC), one Family THCA project currently under construction (Champion Homes @ Bay Walk –
192 units all HTC), and one approved CDBG-funded adaptive reuse Family complex (2101
Church Street – 83 units) with 46 units at 80% of AMI and 37 market-rate units. The Oaks, a 40unit development which is in lease-up; 50-unit scattered site new construction (proposed), and
150-unit scattered site acquisition/rehab (proposed). Costa Mariposa is a 252-unit PAB project
located within the SMA in Texas City. Since demand from the SMA is limited to 25% of total
demand, 25% of the units in Costa Mariposa (63 units) were included in the capture analysis.
The subject is proposed to contain 684 units, of which 167 (24.4%) will be HTC units, 235
(34.4%) will be Public Housing units, and 282 (41.2%) will be market rate units. Therefore, a
total of 1,518 units (including the subject) require absorption, of which 678 units will be HTC
units. There are approximately 8,292 potential households (relevant to the HTC rent restricted
units) based on income eligibility and housing preference in the subject’s primary market.
Capture Rate for 678 HTC Family Units
HISTA CAPTURE
PHA Units
Market Units
C11-AHA-176
8.18%
9.15%
5.49%
4.71%
Page 79
sites
Absorption Projections
Absorption in the subject’s primary market area over the past twelve months ending June
2011 totals 220 units. Absorption has ranged from positive 254 units to a negative 160 units
in the past year. The greatest amount of absorption taking place is in the Class B and A
properties.
There have been no new complexes constructed in Galveston since 2005. The Club of the
Isle was the most recent complex constructed in Galveston. It reportedly attained stabilized
occupancy within a few months of completion.
Ashton Place was completely closed for renovations after Hurricane Ike, and reportedly
leased to stabilized occupancy within 6 months of completion of the renovations, which
equates to an average absorption of approximately 26 units per month.
Considering the strong absorption history of similar properties and the lack of available quality
affordable Family units in this market, I project that the subject property will lease an average of
15 to 25 units per month until achieving stabilized occupancy. I anticipate that the subject
property will achieve stabilized occupancy within 9 to 15 months following completion of each
phase of the development.
Effect of Subject Property on Existing Apartment Market
Many of the managers interviewed indicated a need for Family affordable housing. It is likely
that the subject will negatively impact the older complexes which are currently charging higher
rent PSF than would typically be realized in the general area. The free market economy will
likely result in those complexes either sustaining lower occupancies, lowering rents, or
renovating. Any negative impact from the subject property should be of reasonable scope and
limited duration.
C11-AHA-176
Page 80
sites
ADDENDA
C11-AHA-176
Page 81
sites
SUMMARY OF PROPOSED (approved), NON-STABILIZED & U/C PMA PROJECTS
Status
Project
Restricted HTC Mkt/PHA Units
Costa Mariposa (SMA 25%)
63
The Oaks
40
50 Scattered Site
50
150 Acq/Rehab
150
Approved
2101 Church Street
83
Under Construction
192
0
Approved
Champion Homes Marina Landing
256
0
Total
63
50
50
150
83
192
256
Subject
167
517
684
TOTAL
678
840
1,518
The above table includes only “like” projects to the subject, and only those that have been
approved for construction.
C11-AHA-176
Page 82
sites
CERTIFICATION OF APPRAISAL CONSULTING ASSIGNMENT
I certify that, to the best of my knowledge and belief, ...
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
The statements of fact contained in this report are true and correct.
The reported analyses, opinions and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, impartial, and unbiased
professional analyses, opinions conclusions, and recommendations.
I have no present or prospective interest in the property that is the subject of this
report, and I have no personal interest or bias with respect to the parties involved.
I have no bias with respect to any property that is the subject of this report or to the
parties involved with this assignment.
My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
My compensation for completing this assignment is not contingent upon the
development or reporting of a predetermined value or direction in value that favors
the cause of the client, the amount of the value opinion, the attainment of a stipulated
result, or the occurrence of a subsequent event directly related to the intended use of
this appraisal.
My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Code of Professional Ethics of the Appraisal
Institute, the Standards of Professional Appraisal Practice of the Appraisal Institute,
and USPAP.
Robert O. Coe, II performed a visit to the subject neighborhood.
No one provided significant real property appraisal consulting assistance to the
persons signing this certification.
Robert O. Coe, II is an Associate Member of the Appraisal Institute. The use of this
report is subject to the requirements of the Appraisal Institute relating to review by
their duly authorized representatives. The bylaws and regulations of the Institute
require each member to control the use and distribution of each report signed by such
member.
Robert O. Coe, II
TX-1333157-G
State Certified General Real Estate Appraiser
Associate Member of the Appraisal Institute
C11-AHA-176
Page 83
sites
PMA DEMOGRAPHIC REPORT
C11-AHA-176
Page 85
Pop-Facts: Demographic Snapshot 2011 Comparison Report
GALVESTON, Tract, (see appendix for geographies), aggregate
Total
Tract
Description
%
Population
2016 Projection
2011 Estimate
2000 Census
1990 Census
49,016
53,053
58,789
60,054
Growth 2011-2016
Growth 2000-2011
Growth 1990-2000
-7.61%
-9.76%
-2.11%
2011 Est. Pop by Single Race Class
53,053
White Alone
Black or African American Alone
Amer. Indian and Alaska Native Alone
Asian Alone
Native Hawaiian and Other Pac. Isl. Alone
Some Other Race Alone
Two or More Races
31,616
11,011
268
2,321
44
6,099
1,694
2011 Est. Pop Hisp or Latino by Origin
53,053
Not Hispanic or Latino
Hispanic or Latino:
Mexican
Puerto Rican
Cuban
All Other Hispanic or Latino
36,725
16,328
13,939
181
35
2,173
2011 Est. Hisp or Latino by Single Race Class
1
9,293
150
63
23
12
6,047
740
Of 12
Prepared By:
Nielsen Solution Center 1 800 866 6511
Prepared For:
69.22
30.78
85.37
1.11
0.21
13.31
16,328
White Alone
American Indian and Alaska Native Alone
Asian Alone
Native Hawaiian and Other Pacific Islander Alone
Two or More Races
Prepared On: Mon Sep 12, 2011 Page
59.59
20.75
0.51
4.37
0.08
11.50
3.19
© 2011 The Nielsen Company. All rights reserved.
56.91
0.92
0.39
0.14
0.07
37.03
4.53
Total
Tract
Description
2011 Est. Pop. Asian Alone Race by Cat
2,321
Chinese, except Taiwanese
Filipino
Japanese
Asian Indian
Korean
Vietnamese
Cambodian
Hmong
Laotian
Thai
All Other Asian Races Including 2+ Category
558
359
89
617
153
302
27
0
3
7
206
2011 Est. Population by Ancestry
73
337
37
211
1,992
920
133
3,770
161
67
2,887
1,514
13
1,314
165
466
33
241
377
661
64
306
293
50
83
125
86
32,092
2
Of 12
Prepared By:
Prepared For:
24.04
15.47
3.83
26.58
6.59
13.01
1.16
0.00
0.13
0.30
8.88
53,053
Pop, Arab
Pop, Czech
Pop, Danish
Pop, Dutch
Pop, English
Pop, French (except Basque)
Pop, French Canadian
Pop, German
Pop, Greek
Pop, Hungarian
Pop, Irish
Pop, Italian
Pop, Lithuanian
Pop, United States or American
Pop, Norwegian
Pop, Polish
Pop, Portuguese
Pop, Russian
Pop, Scottish
Pop, Scotch-Irish
Pop, Slovak
Pop, Subsaharan African
Pop, Swedish
Pop, Swiss
Pop, Ukrainian
Pop, Welsh
Pop, West Indian (exc Hisp groups)
Pop, Other ancestries
%
0.14
0.64
0.07
0.40
3.75
1.73
0.25
7.11
0.30
0.13
5.44
2.85
0.02
2.48
0.31
0.88
0.06
0.45
0.71
1.25
0.12
0.58
0.55
0.09
0.16
0.24
0.16
60.49
Total
Tract
Description
%
Pop, Ancestry Unclassified
4,582 8.64
2011 Est. Pop Age 5+ by Language Spoken At Home
49,428
Speak Only English at Home
Speak Asian/Pac. Isl. Lang. at Home
Speak IndoEuropean Language at Home
Speak Spanish at Home
Speak Other Language at Home
35,132
1,089
1,574
11,403
230
2011 Est. Population by Sex
71.08
2.20
3.18
23.07
0.47
53,053
Male
Female
25,964 48.94
27,089 51.06
2011 Est. Population by Age
53,053
Age 0 - 4
Age 5 - 9
Age 10 - 14
Age 15 - 17
Age 18 - 20
Age 21 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Age 55 - 64
Age 65 - 74
Age 75 - 84
Age 85 and over
3,625
3,545
3,285
1,817
2,417
2,569
7,952
7,120
7,277
6,122
3,821
2,478
1,025
6.83
6.68
6.19
3.42
4.56
4.84
14.99
13.42
13.72
11.54
7.20
4.67
1.93
Age 16 and over
Age 18 and over
Age 21 and over
Age 65 and over
42,021
40,781
38,364
7,324
79.21
76.87
72.31
13.81
2011 Est. Median Age
36.85
2011 Est. Average Age
38.10
3
Of 12
Prepared By:
Prepared For:
Total
Tract
Description
2011 Est. Male Population by Age
25,964
Age 0 - 4
Age 5 - 9
Age 10 - 14
Age 15 - 17
Age 18 - 20
Age 21 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Age 55 - 64
Age 65 - 74
Age 75 - 84
Age 85 and over
1,862
1,810
1,680
958
1,274
1,269
3,986
3,603
3,645
2,915
1,679
989
294
2011 Est. Median Age, Male
35.40
2011 Est. Average Age, Male
36.60
2011 Est. Female Population by Age
1,763
1,735
1,605
859
1,143
1,300
3,966
3,517
3,632
3,207
2,142
1,489
731
2011 Est. Median Age, Female
38.34
2011 Est. Average Age, Female
39.50
4
Of 12
Prepared By:
Prepared For:
7.17
6.97
6.47
3.69
4.91
4.89
15.35
13.88
14.04
11.23
6.47
3.81
1.13
27,089
Age 0 - 4
Age 5 - 9
Age 10 - 14
Age 15 - 17
Age 18 - 20
Age 21 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Age 55 - 64
Age 65 - 74
Age 75 - 84
Age 85 and over
%
6.51
6.40
5.92
3.17
4.22
4.80
14.64
12.98
13.41
11.84
7.91
5.50
2.70
Total
Tract
Description
2011 Est. Pop Age 15+ by Marital Status
42,598
Total, Never Married
Males, Never Married
Females, Never Married
Married, Spouse present
Married, Spouse absent
Widowed
Males Widowed
Females Widowed
Divorced
Males Divorced
Females Divorced
14,798
7,999
6,799
15,671
3,476
3,110
586
2,524
5,543
2,421
3,122
2011 Est. Pop. Age 25+ by Edu. Attainment
3,487
4,169
8,849
7,224
2,348
5,274
2,123
1,410
911
2011 Est Pop Age 25+ by Edu. Attain, Hisp. or Lat
9.74
11.65
24.72
20.18
6.56
14.73
5.93
3.94
2.55
9,622
Less than 9th grade
Some High School, no diploma
High School Graduate (or GED)
Some College, no degree
Associate Degree
Bachelor's Degree
Graduate or Professional Degree
1,923
2,197
1,960
2,021
452
571
498
5
Of 12
Prepared By:
Prepared For:
34.74
18.78
15.96
36.79
8.16
7.30
1.38
5.93
13.01
5.68
7.33
35,795
Less than 9th grade
Associate Degree
Bachelor's Degree
Master's Degree
Professional School Degree
Doctorate Degree
%
19.99
22.83
20.37
21.00
4.70
5.93
5.18
Total
Tract
Description
%
Households
2016 Projection
2011 Estimate
2000 Census
1990 Census
22,750
22,529
24,540
24,579
Growth 2011-2016
Growth 2000-2011
Growth 1990-2000
0.98%
-8.19%
-0.16%
2011 Est. Households by Household Type
22,529
Family Households
Nonfamily Households
12,712 56.43
9,817 43.57
2011 Est. Group Quarters Population
2,577
2011 HHs by Ethnicity, Hispanic/Latino
5,445 24.17
2011 Est. HHs by HH Income
22,529
Income Less than $15,000
Income $15,000 - $24,999
Income $25,000 - $34,999
Income $35,000 - $49,999
Income $50,000 - $74,999
Income $75,000 - $99,999
Income $100,000 - $124,999
Income $125,000 - $149,999
Income $150,000 - $199,999
Income $200,000 - $499,999
Income $500,000 and more
5,148
3,427
2,763
3,710
3,194
1,673
938
594
427
535
120
2011 Est. Average Household Income
$52,143
2011 Est. Median Household Income
$34,734
2011 Est. Per Capita Income
$22,646
6
Of 12
Prepared By:
Prepared For:
22.85
15.21
12.26
16.47
14.18
7.43
4.16
2.64
1.90
2.37
0.53
Total
Tract
Description
%
2011 Median HH Inc by Single Race Class. or Ethn
White Alone
Asian Alone
Two or More Races
41,400
20,012
34,286
38,584
48,125
30,363
29,177
Hispanic or Latino
33,247
35,313
2011 Est. Family HH Type, Presence Own Children
12,712
Married-Couple Family, own children
Married-Couple Family, no own children
Male Householder, own children
Male Householder, no own children
Female Householder, own children
Female Householder, no own children
2,873
4,980
465
655
2,179
1,560
2011 Est. Households by Household Size
22,529
1-person household
2-person household
3-person household
4-person household
5-person household
6-person household
7 or more person household
8,310
7,068
3,312
2,134
1,066
417
222
2011 Est. Average Household Size
2.24
7
Of 12
Prepared By:
Prepared For:
22.60
39.18
3.66
5.15
17.14
12.27
36.89
31.37
14.70
9.47
4.73
1.85
0.99
Total
Tract
Description
2011 Est. Households by Presence of People
%
22,529
Households with 1 or more People under Age 18:
Married-Couple Family
Other Family, Male Householder
Other Family, Female Householder
Nonfamily, Male Householder
Nonfamily, Female Householder
6,219
3,076
566
2,498
45
34
27.60
49.46
9.10
40.17
0.72
0.55
Households no People under Age 18:
16,310
4,553
528
1,154
4,666
5,409
72.40
27.92
3.24
7.08
28.61
33.16
2011 Est. Households by Number of Vehicles
22,529
No Vehicles
1 Vehicle
2 Vehicles
3 Vehicles
4 Vehicles
5 or more Vehicles
3,180
11,162
6,145
1,549
436
57
2011 Est. Average Number of Vehicles
14.12
49.55
27.28
6.88
1.94
0.25
1.34
Family Households
2016 Projection
2011 Estimate
2000 Census
1990 Census
12,851
12,712
14,202
14,768
Growth 2011-2016
Growth 2000-2011
Growth 1990-2000
1.09%
-10.49%
-3.83%
2011 Est. Families by Poverty Status
12,712
2011 Families at or Above Poverty
2011 Families at or Above Poverty with Children
10,376 81.62
4,419 34.76
2011 Families Below Poverty
2011 Families Below Poverty with Children
2,336 18.38
1,921 15.11
8
Of 12
Prepared By:
Prepared For:
Total
Tract
Description
2011 Est. Pop Age 16+ by Employment Status
42,021
In Armed Forces
Civilian - Employed
Civilian - Unemployed
Not in Labor Force
146
22,700
2,997
16,178
2011 Est. Civ Employed Pop 16+ Class of Worker
12,456
1,712
2,086
4,435
413
2,078
55
2011 Est. Civ Employed Pop 16+ by Occupation
55.02
7.56
9.22
19.59
1.82
9.18
0.24
22,637
Architect/Engineer
Arts/Entertain/Sports
Building Grounds Maint
Business/Financial Ops
Community/Soc Svcs
Computer/Mathematical
Construction/Extraction
Edu/Training/Library
Farm/Fish/Forestry
Food Prep/Serving
Health Practitioner/Tec
Healthcare Support
Maintenance Repair
Legal
Life/Phys/Soc Science
Management
Office/Admin Support
Production
Protective Svcs
Sales/Related
Personal Care/Svc
Transportation/Moving
189
322
1,523
614
276
267
1,127
1,607
34
2,221
2,462
677
566
206
597
1,832
2,697
613
909
2,102
672
1,124
9
Of 12
Prepared By:
Prepared For:
0.35
54.02
7.13
38.50
22,637
Self-Emp Workers
%
0.83
1.42
6.73
2.71
1.22
1.18
4.98
7.10
0.15
9.81
10.88
2.99
2.50
0.91
2.64
8.09
11.91
2.71
4.02
9.29
2.97
4.97
Total
Tract
Description
2011 Est. Pop 16+ by Occupation Classification
%
22,637
Blue Collar
White Collar
Service and Farm
3,430 15.15
13,171 58.18
6,036 26.66
2011 Est. Workers Age 16+, Transp. To Work
22,226
Drove Alone
Car Pooled
Public Transportation
Walked
Bicycle
Other Means
Worked at Home
14,588
3,114
388
1,667
663
1,324
482
65.63
14.01
1.75
7.50
2.98
5.96
2.17
2011 Est. Workers Age 16+ by Travel Time to Work *
Less than 15 Minutes
15 - 29 Minutes
30 - 44 Minutes
45 - 59 Minutes
60 or more Minutes
10,839
7,218
1,574
629
1,433
2011 Est. Avg Travel Time to Work in Minutes
20.72
2011 Est. Tenure of Occupied Housing Units
22,529
Owner Occupied
Renter Occupied
9,824 43.61
12,705 56.39
2011 Owner Occ. HUs: Avg. Length of Residence
15
2011 Renter Occ. HUs: Avg. Length of Residence
8
10
Of 12
Prepared By:
Prepared For:
Total
Tract
Description
2011 Est. All Owner-Occupied Housing Values
9,824
Value Less than $20,000
Value $20,000 - $39,999
Value $40,000 - $59,999
Value $60,000 - $79,999
Value $80,000 - $99,999
Value $100,000 - $149,999
Value $150,000 - $199,999
Value $200,000 - $299,999
Value $300,000 - $399,999
Value $400,000 - $499,999
Value $500,000 - $749,999
Value $750,000 - $999,999
Value $1,000,000 or more
157
358
721
1,094
1,260
3,031
1,050
996
500
252
261
62
82
2011 Est. Median All Owner-Occupied Housing Value
31,892
1 Unit Attached
1 Unit Detached
2 Units
3 or 4 Units
5 to 19 Units
20 to 49 Units
50 or More Units
Mobile Home or Trailer
Boat, RV, Van, etc.
886
17,745
1,740
1,878
5,856
1,593
1,970
209
15
2011 Est. Housing Units by Year Structure Built
2.78
55.64
5.46
5.89
18.36
4.99
6.18
0.66
0.05
31,892
Housing Unit Built 2000 or later
Housing Unit Built 1990 to 1999
Housing Unit Built 1939 or Earlier
2011 Est. Median Year Structure Built **
2,602
1,989
5,323
4,990
3,909
3,569
3,030
6,480
1967
*This row intentionally left blank. No total category data is available.
**1939 will appear when at least half of the Housing Units in this reports area were built in 1939 or earlier.
11
Of 12
Prepared By:
Prepared For:
1.60
3.64
7.34
11.14
12.83
30.85
10.69
10.14
5.09
2.57
2.66
0.63
0.83
$121,808
2011 Est. Housing Units by Units in Structure
%
8.16
6.24
16.69
15.65
12.26
11.19
9.50
20.32
Appendix: Area Listing
Area Name: GALVESTON
Type: List - Tract
Reporting Detail: Aggregate
Reporting Level: Tract
Geography Code
Geography Name
Geography Code
Geography Name
48167724000
48167-724000
48167724100
48167-724100
48167724200
48167-724200
48167724300
48167-724300
48167724400
48167-724400
48167724500
48167-724500
48167724600
48167-724600
48167724700
48167-724700
48167724800
48167-724800
48167724900
48167-724900
48167725000
48167-725000
48167725100
48167-725100
48167725200
48167-725200
48167725300
48167-725300
48167725400
48167-725400
48167725500
48167-725500
48167725600
48167-725600
48167725700
48167-725700
48167725800
48167-725800
48167725900
48167-725900
48167726000
48167-726000
48167726100
48167-726100
Project Information:
Site:
1
Order Number: 970334222
12
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Prepared For:
sites
SMA DEMOGRAPHIC REPORT
C11-AHA-176
Page 86
REMAINDER OF SOUTHERN GALV CO, Tract, (see appendix for geographies), aggregate
Total
Tract
Description
%
Population
2016 Projection
2011 Estimate
2000 Census
1990 Census
135,493
127,371
117,577
107,188
Growth 2011-2016
Growth 2000-2011
Growth 1990-2000
6.38%
8.33%
9.69%
2011 Est. Pop by Single Race Class
127,371
White Alone
Amer. Indian and Alaska Native Alone
Asian Alone
Native Hawaiian and Other Pac. Isl. Alone
Two or More Races
85,187
23,633
733
1,535
57
12,605
3,621
2011 Est. Pop Hisp or Latino by Origin
127,371
Hispanic or Latino:
Mexican
Puerto Rican
Cuban
All Other Hispanic or Latino
96,328
31,043
26,919
497
82
3,545
2011 Est. Hisp or Latino by Single Race Class
1
16,107
413
221
74
18
12,497
1,713
Of 12
Prepared By:
Prepared For:
75.63
24.37
86.72
1.60
0.26
11.42
31,043
White Alone
Asian Alone
Two or More Races
Prepared On: Thurs Sep 22, 2011 Page
66.88
18.55
0.58
1.21
0.04
9.90
2.84
51.89
1.33
0.71
0.24
0.06
40.26
5.52
Total
Tract
Description
2011 Est. Pop. Asian Alone Race by Cat
1,535
Chinese, except Taiwanese
Filipino
Japanese
Asian Indian
Korean
Vietnamese
Cambodian
Hmong
Laotian
Thai
All Other Asian Races Including 2+ Category
117
174
70
174
44
824
14
0
5
17
96
29
1,209
113
934
6,898
3,135
417
11,768
219
101
7,854
4,018
66
6,817
425
1,013
128
209
948
1,594
30
1,024
737
86
51
213
260
63,635
2
Of 12
Prepared By:
Prepared For:
7.62
11.34
4.56
11.34
2.87
53.68
0.91
0.00
0.33
1.11
6.25
127,371
Pop, Arab
Pop, Czech
Pop, Danish
Pop, Dutch
Pop, English
Pop, French (except Basque)
Pop, French Canadian
Pop, German
Pop, Greek
Pop, Hungarian
Pop, Irish
Pop, Italian
Pop, Lithuanian
Pop, United States or American
Pop, Norwegian
Pop, Polish
Pop, Portuguese
Pop, Russian
Pop, Scottish
Pop, Scotch-Irish
Pop, Slovak
Pop, Subsaharan African
Pop, Swedish
Pop, Swiss
Pop, Ukrainian
Pop, Welsh
Pop, West Indian (exc Hisp groups)
Pop, Other ancestries
%
0.02
0.95
0.09
0.73
5.42
2.46
0.33
9.24
0.17
0.08
6.17
3.15
0.05
5.35
0.33
0.80
0.10
0.16
0.74
1.25
0.02
0.80
0.58
0.07
0.04
0.17
0.20
49.96
Total
Tract
Description
%
Pop, Ancestry Unclassified
13,440 10.55
2011 Est. Pop Age 5+ by Language Spoken At Home
117,820
Speak Only English at Home
Speak Asian/Pac. Isl. Lang. at Home
Speak IndoEuropean Language at Home
Speak Spanish at Home
Speak Other Language at Home
97,728
1,448
1,584
16,892
168
2011 Est. Population by Sex
82.95
1.23
1.34
14.34
0.14
127,371
Male
Female
62,317 48.93
65,054 51.07
2011 Est. Population by Age
127,371
Age 0 - 4
Age 5 - 9
Age 10 - 14
Age 15 - 17
Age 18 - 20
Age 21 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Age 55 - 64
Age 65 - 74
Age 75 - 84
Age 85 and over
9,551
9,180
8,505
5,256
4,801
6,011
17,928
16,167
18,175
15,609
8,868
5,427
1,893
7.50
7.21
6.68
4.13
3.77
4.72
14.08
12.69
14.27
12.25
6.96
4.26
1.49
Age 16 and over
Age 18 and over
Age 21 and over
Age 65 and over
98,450
94,879
90,078
16,188
77.29
74.49
70.72
12.71
2011 Est. Median Age
36.52
2011 Est. Average Age
37.40
3
Of 12
Prepared By:
Prepared For:
Total
Tract
Description
2011 Est. Male Population by Age
62,317
Age 0 - 4
Age 5 - 9
Age 10 - 14
Age 15 - 17
Age 18 - 20
Age 21 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Age 55 - 64
Age 65 - 74
Age 75 - 84
Age 85 and over
4,827
4,693
4,361
2,659
2,432
3,116
8,862
7,853
8,794
7,614
4,132
2,317
657
2011 Est. Median Age, Male
35.27
2011 Est. Average Age, Male
36.40
2011 Est. Female Population by Age
4,724
4,487
4,144
2,597
2,369
2,895
9,066
8,314
9,381
7,995
4,736
3,110
1,236
2011 Est. Median Age, Female
37.70
2011 Est. Average Age, Female
38.30
4
Of 12
Prepared By:
Prepared For:
7.75
7.53
7.00
4.27
3.90
5.00
14.22
12.60
14.11
12.22
6.63
3.72
1.05
65,054
Age 0 - 4
Age 5 - 9
Age 10 - 14
Age 15 - 17
Age 18 - 20
Age 21 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Age 55 - 64
Age 65 - 74
Age 75 - 84
Age 85 and over
%
7.26
6.90
6.37
3.99
3.64
4.45
13.94
12.78
14.42
12.29
7.28
4.78
1.90
Total
Tract
Description
2011 Est. Pop Age 15+ by Marital Status
100,135
Total, Never Married
Males, Never Married
Females, Never Married
Married, Spouse present
Married, Spouse absent
Widowed
Males Widowed
Females Widowed
Divorced
Males Divorced
Females Divorced
26,316
14,126
12,190
48,878
5,170
6,689
1,494
5,195
13,082
5,948
7,134
2011 Est. Pop. Age 25+ by Edu. Attainment
5,961
9,727
27,571
22,179
6,005
8,351
3,046
848
379
2011 Est Pop Age 25+ by Edu. Attain, Hisp. or Lat
7.09
11.57
32.80
26.38
7.14
9.93
3.62
1.01
0.45
17,289
Less than 9th grade
Associate Degree
Bachelor's Degree
Graduate or Professional Degree
3,260
3,553
4,293
3,754
1,015
831
583
5
Of 12
Prepared By:
Prepared For:
26.28
14.11
12.17
48.81
5.16
6.68
1.49
5.19
13.06
5.94
7.12
84,067
Less than 9th grade
Associate Degree
Bachelor's Degree
Master's Degree
Professional School Degree
Doctorate Degree
%
18.86
20.55
24.83
21.71
5.87
4.81
3.37
Total
Tract
Description
%
Households
2016 Projection
2011 Estimate
2000 Census
1990 Census
52,172
48,304
44,053
39,298
Growth 2011-2016
Growth 2000-2011
Growth 1990-2000
8.01%
9.65%
12.10%
2011 Est. Households by Household Type
48,304
Family Households
Nonfamily Households
34,202 70.81
14,102 29.19
2011 Est. Group Quarters Population
1,264
2011 HHs by Ethnicity, Hispanic/Latino
9,012 18.66
2011 Est. HHs by HH Income
48,304
Income Less than $15,000
Income $15,000 - $24,999
Income $25,000 - $34,999
Income $35,000 - $49,999
Income $50,000 - $74,999
Income $75,000 - $99,999
Income $100,000 - $124,999
Income $125,000 - $149,999
Income $150,000 - $199,999
Income $200,000 - $499,999
Income $500,000 and more
7,300
6,170
5,839
7,699
8,798
5,276
3,627
1,624
1,124
730
117
2011 Est. Average Household Income
$57,837
2011 Est. Median Household Income
$44,436
2011 Est. Per Capita Income
$22,044
6
Of 12
Prepared By:
Prepared For:
15.11
12.77
12.09
15.94
18.21
10.92
7.51
3.36
2.33
1.51
0.24
Total
Tract
Description
%
2011 Median HH Inc by Single Race Class. or Ethn
White Alone
Asian Alone
Two or More Races
49,433
30,063
48,684
34,157
36,071
36,456
42,500
Hispanic or Latino
37,863
46,280
2011 Est. Family HH Type, Presence Own Children
34,202
Married-Couple Family, own children
Married-Couple Family, no own children
Male Householder, own children
Male Householder, no own children
Female Householder, own children
Female Householder, no own children
9,629
14,410
1,444
1,487
4,234
2,998
2011 Est. Households by Household Size
48,304
1-person household
2-person household
3-person household
4-person household
5-person household
6-person household
7 or more person household
11,681
15,939
8,666
6,831
3,163
1,291
733
2011 Est. Average Household Size
2.61
7
Of 12
Prepared By:
Prepared For:
28.15
42.13
4.22
4.35
12.38
8.77
24.18
33.00
17.94
14.14
6.55
2.67
1.52
Total
Tract
Description
%
2011 Est. Households by Presence of People
48,304
Households with 1 or more People under Age 18:
17,416
10,489
1,716
4,999
162
50
36.05
60.23
9.85
28.70
0.93
0.29
Households no People under Age 18:
30,888
13,055
1,169
2,113
7,002
7,549
63.95
42.27
3.78
6.84
22.67
24.44
2011 Est. Households by Number of Vehicles
48,304
No Vehicles
1 Vehicle
2 Vehicles
3 Vehicles
4 Vehicles
5 or more Vehicles
2,867
17,726
18,629
6,720
1,884
478
2011 Est. Average Number of Vehicles
5.94
36.70
38.57
13.91
3.90
0.99
1.77
Family Households
2016 Projection
2011 Estimate
2000 Census
1990 Census
36,954
34,202
31,677
29,521
Growth 2011-2016
Growth 2000-2011
Growth 1990-2000
8.05%
7.97%
7.30%
2011 Est. Families by Poverty Status
34,202
2011 Families at or Above Poverty
2011 Families at or Above Poverty with Children
29,734 86.94
13,793 40.33
2011 Families Below Poverty
2011 Families Below Poverty with Children
4,468 13.06
3,700 10.82
8
Of 12
Prepared By:
Prepared For:
Total
Tract
Description
2011 Est. Pop Age 16+ by Employment Status
98,450
In Armed Forces
Civilian - Employed
Civilian - Unemployed
Not in Labor Force
164
57,367
5,196
35,723
2011 Est. Civ Employed Pop 16+ Class of Worker
39,910
2,379
4,936
4,636
948
5,326
185
2011 Est. Civ Employed Pop 16+ by Occupation
70.03
4.17
8.66
8.14
1.66
9.35
0.32
56,987
Architect/Engineer
Arts/Entertain/Sports
Building Grounds Maint
Business/Financial Ops
Community/Soc Svcs
Computer/Mathematical
Construction/Extraction
Edu/Training/Library
Farm/Fish/Forestry
Food Prep/Serving
Health Practitioner/Tec
Healthcare Support
Maintenance Repair
Legal
Life/Phys/Soc Science
Management
Office/Admin Support
Production
Protective Svcs
Sales/Related
Personal Care/Svc
Transportation/Moving
1,034
716
2,692
1,646
483
852
5,544
3,154
154
3,244
3,320
1,370
2,411
298
498
4,362
8,194
4,019
1,786
5,590
1,615
4,005
9
Of 12
Prepared By:
Prepared For:
0.17
58.27
5.28
36.29
56,987
Self-Emp Workers
%
1.81
1.26
4.72
2.89
0.85
1.50
9.73
5.53
0.27
5.69
5.83
2.40
4.23
0.52
0.87
7.65
14.38
7.05
3.13
9.81
2.83
7.03
Total
Tract
Description
2011 Est. Pop 16+ by Occupation Classification
%
56,987
Blue Collar
White Collar
Service and Farm
15,979 28.04
30,147 52.90
10,861 19.06
2011 Est. Workers Age 16+, Transp. To Work
56,047
Drove Alone
Car Pooled
Public Transportation
Walked
Bicycle
Other Means
Worked at Home
45,111
6,545
143
888
275
2,153
932
80.49
11.68
0.26
1.58
0.49
3.84
1.66
2011 Est. Workers Age 16+ by Travel Time to Work *
Less than 15 Minutes
15 - 29 Minutes
30 - 44 Minutes
45 - 59 Minutes
60 or more Minutes
17,357
17,229
11,724
4,386
4,353
2011 Est. Avg Travel Time to Work in Minutes
27.52
2011 Est. Tenure of Occupied Housing Units
48,304
Owner Occupied
Renter Occupied
33,625 69.61
14,679 30.39
2011 Owner Occ. HUs: Avg. Length of Residence
16
2011 Renter Occ. HUs: Avg. Length of Residence
6
10
Of 12
Prepared By:
Prepared For:
Total
Tract
Description
2011 Est. All Owner-Occupied Housing Values
33,625
Value Less than $20,000
Value $20,000 - $39,999
Value $40,000 - $59,999
Value $60,000 - $79,999
Value $80,000 - $99,999
Value $100,000 - $149,999
Value $150,000 - $199,999
Value $200,000 - $299,999
Value $300,000 - $399,999
Value $400,000 - $499,999
Value $500,000 - $749,999
Value $750,000 - $999,999
Value $1,000,000 or more
1,289
2,238
3,681
4,599
4,941
9,696
3,009
2,668
742
314
267
96
85
2011 Est. Median All Owner-Occupied Housing Value
55,913
1 Unit Attached
1 Unit Detached
2 Units
3 or 4 Units
5 to 19 Units
20 to 49 Units
50 or More Units
Mobile Home or Trailer
Boat, RV, Van, etc.
713
40,790
1,167
1,251
4,133
1,107
1,261
5,374
117
2011 Est. Housing Units by Year Structure Built
55,913
Housing Unit Built 2000 or later
Housing Unit Built 1939 or Earlier
2011 Est. Median Year Structure Built **
8,722
5,846
8,453
11,464
8,707
7,568
3,641
1,512
1976
*This row intentionally left blank. No total category data is available.
**1939 will appear when at least half of the Housing Units in this reports area were built in 1939 or earlier.
11
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Prepared By:
Prepared For:
3.83
6.66
10.95
13.68
14.69
28.84
8.95
7.93
2.21
0.93
0.79
0.29
0.25
$100,333
2011 Est. Housing Units by Units in Structure
%
1.28
72.95
2.09
2.24
7.39
1.98
2.26
9.61
0.21
15.60
10.46
15.12
20.50
15.57
13.54
6.51
2.70
Appendix: Area Listing
Area Name: REMAINDER OF SOUTHERN GALV CO
Type: List - Tract
Reporting Detail: Aggregate
Reporting Level: Tract
Geography Code
Geography Name
Geography Code
Geography Name
48167720800
48167-720800
48167720900
48167-720900
48167721000
48167-721000
48167721100
48167-721100
48167721700
48167-721700
48167721800
48167-721800
48167721900
48167-721900
48167722000
48167-722000
48167722100
48167-722100
48167722200
48167-722200
48167722300
48167-722300
48167722400
48167-722400
48167722500
48167-722500
48167722600
48167-722600
48167722700
48167-722700
48167722800
48167-722800
48167722900
48167-722900
48167723000
48167-723000
48167723100
48167-723100
48167723200
48167-723200
48167723300
48167-723300
48167723400
48167-723400
48167723500
48167-723500
48167723600
48167-723600
48167723700
48167-723700
48167723800
48167-723800
48167723900
48167-723900
Project Information:
Site:
1
Order Number: 970378294
12
Of 12
Prepared By:
Prepared For:
sites
HISTA CAPTURE/DEMAND ANALYSIS
C11-AHA-176
Page 91
sites
HISTA DATA - PMA
C11-AHA-176
Page 92
www.ribbondata.com
HISTA DATA
© 2010 All rights reserved
Nielsen Claritas
Renter Households
Under Age 55 Years
Current Year Estimates ‐ 2011
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person
Household Household Household Household Household
925
316
247
156
90
673
372
279
182
183
597
416
183
212
124
520
277
250
170
110
409
238
175
189
60
130
175
157
42
43
588
306
124
129
277
3,531
2,382
1,597
1,075
739
Total
1,734
1,689
1,532
1,327
1,071
547
1,424
9,324
Renter Households
Aged 55‐61 Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
152
41
9
11
14
127
78
11
31
1
85
40
26
25
3
30
22
11
4
16
47
35
3
7
2
39
6
15
7
12
88
19
10
5
51
531
310
94
95
53
Total
227
248
179
83
94
79
173
1,083
Renter Households
Aged 62+ Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
604
71
9
9
0
417
114
8
18
15
102
65
27
0
9
69
92
6
0
23
15
43
15
3
3
50
25
2
4
12
69
11
52
0
102
1,359
479
78
86
62
Total
693
572
203
190
79
93
234
2,064
11/12/2011
www.ribbondata.com
HISTA DATA
Nielsen Claritas
Owner Households
Under Age 55 Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
100
40
16
23
12
81
21
48
24
19
104
88
68
58
60
175
57
87
49
69
180
84
71
67
120
66
89
103
80
51
730
513
436
334
168
874
1,109
906
737
665
Total
191
193
378
437
522
389
2,181
4,291
Owner Households
Aged 55‐61 Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
129
26
7
6
0
61
27
6
1
11
47
51
38
4
6
34
86
27
13
1
24
15
61
2
18
46
37
15
14
22
547
155
45
54
72
413
789
309
85
112
Total
168
106
146
161
120
134
873
1,708
Owner Households
Aged 62+ Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
364
41
6
13
0
375
255
24
0
3
291
262
105
20
0
148
202
41
10
19
136
266
70
20
34
69
122
39
24
24
684
114
52
33
193
1,576
1,832
399
139
113
Total
424
657
678
420
526
278
1,076
4,059
11/12/2011
www.ribbondata.com
HISTA DATA
Nielsen Claritas
Renter Households
Under Age 55 Years
Five Year Projections ‐ 2016
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
885
280
236
148
90
643
338
256
175
174
567
381
181
202
120
494
251
243
169
113
406
219
167
180
62
138
170
160
43
44
593
330
135
139
297
3,430
2,232
1,573
1,052
742
Total
1,639
1,586
1,451
1,270
1,034
555
1,494
9,029
Renter Households
Aged 55‐61 Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
165
43
12
13
14
138
83
11
35
1
99
45
28
29
1
33
25
12
4
21
54
36
2
10
4
41
9
17
7
10
95
23
13
7
54
584
336
105
111
58
Total
247
268
202
95
106
84
192
1,194
Renter Households
Aged 62+ Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
658
78
8
10
0
460
115
6
20
18
121
78
33
0
12
78
94
5
1
30
19
45
20
4
2
53
29
3
4
10
76
13
68
0
118
1,507
515
88
107
72
Total
754
619
244
208
90
99
275
2,289
11/12/2011
www.ribbondata.com
HISTA DATA
Nielsen Claritas
Owner Households
Under Age 55 Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
85
31
13
20
11
71
19
42
20
19
89
72
63
51
54
152
49
79
43
63
160
76
70
60
109
65
88
97
79
52
669
493
429
324
163
785
1,004
857
702
632
Total
160
171
329
386
475
381
2,078
3,980
Owner Households
Aged 55‐61 Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
137
28
8
6
0
67
28
7
1
8
51
50
40
5
8
40
95
30
13
3
28
17
61
3
20
48
39
12
14
24
578
168
51
59
78
449
835
326
93
122
Total
179
111
154
181
129
137
934
1,825
Owner Households
Aged 62+ Years
$0-10,000
$10,000-20,000
$20,000-30,000
$30,000-40,000
$40,000-50,000
$50,000-60,000
$60,000+
Total
375
42
6
15
0
394
256
26
0
3
330
275
119
22
0
164
210
48
12
20
159
281
79
22
43
76
135
42
29
29
765
130
64
38
224
1,722
1,964
450
164
133
Total
438
679
746
454
584
311
1,221
4,433
11/12/2011
www.ribbondata.com
Geographies Selected:
Geocode/ ID
48167724000
48167724100
48167724200
48167724300
48167724400
48167724500
48167724600
48167724700
48167724800
48167724900
48167725000
48167725100
48167725200
48167725300
48167725400
48167725500
48167725600
48167725700
48167725800
48167725900
48167726000
48167726100
State
County
MCD
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Texas
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston County
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
Galveston CCD
11/12/2011
sites
ANALYST QUALIFICATIONS
C11-AHA-176
Page 93
ROBERT O (BOB) COE, II AFFORDABLE HOUSING ANALYSTS 507 VINCENT STREET HOUSTON, TEXAS 77009 281‐387‐7552 Email: [email protected] State Certified General Real Estate Appraiser TX‐1333157‐G Texas Property Tax Consultant ‐ 11109 Work Experience 10/2010‐to‐Present ‐ Affordable Housing Analysts – was formed to assist clients with their appraisal and consulting needs in complex transactions. Although the firm specializes in affordable housing related transactions, we have the experience and training to handle all commercial property needs. 1/2002 to 9/2010 – O’Connor & Associates. Staff appraiser and managed marketing and a team of appraisers/analysts in performing assignments related to affordable housing. Additionally, personally handed a significant portion of the most complex appraisal/consulting assignments 8/1994 to 7/2001 – National Realty Consultants. Staff appraiser. 1/1994‐7/1994 – Carley, Gage & Associates. Staff appraiser. 10/1989 to 11/1993 – First City, Texas Bank, N.A. Assistant Vice President in Corporate Lending. Responsible for a portfolio of over $2 Billion in loans to Fortune 500 clients. 10/1987 to 10/1989 – First City, Texas Bank, N.A. Credit Supervisor/Senior Analyst. Responsible for training and supervision of a staff of credit analysts. Education MBA (Finance) – Southern Methodist University, Dallas, Texas 1987 BBA (Finance) – University of Oklahoma, Norman, Oklahoma 1976 Appraisal/Business Appraisal Courses ‐ Appraisal Institute Courses o Appraisal Principles (110) o Income Capitalization (310) o Highest & Best Use and Market Analysis (520) o Report Writing (540) o Advanced Income Capitalization (510) o Advanced Sales Comparison and Cost Approach (530) Institute of Business Appraisal Mastering Business Appraisal Skills course Professional Associations: Associate Member of the Appraisal Institute ‐ All requirements for the MAI designation (including successfully completing all require course work, the Comprehensive Examination, and the Experience Credit requirements) have been completed with the exception of completion of my Demonstration Appraisal. Member of the Texas Affiliation of Affordable Housing Providers Assignments: I have appraised/consulted on a wide variety of commercial properties ranging from Tax Credit apartment complexes, to golf courses, to water/sewer utilities, to market studies/appraisals on the Rice Hotel, the Dakota Lofts, and the Hogg Palace historic adaptation into apartments/office/retail use. I have prepared market studies and appraisals for proposed residential subdivisions, hotels, shopping centers, industrial facilities, apartment complexes, and numerous other commercial property types. References available upon request

Galveston Market Study Report for MBS

Transcription

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