A MARKET FEASIBILITY STUDY OF

Transcription

A MARKET FEASIBILITY STUDY OF
NORTHWEST PASSAGE
701 1st Street
McCall, Valley County, Idaho 83638
Effective Date: January 26, 2015
Report Date: February 2, 2015
Prepared for
Idaho Housing and Finance Association
P.O. Box 7899
Boise, ID 83707
On Behalf Of
Mr. Chance Hobbs
Northwest Real Estate Capital Corporation
309 East Lake Street, Suite 1
McCall, ID 83638
Prepared By
Novogradac & Company LLP
4449 Easton Way, Suite 2090
Columbus, Ohio 43219
(614) 934-1110
February 2, 2015
Idaho Housing and Finance Association
P.O. Box 7899
Boise, ID 83707
Mr. Chance Hobbs
VCD, LLC
309 East Lake Street, Suite 1
McCall, ID 83638
Re:
Market Study for Northwest Passage, located in McCall, Valley County, Idaho.
Dear Mr. Hobbs:
At your request, Novogradac & Company LLP has performed a market study of the multifamily
rental market in the McCall, Idaho area relative to the above-referenced Low-Income Housing Tax
Credit (LIHTC) project.
The purpose of this market study is to assess the viability of the 36-unit Northwest Passage
multifamily project. It will be a newly constructed multifamily property restricted to families earning
40, 45, 50, 55, and 60 percent of the Area Median Income (AMI), or less. Additionally, four of the
units will be unrestricted. The following report provides support for the findings of the study and
outlines the sources of information and the methodologies used to arrive at these conclusions. The
scope of this report meets the requirements of the Idaho Housing and Finance Association (effective
January 2015):
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Inspecting the site of the proposed Subject, and its general location.
Analyzing the appropriateness of the proposed unit mix, rent levels, unit and complex amenities, and
site.
Estimating the market rents, absorption rates and stabilized occupancy levels for the market area.
Investigating the general economic health and conditions of the multifamily rental market.
Calculating income bands, given the proposed Subject rents.
Estimating the number of income-eligible households.
Reviewing relevant public records and contacting appropriate public agencies.
Analyzing the economic and social conditions in the market area, in relation to the proposed project.
Establishing the Subject’s Primary and Secondary Market Area(s), if applicable.
Surveying competing projects, both LIHTC and market-rate.
4449 EASTON WAY  SUITE 2090 COLUMBUS, OHIO 43219  (614) 934-1110 FAX (866) 669-3821 http://novoco.com
Mr. Chance Hobbs
VCD, LLC
February 2015
Page 2
This report contains, to the fullest extent possible and practical, explanations of the data, reasoning,
and analyses that were used to develop the opinions contained herein. The depth of discussion
contained in the report is specific to the needs of the client.
The National Council of Housing Market Analysts (NCHMA) is a professional organization
chartered to promote the development of high quality market analysis for the affordable housing
industry. Novogradac is a charter member of this organization. NCHMA has compiled model
content standards for market studies. This report generally conforms to those standards. Any slight
modifications or departures from those standards are considered incidental and result from client
specific needs.
Please do not hesitate to contact us if there are any questions regarding the report or if Novogradac
& Company LLP can be of further assistance. It has been our pleasure to assist you with this project.
Respectfully submitted,
H. Blair Kincer, MAI, CRE
LEED Green Associate
Partner
David Boisture
Principal
K. David Adamescu
Analyst
Jimmy McCune
Researcher
4449 EASTON WAY  SUITE 2090 COLUMBUS, OHIO 43219  (614) 934-1110 FAX (866) 669-3821 http://novoco.com
Table of Contents
EXECUTIVE SUMMARY ................................................................................................................ 1
CONCLUSIONS AND RECOMMENDATIONS ............................................................................ 5
FACTUAL DESCRIPTION ............................................................................................................ 15
REGIONAL AND LOCAL AREA ANALYSIS ............................................................................ 22
DEMOGRAPHIC ANALYSIS ........................................................................................................ 39
SUPPLY ANALYSIS ........................................................................................................................ 51
DEMAND ANALYSIS ..................................................................................................................... 73
ADDENDA......................................................................................................................................... 74
EXECUTIVE SUMMARY
Northwest Passage – McCall, Idaho – Market Study
EXECUTIVE SUMMARY
PROPERTY SUMMARY OF SUBJECT
Nothwest Passage, the Subject, will be a new construction multifamily property. The Subject will be
located at 701 1st Street in the downtown area of McCall, Valley County, Idaho.
Subject Property Description
and Improvements:
Northwest Passage will consist of 36 units, which will include
five one-bedroom units, 23 two-bedroom units, and eight threebedroom units. Thirty-two units will be LIHTC restricted to
households earning 40, 45, 50, 55, and 60 percent of AMI. The
remaining four units will be unrestricted. The Subject will
consist of the new construction of a single three-story,
elevator-served building. Community amenities will include
community room, business center, elevator, fitness center,
playground, on-site management, and service coordination.
The Subject site is currently improved with the local senior
center. According to the sponsor, the McCall Senior Center
will be relocated into a portion of the newly constructed
building and rebranded as multi-generational activity space
that can be utilized by the residents at the Subject, members of
the community, and various community service agencies.
Activities will be coordinated through several local
organizations, including the Yellow Couch Teen Center (teen
gatherings, afterschool activities) and McCall Senior Center
(social activities, twice a week dinners, and meals on wheels
program).
Developer Name and Contact:
The project will be sponsored by Northwest Real Estate
Capital Corporation. The contact person is Mr. Chance Hobbs,
whose telephone number is (208) 608-9140.
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Subject site
Subject site – existing senior center
Property Address:
The Subject will be located at 701 1st Street in McCall, Valley
County, Idaho.
Zoning Classification:
The Subject site is zoned CV, or Civic Use, by the City of
McCall. According to the McCall City Code, the Civic Use
zone designation is intended to provide for governmental
offices and other civic uses including governmental, cultural,
and recreational facilities. Mixed-use and multifamily
dwellings are permitted in this zone. According to a zoning
letter provided by the sponsor, the Subject development as
proposed will be a permitted use.
Location and Surrounding Uses:
The Subject site is located in a predominately established
neighborhood within the downtown area of McCall.
Predominant land uses in the Subject neighborhood include a
mix of commercial retail, office, and single-family housing.
Land uses immediately adjacent to the Subject site include
civic offices in generally good condition, including the city
hall, police department, department of health, and library, to
the north, The Alpine Village mixed-use development in
excellent condition to the east, and a mix of forested land and
single-family homes in average condition to the south and
west. Alpine Village was built in 2009 and consists of 27 one,
two, three and four-bedroom condominiums as well as 18,000
square feet of ground floor commercial space. The
condominiums range in pricing from $200,000 to $675,000 and
all but two have sold. None are being leased to long-term
tenants. Areas farther north and east consists of predominately
retail and office improvements in average to good condition.
Additionally, Payette Lake is approximately two blocks to the
north. Single-family housing in generally average condition
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extends farther to the south and west. Valley One Apartments,
a LIHTC comparable, is located 0.1 miles to the south. The
property was built in 1995 and is fully occupied with a threehousehold wait list. The retail improvements in the
neighborhood include a pharmacy, several restaurants, banks, a
grocery, a hotel and several other smaller retailers. The retail
improvements appear to be better than 90 percent occupied
overall. Uses in the Subject neighborhood generally range in
age from approximately five to 80 years old.
Proposed Rents:
The following table details the proposed rents for the Subject’s
units.
PROPOSED RENTS
Unit Type
Unit Size Number of
(SF)
Units
Asking
Rent
1BR
2BR
605
760
1
1
$400
$500
1BR
2BR
3BR
605
760
1,025
1
1
1
$450
$550
$625
2BR
3BR
760
1,025
4
1
$600
$675
2BR
3BR
760
1,025
7
2
$650
$750
1BR
2BR
3BR
605
760
1,025
3
8
2
$575
$700
$800
2BR
3BR
Total
800
1,250
2
2
36
$800
$975
Utility
Allowance
(1)
40% AMI
$56
$66
45% AMI
$56
$66
$83
50% AMI
$66
$83
55% AMI
$66
$83
60% AMI
$56
$66
$83
Market
N/Ap
N/Ap
Gross Rent
LIHTC Maximum
Allowable Gross
Rent
HUD Fair
Market
Rents
$456
$566
$500
$600
$580
$688
$506
$616
$708
$562
$675
$779
$580
$688
$1,014
$666
$758
$750
$866
$688
$1,014
$716
$833
$825
$952
$688
$1,014
$631
$766
$883
$750
$900
$1,039
$580
$688
$1,014
N/Ap
N/Ap
N/Ap
N/Ap
$688
$1,014
Notes (1) Source of Utility Allowance based upon energy audit provided by the Developer.
The Subject’s proposed 40, 45, 50, 55 and 60 percent AMI
rents are below the maximum allowable levels. Additionally,
the developer’s Subject-specific utility allowance is below the
housing authority’s utility allowance.
Inspection Date:
The Subject site was inspected on January 26, 2015. This shall
be the effective date of the market study.
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CONCLUSIONS AND RECOMMENDATIONS
CONCLUSIONS
Overall, we believe there is demand in the marketplace for the Subject as conceived. We recommend
no changes to the development scheme.
 The availability of rental data in the PMA is considered average. However, the availability of
newer market rate data as well as elevator-serviced product in the PMA is limited. The
rental inventory in the market is predominately older walk-up and townhouse product within
small complexes. Nonetheless, we believe that we have sufficient data in order to determine
marketability for the Subject property. We have included two LIHTC properties and six
market rate properties as comparables in the analysis. Additionally, due to the limited
availability of market rate data in the PMA, we have supplemented our rent analysis with
local classified listings. All of the comparable properties are located within the PMA.
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COMPARABLE PROPERTIES
Property Name
City
Type
The Springs
Mccall
LIHTC
Valley One Apartments
Mccall
LIHTC
400 Mission Street 4-plex
Mccall
Market
433 Payette Triplex
Donnelly Market
Aspen Glen
Mccall
Market
Pine Creek Apartments
Mccall
Market
The Timbers
Mccall
Market
Thula Street Tri-plex
Mccall
Market
Distance
1.0 miles
0.1 miles
0.4 miles
12.1 miles
1.3 miles
0.8 miles
0.7 miles
0.5 miles
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Based upon our market research, demographic calculations and analysis, we believe that
there is demand for the Subject property as conceived. The overall market vacancy rate is
strong at 1.3 percent and the two LIHTC comparables are fully occupied with wait lists.
None of the comparables are offering concessions. Further, despite demographic trends that
project limited growth in households in the PMA, market data such as the full occupancy and
wait lists at the LIHTC comparables as well as the generally low capture rates indicate that
there is likely latent demand for affordable housing. Further, the Subject will be new
construction and in excellent condition upon completion and will be more desirable than the
predominately fair to average condition rental housing stock in the PMA. We believe that
units at the Subject will be well-received, as comparable properties are performing at high
occupancy. Strengths of the Subject development will be its location, age and condition, and
amenities package.

The Springs is the only comparable property that was able to provide absorption data. The
property opened in 2011 and absorbed its units in approximately eight months, an absorption
pace of approximately 4.5 units per month. However, considering the relatively low vacancy
rates at the LIHTC and market rate properties, the waiting list at The Springs, as well as the
Subject’s capture rates, we estimate that the Subject will reach a stabilized occupancy within
six months. This estimate equates to an absorption pace of approximately six units per
month.
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
The following table summarizes overall weighted vacancy levels at the surveyed properties.
OVERALL VACANCY
Property name
The Springs
400 Mission Street 4-plex*
433 Payette Triplex
Aspen Glen
The Timbers*
LIHTC Total
Market Total
Total
Rent Structure
LIHTC
LIHTC
Market
Market
Market
Market
Market
Market
Total Units
36
8
3
3
4
7
15
3
44
35
79
Vacant Units
0
0
0
1
0
0
0
0
0
1
1
Vacancy Rate
0.0%
0.0%
0.0%
33.3%
0.0%
0.0%
0.0%
0.0%
0.0%
2.9%
1.3%
*400 Mission Street has one vacant unit that is down for renovations and has not been included; T he T imbers has two units down for
renovations that have not been included
The vacancy rate among the comparables ranges from zero to 33.0 percent, with an average
vacancy rate of 1.3 percent. The two LIHTC comparables are both fully-occupied and keep
short waiting lists. The market rate comparables reported an overall vacancy of 2.9 percent;
with 433 Payette Triplex being the only comparable that reported a vacancy. 400 Mission
Street has one unit down for renovations and management expects the unit to be occupied by
early February. Additionally, two of the 17 units at the Timbers are uninhabitable and will be
undergoing renovations in the spring. Therefore, these units have been excluded in the
vacancy analysis. Taking the market data into account, we expect the Subject to maintain a
vacancy rate of five percent or less upon completion.

The following tables depict the rental rates at the surveyed LIHTC properties and the
Subject’s proposed rental rates.
LIHTC Rent Comparison - @40%
Property Name
1BR
Northwest Passage (Subject)
$400
LIHTC Maximum (Net)
$444
The Springs
$375
Average (excluding Subject)
$375
Achievable LIHTC Rent
$400
Property Name
1BR
2BR
$450
$550
LIHTC Maximum (Net)
$506
$609
The Springs
$425
N/Ap
$425
N/AP
$450
$550
2BR
$500
$534
N/Ap
N/Ap
$500
3BR
$625
$696
N/Ap
N/Ap
$625
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Property Name
2BR
$600
LIHTC Maximum (Net)
$684
The Springs
$555
$500
$528
$600
3BR
$675
$783
$635
N/Ap
$635
$675
Property Name
2BR
$620
LIHTC Maximum (Net)
$759
The Springs
$620
$620
$650
3BR
$750
$869
$710
$710
$750
Property Name
1BR
2BR
$575
$700
LIHTC Maximum (Net)
$694
$834
The Springs
$535
$680
N/Ap
$550
$535
$615
$575
$700
3BR
$800
$956
$780
$600
$690
$800
As seen in the previous tables, the Subject’s proposed 40, 45, 50, 55, and 60 percent rents are
set below the maximum allowable levels. The Springs and Valley One Apartments are
achieving rents well below the maximum allowable levels for their respective units. It should
be noted that none of the comparable LIHTC properties offer two-bedroom units at 40 or 45
percent AMI nor three-bedroom units at 45 percent AMI.
The Subject will be most similar to The Springs in terms of overall condition and design. The
Springs was built in 2011 and is fully occupied with a short wait list. Upon completion, the
Subject will offer generally superior in-unit and common area amenities, slightly superior
condition, and slightly inferior unit sizes. The Springs is achieving rents well below the
maximum allowable levels. However, The Springs is operated by a non-profit that
deliberately keeps rents low. We spoke with Greg Putnam, the Regional Compliance
Manager for The Springs and he stated that the property typically operates with a wait list
and that slightly higher rent increases would be possible. However, he stated that maximum
allowable rents would likely not be achievable in the market. Given the Subject’s superior
position in the market relative to The Springs, we believe that the Subject could achieve rents
above The Springs but below the maximum allowable levels. Therefore, we believe that the
proposed LIHTC rents are all at their achievable levels.

Based on the quality of the surveyed comparable properties and the anticipated quality of the
proposed Subject, we conclude that the Subject’s LIHTC rental rates are below the
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achievable market rates for the Subject’s area. The following tables show the proposed
LIHTC rent comparisons to market rents.
Unit Type
1 BR @ 40%
2 BR @ 40%
1 BR @ 45%
2 BR @ 45%
3 BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @ 55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market*
3 BR Market*
Subject Comparison To Market Rents
Surveyed
Surveyed Surveyed
Subject
Min
Max
Average
$400
$350
$450
$422
$500
$444
$700
$568
$450
$350
$450
$422
$550
$444
$700
$568
$625
$470
$825
$603
$600
$444
$700
$568
$675
$470
$825
$603
$620
$444
$700
$568
$750
$470
$825
$603
$575
$350
$450
$422
$700
$444
$700
$568
$800
$470
$825
$603
$800
$444
$700
$568
$975
$470
$825
$603
Achievable
Market Rents
$650
$775
$650
$775
$900
$775
$900
$775
$900
$650
$775
$900
$800
$975
Subject Rent
Advantage
38%
35%
31%
29%
31%
23%
25%
20%
17%
12%
10%
11%
0%
0%
*T he Subject's market rate unit units will have larger unit sizes, thus the achievable market rents are above those for the
smaller unit sizes.
As illustrated in the preceding table, the Subject’s achievable LIHTC rents are below the
achievable market rents, giving the Subject a 10 to 38 percent rent advantage over the
achievable market rents. The achievable market rents for the Subject’s units are placed
moderately above the surveyed maximum market rate rents, as the Subject will offer a
superior location, condition, in-unit amenities, and common area amenities upon completion.
Additionally, the achievable rent for the Subject’s two and three-bedroom market rate units
are above the achievable market rate rent for the LIHTC units because they are larger.
Overall, the Subject will be most similar to Aspen Glen and 433 Payette, which are the
newest properties, in terms of curb appeal and quality. Compared to Aspen Glen, the Subject
will have a superior condition, similar location, superior unit and common amenities, and
similar unit size. Compared to 433 Payette Triplex, the Subject will have a superior
condition, superior location, superior unit and common amenities, and inferior unit size.
Therefore, we believe market rate two and three-bedroom rents moderately above the rents at
Aspen Glen and 433 Payette Triplex are achievable. The Timbers and 400 Mission Street 4plex are the only market rate comparables that offer one-bedroom units. Compared to these
two properties, the Subject will have a superior condition, similar location, superior unit and
common amenities and generally similar to inferior unit sizes. Therefore, we believe that
market rate one-bedroom rent well above these comparables is reasonable.
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
The following tables depict the Subject’s proposed rents and the market rents at Aspen Glen
and 433 Payette Triplex.
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with Aspen Glen
Aspen Glen
Subject Rent Square Feet
Rent
$400
605
N/Ap
$500
760
$700
$450
605
N/Ap
$550
760
$700
$625
1,025
N/Ap
$600
760
$700
$675
1,025
N/Ap
$620
760
$700
$750
1,025
N/Ap
$575
605
N/Ap
$700
760
$700
$800
1,025
N/Ap
$800
800
$700
$975
1,250
N/Ap
Square
Feet
N/Ap
760
N/Ap
760
N/Ap
760
N/Ap
760
N/Ap
N/Ap
760
N/Ap
760
N/Ap
Subject Rent
Advantage
N/Ap
29%
N/Ap
21%
N/Ap
14%
N/Ap
11%
N/Ap
N/Ap
0%
N/Ap
-14%
N/Ap
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with 433 Payette Triplex
433 Payette
Square
Street Rent
Feet
$400
605
N/Ap
N/Ap
$500
760
N/Ap
N/Ap
$450
605
N/Ap
N/Ap
$550
760
N/Ap
N/Ap
$625
1,025
$825
1,400
$600
760
N/Ap
N/Ap
$675
1,025
$825
1,400
$620
760
N/Ap
N/Ap
$750
1,025
$825
1,400
$575
605
N/Ap
N/Ap
$700
760
N/Ap
N/Ap
$800
1,025
$825
1,400
$800
800
N/Ap
N/Ap
$975
1,250
$825
1,400
Subject Rent
Advantage
N/Ap
N/Ap
N/Ap
N/Ap
24%
N/Ap
18%
N/Ap
9%
N/Ap
N/Ap
3%
N/Ap
-18%
10

Due to limited market-rate data, we have supplemented our rent analysis with local classified
listings. The following table shows two and three-bedroom market rate classified listings
within the area. One-bedroom classified listings were unavailable.
CLASSIFIED LISTINGS
Bedroom/Baths
Address
City
Type
Square Feet
Rent*
2BR/2BA
129 Stibnite St E
McCall
Condominium
1,200
$800
2BR/1BA
W Lake Street
2BR/2BA
130 Stibnite St E
2BR/2BA
East side of Lake Street
McCall Single-family home
1,100
$750
Full kitchen, covered parking, Baseboard hating, close proximity to downtown
McCall
Condominium
1,100
$800
W/d in unit, some furnishings, patio, full kitchen, sky lights
McCall
Trailer
900
$750
Upgraded single-wide trailer, close to downtown McCall, full kitchen
1,075
$775
Average
Subject 60 percent AMI rent
760
$700
Achievable Market Rent
760-800
$775-$800
3BR/1BA
N/A
3BR/2BA
110 Thula Street
3BR/1.5BA
Comments
Fully furnished, w/d in unit, back patio, air condtioning, sky lights
McCall
N/A
$650
Cable included, full kitchen, on site laundry, off street parking
Apartment
1,800
$900
Wifi included, wood heating, back patio, full kitchen
East of Spring Valley Road Donnelly Single-family home
1,900
$1,100
1,850
$883
Average
1,025
$800
1,025-1,250
$900-$975
W/d in unit, garage parking, new appliances, hardwood floors
* Classifieds include water/sewer/trash in rent
Source: craigslist.com and trulia.com
Comparable classified listings for two-bedroom units exhibit a range of asking rental rates
from $750 to $800 while the three-bedroom units exhibit a range of $600 to $1,100. The
rental housing stock in the area is generally older and all of the properties are inferior in
quality and amenities when compared to the Subject. However, the average unit sizes at the
classifieds are significantly larger than the Subject’s and several of the classifieds offer
superior single-family design. Additionally, two classified offer partially/fully furnished
units. Therefore, we believe an achievable two and three-bedroom market rents close to the
average is reasonable.
Further, we have considered the market rents being achieved at two recently constructed
properties in the northern Boise metropolitan area (one in Meridian and one in Boise),
approximately 95 miles south of McCall in suburban Boise, which is the nearest community
with newer comparable market rate product.


Selway Apartments is a 171-unit market rate community located at 2552 W. Selway
Rapids Lane in Meridian, Idaho. This community opened in 2009 and offers one, two,
and three-bedroom garden-style units. Selway Apartments is currently 95.9 percent
occupied with a wait list of three to four months on several unit types. The property
offers comprehensive unit and community amenities that feature full appliance package,
patio/balcony, central air conditioning, walk-in closet, washer and dryer appliances,
community room, fitness center, hot tub, on-site management, picnic area, and swimming
pool.
Retreat at Silvercloud is a 180-unit market rate community located at 8448 W. Limelight
Drive in northern Boise, Idaho. This community opened October 2014 and offers one,
two, and three-bedroom garden-style units. Retreat at Silvercloud is currently in initial
lease-up and is 52 percent occupied, absorbing approximately 24 units per month, a
strong rate. The property offers comprehensive unit and community amenities that
feature full appliance package, patio/balcony, central air conditioning, walk-in closet,
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washer and dryer appliances, community room, fitness center, hot tub, on-site
management, picnic area, playground and swimming pool.
Both Selway Apartments and Retreat at Silvercloud will have overall superior locations,
superior unit sizes, slightly inferior condition, and similar amenities. Overall, we believe that
rents moderately below these two comparables would be achievable and, therefore, the
proposed rents appear reasonable. The following tables compare the Subject’s rents with
those at Selway Apartments and Retreat at Silvercloud.
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with Selway Apartments
Selway
Square
Subject Rent Square Feet Apartment Rent
Feet
$400
605
$853
730
$500
760
$929
884
$450
605
$853
730
$550
760
$929
884
$625
1,025
$1,165
1,120
$600
760
$929
884
$675
1,025
$1,165
1,120
$620
760
$929
884
$750
1,025
$1,165
1,120
$575
605
$853
730
$700
760
$929
884
$800
1,025
$1,165
1,120
$800
800
$929
884
$975
1,250
$1,165
1,120
Subject Rent
Advantage
53%
46%
47%
41%
46%
35%
42%
33%
36%
33%
25%
31%
14%
16%
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with Retreat at Silvercloud
Retreat at
Square
Subject Rent Square Feet Silvercloud Rent
Feet
$400
605
$715
650
$500
760
$890
907
$450
605
$715
650
$550
760
$890
907
$625
1,025
$1,095
1,187
$600
760
$890
907
$675
1,025
$1,095
1,187
$620
760
$890
907
$750
1,025
$1,095
1,187
$575
605
$715
650
$700
760
$890
907
$800
1,025
$1,095
1,187
$800
800
$890
907
$975
1,250
$1,095
1,187
Subject Rent
Advantage
44%
44%
37%
38%
43%
33%
38%
30%
32%
20%
21%
27%
10%
11%
12

The following table illustrates the rent per square footage of the Subject and market rate
comparables.
UNIT TYPE
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Min
$350
$444
$350
$444
$470
$444
$470
$444
$470
$350
$444
$470
$444
$470
MARKET RENTS*
Rent
Rent PSF
Max
Min
Max
$450
$0.39
$1.17
$700
$0.59
$1.05
$450
$0.39
$1.17
$700
$0.59
$1.05
$825
$0.51
$1.04
$700
$0.59
$1.05
$825
$0.51
$1.04
$700
$0.59
$1.05
$825
$0.51
$1.04
$450
$0.39
$1.17
$700
$0.59
$1.05
$825
$0.51
$1.04
$700
$0.59
$1.05
$825
$0.51
$1.04
PRO FORMA RENTS
Rent
$400
$500
$450
$550
$625
$600
$675
$620
$750
$575
$700
$800
$800
$975
SF
605
760
605
760
1,025
760
1,025
760
1,025
605
760
1,025
800
1,225
Rent PSF
$0.66
$0.66
$0.74
$0.72
$0.61
$0.79
$0.66
$0.82
$0.73
$0.95
$0.92
$0.78
$1.00
$0.80
*Including classifieds and supplemental comparables
The Subject’s achievable LIHTC rents are generally within the middle of the range of the
market rents on a rent per square foot basis and appear reasonable.

The following table details rent growth at the comparable properties over the past twelve
months.
RENT GROWTH
Comparable Property
The Springs
433 Payette Triplex
Aspen Glen
The Timbers
Rent Structure
LIHTC
LIHTC
Market
Market
Market
Market
Market
Market
Rent Growth
Increased 2 to 5%
Increased 26 to 30%
None
None
None
None
None
None
As seen in the previous table, the two LIHTC comparable properties reported rental rate
increases, ranging from two to 30 percent. The Springs reported slight rental increases
ranging from two to five percent. Valley One Apartments changed management in December
2014 and reported significant rent increases ranging from 26 to 30 percent. However, both
properties are achieving rents well below the maximum allowable levels. The Subject’s
proposed 40, 45, 50, 55, and 60 percent AMI rents are below the maximum allowable levels
and rent increases would not be dependent on AMI growth.
13

Population and households in the PMA and SMA increased at faster rates than the nation
from 2000 to 2014. It is projected that population and households in the PMA will remain
generally stable through 2019. Despite the projected stable trends in the PMA, market data
such as the full occupancy and wait lists at the LIHTC comparables as well as the generally
low capture rates indicate that there is likely latent demand for affordable housing. Further,
the Subject will be new construction and in excellent condition upon completion and will be
more desirable than the predominately fair to average condition rental housing stock in the
PMA. Through 2019, the median household income in the PMA is expected to grow at a rate
less than that of the SMA and nation. Additionally, approximately 49.8 percent of renter
households within the PMA have incomes of less than $40,000 as of 2014. This data
illustrates a need for additional affordable housing within the PMA and the SMA.

The PMA’s economy is highly dependent on the tourism industry as a significant percentage
of the workforce is employed in the accommodation/food service and retail trade sectors. The
PMA is likely to be impacted to a larger degree in economic downturns such as the national
recession when people have less discretionary income for vacationing. The SMA economy
still lags behind the nation. However, with recent announcements of expansions in area
tourism and mining jobs and a generally increasing employment trend over the past three
years, the SMA’s economy is showing signs of recovery. We expect McCall and the SMA
will continue to experience recovery from the economic downturn.

The demand analysis illustrates demand for the Subject based on capture rates of incomeeligible renter households. When viewing total income-eligible renter households the
calculation illustrates the following overall capture rates:
AMI
40%
45%
50%
55%
60%
Unrestricted
CAPTURE RATE SUMMARY
1BR
2BR
3BR
2.40%
2.14%
N/Ap
1.10%
0.98%
2.35%
N/Ap
4.29%
2.58%
N/Ap
6.84%
4.71%
2.24%
5.32%
3.20%
N/Ap
0.91%
2.18%
Overall
2.26%
1.27%
3.79%
6.22%
3.74%
1.28%
The capture rates are considered reasonable taking into account the other indications of
demand including full occupancy and wait lists at comparable LIHTC properties. Therefore,
we believe there is sufficient demand for units at the Subject as proposed. Additionally, we
conducted an annual demand analysis, which is based on new income-eligible renter
households moving into the area (in the Subject’s first year of operation only) and those
income-eligible renter households that are rent-overburdened (paying over 35 percent of
income to living costs). This annual capture rate is 14.3 percent for the first year of
operation. This suggests that the Subject will need to capture only a portion of the available
demand in its first year of operation in order to stabilize.
14
FACTUAL DESCRIPTION
DESCRIPTION OF THE SITE
The location of a multifamily property can have a substantial negative or positive impact upon the
performance, safety and appeal of the project. The site description will discuss the physical features
of the site, as well as layout, access issues, and traffic flow.
Subject Site
Shape:
The site is irregular.
Frontage:
The site has frontage along 1st Street and Railroad Avenue.
Topography:
The site is generally level.
Utilities:
All utilities are provided to the site.
Visibility/Views:
The Subject will have excellent visibility from 1st Street and Railroad
Avenue. Views from the Subject consist of government buildings and
commercial buildings in average condition to the north and Alpine
Village mix-use condominium/retail development in excellent
16
condition to the east. South and west of the Subject is forested land
and single-family homes in average condition.
Access and Traffic Flow:
Layout and Curb
Appeal:
The Subject will be accessible via 1st Street to the west and Park Street
to the north. According to the sponsor, there will be a shared access
agreement between the Subject and the civic buildings to the north.
Given the light traffic in the area, we do not anticipate any significant
adverse effect from the shared access. Both 1st Street and Park Street
are lightly traveled collector streets that run north/south and east/west,
respectively, and provide access throughout McCall. Park Street
provides access to N. 3rd Street, or Idaho State Highway 55,
approximately 0.1 miles to the northeast of the site. Idaho State
Highway 55 runs north/south from Meridian to New Meadows.
Overall, access and traffic flow at the Subject is considered good.
Based on a review of the site plan, the Subject will have functional
layout and excellent curb appeal. The site plan is provided in the
Addendum of this report.
Environmental, Soil and Subsoil
Conditions and Drainage: We were not provided with an environmental study. During our site
inspection, no environmental issues were uncovered; however, no
specific tests were performed by Novogradac, as we are not experts in
this field.
We were not provided with soil surveys, but the surrounding
improvements suggest that the soils are adequate for the proposed
development.
Appears adequate; however, no specific tests were performed.
Flood Plain:
According to www.floodinsights.com Community Panel Number
160175 0002A, dated April 17, 1989, the Subject site is located within
Zone X, which is outside both the 100-year and 500-year floodplain.
The flood map is presented below.
17
Detrimental Influences:
We did not observe any detrimental influences in the Subject’s
neighborhood.
Conclusion:
The Subject is physically capable of supporting a variety of legally
permissible uses and is considered a desirable site.
18
DESCRIPTION OF THE IMPROVEMENTS
Property Improvements:
Northwest Passage will be a newly constructed, elevatorserviced three-story apartment building that will consist of 36
low-rise units, which will include five one-bedroom units, 23
two-bedroom units, and eight three-bedroom units. The
Subject’s units will be restricted to households earning 40, 45,
50, 55, and 60 percent of AMI along with market rate units.
Additionally, the Subject will include four ADA accessible
units.
Date of Construction:
Construction of the Subject is planned to commence in April
2016 and completion is projected to be in March 2017.
Unit Mix:
The following table details the proposed unit mix and unit sizes
for the Subject.
UNIT MIX AND SQUARE FOOTAGE
Number of Unit Size
Gross
Unit Type
Units
(SF)
Area
1BR/1BA
5
605
3,025
2BR/1BA
21
760
15,960
2BR/1BA
2
800
1,600
3BR/2BA
6
1,025
6,150
3BR/2BA
2
1,250
2,500
Total
36
4,440
29,235
NLA:
The Subject property will have approximately 29,235 square
feet of residential space.
Number of Stories:
The Subject will consist of one three-story residential building.
Community Amenities:
Community amenities at the Subject will include a computer
lab, clubhouse/community room, elevators, exercise facility,
on-site management, non-shelter services, playground, and
service coordination. Additionally, there will be activities
coordinated through several local organizations, including the
Yellow Couch Teen Center (teen gatherings, afterschool
activities) and McCall Senior Center (social activities, twice a
week dinners, and meals on wheels program).
Unit Amenities:
Unit amenities will include balconies/patios, blinds, carpeting,
coat closets, dishwashers, exterior storage, garbage disposal
celling fans, microwaves, an oven, a refrigerator, walk-in
closets, and in-unit washers/dryers.
19
Unit Layout:
Based on our review of floor plans, the units at the Subject will
be functional and market-oriented. Floor plans are provided in
the Addendum of this report.
Parking:
The Subject will offer 54 free off-street parking spaces and 18
carports free of charge. This equates to a parking ratio of 2.0
spaces per unit. We believe that the proposed parking will be
adequate.
Utility Structure:
Tenants will be responsible for electricity for heating, cooking,
lights, and a small service fee. Cold water, sewer, and trash
will be included in the rental rates. The following table
illustrates the utility allowance calculations.
UTILITY ALLOWANCES
Utility
Utilities-Electricity
Utilities-Air Conditioning
Utilities-Electric Heating
Utilities-Electric Cooking
Utilities-Electric Heated Hot Water
Utilities-Water and Sewer Services
Utilities-Trash Collection
Total Utility Allowance
Total Tenant Paid Utilities
Developer's Utility Allowance Estimate
Paid By
Tenant
None
Tenant
Tenant
Tenant
Landlord
Landlord
One-bedroom
$15.00
$0.00
$43.00
$6.00
$20.00
$80.00
Two-bedroom
$19.00
$0.00
$54.00
$8.00
$25.00
$82.00
Three-bedroom
$22.00
$0.00
$68.00
$9.00
$31.00
$85.00
$16.00
$180.00
$84.00
$56.00
$16.00
$204.00
$106.00
$66.00
$16.00
$231.00
$130.00
$83.00
Source: Southern Idaho Cooperative Housing Authority, Effective January 1, 2015
The previous utility allowance was obtained from the
Southwestern Idaho Cooperative Housing and effective
January 1, 2015. The Subject’s sponsor has provided Subjectspecific utility allowances based on an energy audit that differ
from the local housing authority’s provided allowance. We
believe that the sponsor’s utility allowance estimates are
reasonable due to the Subject’s new construction and energy
efficient features. However, we have used the local housing
authority’s provided utility allowances in our rent analysis.
Americans With
Disabilities Act of 1990:
As new construction, we assume the property will not have any
violations of the Americans with Disabilities Act of 1990.
Quality of Construction Condition
and Deferred Maintenance:
We assume the Subject will be constructed in a timely manner
consistent with the information provided, using average-quality
materials. As a newly constructed property, the Subject will
20
not suffer from deferred maintenance.
Functional Utility:
Based on our review of floor and site plans, the units at the
Subject will be functional and market-oriented. Site and floor
plans are provided in the Addendum of this report.
Conclusion:
The Subject will be a newly constructed property offering a
comprehensive in-unit and community amenities package. We
believe that the Subject will be of good quality and that its
units will be functional.
21
REGIONAL AND LOCAL AREA ANALYSIS
REGIONAL MAP
Overview
The Subject is located in McCall, Valley County, Idaho. McCall has a population of 2,991 as of the
2010 U.S. census, making it the largest city in Valley County. Located in east-central Idaho on Lake
Payette, the city covers 10.09 square miles.
23
Location and Proximity to Metropolitan Areas
McCall and Valley County are located in east-central Idaho. The following table illustrates distances
to surrounding metropolitan areas.
PROXIMITY TO MAJOR CITIES
Location
Distance
Boise, ID
105 miles
Spokane, WA
260 miles
Missoula, MT
260 miles
Idaho Falls, ID
368 miles
Portland, OR
457 miles
Transportation
Highway:
Idaho State Highway 55 is located 0.1 miles northeast of the Subject site.
Idaho State Highway 55 provides access to Meridian to the south New
Meadows to the northwest. Idaho State Highway 55 intersects with Interstate
84 approximately 100 miles to the south in Meridian, which travels northwest
to Portland and east to Boise and Twin Falls, Idaho. After crossing into Utah,
Interstate 84 becomes Interstate 15, which travels south to Salt Lake City.
Air:
McCall Municipal Airport is located 1.7 miles south of the Subject site. The
airport is a public use airport that does not provide commercial service. The
airport serves as a base to the U.S. Forest Service Smokejumper Association,
an organization that fights wildfires from the air.
Healthcare
St. Luke’s McCall Medical Center, the only hospital in McCall, is located 0.6 miles west of the
Subject. This 15-bed hospital provides general medical and surgical care services to the communities
of McCall, New Meadows, Council Riggins, Lake Fork, Donnelly, and Cascade.
Higher Education
McCall is home to McCall College, a small non-profit college that offers courses in computer
science, recreational leadership, business, natural sciences, and art classes. McCall College had an
enrollment of 32 students as of Fall 2014. As will be discussed later in the Economic Analysis
section, there are plans to redevelop the University of Idaho McCall Field Campus, which is utilized
for summer field programs.
24
ECONOMIC ANALYSIS
McCall is a town located on Lake Payette in east-central Idaho. McCall is a popular tourist
destination in the summer and winter months due to its proximity to outdoor attractions. In the
summer months, people vacation to McCall for water activities centered on Lake Payette, a popular
destination for boating, fishing, canoeing, and hiking, while during the winter activates are centered
around skiing and snow sports. McCall is within close proximity to two ski resorts, Brundage
Mountain Resort and Tamarack Resort, approximately 7.5 miles to the northwest and 15 miles to the
south of the Subject, respectively.
In our interviews with local property managers, leasing agents, and the City Planner, it was stated
that McCall is generally a second home community. In an article titled “Mud on the Boots Town is
Rising as a Resort” in the New York Times, it was stated that nearly 60 percent of the housing units
in McCall are second homes. Additionally, it was noted the local economy is dependent on tourism
and is susceptible to downturns in the economy when people generally do not have as much
discretionary income. The historical number of tourists to the region was unavailable.
Major Employers
The following table details the largest employers in Valley County provided by Jim Thackeray,
Manager of the Idaho Department of Labor’s Office in McCall. The number of people employed by
each company/agency was unavailable.
MAJOR EMPLOYERS
Valley County, ID
Employer
Industry
U.S. Forest Service
Forestry
Valley County
Government
Paul's Market
Grocery Chain
McCall-Donnelly School District
Education
Brundage Resort
Leisure/hospitality
Tamarack Resort
Leisure/hospitality
Ridley's Market
Grocery Chain
St. Lukes McCall Medical Center
Health care
Shore Lodge
Leisure/hospitality
State of Idaho (Numerous agencies)
Government
Source: Jim T hackeray, Idaho Departmentof Labor, McCall Office; January 28, 2015
The largest employers in Valley County are in leisure/hospitality, government, retail, and education
sectors. Many of the major employers including Brundage Mountain Resort, Tamarack Resort, and
Shore Lodge are centered around the tourism industry, the main driver of the local economy.
Additionally, Mr. Thackeray mentioned Valley County and the State of Idaho have numerous offices
for different agencies located McCall and New Meadows.
25
Expansions/Contractions
We interviewed Michelle Groenevelt, Community Development Director in McCall, regarding
recent and future job expansions. Ms. Groenevelt said the city of McCall is a tourist town and is
generally dependent on the resorts in the area and activities surrounding Lake Payette, a popular
recreation destination. Ms. Groenvelt, along with additional research, noted the following
expansions in the Subject’s area.

Tamarack Resort, a popular ski destination located in Donnelly, will be open for seven days
a week for the 2104-2015 ski season. According to an article written in November 2014 titled
“New Owner Takes Over Tamarack Resort” published in First Tracks, an online ski
magazine, the resort was only open four days a week since 2010 due to financial constraints.
The resort recently hired 40 additional employees to operate seven days a week. According
to the article, “A total of $2.6 million has been invested for the coming season including
refinements to the snowmaking system, an upgrade of the ski rental fleet, new snowcats and
snowmobiles, terrain park improvements and expansion, and ski slope brush and
undergrowth clearing enabled by a grant from the National Ski Area Association.”

In an article written in December 2014 titled “Skiing Bounces Back” by Roger Phillips of the
Washington Times, both Tamarack Resort and Brundage Mountain Resort are making
significant upgrades in order to improve business. Brundage Mountain is updating their ski
lodge and adding more runs to their existing park. Additionally, the park plans to add another
lift in the near future. It was unknown how many jobs this would bring to the region.

Midas Gold, has made preliminary plans for a large gold mine in Stibnite, approximately 37
miles east of the Subject. The plan is currently in environmental review and could bring a
significant number of jobs to the region if given approval.

There are plans to redevelop the University of Idaho McCall Field Campus, which is located
near Ponderosa State Park and utilized for summer field programs. The redevelopment may
take 10 to 15 years and the extent of facilities and programs to be offered is yet to be
determined.
According to the Idaho Department of Labor WARN notifications, there have been no significant
layoffs in the Subject’s PMA over the past three years. Further, local officials were not able to
provide any details on recent closures or layoffs, only stating that employment is susceptible to
fluctuations due seasonal nature of jobs in the area. Nonetheless, economic trends indicate recent
declines in total employment in the Subject’s PMA.
26
Employment and Unemployment Trends
The following table details employment and unemployment trends for the Secondary Market Area
(SMA), which is defined as Valley and Adams Counties, from 2004 to November 2014.
EMPLOYMENT & UNEMPLOYMENT TRENDS (NOT SEASONALLY ADJUSTED)
Adams County and Valley County, Idaho
USA
Year
Total Employment
% Change
Unemployment Rate
Change
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014 YTD Average*
Nov-2013
Nov-2014
5,403
6,156
6,743
6,663
6,099
5,847
5,568
5,394
5,613
5,671
5,585
5,455
5,297
13.9%
9.5%
-1.2%
-8.5%
-4.1%
-4.8%
-3.1%
4.1%
1.0%
-1.5%
-2.9%
7.5%
5.4%
4.4%
4.5%
9.0%
13.0%
16.0%
15.4%
12.6%
11.4%
8.3%
10.6%
6.5%
-2.1%
-1.0%
0.0%
4.6%
4.0%
3.0%
-0.6%
-2.8%
-1.2%
-4.3%
-4.0%
Total
Employment
139,252,000
141,730,000
144,427,000
146,047,000
145,362,000
139,877,000
139,064,000
139,869,000
142,469,000
143,929,000
146,224,909
144,775,000
147,666,000
% Change
Unemployment Rate
Change
1.8%
1.9%
1.1%
-0.5%
-3.8%
-0.6%
0.6%
1.9%
1.0%
1.6%
2.0%
5.5%
5.1%
4.6%
4.6%
5.8%
9.3%
9.6%
8.9%
8.1%
7.4%
6.2%
6.6%
5.5%
-0.4%
-0.5%
0.0%
1.2%
3.5%
0.3%
-0.7%
-0.8%
-0.7%
-1.9%
-1.1%
Source: U.S. Bureau of Labor Statistics January 2015
*2014 data is through Nov
27
As seen in the previous table, total employment within the SMA declined between 2007 and 2011,
as a result of the national recession. In 2012 and 2013, the total employment increased slightly, but
declined as of 2014 year-to-date. For the 12-month period ending November 2014, total employment
has decreased by 2.9 percent, while the national total employment increased 2.0 percent.
Unemployment in the SMA has historically been higher than the national unemployment rate and
currently stands 210 basis points higher than the national level. Unemployment in the SMA reached
its peak in 2010 but has declined every year since. November 2014 year-over-year, the
unemployment rate has declined by 410 basis points in the SMA, compared to a 110 basis point
decline nationally. However, this recent decline in unemployment is likely due in part to people
exiting the workforce, as total employment has decreased over the same time period.
In our interview with Michelle Groenevelt, Community Development Director for the city of
McCall, it was mentioned that the local economy is seasonal, as the town is centered on tourism due
to its location on Payette Lake and close proximity of two ski resorts in the area, Tamarak Resort
and Brundage Mountain Resort. Therefore, total employment and unemployment data can often
fluctuate in the off-seasons, which they believe accounts for the slight decline in 2014 employment,
although there had been no major layoffs announced. It is also worth noting that due to the low
population in the SMA, changes in total employment when compared to the nation will be
exaggerated. Although the SMA’s economy is showing signs of improvement, total employment
recently declined slightly and is still below pre-recession levels indicating that the SMA is still
lagging behind the nation in terms of recovery. Nonetheless, recent announcements of expansions in
area tourism and mining jobs are positive indicators.
28
Employment by Industry
The following table illustrates employment by industry for the PMA.
2014 EMPLOYMENT BY INDUSTRY
PMA
Industry
Accommodation/Food Services
Construction
Retail Trade
Agric/Forestry/Fishing/Hunting
Health Care/Social Assistance
Educational Services
Manufacturing
Prof/Scientific/Tech Services
Arts/Entertainment/Recreation
Information
Real Estate/Rental/Leasing
Other Services (excl Publ Adm)
Wholesale Trade
Admin/Support/Waste Mgmt Srvcs
Public Administration
Transportation/Warehousing
Mining
Finance/Insurance
Utilities
Mgmt of Companies/Enterprises
Total Employment
Number
Employed
559
521
448
412
388
310
238
192
166
151
126
103
95
91
77
72
63
46
37
0
4,095
Percent
Employed
13.7%
12.7%
10.9%
10.1%
9.5%
7.6%
5.8%
4.7%
4.1%
3.7%
3.1%
2.5%
2.3%
2.2%
1.9%
1.8%
1.5%
1.1%
0.9%
0.0%
100.0%
USA
Number
Percent
Employed
Employed
10,849,114
7.6%
8,291,595
5.8%
16,592,605
11.6%
1,800,354
1.3%
20,080,547
14.0%
12,979,314
9.1%
15,162,651
10.6%
9,808,289
6.8%
3,151,821
2.2%
2,577,845
1.8%
2,627,562
1.8%
7,850,739
5.5%
3,628,118
2.5%
6,316,579
4.4%
6,713,073
4.7%
5,898,791
4.1%
868,282
0.6%
6,884,133
4.8%
1,107,105
0.8%
97,762
0.1%
143,286,279
100.0%
Source: ESRI Demographics 2014, Novogradac & Company LLP, January 2015
29
The PMA has a relatively diverse employment base, with a large portion of the workforce employed
in
the
accommodation/food
service,
construction,
retail
trade,
and
agricultural/forestry/fishing/hunting sectors. Combined, these four sectors comprise over 47.4
percent of the employment base within the PMA. Accommodation/food service, construction, and
agriculture/forestry/fishing/hunting, are represented at a higher rate within the PMA than the nation.
Retail trade, health care/social assistance, and educational services, exhibit a higher percentage of
workers in the nation than the PMA.
Conclusion
The PMA’s economy is highly dependent on the tourism industry as a significant percentage of the
workforce is employed in the accommodation/food service and retail trade sectors. The PMA is
likely to be impacted to a larger degree in economic downturns such as the national recession when
people have less discretionary income for vacationing. The SMA economy still lags behind the
nation. However, with recent announcements of expansions in area tourism and mining jobs and a
generally increasing employment trend over the past three years, the SMA’s economy is showing
signs of recovery. We expect McCall and the SMA will continue to experience recovery from the
economic downturn.
30
NEIGHBORHOOD DESCRIPTION AND ANALYSIS
Introduction
The neighborhood surrounding an apartment property often impacts the property's status, image,
class, and style of operation, and sometimes its ability to attract and properly serve a particular
market segment. This section investigates the property's neighborhood and evaluates any pertinent
locational factors that could affect its rent, its occupancy, and its overall profitability.
Predominant Land Uses
The Subject site is located in a predominately established neighborhood within the downtown area
of McCall. Predominant land uses in the Subject neighborhood include a mix of commercial retail,
office, and single-family housing. Land uses immediately adjacent to the Subject site include civic
offices in generally good condition, including the city hall, police department, department of health,
and library, to the north, The Alpine Village mixed-use development in excellent condition to the
east, and a mix of forested land and single-family homes in average condition to the south and west.
Alpine Village was built in 2009 and consists of 27 one, two, three and four-bedroom condominiums
as well as 18,000 square feet of ground floor commercial space. The condominiums range in pricing
from $200,000 to $675,000 and all but two have sold. None are being leased to long-term tenants.
Areas farther north and east consists of predominately retail and office improvements in average to
good condition. Additionally, Payette Lake is approximately two blocks to the north. Single-family
31
housing in generally average condition extends farther to the south and west. Valley One
Apartments, a LIHTC comparable, is located 0.1 miles to the south. The property was built in 1995
and is fully occupied with a three-household wait list. The retail improvements in the neighborhood
include a pharmacy, several restaurants, banks, a grocery, a hotel and several other smaller retailers.
The retail improvements appear to be better than 90 percent occupied overall. Uses in the Subject
neighborhood generally range in age from approximately five to 80 years old.
Subject site
Subject site
View to north toward government buildings
32
View to east toward Alpine Village (condominiums)
View to south toward forested land and single-family
homes
View west toward forested land and single-family homes
View south along 1st Street
View north along 1st Street
View west along Idaho Street
33
Health Department building adjacent to north
Police Department adjacent to north
City Hall to north
Library to northeast
Retail to north
Retail to north
34
Retail to north
Grocery store to northwest
Typical single-family to west
High school to west
Walking trail adjacent to south
35
Alpine Village (condominiums and retail) to east
Retail to east
Retail/offices to east
Typical single-family home to south
Valley One Apartments (LIHTC) to south
36
Compatibility to the Area and Age/Condition of Surrounding Properties
The Subject will be compatible with the existing surroundings. The Subject’s neighborhood is
comprised of a mix of commercial retail, office, and single-family housing. The adjacent
improvements are in generally average to excellent condition. Single-family housing in the
neighborhood is in generally average to good condition. Additionally, the retail improvements in the
neighborhood are in good condition and appear to be better than 90 percent occupied overall.
Proximity to Local Services
The following table illustrates the Subject’s proximity to necessary services. Map numbers
correspond with the Locational Amenities Map, presented below.
37
LOCATIONAL AMENITIES
#
Service
Amenity
Distance from Subject
1
Public Transportation
Bus Stop
Adjacent
2
Library
McCall Public Library
0.1 miles
3
Police Department
McCall Police Department
0.1 miles
4
High School
McCall-Donnelly High School
0.1 miles
5
Bank
U.S. Bank
0.2 miles
6
Grocery Store
Paul's Market
0.2 miles
7
Pharmacy
McCall Drug
0.3 miles
8
Gas/ Convenient Store
Lakeview Chevron
0.3 miles
9
Post Office
U.S. Post Office
0.4 miles
10
Hospital
St. Luke's McCall Medical Center
0.5 miles
11
Fire Department
McCall Fire Department
0.9 miles
12
Middle School
Payette Lakes Middle Schoole
1.2 miles
13
Elementary School
Barbara Morgan Elementary School
1.5 miles
Public Transportation
Treasure Valley Transit provides regularly scheduled bus service throughout the city of McCall. The
nearest bus stop to the Subject is located adjacent along First Street. Service is seven days a week
with limited service on weekends. Local bus service is free to all. The Subject’s access to public
transportation is considered to be good.
Conclusion
The Subject’s neighborhood appears to be a good location in a well-established neighborhood in
downtown McCall. The Subject site is located in close proximity to a variety of neighborhood
services and amenities. All locational amenities are located within 1.5 miles of the Subject site. The
Subject will be a compatible use and we believe will be an appropriate addition to the market.
38
DEMOGRAPHIC ANALYSIS
DEMOGRAPHIC ANALYSIS
The following sections will provide an analysis of the demographic characteristics within the market
area. Data such as population, households and growth patterns will be studied, to determine if the
Primary Market Area (PMA) and the Secondary Market Area (SMA) are areas of growth or
contraction.
PRIMARY MARKET AREA (PMA) AND SECONDARY MARKET AREA (SMA)
The PMA was defined based on interviews with local property managers within the area. We spoke
with Cindi Jones from McCall Real Estate and Michelle Groenevelt, Community Development
Director in McCall, about the Subject’s general market area. Both stated many people commute
from nearby towns such as New Meadows and Donnelly to work at the resorts, restaurants, and
hotels in the area. Therefore, the boundaries of the PMA represent approximately a 20 minute drive
time from the Subject. Additionally, the PMA boundaries and overall market health assessment are
based upon analyses of physical boundaries, which include traffic and commuting patterns within
the area, surveys of existing market rate and affordable apartment projects undertaken by
Novogradac & Company LLP, and insights gained from resident managers, area planning staff, and
others familiar with the multifamily market. McCall is not part of a metropolitan area. Therefore,
we have defined the SMA as Valley and Adams County. We have estimated that 15 percent of
tenants will come from outside the PMA boundaries.
40
PMA Map
41
SMA Map
42
Population and Households
The following tables illustrate population and household trends in the PMA, SMA, and nation from
2000 through 2019.
POPULATION
Year
2000
2014
2019
Number
5,696
7,729
7,689
PMA
Annual Change
2.5%
-0.1%
Number
11,127
13,891
13,803
SMA
Annual Change
1.7%
-0.1%
Number
281,421,906
314,467,933
325,843,774
USA
Annual Change
0.8%
0.7%
Number
105,991,193
118,979,182
123,464,895
USA
Annual Change
0.9%
0.8%
HOUSEHOLDS
Year
2000
2014
2019
Number
2,349
3,427
3,437
PMA
Annual Change
3.2%
0.1%
Number
4,632
6,239
6,254
SMA
Annual Change
2.4%
0.0%
Both the population and number of households in the PMA increased from 2000 to 2014, at a faster
rate than both the SMA and nation over the same time period. Through 2019, the population and
households in the PMA and SMA are projected to remain generally steady. National population and
households are projected to increase slightly through 2019, at a faster rate than both the PMA and
SMA. Despite the projected stable trends in the PMA, market data such as the full occupancy and
wait lists at the LIHTC comparables as well as the generally low capture rates indicate that there is
likely latent demand for affordable housing. Further, the Subject will be new construction and in
excellent condition upon completion and will be more desirable than the predominately fair to
average condition rental housing stock in the PMA.
The map on the following page depicts the population trends in the state.
43
Valley County
Average Household Size
The following table is a summary of the average household size in the PMA, SMA, and nation from
2000 to 2019.
AVERAGE HOUSEHOLD SIZE
Year
2000
2014
2019
Number
2.40
2.24
2.22
PMA
Annual Change
-0.5%
-0.2%
Number
2.38
2.21
2.19
SMA
Annual Change
-0.5%
-0.2%
USA
Number
2.58
2.58
2.57
Annual Change
0.0%
0.0%
The average household size in the PMA is similar to that of the SMA, but slightly smaller than the
national average. Through 2019, the average household size of the PMA is projected to remain
generally stable.
44
Median Household Income
The table below illustrates the median household income in the SMA, PMA, and nation from 2000
through 2019.
MEDIAN HOUSEHOLD INCOME
Year
2000
2014
2019
Amount
$37,075
$51,813
$56,316
PMA
Annual Change
2.8%
1.7%
Amount
$34,291
$46,193
$52,395
SMA
Annual Change
2.4%
2.7%
USA
Amount
$42,164
$51,314
$59,580
Annual Change
1.5%
3.2%
The median household income in the PMA is above the SMA and similar to the national average.
Through 2019, the median household income in the PMA is expected to grow at a rate less than that
of the SMA and nation.
The following map depicts the median household income by county in the state.
Valley County
45
For Section 42 LIHTC rent determination purposes, the Area Median Income (AMI) is used. The
following chart illustrates the AMI level for a four-person household in Valley County.
Source: Novogradac & Company LLP (8/2014)
The previous chart illustrates the area median gross income (AMGI) of a four-person household in
the Valley County, ID between 2000 and 2014. On average, from 2000 to 2014 the AMGI has
increased by 4.3 percentage points per annum. As of 2014, the AMI increased by 6.6 percent.
Nationally, 43 percent of the counties saw a decrease in the 2014 AMI level. The Subject’s proposed
40, 45, 50, 55, and 60 percent AMI rents are below the maximum allowable levels and thus, rent
increases will not be depend on changes on the AMGI.
46
Household Income
The following tables illustrate household income levels in the PMA, SMA, and nation.
HOUSEHOLD INCOME PMA
PMA
Income Cohort
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
Total
2014
2019
Percentage
7.3%
9.7%
14.0%
16.1%
11.8%
7.7%
7.0%
12.3%
7.8%
2.1%
2.4%
1.7%
100.0%
Number
251
333
479
550
404
266
240
422
268
73
83
58
3,427
Number
284
374
561
507
398
261
242
406
215
64
69
56
3,437
Percentage
8.3%
10.9%
16.3%
14.8%
11.6%
7.6%
7.1%
11.8%
6.2%
1.9%
2.0%
1.6%
100.0%
Annual Change 2014 to 2019
Percentage
Number
7
2.6%
8
2.5%
16
3.4%
-9
-1.6%
-1
-0.3%
-1
-0.4%
1
0.2%
-3
-0.8%
-11
-4.0%
-2
-2.6%
-3
-3.3%
0
-0.6%
Source: Ribbon Demographics 2014, Novogradac & Company LLP, January 2015
HOUSEHOLD INCOME MSA
SMA
Income Cohort
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
Total
2014
Number
532
786
906
951
725
440
519
681
407
98
109
85
6,239
2019
Percentage
8.5%
12.6%
14.5%
15.3%
11.6%
7.1%
8.3%
10.9%
6.5%
1.6%
1.7%
1.4%
100.0%
Number
603
884
1,048
871
694
430
513
644
315
85
90
78
6,254
Percentage
9.6%
14.1%
16.8%
13.9%
11.1%
6.9%
8.2%
10.3%
5.0%
1.4%
1.4%
1.2%
100.0%
Percentage
Number
14
2.7%
20
2.5%
28
3.1%
-16
-1.7%
-6
-0.9%
-2
-0.4%
-1
-0.2%
-8
-1.1%
-18
-4.5%
-3
-2.7%
-4
-3.5%
-1
-1.6%
Both the SMA and the PMA feature significant portions of the population with household incomes
lower than the AMI. In the PMA, more than 47 percent of households have incomes below $40,000
per year compared to over 50 percent of SMA households. The income-eligible range for the
Subject’s LIHTC units is between $17,143 and $43,200. As the Demand Analysis presented later in
this report will indicate, there is demand in the PMA for the Subject.
47
Renter Household Income Distribution
The following tables illustrate the renter household income distribution in 2014 and 2019 in the
PMA and SMA.
RENTER HOUSEHOLD INCOME PMA
PMA
Income Cohort
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
Total
2014
Number
64
84
184
147
170
120
63
37
60
13
17
6
964
2019
Percentage
6.7%
8.7%
19.1%
15.3%
17.6%
12.4%
6.6%
3.8%
6.2%
1.4%
1.7%
0.6%
100.0%
Number
75
87
204
133
167
116
61
41
49
12
15
5
964
Percentage
7.8%
9.0%
21.2%
13.8%
17.3%
12.0%
6.4%
4.2%
5.0%
1.2%
1.6%
0.5%
100.0%
Percentage
Number
2
3.4%
1
0.6%
4
2.2%
-3
-1.9%
-1
-0.3%
-1
-0.6%
0
-0.6%
1
2.2%
-2
-3.7%
0
-2.6%
0
-1.9%
0
-3.3%
RENTER HOUSEHOLD INCOME SMA
SMA
Income Cohort
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
Total
2014
Number
169
210
280
236
245
161
83
49
72
15
18
8
1,547
2019
Percentage
10.9%
13.6%
18.1%
15.3%
15.9%
10.4%
5.4%
3.2%
4.7%
1.0%
1.1%
0.5%
97.4%
Number
190
212
316
208
239
155
80
53
52
11
17
8
1,540
Percentage
12.3%
13.8%
20.5%
13.5%
15.5%
10.1%
5.2%
3.4%
3.4%
0.7%
1.1%
0.5%
97.7%
Percentage
Number
4
2.5%
0
0.2%
7
2.5%
-6
-2.4%
-1
-0.5%
-1
-0.7%
-1
-0.8%
1
1.4%
-4
-5.7%
-1
-5.3%
0
-0.8%
0
0.5%
According to the table above, approximately 49.8 percent of renter households within the PMA have
incomes of less than $40,000 as of 2014. The income-eligible range for the Subject’s LIHTC units is
between $15,634 and $43,200. According to the table displaying SMA data, approximately 57.9
percent of renter households have incomes of less than $40,000 as of 2014. This data illustrates a
need for additional affordable housing within the PMA and the SMA.
48
Renter Household Income Distribution by Household Size
The following tables illustrate the renter household income distribution by household size in
2014 and 2019 in the PMA.
RENTER HOUSEHOLD INCOME BY HOUSEHOLD SIZE
PMA 2014
Income Cohort
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
T otal
1
19
71
53
60
33
28
6
17
18
4
7
3
318
2
42
2
43
39
28
79
0
8
29
2
2
1
275
3
2
8
9
9
68
2
41
10
2
1
7
0
158
4
0
1
40
40
7
10
9
2
6
0
0
1
115
5+
1
2
39
0
34
1
8
0
6
6
1
0
98
RENTER HOUSEHOLD INCOME BY HOUSEHOLD SIZE
PMA 2019
Income Cohort
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
T otal
1
24
75
60
57
30
31
6
17
16
5
7
2
331
2
48
2
52
35
25
72
0
8
23
1
2
1
270
3
1
8
10
10
70
2
38
13
2
0
3
0
159
4
1
0
42
31
7
10
12
2
3
0
1
1
111
5+
1
1
39
0
35
0
6
0
3
6
1
0
93
As illustrated, there are a significant number of one, two, and three-person renter households in the
PMA.
49
General Population Conclusion
Population and households in the PMA and SMA increased at faster rates than the nation from 2000
to 2014. It is projected that population and households in the PMA will remain generally stable
through 2019. Despite the projected stable trends in the PMA, market data such as the full
occupancy and wait lists at the LIHTC comparables as well as the generally low capture rates
indicate that there is likely latent demand for affordable housing. Further, the Subject will be new
construction and in excellent condition upon completion and will be more desirable than the
predominately fair to average condition rental housing stock in the PMA. Through 2019, the median
household income in the PMA is expected to grow at a rate less than that of the SMA and nation.
Additionally, approximately 49.8 percent of renter households within the PMA have incomes of less
than $40,000 as of 2014. This data illustrates a need for additional affordable housing within the
PMA and the SMA.
50
SUPPLY ANALYSIS
SUPPLY ANALYSIS
HOUSING SUMMARY
The availability of rental data in the PMA is considered average. However, the availability of newer
market rate data in the PMA is limited. Nonetheless, we believe that we have sufficient data in order
to determine marketability for the Subject property. We have included two LIHTC properties and
six market rate properties as comparables in the analysis. The following table details the affordable
properties within the PMA.
Property Name
Roseberry Court
The Springs
McCall Senior Housing
AFFORDABLE PROPERTIES WITHIN THE PMA
Location
Type
Tenancy
Units
McCall
Rural Development
Family
18
McCall
LIHTC
Family
36
McCall
LIHTC
Family
8
McCall
Rural Development
Senior
28
Reason for Exclusion
Subsidized rents
Included
Included
Subsidized rents/different tenancy
Tenure
The following table is a summary of the tenure patterns of the housing stock in the PMA.
TENURE PATTERNS PMA
Year
2000
2014
2019
Owner-Occupied
Percentage
Renter-Occupied
Percentage
Units
Owner-Occupied
Units
Renter-Occupied
1,767
75.2%
582
24.8%
2,463
71.9%
964
28.1%
2,473
72.0%
964
28.0%
Renter-occupied units comprise a lower percentage of units than owner-occupied units in the PMA.
Nationally, approximately two-thirds of households are homeowners and one-third are renters. The
PMA has a similar percentage of renter households than the nation as a whole.
Foreclosure Discussion
According to realtytrac.com, approximately one in every 1,153 housing units is currently in the
foreclosure process across the nation, as of December 2014. In Idaho, the rate is one in every 2,554
housing units. Foreclosure data for Valley County was not available.
52
Building Permit Activity
The following table depicts building activity from 2003 through November 2014 in the City of
McCall and Valley County (unincorporated).
BUILDING PERMITS: City of McCall and Valley County - 2003 to 2014*
Single-family
Three and
Five or More
Year
and Duplex
Four-Family
Family
Total Units
2003
109
0
0
109
2004
247
0
0
247
2005
307
0
0
307
2006
320
0
0
320
2007
126
0
0
126
2008
70
0
0
70
2009
33
0
0
33
2010
3
0
0
3
2011
10
0
0
10
2012
49
0
0
49
2013
84
0
0
84
2014*
Total
Average**
60
1,418
123
0
0
0
0
0
0
60
1,418
123
*Only includes through November 2014
** Does not include 2014 permits
According to the Census Building Permit data, since 2003, there have been no building permits
issued for multifamily developments in McCall or Valley County (unincorporated). However, we are
aware of new multifamily in form of a recently built LIHTC property (The Springs, built in 2011)
and condominiums at Alpine Village, which were built in 2009. There was no formal explanation
provided by the Community Development Department; however, it is our understanding that the
reporting of permitting data to the Census Bureau is voluntary and, further, that it is subject to error
and may not include all permitting activity.
53
INTERVIEWS/DISCUSSION
In order to ascertain the need for housing and affordable housing in the Subject’s area, interviews
were conducted with various local officials, including the local housing authority and the
Community Development Director for the City of McCall.
Southwestern Idaho Cooperative Housing Authority
In order to ascertain the need for housing and affordable housing in the Subject’s area, we
interviewed the local housing authority to determine demand in the market. The Southwestern Idaho
Cooperative Housing Authority has jurisdiction in Valley County. According to Ms. Janie DeMond,
a representative for Valley County, the Authority currently has 26 active Housing Choice Vouchers
in Valley County. There are 75 households on the Authority’s Valley County waiting list. The
following table illustrates the current gross payment standards.
PAYMENT STANDARDS
1 BDRM
2 BDRM
3 BDRM
$614
$730
$1,075
The Subject’s proposed 40, 55, and 50 percent AMI one, two and three-bedroom gross rents are
below the payment standards. The Subject’s 55 and 60 percent AMI one and two-bedroom gross
rents are above the payment standards.
City of McCall Planning and Zoning Department
We interviewed Ms. Michelle Groenevelt, Community Development Director for the City of
McCall. According to Ms. Groenevelt, are no multifamily projects besides the Subject that are
planned in McCall at this time.
LIHTC Competition / Recent and Proposed Construction
According to the Idaho Housing and Finance Association, there have been no projects awarded
LIHTC’s in the Subject’s PMA since 2011.
54
SURVEY OF COMPARABLE PROJECTS
Comparable properties are examined on the basis of physical characteristics; i.e., building type,
building age/quality, the level of common amenities, absorption rates, and similarity in rent
structure. We attempted to compare the Subject to properties from the competing market, in order to
provide a picture of the general economic health and available supply in the market.
Description of Property Types Surveyed/Determination of Number of Tax Credit Units
To evaluate the competitive position of the Subject, 82 units in eight rental properties were surveyed
in depth. Property managers were interviewed for information on unit mix, sizes, and absorption
rates, unit features and project amenities; tenant profiles; and market trends in general.
The availability of rental data in the PMA is considered average. However, the availability of newer
market rate data as well as elevator-serviced product in the PMA is limited. The rental inventory in
the market is predominately older walk-up and townhouse product within small complexes.
Nonetheless, we believe that we have sufficient data in order to determine marketability for the
Subject property. We have included two LIHTC properties and six market rate properties as
comparables in the analysis. Additionally, due to the limited availability of market rate data in the
PMA, we have supplemented our rent analysis with local classified listings. All of the comparable
properties are located within the PMA.
Detailed matrices describing the individual competitive properties, as well as the proposed Subject,
are provided in the addenda of this report. A map illustrating the location of the Subject in relation to
the comparable properties is also below.
55
COMPARABLE RENTAL PROPERTY MAP
56
#
1
2
3
4
5
6
7
8
COMPARABLE PROPERTIES
Property Name
City
Type
The Springs
Mccall
LIHTC
Mccall
LIHTC
Mccall
Market
433 Payette Triplex
Donnelly Market
Aspen Glen
Mccall
Market
Mccall
Market
The Timbers
Mccall
Market
Mccall
Market
Distance
1.0 miles
0.1 miles
0.4 miles
12.1 miles
1.3 miles
0.8 miles
0.7 miles
0.5 miles
57
PROPERTY CHARACTERISTICS
Following are relevant characteristics of the comparable properties surveyed:
Location
The Subject is located in downtown McCall, within a predominately established mixed-use area that
has convenient pedestrian access to numerous local amenities. The following tables detail the
location characteristics of the Subject and the comparable properties within a 0.5 mile radius.
Locational Comparison
Radius
Name
Address
City
State
ZIP Code
MSA
Locational qualities
Population 2013
MSA
STATE
Population 65+ 2013
Median Household Income 2013
MSA
STATE
Renter Household Percent 2013
MSA
STATE
Owner Household Percent 2013
MSA
STATE
Vacant Housing Unit Percent 2013
MSA
STATE
Total Crime
Personal Crime
Property Crime
Walk Score®
Walk Score® Name
0.5 miles
0.5 miles
0.5 miles
0.5 miles
0.5 miles
Northwest Passage
701 1st Street
Mccall
ID
83638
The Springs
325 Valley Springs Road
Mccall
ID
83638
210 Colorado Street
Mccall
ID
83638
400 Mission Street
Mccall
ID
83638
433 Payette Triplex
433 Payette Street
Donnelly
ID
83638
583
13,891
1,628,760
17.15%
$54,644
$49,193
$45,031
15.26%
24.80%
27.65%
33.03%
75.20%
58.75%
51.71%
57.42%
13.60%
111
88
106
58
Somewhat Walkable
359
13,891
1,628,760
19.78%
$52,829
$49,193
$45,031
23.01%
24.80%
27.65%
45.19%
75.20%
58.75%
31.80%
57.42%
13.60%
111
88
106
57
Somewhat Walkable
624
13,891
1,628,760
16.51%
$55,536
$49,193
$45,031
14.74%
24.80%
27.65%
31.31%
75.20%
58.75%
54.10%
57.42%
13.60%
111
88
106
53
Somewhat Walkable
48
13,891
1,628,760
14.58%
$58,163
$49,193
$45,031
9.80%
24.80%
27.65%
21.57%
75.20%
58.75%
68.63%
57.42%
13.60%
79
58
79
10
Car-Dependent
143
13,891
1,628,760
16.78%
$55,427
$49,193
$45,031
14.13%
24.80%
27.65%
46.74%
75.20%
58.75%
39.13%
57.42%
13.60%
79
58
79
13
Car-Dependent
0.5 miles
0.5 miles
0.5 miles
0.5 miles
0.5 miles
Northwest Passage
701 1st Street
Mccall
ID
83638
Aspen Glen
310 Gabi Lane
Mccall
ID
83638
905 West Lake Street
Mccall
ID
83638
The Timbers
1305 Ponderosa Street
Mccall
ID
83638
300 Thula Street
Mccall
ID
83638
583
13,891
1,628,760
17.15%
$54,644
$49,193
$45,031
15.26%
24.80%
27.65%
33.03%
75.20%
58.75%
51.71%
57.42%
13.60%
111
88
106
58
Somewhat Walkable
270
13,891
1,628,760
13.70%
$58,317
$49,193
$45,031
13.18%
24.80%
27.65%
27.36%
75.20%
58.75%
59.46%
57.42%
13.60%
79
58
79
0
Car-Dependent
221
13,891
1,628,760
17.19%
$54,945
$49,193
$45,031
9.73%
24.80%
27.65%
21.24%
75.20%
58.75%
69.32%
57.42%
13.60%
111
88
106
15
Car-Dependent
858
13,891
1,628,760
20.28%
$51,504
$49,193
$45,031
9.53%
24.80%
27.65%
19.86%
75.20%
58.75%
70.54%
57.42%
13.60%
142
117
132
36
Car-Dependent
404
13,891
1,628,760
17.33%
$55,235
$49,193
$45,031
16.54%
24.80%
27.65%
33.33%
75.20%
58.75%
50.12%
57.42%
13.60%
111
88
106
40
Car-Dependent
Locational Comparison
Radius
Name
Address
City
State
ZIP Code
MSA
Locational qualities
Population 2013
MSA
STATE
Population 65+ 2013
Median Household Income 2013
MSA
STATE
Renter Household Percent 2013
MSA
STATE
Owner Household Percent 2013
MSA
STATE
Vacant Housing Unit Percent 2013
MSA
STATE
Total Crime
Personal Crime
Property Crime
Walk Score®
Walk Score® Name
Note that all of the Subject and all of the comparables have high neighborhood housing vacancies;
however, this is due to prevalence of seasonal homes in the area, which are defined by the Census as
‘vacant.’ The Subject’s location has a generally similar median household income relative and crime
index relative to all the comparable properties. The Subject has a walk score of 58 which is
58
considered “somewhat walkable.” The Springs and Valley One Apartments are the only comparables
that are considered “somewhat walkable.” It is also important to note that the Subject is located
within downtown McCall and has convenient pedestrian access to Payette Lake (two blocks to the
north), which is superior to all of the comparables. Overall, the Subject’s location is considered
generally similar to Valley One and superior to the remaining comparables.
Age and Condition/Design
The two LIHTC properties, The Springs and Valley One Apartments, were built in 2011 and 1995,
respectively. The Subject will be slightly superior to The Springs and superior to Valley One
Apartments in terms of age and condition. The market rate properties were built or rehabilitated
between 1960 and 2014, with the majority constructed in 1990 or earlier. It is important to note that
the reported scope of renovations in the market are somewhat limited and include flooring and
appliances. As such, the overall quality of the market rate comparables based on vintage and
condition will be inferior to the Subject.
Unit Mix
The following table summarizes the unit mix at the Subject compared to that at the comparable
properties.
UNIT MIX
Unit Type
Studio
1 BR
2 BR
3 BR
Total
Total Units
(Subject)
0
5
23
8
36
Percent
(Subject)
0%
14%
64%
22%
100%
Total Units
(Comps)
4
15
45
18
82
Percent
(Comps)
5%
18%
55%
22%
100%
The Subject will consist of 14 percent one-bedroom units, 64 percent two-bedroom units, and 22
percent three-bedroom units. The Subject’s proposed mix is generally similar to the comparables and
appears reasonable.
Unit Size
The following table summarizes unit sizes in the market area, and provides a comparison of the
Subject’s unit sizes and the surveyed average unit sizes in the market.
UNIT SIZE COMPARISON
Unit Type
1 BR
2 BR
3 BR
Subject
605
760 - 800
1,025 - 1,250
Surveyed Min
600
750
925
Surveyed Max
900
900
1,400
Surveyed
Average
701
843
1,095
Advantage/
Disadvantage
-14%
-9% to -5%
-6% to 14%
One, two and three-bedroom unit sizes as proposed at the Subject will be within the range of
comparables. However, they will be on the lower end of the range and will be smaller than the
59
surveyed average with the exception of the Subject’s market rate three bedroom units, which will be
slightly larger than the surveyed average. We have considered the Subject’s unit sizes in our rent
determinations.
Total Number of Baths per Unit
The Subject will offer one bathroom in its one and two-bedroom units and two bathrooms in its
three-bedroom units. All of the comparables offer similar number of baths in their one, two and
three-bedroom units. We believe that the proposed number of baths per unit is market-oriented.
Amenities
The following chart illustrates the amenities at the Subject property and the amenities offered by the
comparables.
60
UNIT MATRIX REPORT
Northwest
Passage
Subject
The Springs
1
Valley One
Apartments
2
Lowrise (3
stories)
2016 / n/a
Garden (2
stories)
2011 / n/a
Townhouse
(2 stories)
1995 / n/a
One-story
One-story
One-story
1960 / 2014
2005 / n/a
LIHTC/Market
LIHTC
LIHTC
Market
Utility Adjusments
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
no
no
no
no
yes
yes
yes
no
no
no
no
yes
yes
yes
no
no
no
no
yes
yes
yes
In-Unit Amenities
Balcony/Patio
Blinds
Cable/Satellite/Internet
Carpeting
Central A/C
Coat Closet
Dishwasher
Exterior Storage
Ceiling Fan
Fireplace
Garbage Disposal
Microwave
Oven
Refrigerator
Walk-In Closet
Wall A/C
Washer/Dryer
Washer/Dryer hookup
yes
yes
no
yes
no
yes
yes
yes
yes
no
yes
yes
yes
yes
yes
no
yes
yes
yes
yes
no
yes
no
no
yes
no
no
no
yes
no
yes
yes
no
yes
no
no
yes
yes
Comp #
Property Information
Property Type
Year Built / Renovated
Market (Conv.)/Subsidy
Type
Property Amenities
Business
Center/Computer Lab
Carport
Clubhouse/Meeting
Room/Community Room
Elevators
Exercise Facility
Central Laundry
Non-shelter Services
Off-Street Parking
On-Site Management
Playground
Recreation Areas
Service Coordination
Carport Fee
400 Mission 433 Payette
Street 4-plex
Triplex
3
4
Aspen Glen
5
Pine Creek
Apartments
6
The Timbers Thula Street
Tri-plex
7
8
1990 / 2010
Garden (2
stories)
2004 / n/a
Garden (2
stories)
1980 / n/a
Duplex
1990 / n/a
Market
Market
Market
Market
Market
no
no
no
no
yes
yes
yes
no
no
no
no
yes
yes
yes
no
no
no
no
yes
yes
yes
no
no
no
no
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
no
no
no
no
yes
yes
yes
yes
yes
no
yes
no
no
yes
no
no
no
no
no
yes
yes
no
no
no
yes
no
yes
no
yes
yes
no
no
no
yes
no
no
no
yes
yes
no
no
no
no
no
yes
no
yes
yes
yes
yes
no
yes
no
yes
no
yes
yes
no
no
yes
yes
no
yes
no
yes
no
no
yes
no
no
yes
yes
no
yes
yes
no
no
yes
yes
no
yes
no
yes
no
yes
yes
no
no
no
yes
no
yes
yes
no
no
yes
yes
no
yes
yes
yes
no
no
yes
no
no
no
no
no
yes
yes
no
no
no
no
yes
yes
yes
yes
no
no
yes
yes
yes
yes
yes
no
yes
yes
yes
no
yes
yes
no
yes
no
no
no
no
no
no
no
no
no
no
no
no
no
no
yes
yes
yes
no
yes
yes
yes
yes
no
yes
$50.00
yes
no
yes
yes
no
yes
yes
yes
yes
no
N/A
no
no
no
no
no
yes
no
no
no
no
N/A
no
no
no
no
no
yes
no
no
no
no
N/A
no
no
no
no
no
yes
no
no
no
no
N/A
no
no
no
no
no
yes
no
no
no
no
N/A
no
no
no
no
no
yes
no
no
no
no
N/A
no
no
no
yes
no
yes
no
no
no
no
N/A
no
no
no
no
no
yes
no
no
no
no
N/A
yes
yes
yes
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
Services
Security
Limited Access
Video Surveillance
61
Unit Amenities
The Subject will offer exterior storage, which is not offered at seven of the comparables; ceiling
fans, which are not offered at five of the comparables; walk-in closets, which are not offered at
seven of the comparables and in-unit washer/dryers, which are not offered at four of the
comparables. However, two of the comparables include cable with rent and two offer fireplaces, all
of which are not offered at the Subject. The Subject’s unit amenities will be generally superior to the
LIHTC and market rate comparables with the exception of the Thula Street Tri-plex, which includes
cable in rent, garbage disposals and fireplaces. The Subject will have slightly inferior in-unit
amenities compared to the Thula Street Triplex. Overall, we believe that the Subject’s proposed unit
amenities will be competitive.
Common Area Amenities
In terms of common area amenities, the Subject will offer a computer center, clubhouse, elevators,
an exercise facility, non-shelter services, on site management, playground, and service coordination.
The Springs is the only comprarable that offers a clubhouse, exercise facility, on site management
and a playground. The remaining comparables are smaller multifamily properties and do not offer
many common area amenities. Overall, the Subject will be slightly superior to The Springs and
superior to the remaining comparables in terms of common area amenities.
Utility Structure
Tenants will be responsible for electricity for heating, cooking, lights, and a small service fee. Cold
water, sewer, and trash will be included in the rental rates. A majority of the comparable properties
include the cost of cold water, sewer service and trash in the cost of rent, similar to the Subject’s
utility convention. The Timbers is the only comparable that includes all utilities.
Parking
The Subject will offer 18 carport parking spaces and 54 surface parking spaces, or a ratio of 2.0
spaces per unit. All of the comparable properties include free off-street parking and The Springs is
the only comparable that offers carports. The Springs has one carport assigned per unit free of
charge along with additional off-street parking. Overall, the Subject’s parking options will be
market-oriented. Further, although parking ratios for comparables were unavailable, we believe that
the proposed parking will be adequate based on the proposed unit mix of one, two, and threebedroom units.
62
MARKET CHARACTERISTICS
Following are relevant market characteristics for the comparable properties surveyed.
Absorption
The Springs is the only comparable property that was able to provide absorption data. The property
opened in 2011 and absorbed its units in approximately eight months, an absorption pace of
approximately 4.5 units per month. However, considering the relatively low vacancy rates at the
LIHTC and market rate properties, the waiting list at The Springs, as well as the Subject’s capture
rates, we estimate that the Subject will reach a stabilized occupancy within six months assuming the
achievable LIHTC rent. This estimate equates to an absorption pace of approximately six units per
month.
Tenant Makeup
The following table illustrates tenant characteristics of the comparable properties, as reported by the
property managers.
TENANT CHARACTERISTICS
Comparable Property
The Springs
433 Payette Triplex
Aspen Glen
The Timbers
Type
LIHTC
LIHTC
Market
Market
Market
Market
Market
Market
Tenant Characteristics
Would not provide
Small families, couples from McCall
Singles, one couple
Would not identify
Small families, singles
Families and couples from McCall
Couples with children; singles
Couples and singles from McCall
As illustrated, most property managers indicate that tenants consist of a mix of singles, couples, and
small families that are predominately from the McCall area. Based on the proposed unit mix, we
believe that the Subject will attract predominately singles, couples, and small families from McCall
and the surrounding area.
TENANTS WITH VOUCHERS
Comparable Property
The Springs
433 Payette Triplex
Aspen Glen
The Timbers
Type
LIHTC
LIHTC
Market
Market
Market
Market
Market
Market
Housing Choice Voucher Tenants
15%
38%
0%
0%
N/A
0%
0%
0%
63
The comparables reported voucher tenancy from zero to 38 percent. The Springs and Valley One
Apartments, the two LIHTC comparables, reported 15 to 38 percent of tenants using a voucher,
respectively. The market rate properties reported no tenants using vouchers. We anticipate 25
percent or less voucher reliance at the Subject.
Turnover
The following table illustrates turnover as reported by the comparable properties.
TURNOVER
Property name
The Springs
433 Payette Triplex
Aspen Glen
The Timbers
Average Turnover
Rent Structure
LIHTC
LIHTC
Market
Market
Market
Market
Market
Market
Turnover
35%
20%
25%
N/A
25%
15%
20%
N/A
23%
Overall, comparable properties in the PMA reported an average of 23 percent annual turnover. Of
the comparables, LIHTC properties reported an average turnover of 28 percent, while market rate
properties reported an average of turnover of 21 percent. We anticipate that the Subject will
experience an annual turnover of 25 to 35 percent.
Vacancy Levels
The following table summarizes overall weighted vacancy levels at the surveyed properties.
OVERALL VACANCY
Property name
The Springs
400 Mission Street 4-plex*
433 Payette Triplex
Aspen Glen
The Timbers*
LIHTC Total
Market Total
Total
Rent Structure
LIHTC
LIHTC
Market
Market
Market
Market
Market
Market
Total Units
36
8
3
3
4
7
15
3
44
35
79
Vacant Units
0
0
0
1
0
0
0
0
0
1
1
Vacancy Rate
0.0%
0.0%
0.0%
33.3%
0.0%
0.0%
0.0%
0.0%
0.0%
2.9%
1.3%
*400 Mission Street has one vacant unit that is down for renovations and has not been included; T he T imbers has two units down for
renovations that have not been included
64
The vacancy rate among the comparables ranges from zero to 33.0 percent, with an average vacancy
rate of 1.3 percent. The two LIHTC comparables are both fully-occupied and keep short waiting
lists. The market rate comparables reported an overall vacancy of 2.9 percent; with 433 Payette
Triplex being the only comparable that reported a vacancy. 400 Mission Street has one unit down for
renovations and management expects the unit to be occupied by early February. Additionally, two of
the 17 units at the Timbers are uninhabitable and will be undergoing renovations in the spring.
Therefore, these units have been excluded in the vacancy analysis. Taking the market data into
account, we expect the Subject to maintain a vacancy rate of five percent or less upon completion.
Concessions
None of the comparable properties are offering rent concessions. We do not anticipate that the
Subject will need to offer rent concessions during lease-up or upon stabilization.
Waiting Lists
The Springs and Valley one both reported having short wait lists. The Springs has a wait list of four
households and Valley One Apartments has a wait list of three households. We anticipate that the
Subject will likely operate with a short waiting list.
Rental Rate Increases
The following table details rent growth at the comparable properties over the past twelve months.
RENT GROWTH
Comparable Property
The Springs
433 Payette Triplex
Aspen Glen
The Timbers
Rent Structure
LIHTC
LIHTC
Market
Market
Market
Market
Market
Market
Rent Growth
Increased 2 to 5%
Increased 26 to 30%
None
None
None
None
None
None
As seen in the previous table, the two LIHTC comparable properties reported rental rate increases,
ranging from two to 30 percent. The Springs reported slight rental increases ranging from two to five
percent. Valley One Apartments changed management in December 2014 and reported significant
rent increases ranging from 26 to 30 percent. However, both properties are achieving rents well
below the maximum allowable levels. The Subject’s proposed 40, 45, 50, 55, and 60 percent AMI
rents are below the maximum allowable levels and rent increases would not be dependent on AMI
growth.
65
Reasonability of Rents
The following table is a comparison of the Subject’s and comparable properties’ rents. For the
purposes of this market study, “Base Rents” are the actual rents quoted to the tenant, and are most
frequently those rents that potential renters consider when making a housing decision. “Net rents”
are rents adjusted for the cost of utilities (adjusted to the Subject’s convention) and are used to
compensate for the differing utility structures of the Subject and the comparable properties. Net rents
represent the actual costs of residing at a property, and help to provide an “apples-to-apples”
comparison of rents.
Property Name
1BR
$400
LIHTC Maximum (Net)
$444
The Springs
$375
$375
$400
2BR
$500
$534
N/Ap
N/Ap
$500
Property Name
1BR
2BR
$450
$550
LIHTC Maximum (Net)
$506
$609
The Springs
$425
N/Ap
$425
N/AP
$450
$550
3BR
$625
$696
N/Ap
N/Ap
$625
Property Name
2BR
$600
LIHTC Maximum (Net)
$684
The Springs
$555
$500
$528
$600
3BR
$675
$783
$635
N/Ap
$635
$675
Property Name
2BR
$620
LIHTC Maximum (Net)
$759
The Springs
$620
$620
$650
3BR
$750
$869
$710
$710
$750
66
Property Name
1BR
2BR
$575
$700
LIHTC Maximum (Net)
$694
$834
The Springs
$535
$680
N/Ap
$550
$535
$615
$575
$700
3BR
$800
$956
$780
$600
$690
$800
As seen in the previous tables, the Subject’s proposed 40, 45, 50, 55, and 60 percent rents are set at
the maximum allowable levels. The Springs and Valley One Apartments are achieving rents well
below the maximum allowable levels for their respective units. It should be noted that none of the
comparable LIHTC properties offer two-bedroom units at 40 or 45 percent AMI nor three-bedroom
units at 45 percent AMI.
The Subject will be most similar to The Springs in terms of overall condition and design. The
Springs was built in 2011 and is fully occupied with a short wait list. Upon completion, the Subject
will offer generally superior in-unit and common area amenities, slightly superior condition, and
slightly inferior unit sizes. The Springs is achieving rents well below the maximum allowable levels.
However, The Springs is operated by a non-profit that deliberately keeps rents low. We spoke with
Greg Putnam, the Regional Compliance Manager for The Springs and he stated that the property
typically operates with a wait list and that slightly higher rent increases would be possible. However,
he stated that maximum allowable rents would likely not be achievable in the market. Given the
Subject’s superior position in the market relative to The Springs, we believe that the Subject could
achieve rents above The Springs but below the maximum allowable levels. Therefore, we believe
that the proposed LIHTC rents are all at their achievable levels.
67
Achievable Market Rents
Based on the quality of the surveyed comparable properties and the anticipated quality of the
proposed Subject, we conclude that the Subject’s LIHTC rental rates are below the achievable
market rates for the Subject’s area. The following tables show the proposed LIHTC rent
comparisons to market rents.
Unit Type
1 BR @ 40%
2 BR @ 40%
1 BR @ 45%
2 BR @ 45%
3 BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @ 55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market*
3 BR Market*
Subject Comparison To Market Rents
Surveyed
Surveyed Surveyed
Subject
Min
Max
Average
$400
$350
$450
$422
$500
$444
$700
$568
$450
$350
$450
$422
$550
$444
$700
$568
$625
$470
$825
$603
$600
$444
$700
$568
$675
$470
$825
$603
$620
$444
$700
$568
$750
$470
$825
$603
$575
$350
$450
$422
$700
$444
$700
$568
$800
$470
$825
$603
$800
$444
$700
$568
$975
$470
$825
$603
Achievable
Market Rents
$650
$775
$650
$775
$900
$775
$900
$775
$900
$650
$775
$900
$800
$975
Subject Rent
Advantage
38%
35%
31%
29%
31%
23%
25%
20%
17%
12%
10%
11%
0%
0%
*T he Subject's market rate unit units will have larger unit sizes, thus the achievable market rents are above those for the
smaller unit sizes.
As illustrated in the preceding table, the Subject’s achievable LIHTC rents are below the achievable
market rents, giving the Subject a 10 to 38 percent rent advantage over the achievable market rents.
The achievable market rents for the Subject’s units are placed moderately above the surveyed
maximum market rate rents, as the Subject will offer a superior location, condition, in-unit
amenities, and common area amenities upon completion. Additionally, the achievable rent for the
Subject’s two and three-bedroom market rate units are above the achievable market rate rent for the
LIHTC units because they are larger.
Overall, the Subject will be most similar to Aspen Glen and 433 Payette, which are the newest
properties, in terms of curb appeal and quality. Compared to Aspen Glen, the Subject will have a
superior condition, similar location, superior unit and common amenities, and similar unit size.
Compared to 433 Payette Triplex, the Subject will have a superior condition, superior location,
superior unit and common amenities, and inferior unit size. Therefore, we believe market rate two
and three-bedroom rents moderately above the rents at Aspen Glen and 433 Payette Triplex are
achievable. The Timbers and 400 Mission Street 4-plex are the only market rate comparables that
offer one-bedroom units. Compared to these two properties, the Subject will have a superior
condition, similar location, superior unit and common amenities and generally similar to inferior unit
sizes. Therefore, we believe that market rate one-bedroom rent well above these comparables is
reasonable.
68
The following tables depict the Subject’s proposed rents and the market rents at Aspen Glen and 433
Payette Triplex.
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with Aspen Glen
Aspen Glen
Rent
$400
605
N/Ap
$500
760
$700
$450
605
N/Ap
$550
760
$700
$625
1,025
N/Ap
$600
760
$700
$675
1,025
N/Ap
$620
760
$700
$750
1,025
N/Ap
$575
605
N/Ap
$700
760
$700
$800
1,025
N/Ap
$800
800
$700
$1,000
1,250
N/Ap
Square
Feet
N/Ap
760
N/Ap
760
N/Ap
760
N/Ap
760
N/Ap
N/Ap
760
N/Ap
760
N/Ap
Subject Rent
Advantage
N/Ap
29%
N/Ap
21%
N/Ap
14%
N/Ap
11%
N/Ap
N/Ap
0%
N/Ap
-14%
N/Ap
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with 433 Payette Triplex
433 Payette
Square
Street Rent
Feet
$400
605
N/Ap
N/Ap
$500
760
N/Ap
N/Ap
$450
605
N/Ap
N/Ap
$550
760
N/Ap
N/Ap
$625
1,025
$825
1,400
$600
760
N/Ap
N/Ap
$675
1,025
$825
1,400
$620
760
N/Ap
N/Ap
$750
1,025
$825
1,400
$575
605
N/Ap
N/Ap
$700
760
N/Ap
N/Ap
$800
1,025
$825
1,400
$800
800
N/Ap
N/Ap
$1,000
1,250
$825
1,400
Subject Rent
Advantage
N/Ap
N/Ap
N/Ap
N/Ap
24%
N/Ap
18%
N/Ap
9%
N/Ap
N/Ap
3%
N/Ap
-21%
69
Due to limited market-rate data, we have supplemented our rent analysis with local classified
listings. The following table shows two and three-bedroom market rate classified listings within the
area. One-bedroom classified listings were unavailable.
CLASSIFIED LISTINGS
Bedroom/Baths
Address
City
Type
Square Feet
Rent*
2BR/2BA
129 Stibnite St E
McCall
Condominium
1,200
$800
2BR/1BA
W Lake Street
2BR/2BA
130 Stibnite St E
2BR/2BA
East side of Lake Street
1,100
$750
Full kitchen, covered parking, Baseboard hating, close proximity to downtown
McCall
Condominium
1,100
$800
W/d in unit, some furnishings, patio, full kitchen, sky lights
McCall
Trailer
900
$750
Upgraded single-wide trailer, close to downtown McCall, full kitchen
1,075
$775
Average
760
$700
760-800
$775-$800
3BR/1BA
N/A
3BR/2BA
110 Thula Street
3BR/1.5BA
Comments
Fully furnished, w/d in unit, back patio, air condtioning, sky lights
McCall
N/A
$650
Cable included, full kitchen, on site laundry, off street parking
Apartment
1,800
$900
Wifi included, wood heating, back patio, full kitchen
East of Spring Valley Road Donnelly Single-family home
1,900
$1,100
1,850
$883
Average
1,025
$800
1,025-1,250
$900-$975
W/d in unit, garage parking, new appliances, hardwood floors
* Classifieds include water/sewer/trash in rent
Source: craigslist.com and trulia.com
Comparable classified listings for two-bedroom units exhibit a range of asking rental rates from
$750 to $800 while the three-bedroom units exhibit a range of $600 to $1,100. The rental housing
stock in the area is generally older and all of the properties are inferior in quality and amenities
when compared to the Subject. However, the average unit sizes at the classifieds are significantly
larger than the Subject’s and several of the classifieds offer superior single-family design.
Additionally, two classified offer partially/fully furnished units. Therefore, we believe an achievable
two and three-bedroom market rent close to the average is reasonable.
Further, we have considered the market rents being achieved at two recently constructed properties
in the northern Boise metropolitan area (one in Meridian and one in Boise), approximately 95 miles
south of McCall in suburban Boise, which is the nearest community with newer comparable market
rate product.


Selway Apartments is a 171-unit market rate community located at 2552 W. Selway
Rapids Lane in Meridian, Idaho. This community opened in 2009 and offers one, two,
and three-bedroom garden-style units. Selway Apartments is currently 95.9 percent
occupied with a wait list of three to four months on several unit types. The property
offers comprehensive unit and community amenities that feature full appliance package,
patio/balcony, central air conditioning, walk-in closet, washer and dryer appliances,
community room, fitness center, hot tub, on-site management, picnic area, and swimming
pool.
Retreat at Silvercloud is a 180-unit market rate community located at 8448 W. Limelight
Drive in northern Boise, Idaho. This community opened October 2014 and offers one,
two, and three-bedroom garden-style units. Retreat at Silvercloud is currently in initial
lease-up and is 52 percent occupied, absorbing approximately 24 units per month, a
strong rate. The property offers comprehensive unit and community amenities that
feature full appliance package, patio/balcony, central air conditioning, walk-in closet,
washer and dryer appliances, community room, fitness center, hot tub, on-site
management, picnic area, playground and swimming pool.
70
Both Selway Apartments and Retreat at Silvercloud will have overall superior locations, superior
unit sizes, slightly inferior condition, and similar amenities. Overall, we believe that rents
moderately below these two comparables would be achievable and, therefore, the proposed rents
appear reasonable. The following tables compare the Subject’s rents with those at Selway
Apartments and Retreat at Silvercloud.
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with Selway Apartments
Selway
Square
Subject Rent Square Feet Apartment Rent
Feet
$400
605
$853
730
$500
760
$929
884
$450
605
$853
730
$550
760
$929
884
$625
1,025
$1,165
1,120
$600
760
$929
884
$675
1,025
$1,165
1,120
$620
760
$929
884
$750
1,025
$1,165
1,120
$575
605
$853
730
$700
760
$929
884
$800
1,025
$1,165
1,120
$800
800
$929
884
$975
1,250
$1,165
1,120
Subject Rent
Advantage
53%
46%
47%
41%
46%
35%
42%
33%
36%
33%
25%
31%
14%
16%
Unit Type
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Subject Comparison with Retreat at Silvercloud
Retreat at
Square
Subject Rent Square Feet Silvercloud Rent
Feet
$400
605
$715
650
$500
760
$890
907
$450
605
$715
650
$550
760
$890
907
$625
1,025
$1,095
1,187
$600
760
$890
907
$675
1,025
$1,095
1,187
$620
760
$890
907
$750
1,025
$1,095
1,187
$575
605
$715
650
$700
760
$890
907
$800
1,025
$1,095
1,187
$800
800
$890
907
$975
1,250
$1,095
1,187
Subject Rent
Advantage
44%
44%
37%
38%
43%
33%
38%
30%
32%
20%
21%
27%
10%
11%
71
The following table illustrates the rent per square footage of the Subject and market rate
comparables.
UNIT TYPE
1BR @ 40%
2BR @ 40%
1BR @45%
2BR @ 45%
3BR @ 45%
2 BR @ 50%
3 BR @ 50%
2 BR @ 55%
3 BR @55%
1 BR @ 60%
2 BR @ 60%
3 BR @ 60%
2 BR Market
3 BR Market
Min
$350
$444
$350
$444
$470
$444
$470
$444
$470
$350
$444
$470
$444
$470
MARKET RENTS*
Rent
Rent PSF
Max
Min
Max
$450
$0.39
$1.17
$700
$0.59
$1.05
$450
$0.39
$1.17
$700
$0.59
$1.05
$825
$0.51
$1.04
$700
$0.59
$1.05
$825
$0.51
$1.04
$700
$0.59
$1.05
$825
$0.51
$1.04
$450
$0.39
$1.17
$700
$0.59
$1.05
$825
$0.51
$1.04
$700
$0.59
$1.05
$825
$0.51
$1.04
PRO FORMA RENTS
Rent
$400
$500
$450
$550
$625
$600
$675
$620
$750
$575
$700
$800
$800
$975
SF
605
760
605
760
1,025
760
1,025
760
1,025
605
760
1,025
800
1,225
Rent PSF
$0.66
$0.66
$0.74
$0.72
$0.61
$0.79
$0.66
$0.82
$0.73
$0.95
$0.92
$0.78
$1.00
$0.80
*Including classifieds and supplemental comparables
The Subject’s achievable LIHTC rents are generally within the middle of the range of the market
rents on a rent per square foot basis and appear reasonable.
Summary Evaluation of the Proposed Project
Based upon our market research, demographic calculations and analysis, we believe that there is
demand for the Subject property as conceived. The overall market vacancy rate is strong at 1.3
percent and the two LIHTC comparables are fully occupied with wait lists. None of the comparables
are offering concessions. Further, despite demographic trends that project limited growth in
households in the PMA, market data such as the full occupancy and wait lists at the LIHTC
comparables as well as the generally low capture rates indicate that there is likely latent demand for
affordable housing. Further, the Subject will be new construction and in excellent condition upon
completion and will be more desirable than the predominately fair to average condition rental
housing stock in the PMA. We believe that units at the Subject will be well-received, as comparable
properties are performing at high occupancy. Strengths of the Subject development will be its
location, age and condition, and amenities package.
72
DEMAND ANALYSIS
DEMAND ANALYSIS
Introduction
Northwest Passage is a proposed newly constructed multifamily development and income limitations
will restrict eligibility. We calculated the number of income-eligible residents in this section of the
analysis.
LIHTC rents are based upon a percentage of the AMI, adjusted for household size and utilities. HUD
estimates the relevant income levels, with annual updates. Rents are calculated assuming that the
maximum net rent a family household will pay is 35 percent of income at the appropriate AMI
levels.
Household size is assumed to be 1.5 persons per bedroom for LIHTC rent calculation purposes.
Additionally HUD assumes that one-person households are accommodated in one-bedroom units.
For LIHTC income purposes, the actual size of the household is used.
To assess the likely number of tenants in the market area eligible to live in the Subject, we used
Census information as provided by ESRI Business Information Solutions.
Primary Market Area Defined
For the purposes of this study, it is necessary to define the market area, or the area from which
potential tenants for the project are likely to be drawn. In some areas, residents are very much
“neighborhood-oriented” and are generally very reluctant to move from the area in which they have
grown up. In other areas, residents are much more mobile and will relocate to a completely new
area, especially if there is an attraction such as affordable housing at below-market rents. Seventy
percent of the Subject’s tenants are expected to hail from the PMA; demand estimates will be
adjusted to reflect the potential for “leakage.”
The primary market area (PMA) for the Subject was identified as an approximate 20 minute drivetime from the Subject. The PMA was defined based on interviews with local property managers
within the area. We have estimated that 15 percent of tenants will come from outside these
boundaries.
74
Income-eligible Calculations
To establish the number of income-eligible potential tenants for the Subject, the calculations are as
follows:
First, we estimate the Subject’s minimum and maximum income levels for the proposed LIHTC
project. HUD determines maximum income guidelines for tax credit properties, based on the AMI.
For Valley County, the AMI is $67,600 for a four-person household. We have used 120 percent of
AMI as the maximum for the unrestricted units, as it is our experience that the propensity for
households to rent diminishes as incomes increase. Further, comments from local market rate
property managers indicated that households typically earn less than $100,000 annually. Minimum
income levels were calculated based on the assumption that lower-income households should pay no
more than 35 percent of their income to rent. Often, lower-income households pay a higher
percentage of gross income toward housing costs. Therefore, we used 35 percent for LIHTC
calculations.
Secondly, we illustrate the household population segregated by income band in order to determine
those who are income-qualified to reside in the Subject property. This income distribution was
illustrated previously in the demographic analysis section of this report.
Third, we combine the allowable income range with the income distribution analysis in order to
determine the number of potential income-qualified households. In some cases the LIHTC incomeeligible band overlaps with more than one census income range. In those cases, the prorated share of
more than one census range will be calculated. This provides an estimate of the total number of
households that are income-eligible. This also derives an estimate of the percentage of the
households that are income-eligible, illustrated by AMI threshold.
75
INCOME DISTRIBUTION 2014
Income Cohort
Total
Renter
cohort
overlap
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
Total
Income Cohort
64
84
184
147
170
120
63
37
60
13
17
6
964
Total
Renter
4,365
4,000
cohort
overlap
$0-9,999
$10,000-19,999
$20,000-29,999
$30,000-39,999
$40,000-49,999
$50,000-59,999
$60,000-74,999
$75,000-99,999
$100,000-124,999
$125,000-149,999
$150,000-199,999
$200,000+
Total
64
84
184
147
170
120
63
37
60
13
17
6
964
5,450
9,600
40% AMI
% in
cohort
# in cohort
43.65%
40.00%
37
74
11.45%
110
55% AMI
% in
cohort
# in cohort
54.51%
96.01%
100
141
25.08%
242
cohort
overlap
2,650
9,999
2,400
cohort
overlap
8,365
9,999
3,200
45% AMI
% in
cohort
# in cohort
26.51%
100.00%
24.00%
22
184
35
25.07%
242
60% AMI
% in
cohort
# in cohort
83.66%
100.00%
32.00%
154
147
54
36.88%
355
cohort
overlap
7,165
6,000
cohort
overlap
308
9,999
9,999
9,999
14,999
11,400
50% AMI
% in
cohort
# in cohort
71.65%
60.01%
132
88
22.85%
220
Market Rate*
% in
cohort
# in cohort
3.08%
100.00%
100.00%
100.00%
100.00%
45.60%
6
147
170
120
63
17
54.16%
522
cohort
overlap
4,365
9,999
9,999
9,999
9,999
14,999
11,400
All Units
% in
cohort
# in cohort
43.65%
100.00%
100.00%
100.00%
100.00%
100.00%
45.60%
37
184
147
170
120
63
17
76.46%
737
*Assumes 120 percent AMI
76
– Market Study
INCOME LIMITS
Unit Type
1BR
2BR
3BR
Studio
2BR
3BR
4BR
Minimum Maximum
Allowable Allowable
Income
Income
40% AMI
$15,634
$21,320
$19,406
$24,000
N/Ap
N/Ap
Minimum Maximum
Allowable Allowable
Income
Income
55% AMI
N/Ap
N/Ap
$24,549
$33,000
$28,560
$39,600
Minimum Maximum
Allowable Allowable
Income
Income
45% AMI
$17,349
$23,985
$21,120
$27,000
$24,274
$32,400
Minimum Maximum
Allowable Allowable
Income
Income
60% AMI
$21,634
$31,980
$26,263
$36,000
$30,274
$43,200
Minimum Maximum
Allowable Allowable
Income
Income
50% AMI
N/Ap
N/Ap
$22,834
$30,000
$25,989
$36,000
Minimum Maximum
Allowable Allowable
Income
Income
Market Rate*
N/Ap
N/Ap
$29,691
$72,000
$36,274
$86,400
*Assumes 120 percent AMI
The table above demonstrates that there are a total of 746 income-eligible households in the PMA.
The Subject would need to capture 34, or 4.6 percent of these households, to stabilize at 95 percent.
DEMAND ANALYSIS ONE - CAPTURE RATE ANALYSIS BY UNIT TYPE
In order to determine demand for the proposed market mix, we also analyzed the demand capture
rates expected at the Subject by bedroom type. This analysis illustrates demand for the 40, 45, 50,
55, and 60 percent of AMI levels as well as unrestricted units.
The by-unit-type breakdown illustrates a reasonable level of demand at the 40, 45, 50, 55, and 60
percent of AMI levels as well as unrestricted units when considered on a by-bedroom basis. The
capture rates illustrated are low, conservative, and indicative of demand.
The distribution of households by unit type is dependent on the following assumptions.
HOUSEHOLD DISTRIBUTION
80%
20%
10%
80%
60%
40%
70%
Of one-person households in 1BR units
Of two-person households in 1BR units
Of one-person households in 2BR units
Of two-person households in 2BR units
Of three-person households in 2BR units
Of three-person households in 3BR units
Of four-person households in 3BR units
78
40% Demand
PROJECTED RENTER HOUSEHOLD DEMAND BY BEDROOM TYPE
Renter Household Distribution 2014
Renter Household Size
Total Number of
Distribution
Renter Households
33.0%
318
28.5%
275
16.4%
158
12.0%
115
10.1%
98
100.0%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Income-Qualified Renter Demand
Total Number of
% Income-Qualified
Renter Households
Renter Households
318
x
11.4%
275
x
11.4%
158
x
11.4%
115
x
11.4%
98
x
11.4%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Number Qualified
Renter Households
36
31
18
13
11
110
Projected Renter Household Demand by Bedroom Size
Number of Qualified
Renter Households
1BR
35
2BR
40
Total
75
Capture Rate Analysis - 40% AMI
Developer's Unit Mix
Capture Rate
1
2.82%
1
2.52%
2
2.66%
1BR
2BR
Total/Overall
1BR
2BR
Total/Overall
Adjusted for Leakage from Outside of the PMA
1
1
2
15%
2.40%
2.14%
2.26%
79
45% Demand
Total Number of
Distribution
Renter Households
33.0%
318
28.5%
275
16.4%
158
12.0%
115
10.1%
98
100.0%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Total Number of
% Income-Qualified
Renter Households
Renter Households
318
x
25.1%
275
x
25.1%
158
x
25.1%
115
x
25.1%
98
x
25.1%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Number Qualified
Renter Households
80
69
40
29
24
242
Number of Qualified
Renter Households
1BR
78
2BR
87
3BR
36
Total
201
Capture Rate
1
1.29%
1
1.15%
1
2.77%
3
1.50%
1BR
2BR
3BR
Total/Overall
1BR
2BR
3BR
Total/Overall
1
1
1
3
15%
1.10%
0.98%
2.35%
1.27%
80
50% Demand
Total Number of
Distribution
Renter Households
33.0%
318
28.5%
275
16.4%
158
12.0%
115
10.1%
98
100.0%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Total Number of
% Income-Qualified
Renter Households
Renter Households
318
x
22.8%
275
x
22.8%
158
x
22.8%
115
x
22.8%
98
x
22.8%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Number Qualified
Renter Households
73
63
36
26
22
220
Number of Qualified
Renter Households
2BR
79
3BR
33
Total
112
Capture Rate
4
5.05%
1
3.04%
5
4.46%
2BR
3BR
Total/Overall
2BR
3BR
Total/Overall
4
1
5
15%
4.29%
2.58%
3.79%
81
55% Demand
Total Number of
Distribution
Renter Households
33.0%
318
28.5%
275
16.4%
158
12.0%
115
10.1%
98
100.0%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Total Number of
% Income-Qualified
Renter Households
Renter Households
318
x
25.1%
275
x
25.1%
158
x
25.1%
115
x
25.1%
98
x
25.1%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Number Qualified
Renter Households
80
69
40
29
24
242
Number of Qualified
Renter Households
2BR
87
3BR
36
Total
123
Capture Rate
7
8.05%
2
5.54%
9
7.31%
2BR
3BR
Total/Overall
2BR
3BR
Total/Overall
7
2
9
15%
6.84%
4.71%
6.22%
82
60% Demand
Total Number of
Distribution
Renter Households
33.0%
318
28.5%
275
16.4%
158
12.0%
115
10.1%
98
100.0%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Total Number of
% Income-Qualified
Renter Households
Renter Households
318
x
36.9%
275
x
36.9%
158
x
36.9%
115
x
36.9%
98
x
36.9%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Number Qualified
Renter Households
117
101
58
42
36
355
Number of Qualified
Renter Households
1BR
114
2BR
128
3BR
53
Total
295
Capture Rate
3
2.63%
8
6.26%
2
3.77%
13
4.41%
1BR
2BR
3BR
Total/Overall
1BR
2BR
3BR
Total/Overall
3
8
2
13
15%
2.24%
5.32%
3.20%
3.74%
83
Unrestricted Demand
Total Number of
Distribution
Renter Households
33.0%
318
28.5%
275
16.4%
158
12.0%
115
10.1%
98
100.0%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Total Number of
% Income-Qualified
Renter Households
Renter Households
318
x
54.2%
275
x
54.2%
158
x
54.2%
115
x
54.2%
98
x
54.2%
964
1 person
2 persons
3 persons
4 persons
5+ persons
Total
Number Qualified
Renter Households
172
149
86
62
53
522
Number of Qualified
Renter Households
2BR
188
3BR
78
Total
266
Capture Rate Analysis - Unrestricted
Capture Rate
2
1.07%
2
2.56%
4
1.51%
2BR
3BR
Total/Overall
2BR
3BR
Total/Overall
2
2
4
15%
0.91%
2.18%
1.28%
84
DEMAND ANALYSIS TWO – ANNUAL CAPTURE RATE ANALYSIS
The second calculation derives an estimated market penetration rate based on per annum demand.
This is an indication of the percentage of net demand penetration that the Subject must attract in
order to reach stabilized occupancy. This measure essentially takes the available household demand
searching for apartments in the market area and deducts competition in order to determine net
demand available to the Subject. The table below outlines the analysis of this methodology.
The annual demand for rental housing depends upon the following factors:
Existing households that live in the area but move to a new home: This phenomenon occurs because
people are searching for better housing, more affordable housing, or housing in a desired location.
The calculation begins by determining base level eligible demand in the year 2014. This is
calculated by adding project household growth to the 2014 income-eligible households. This is then
adjusted by the percentage of renters in the PMA. To determine how many of these households will
be looking for units, we multiply the number by the estimated turnover rate. The 2000 Census
indicated that approximately 27.6 percent of renter households in the PMA pay 35 percent or higher
of their annual wages towards housing costs and therefore were considered rent-overburdened. An
estimated rent overburdened population at 27.6 percent, reflecting both severe rent overburden and
movership in the market area, is considered very reasonable, as the national average is estimated to
be 28.8 percent.
Population change as a result of new households moving in or out of the area: This was previously
calculated, in the estimated population increase from 2014 to 2019. Since the newly derived
population will all be eligible, they are included directly into the annual demand estimate.
Additionally, we have deducted currently planned and non-stabilized inventory in the PMA. There
are currently no planned or under construction rental product that will directly compete with the
Subject, so no units have been deducted.
This calculation derives an annual capture rate for the Subject. Total demand, both currently present
and moving into the market, is adjusted for income eligibility and renter status. It is further adjusted
by the number of units that are currently in a lease-up phase. The demand estimate remaining is the
number of units that will be unsatisfied in the market without construction of the Subject. These
unaccommodated units of demand will be forced to leave the market without additional housing
construction. The penetration rate is the percentage of this demand that the Subject will capture. A
number below 100 percent is a positive indicator and represents an expected absorption rate of less
than one year. A number greater than 100 percent indicates an absorption pace longer than one year.
85
Annual Demand Table
ANNUAL DEMAND
Calculation
Number of Renter Households in 2014
Increase in Number of Renter Households
Number of Renter Households in 2019
PMA
964
964
Existing Demand
Percentage of Total Households that are Renter
Percentage of Income-Qualified Renter Households
Number of Income-Qualified Renter Households
Percentage of Rent-Overburdened
Existing Income-Qualified Renter Household Turnover
28.1%
76.5%
737
27.6%
204
New Income-Qualified Demand, Stated Annually
Increase in Renter Households per Annum
Percentage of Income-Qualified Renter Households
New Rental Income Qualified Households
76.5%
-
Capture Rate Analysis
Number of Units in Subject
Occupied Units at Subject With Vacancy of:
5%
Units Pre-Leased
Total Demand (Turnover and Growth) from within PMA
Portion Originating within PMA
Total Demand (Turnover and Growth) from within PMA
Less: Existing LIHTC Projects in Absorption
Process (Number of Units)
0
Total Demand after Competition (Turnover and Growth)
Yielded Annual Capture Rate of Available Demand in 2015
36
34
0
204
85%
240
240
14.3%
The yielded capture rate is approximately 14.3 percent of available demand per annum, for all of the
Subject’s units.
86
Conclusion
The demand analysis illustrates demand for the Subject based on capture rates of income-eligible
renter households. When viewing total income-eligible renter households the calculation illustrates
the following overall capture rates:
AMI
40%
45%
50%
55%
60%
Unrestricted
CAPTURE RATE SUMMARY
1BR
2BR
3BR
2.40%
2.14%
N/Ap
1.10%
0.98%
2.35%
N/Ap
4.29%
2.58%
N/Ap
6.84%
4.71%
2.24%
5.32%
3.20%
N/Ap
0.91%
2.18%
Overall
2.26%
1.27%
3.79%
6.22%
3.74%
1.28%
The capture rates are considered reasonable taking into account the other indications of demand
including full occupancy and wait lists at comparable LIHTC properties. Therefore, we believe there
is sufficient demand for units at the Subject as proposed.
To provide another level of analysis, we removed the households from the income-eligible renter
demand pool that are currently suitably housed elsewhere in the PMA. We conducted an annual
demand analysis, which is based on new income-eligible renter households moving into the area (in
the Subject’s first year of operation only) and those income-eligible renter households that are rentoverburdened (paying over 35 percent of income to living costs). This is a subset of the incomeeligible renter households used previously and yields a far more conservative annual capture rate.
This annual capture rate is 14.3 percent for the first year of operation. This suggests that the Subject
will need to capture only a portion of the available demand in its first year of operation in order to
stabilize. This implies that no demand will be accommodated that is currently suitably housed
elsewhere.
This calculation illustrates that there are approximately 182 units of demand in the first year of the
Subject’s operation after construction. The Subject will need to accommodate 34 units of demand in
order to stabilize at 95 percent occupancy. Any unaccommodated households will most likely leave
the PMA or remain severely rent-overburdened. The lack of available units will force many to look
elsewhere.
87
ADDENDUM A
Assumptions and Limiting Conditions
ASSUMPTIONS AND LIMITING CONDITIONS
1.
In the event that the client provided a legal description, building plans, title policy and/or
survey, etc., the appraiser has relied extensively upon such data in the formulation of all
analyses.
2.
The legal description as supplied by the client is assumed to be correct and the author assumes
no responsibility for legal matters, and renders no opinion of property title, which is assumed
to be good and merchantable.
3.
All encumbrances, including mortgages, liens, leases, and servitudes, were disregarded in this
valuation unless specified in the report. It was recognized, however, that the typical purchaser
would likely take advantage of the best available financing, and the effects of such financing
on property value were considered.
4.
All information contained in the report, which others furnished, was assumed to be true,
correct, and reliable. A reasonable effort was made to verify such information, but the author
assumes no responsibility for its accuracy.
5.
The report was made assuming responsible ownership and capable management of the
property.
6.
The sketches, photographs, and other exhibits in this report are solely for the purpose of
assisting the reader in visualizing the property. The author made no property survey, and
assumes no liability in connection with such matters. It was also assumed there is no property
encroachment or trespass unless noted in the report.
7.
The author of this report assumes no responsibility for hidden or unapparent conditions of the
property, subsoil or structures, or the correction of any defects now existing or that may
develop in the future. Equipment components were assumed in good working condition unless
otherwise stated in this report.
8.
It is assumed that there are no hidden or unapparent conditions for the property, subsoil, or
structures, which would render it more or less valuable. No responsibility is assumed for such
conditions or for engineering, which may be required to discover such factors.
9.
The investigation made it reasonable to assume, for report purposes, that no insulation or other
product banned by the Consumer Product Safety Commission has been introduced into the
Subject premises. Visual inspection by the appraiser did not indicate the presence of any
hazardous waste. It is suggested the client obtain a professional environmental hazard survey
to further define the condition of the Subject soil if they deem necessary.
10.
Any distribution of total property value between land and improvements applies only under the
existing or specified program of property utilization. Separate valuations for land and
buildings must not be used in conjunction with any other study or appraisal and are invalid if
so used.
11.
Possession of the report, or a copy thereof, does not carry with it the right of publication, nor
may it be reproduced in whole or in part, in any manner, by any person, without the prior
written consent of the author particularly as to value conclusions, the identity of the author or
the firm with which he or she is connected. Neither all nor any part of the report, or copy
thereof shall be disseminated to the general public by the use of advertising, public relations,
news, sales, or other media for public communication without the prior written consent and
approval of the appraiser. Nor shall the appraiser, firm, or professional organizations of which
the appraiser is a member be identified without written consent of the appraiser.
12.
Disclosure of the contents of this report is governed by the Bylaws and Regulations of the
professional appraisal organization with which the appraiser is affiliated: specifically, the
Appraisal Institute.
13.
The author of this report is not required to give testimony or attendance in legal or other
proceedings relative to this report or to the Subject property unless satisfactory additional
arrangements are made prior to the need for such services.
14.
The opinions contained in this report are those of the author and no responsibility is accepted
by the author for the results of actions taken by others based on information contained herein.
15.
Opinions of value contained herein are estimates. There is no guarantee, written or implied,
that the Subject property will sell or lease for the indicated amounts.
16.
All applicable zoning and use regulations and restrictions are assumed to have been complied
with, unless nonconformity has been stated, defined, and considered in the appraisal report.
17.
It is assumed that all required licenses, permits, covenants or other legislative or administrative
authority from any local, state, or national governmental or private entity or organization have
been or can be obtained or renewed for any use on which the value estimate contained in this
report is based.
18.
On all studies, Subject to satisfactory completion, repairs, or alterations, the report and
conclusions are contingent upon completion of the improvements in a workmanlike manner
and in a reasonable period of time.
19.
All general codes, ordinances, regulations or statutes affecting the property have been and will
be enforced and the property is not Subject to flood plain or utility restrictions or moratoriums,
except as reported to the appraiser and contained in this report.
20.
The party for whom this report is prepared has reported to the appraiser there are no original
existing condition or development plans that would Subject this property to the regulations of
the Securities and Exchange Commission or similar agencies on the state or local level.
21.
Unless stated otherwise, no percolation tests have been performed on this property. In making
the appraisal, it has been assumed the property is capable of passing such tests so as to be
developable to its highest and best use, as detailed in this report.
22.
No in-depth inspection was made of existing plumbing (including well and septic), electrical,
or heating systems. The appraiser does not warrant the condition or adequacy of such systems.
23.
No in-depth inspection of existing insulation was made. It is specifically assumed no Urea
Formaldehyde Foam Insulation (UFFI), or any other product banned or discouraged by the
Consumer Product Safety Commission has been introduced into the appraised property. The
appraiser reserves the right to review and/or modify this appraisal if said insulation exists on
the Subject property.
24.
Estimates presented in this report are assignable to parties to the development’s financial
structure.
ADDENDUM B
Subject Property and
Neighborhood Photographs
Subject site
Subject site
View to north toward government buildings
View to east toward Alpine Village (condominiums)
View to south toward forested land and single-family
homes
View west toward forested land and single-family homes
View south along 1st Street
View north along 1st Street
View west along Idaho Street
Health Department building adjacent to north
Police Department adjacent to north
City Hall to north
Library to northeast
Retail to north
Retail to north
Retail to north
Grocery store to northwest
High school to west
Walking trail adjacent to south
Alpine Village (condominiums and retail) to east
Retail to east
Retail/offices to east
Valley One Apartments (LIHTC) to south
ADDENDUM C
Matrices, Rent and Square Footage Ranking, and
Comparable Property Profiles
SUMMARY MATRIX
Comp #
Project
Subject Northwest Passage
701 1st Street
Mccall, ID 83638
Valley County County
Distance
n/a
Type / Built
/ Renovated
Lowrise
(3 stories)
2016 / n/a
Market / Subsidy
Units
#
%
@40%, @45%,
@50%, @55%,
@60%, Market
1BR / 1BA
1BR / 1BA
1BR / 1BA
2BR / 1BA
2BR / 1BA
2BR / 1BA
2BR / 1BA
2BR / 1BA
2BR / 1BA
3BR / 2BA
3BR / 2BA
3BR / 2BA
3BR / 2BA
3BR / 2BA
1
1
3
1
1
4
7
8
2
1
1
2
2
2
2.80%
2.80%
8.30%
2.80%
2.80%
11.10%
19.40%
22.20%
5.60%
2.80%
2.80%
5.60%
5.60%
5.60%
Restriction Rent (Adj.) Size Max Wait Units Vacant Vacancy Rate
(SF) Rent? List?
@40%
$400
605
no
N/A
N/A
@45%
$450
605
no
N/A
N/A
N/A
N/A
@60%
$575
605
no
@40%
$500
760
no
N/A
N/A
N/A
N/A
@45%
$550
760
no
@50%
$600
760
no
N/A
N/A
N/A
N/A
@55%
$650
760
no
N/A
N/A
@60%
$700
760
no
Market
$800
800 n/a
N/A
N/A
@45%
$625
1,025 no
N/A
N/A
N/A
N/A
@50%
$675
1,025 no
N/A
N/A
@55%
$750
1,025 no
N/A
N/A
@60%
$800
1,025 no
Market
$975
1,250 n/a
N/A
N/A
1
The Springs
Mccall, ID 83638
1 mile
Garden
(2 stories)
2011 / n/a
@30%, @35%,
@40%, @45%,
@50%, @55%,
@60%
Studio / 1BA
Studio / 1BA
Studio / 1BA
1BR / 1BA
1BR / 1BA
1BR / 1BA
1BR / 1BA
2BR / 1BA
2BR / 1BA
2BR / 1BA
3BR / 2BA
3BR / 2BA
3BR / 2BA
36
2
1
1
1
1
4
2
7
7
4
3
1
2
100%
5.60%
2.80%
2.80%
2.80%
2.80%
11.10%
5.60%
19.40%
19.40%
11.10%
8.30%
2.80%
5.60%
@30%
@35%
@40%
@40%
@45%
@50%
@55%
@50%
@55%
@60%
@50%
@55%
@60%
$285
$325
$350
$375
$425
$475
$535
$555
$620
$680
$635
$710
$780
508
508
508
640
640
640
640
882
882
882
1,115
1,115
1,115
no
no
no
no
no
no
no
no
no
no
no
no
no
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
N/A
0
0
0
0
0
0
0
0
0
0
0
0
0
N/A
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
2
210 Colorado
Mccall, ID 83638
Valley County
0.1 mile
Townhouse
(2 stories)
1995 / n/a
@50%, @60%
2BR / 2BA
2BR / 2BA
3BR / 2BA
36
2
2
4
100%
25.00%
25.00%
50.00%
@50%
@60%
@60%
$500
$550
$600
850
850
1,050
no
no
no
No
No
No
0
0
0
0
0.00%
0.00%
0.00%
0.00%
3
400 Mission Street
Mccall, ID 83638
0.4 mile
One-story
1960 / 2014
Market
1BR / 1BA
1BR / 1BA
8
1
3
100%
25.00%
75.00%
Market
Market
$350
$450
900
900
n/a
n/a
No
No
0
0
1
0.00%
0.00%
33.30%
4
433 Payette Triplex
433 Payette Street
Donnelly, ID 83638
Valley County
Aspen Glen
310 Gabi Lane
Mccall, ID 83638
Valley County
Mccall, ID 83638
The Timbers
1305 Ponderosa
Mccall, ID 83638
Valley County
12.1 miles
One-story
2005 / n/a
Market
3BR / 2BA
4
3
100%
100.00%
Market
$825
1,400
n/a
No
1
1
25.00%
33.30%
1.3 miles
One-story
1990? / 2010
Market
2BR / 1BA
3
4
100%
100.00%
Market
$700
760
n/a
1
0
33.30%
0.00%
0.8 miles
Garden
(2 stories)
2004 / n/a
Market
2BR / 1BA
4
7
100%
100.00%
Market
$625
900
n/a
No
0
0
0.00%
0.00%
0.7 miles
Garden
(2 stories)
1980 / n/a
Market
1BR / 1BA
2BR / 1BA
3BR / 1BA
7
3
9
5
100%
17.60%
52.90%
29.40%
Market
Market
Market
$417
$444
$470
600
750
925
n/a
n/a
n/a
No
No
No
0
1
1
0
0.00%
33.30%
11.10%
0.00%
300 Thula Street
Mccall, ID 83638
Valley County
0.5 miles
Duplex
1990 / n/a
Market
2BR / 1BA
2BR / 1BA
17
1
2
100%
33.30%
66.70%
Market
Market
$550
$650
850
850
n/a
n/a
No
No
2
0
0
11.80%
0.00%
0.00%
3
100%
0
0.00%
5
6
7
8
RENT AND SQUARE FOOTAGE RANKING -- All rents adjusted for utilities and concessions extracted from the market.
Effective Rent Date:
Jan-15
One Bedroom One Bath
RENT
SQUARE
FOOTAGE
RENT PER
SQUARE
FOOT
Property
Northwest Passage * (60%)
The Springs * (55%)
The Springs * (50%)
The Springs * (45%)
The Timbers
The Springs * (40%)
Units Surveyed:
Market Rate
Tax Credit
Two Bedrooms One Bath
82
38
44
Average
$800
$700
$700
$680
$650
$650
$625
$620
$600
$555
$550
$550
$550
$500
$500
$444
Weighted Occupancy:
Market Rate
Tax Credit
Three Bedrooms Two Bath
Property
Northwest Passage * (M)
433 Payette Triplex
The Springs * (60%)
The Springs * (55%)
The Springs * (50%)
Valley One Apartments * (60%)
The Timbers (1BA)
95.10%
89.50%
100.00%
Average
$575
$535
$475
$450
$450
$425
$417
$400
$375
$350
Property
Aspen Glen
The Springs * (60%)
The Springs * (55%)
The Springs * (50%)
Valley One Apartments * (2BA 60%)
The Timbers
Average
$975
$825
$800
$780
$750
$710
$675
$635
$625
$600
$470
900
900
433 Payette Triplex
1,400
The Springs * (40%)
The Springs * (45%)
The Springs * (50%)
The Springs * (55%)
The Timbers
900
640
640
640
640
605
605
605
600
The Springs * (50%)
The Springs * (55%)
The Springs * (60%)
Aspen Glen
The Timbers
882
882
882
850
850
850
850
800
760
760
760
760
760
760
750
The Springs * (50%)
The Springs * (55%)
The Springs * (60%)
The Timbers (1BA)
1,250
1,115
1,115
1,115
1,050
1,025
1,025
1,025
1,025
925
$0.95
$1.00
$0.78
The Springs * (55%)
The Springs * (50%)
The Timbers
The Springs * (45%)
The Springs * (40%)
$0.84
$0.74
$0.74
$0.70
$0.66
$0.66
$0.59
$0.50
$0.39
Aspen Glen
The Springs * (60%)
The Springs * (55%)
The Springs * (50%)
The Timbers
$0.92
$0.92
$0.86
$0.79
$0.77
$0.76
$0.72
$0.70
$0.69
$0.66
$0.65
$0.65
$0.63
$0.59
$0.59
The Springs * (60%)
The Springs * (55%)
433 Payette Triplex
The Springs * (50%)
The Timbers (1BA)
$0.78
$0.73
$0.70
$0.66
$0.64
$0.61
$0.59
$0.57
$0.57
$0.51
PROPERTY PROFILE REPORT
The Springs
Effective Rent Date
1/15/2015
Location
Mccall, ID 83638
Distance
Units
Vacant Units
Vacancy Rate
Type
Year Built/Renovated
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
1 mile
36
0
0.0%
Garden (2 stories)
2011 / N/A
N/A
N/A
N/A
There are no competitors
Would not provide
Shannon
(208) 634-8152
Market Information
Program
Annual Turnover Rate
Units/Month Absorbed
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
@30%, @35%, @40%, @45%, @50%,
A/C
not included -- wall
35%
4.5
N/A
One to two weeks
Increased 2 to 5%
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
not included -- electric
not included
included
included
included
Unit Mix (face rent)
Beds
Baths
Type
Units
Size (SF)
Rent
Restriction
$285
Concession
(monthly)
$0
Vacant
@30%
Waiting
List
Yes
0
1
2
508
0
1
1
0
1
1
1
1
1
1
1
1
1
2
1
2
1
2
1
3
2
3
2
3
2
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
508
$325
$0
@35%
Yes
0
0.0%
no
None
1
508
$350
$0
@40%
Yes
0
0.0%
no
None
1
640
$375
$0
@40%
Yes
0
0.0%
no
None
1
640
$425
$0
@45%
Yes
0
0.0%
no
None
4
640
$475
$0
@50%
Yes
0
0.0%
no
None
2
640
$535
$0
@55%
Yes
0
0.0%
no
None
7
882
$555
$0
@50%
Yes
0
0.0%
no
None
7
882
$620
$0
@55%
Yes
0
0.0%
no
None
4
882
$680
$0
@60%
Yes
0
0.0%
no
None
3
1,115
$635
$0
@50%
Yes
0
0.0%
no
None
1
1,115
$710
$0
@55%
Yes
0
0.0%
no
None
2
1,115
$780
$0
@60%
Yes
0
0.0%
no
None
© Novogradac & Company LLP 2015 All Rights Reserved.
0
Vacancy Max Rent?
Rate
0.0%
no
Range
None
The Springs, continued
Unit Mix
@30%
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
$285
$0
$285
$0
$285
Studio / 1BA
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
Studio / 1BA
@40%
$350
$0
$350
$0
$350
1BR / 1BA
$375
$0
$375
$0
$375
@50%
@35%
Studio / 1BA
@45%
1BR / 1BA
Conc.
Concd. Rent
Util.
Adj. Rent
$325
$0
$325
$0
$325
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
$425
$0
$425
$0
$425
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
1BR / 1BA
$475
$0
$475
$0
$475
1BR / 1BA
$535
$0
$535
$0
$535
2BR / 1BA
$555
$0
$555
$0
$555
2BR / 1BA
$620
$0
$620
$0
$620
3BR / 2BA
$635
$0
$635
$0
$635
3BR / 2BA
$710
$0
$710
$0
$710
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
2BR / 1BA
@60%
$680
$0
$680
$0
$680
3BR / 2BA
$780
$0
$780
$0
$780
@55%
Face Rent
Amenities
In-Unit
Balcony/Patio
Carpeting
Garbage Disposal
Refrigerator
Security
Blinds
Dishwasher
Oven
Wall A/C
Property
Carport
Exercise Facility
Off-Street Parking
Playground
Clubhouse/Meeting
Central Laundry
On-Site Management
Recreation Areas
Limited Access
Services
None
Premium
Other
None
None
Comments
Management would not provide tenant information or voucher tenancy. There are currently four households on the wait list. A wait list by bedroom type and AMI level
was not available. The property is operated by a non-profit and rents are deliberately kept below the maximum allowable level. Greg Putnam, regional compliance
manager for the Springs, stated the property is typically fully occupied and slight rent increases are possible. However, he does not believe maximum allowable rents
would be achievable. The property absorbed its units in approximately eight months, due to the lack of qualified tenants in the area.
The Springs, continued
Photos
Effective Rent Date
1/26/2015
Location
210 Colorado
Mccall, ID 83638
Valley County
Distance
Units
Vacant Units
Vacancy Rate
Type
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
0.1 miles
8
0
0.0%
Townhouse (2 stories)
1995 / N/A
N/A
N/A
N/A
None
Small families, couples from McCall
Jennifer
208-642-9086
Market Information
Program
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
@50%, @60%
A/C
not included -- none
20%
N/A
50%
Immediate
Increased 26 to 30%
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
not included
included
included
included
Beds
Baths
Type
Units
Size (SF)
Rent
Restriction
$500
Concession
(monthly)
$0
2
2
2
850
2
2
2
3
2
Townhouse
(2 stories)
Townhouse
(2 stories)
Townhouse
(2 stories)
Vacant
@50%
Waiting
List
No
850
$550
4
1,050
$600
Vacancy Max Rent?
Rate
0.0%
no
$0
@60%
No
0
0.0%
no
None
$0
@60%
No
0
0.0%
no
None
0
Range
None
Unit Mix
@50%
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
$500
$0
$500
$0
$500
2BR / 2BA
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
2BR / 2BA
@60%
$550
$0
$550
$0
$550
3BR / 2BA
$600
$0
$600
$0
$600
Amenities
In-Unit
Balcony/Patio
Carpeting
Oven
Washer/Dryer hookup
Security
Blinds
Dishwasher
Refrigerator
None
Services
None
Property
Premium
Other
Off-Street Parking
None
None
Valley One Apartments, continued
Comments
The Housing Company in Boise took over management of the property in December of 2014 and raised the asking rents 26 to 30 percent. Management said they keep a
short waiting list of approximately three households. A wait list by bedroom type and AMI level was not available. Greg Putnam, regional compliance manager for
Valley One Apartments stated the property is typically fully occupied and slightly higher rents are likely achievable. Additionally, he does not believe maximum
allowable rents would be achievable.
Valley One Apartments, continued
Photos
Effective Rent Date
1/21/2015
Location
400 Mission Street
Mccall, ID 83638
Distance
Units
Vacant Units
Vacancy Rate
Type
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
0.4 miles
4
1
25.0%
One-story
1960 / 2014
N/A
N/A
N/A
None identified
Singles, one couple
Michelle
208-634-2100
Market Information
Program
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
Market
A/C
not included -- central
N/A
N/A
0%
N/A
None
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
not included
included
included
included
Beds
Baths
Type
Units
Size (SF)
Rent
1
1
1
1
One-story
One-story
1
3
900
900
$350
$450
Concession
(monthly)
$0
$0
Restriction
Market
Market
Waiting
List
No
No
Vacant
Vacancy Max Rent?
Rate
0.0%
N/A
33.3%
N/A
0
1
Range
None
None
Unit Mix
Market
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
1BR / 1BA
$350 - $450
$0
$350 - $450
$0
$350 - $450
Amenities
In-Unit
Blinds
Central A/C
Oven
Security
Carpeting
Ceiling Fan
Refrigerator
None
Services
None
Property
Premium
Other
Off-Street Parking
None
None
Comments
The less expensive one-bedroom units are not remolded. The contact stated the one vacancy is offline and being renovated with new flooring and appliances but should
be occupied by early February. The contact said the remaining units will be remolded with new flooring and appliances upon turnover.
433 Payette Triplex
Effective Rent Date
1/21/2015
Location
433 Payette Street
Donnelly, ID 83638
Valley County
Distance
Units
Vacant Units
Vacancy Rate
Type
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
12.1 miles
3
1
33.3%
One-story
2005 / N/A
N/A
N/A
N/A
None identified
Would not identify
Shawna
(208) 630-5045
Market Information
Program
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
Market
A/C
N/A
N/A
0%
N/A
None
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
not included
included
included
included
Beds
Baths
Type
Units
Size (SF)
Rent
3
2
One-story
3
1,400
$825
Concession
(monthly)
$0
Restriction
Market
Waiting
List
No
Vacant
Vacancy Max Rent?
Rate
33.3%
N/A
1
Unit Mix
Market
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
3BR / 2BA
$825
$0
$825
$0
$825
Amenities
In-Unit
Blinds
Central A/C
Dishwasher
Garbage Disposal
Refrigerator
Washer/Dryer hookup
Security
Carpeting
Coat Closet
Ceiling Fan
Oven
Washer/Dryer
None
Services
None
Property
Premium
Other
Off-Street Parking
None
None
Comments
This property is managed by McCall cabins.
Range
None
Aspen Glen
Effective Rent Date
1/21/2015
Location
310 Gabi Lane
Mccall, ID 83638
Valley County
Distance
Units
Vacant Units
Vacancy Rate
Type
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
1.3 miles
4
0
0.0%
One-story
1990? / 2010
N/A
N/A
N/A
N/A
Small families, singles
Shawna
208-880-2122
Market Information
Program
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
Market
A/C
25%
N/A
N/A
1 week
None
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
not included
included
included
included
Beds
Baths
Type
Units
Size (SF)
Rent
2
1
One-story
4
760
$700
Concession
(monthly)
$0
Restriction
Market
Waiting
List
N/A
Vacant
Vacancy Max Rent?
Rate
0.0%
N/A
0
Unit Mix
Market
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
2BR / 1BA
$700
$0
$700
$0
$700
Amenities
In-Unit
Blinds
Dishwasher
Garbage Disposal
Refrigerator
Washer/Dryer hookup
Security
Carpeting
Fireplace
Oven
Washer/Dryer
None
Services
None
Property
Premium
Other
Off-Street Parking
None
None
Comments
The property was rehabilitated in 2010 with new carpet, flooring and appliances. The contact stated turnover is very rare.
Range
None
Aspen Glen, continued
Trend Report
Vacancy Rates
3Q05
0.0%
1Q15
0.0%
Trend: Market
2BR / 1BA
Year QT
Vac.
Face Rent
Conc.
Concd. Rent
Adj. Rent
2005
3
0.0%
$675
$0
$675
$675
2015
1
0.0%
$700
$0
$700
$700
Trend: Comments
3Q05
This property is referred to as the "Gabi Lane 4-plex" even though it's actually on Rio Vista. Jessica did not know the date built or the square footage/unit
for this property. The property will accept Section 8 tenants but has none now. Three of the tenants have lived there for at least six months, but one unit
has turned over at least twice during the last six months.
1Q15
The property was rehabilitated in 2010 with new carpet, flooring and appliances. The contact stated turnover is very rare.
Effective Rent Date
1/21/2015
Location
Mccall, ID 83638
Distance
Units
Vacant Units
Vacancy Rate
Type
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
0.8 miles
7
0
0.0%
Garden (2 stories)
2004 / N/A
N/A
N/A
N/A
None identified
Families and couples from McCall
Shawna
(208) 630-5045
Market Information
Program
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
Market
A/C
15%
N/A
0%
N/A
None
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
not included
included
included
included
Beds
Baths
Type
Units
Size (SF)
Rent
2
1
Garden
(2 stories)
7
900
$625
Concession
(monthly)
$0
Restriction
Market
Waiting
List
No
Vacant
Vacancy Max Rent?
Rate
0.0%
N/A
0
Unit Mix
Market
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
2BR / 1BA
$625
$0
$625
$0
$625
Amenities
In-Unit
Blinds
Coat Closet
Garbage Disposal
Refrigerator
Washer/Dryer hookup
Security
Carpeting
Dishwasher
Oven
Washer/Dryer
None
Services
None
Property
Premium
Other
Off-Street Parking
None
None
Comments
This property is managed by McCall Cabins. The contact stated there us little turnover at the property and the units are always fully occupied.
Range
None
Pine Creek Apartments, continued
Photos
The Timbers
Effective Rent Date
1/22/2015
Location
1305 Ponderosa
Mccall, ID 83638
Valley County
Distance
Units
Vacant Units
Vacancy Rate
Type
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
0.7 miles
17
2
11.8%
Garden (2 stories)
1980 / N/A
N/A
N/A
N/A
None
Couples with children; roommates
Garth
(208) 634-1234
Market Information
Program
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
Market
A/C
included -- none
20%
N/A
0%
1 week or less
None
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
included -- electric
included
included
included
included
Beds
Baths
Type
Units
Size (SF)
Rent
Restriction
$500
Concession
(monthly)
$0
1
1
3
600
2
1
9
3
1
Garden
(2 stories)
Garden
(2 stories)
Garden
(2 stories)
Vacant
Market
Waiting
List
No
750
$550
5
925
$600
Vacancy Max Rent?
Rate
33.3%
N/A
$0
Market
No
1
11.1%
N/A
None
$0
Market
No
0
0.0%
N/A
None
1
Unit Mix
Market
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
1BR / 1BA
$500
$0
$500
-$83
$417
2BR / 1BA
$550
$0
$550
-$106
$444
3BR / 1BA
$600
$0
$600
-$130
$470
Amenities
In-Unit
Blinds
Carpeting
Oven
Security
Dishwasher
Refrigerator
Property
Central Laundry
Off-Street Parking
None
Services
None
Premium
Other
None
None
Range
None
The Timbers, continued
Comments
This property recently changed owners in November 2014. Management stated the property is in poor condition and needs renovations. Two of the vacant units are not
leasable and will be undergoing repairs in the spring or summer. Management stated the property needs new siding, a new roof, light fixtures, and new appliances.
The Timbers, continued
Photos
Effective Rent Date
1/21/2015
Location
300 Thula Street
Mccall, ID 83638
Valley County
Distance
Units
Vacant Units
Vacancy Rate
Type
Marketing Began
Leasing Began
Last Unit Leased
Major Competitors
Contact Name
Phone
0.5 miles
3
0
0.0%
Duplex
1990 / N/A
N/A
N/A
N/A
N/A
Couples and singles from McCall
Leasing Agent
208-634-7134
Market Information
Program
HCV Tenants
Leasing Pace
Annual Chg. in Rent
Concession
Utilities
Market
A/C
N/A
N/A
0%
1 week
None
None
Cooking
Water Heat
Heat
Other Electric
Water
Sewer
Trash Collection
not included
included
included
included
Beds
Baths
Type
Units
Size (SF)
Rent
2
2
1
1
Duplex
Duplex
1
2
850
850
$550
$650
Concession
(monthly)
$0
$0
Restriction
Market
Market
Waiting
List
No
No
Vacant
Vacancy Max Rent?
Rate
0.0%
N/A
0.0%
N/A
0
0
Unit Mix
Market
Face Rent
Conc.
Concd. Rent
Util.
Adj. Rent
2BR / 1BA
$550 - $650
$0
$550 - $650
$0
$550 - $650
Amenities
In-Unit
Balcony/Patio
Dishwasher
Ceiling Fan
Garbage Disposal
Refrigerator
Washer/Dryer
Security
Blinds
Carpeting
Exterior Storage
Fireplace
Oven
Walk-In Closet
Washer/Dryer hookup
None
Services
None
Property
Premium
Other
Off-Street Parking
None
None
Range
None
None
Thula Street Tri-plex, continued
Comments
This property is managed by Johnson and Company Real Estate. Units have wood stoves and small shed out back (one for each unit). The contact said the property is
typically fully occupied and has little turnover. The center unit of the triplex leases for $550 due to fewer windows.
ADDENDUM D
Site and Floor Plans
pt
ce
on
C
pt
ce
on
C
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ce
on
C
pt
ce
on
C
ADDENDUM E
Qualifications of Consultants
STATEMENT OF PROFESSIONAL QUALIFICATIONS
H. BLAIR KINCER, MAI, CRE
I. Education
Duquesne University, Pittsburgh, Pennsylvania
Masters in Business Administration
Graduated Summa Cum Laude
West Virginia University, Morgantown, West Virginia
Bachelor of Science in Business Administration
Graduated Magna Cum Laude
II. Licensing and Professional Affiliation
Member of the Appraisal Institute (MAI)
Member, The Counselors of Real Estate (CRE)
Member, National Council of Affordable Housing Market Analysts (NCAHMA)
Past Member Frostburg Housing Authority
Certified General Real Estate Appraiser, No. 31534 – State of Arizona
Certified General Real Estate Appraiser, No. RCG1046 – State of Connecticut
Certified General Real Estate Appraiser, No. CG100026242 – State of Colorado
Certified General Real Estate Appraiser, No 4206 – State of Kentucky
Certified General Real Estate Appraiser, No. 1326 – State of Maryland
Certified General Real Estate Appraiser, No. GA-805 – State of Mississippi
Certified General Real Estate Appraiser, No. 46000039124 – State of New York
Certified General Real Estate Appraiser, No. A6765 – State of North Carolina
Certified General Real Estate Appraiser, No. GA001407L – Commonwealth of Pennsylvania
Certified General Real Estate Appraiser, No. 5930 – State of South Carolina
Certified General Real Estate Appraiser, No. 3918 – State of Tennessee
Certified General Real Estate Appraiser, No. 4001004822 – Commonwealth of Virginia
Certified General Real Estate Appraiser, No. 1101008 – State of Washington
Certified General Real Estate Appraiser, No. CG360 – State of West Virginia
III. Professional Experience
Partner, Novogradac & Company LLP
Vice President, Capital Realty Advisors, Inc.
Vice President - Acquisitions, The Community Partners Development Group, LLC
Commercial Loan Officer/Work-Out Specialist, First Federal Savings Bank of Western MD
Manager - Real Estate Valuation Services, Ernst & Young LLP
Senior Associate, Joseph J. Blake and Associates, Inc.
Senior Appraiser, Chevy Chase, F.S.B.
Senior Consultant, Pannell Kerr Forster
H. Blair Kincer
Qualifications
Page 2
IV. Professional Training
Have presented at and attended various IPED and Novogradac conferences regarding the
affordable housing industry. Have done presentations on the appraisal and market
analysis of Section 8 and 42 properties. Have spoken regarding general market analysis
topics.
Obtained the MAI designation in 1998 and maintained continuing education requirements
since.
V.
Real Estate Assignments – Examples
In general, have managed and conducted numerous market analyses and appraisals for all types of
commercial real estate since 1988.

Performed numerous appraisals for the US Army Corps of Engineers US Geological Survey
and the GSA. Property types included Office, Hotel, Residential, Land, Gymnasium,
warehouse space, border patrol office. Properties located in varied locations such as the
Washington, DC area, Yuma, AZ, Moscow, ID, Blaine, WA, Lakewood, CO, Seattle, WA

Performed appraisals of commercial properties such as hotels, retail strip centers, grocery
stores, shopping centers etc for properties in various locations throughout Pennsylvania, New
Jersey, Maryland, New York for Holiday, Fenoglio, Fowler, LP and Three Rivers Bank.

Have managed and conducted numerous market and feasibility studies for affordable
housing. Properties are generally Section 42 Low Income Housing Tax Credit Properties.
Local housing authorities, developers, syndicators and lenders have used these studies to
assist in the financial underwriting and design of LIHTC properties. Analysis typically
includes; unit mix determination, demand projections, rental rate analysis, competitive
property surveying and overall market analysis. An area of special concentration has been the
category of Senior Independent living properties. Work has been national in scope.

Provided appraisal and market studies for a large portfolio of properties located throughout
the United States. The reports provided included a variety of property types including vacant
land, office buildings, multifamily rental properties, gas stations, hotels, retail buildings,
industrial and warehouse space, country clubs and golf courses, etc. The portfolio included
more than 150 assets and the work was performed for the SBA through Metec Asset
Management LLP.

Have managed and conducted numerous appraisals of affordable housing (primarily LIHTC
developments). Appraisal assignments typically involved determining the as is, as if
complete and the as if complete and stabilized values. Additionally, encumbered (LIHTC)
and unencumbered values were typically derived. The three traditional approaches to value
are developed with special methodologies included to value tax credit equity, below market
financing and Pilot agreements.

Performed numerous appraisals in 17 states of proposed new construction and existing
properties under the HUD Multifamily Accelerated Processing program. These appraisals
meet the requirements outlined in HUD Handbook 4465.1 and Chapter 7 of the HUD MAP
Guide.
H. Blair Kincer
Qualifications
Page 3

Performed numerous market study/appraisals assignments for USDA RD properties in
several states in conjunction with acquisition rehabilitation redevelopments. Documents are
used by states, FannieMae, USDA and the developer in the underwriting process. Market
studies are compliant to State, FannieMae and USDA requirements. Appraisals are
compliant to FannieMae and USDA HB-1-3560 Chapter 7 and Attachments.

Completed numerous FannieMae appraisals of affordable and market rate multi-family
properties for Fannie DUS Lenders. Currently have ongoing assignment relationships with
several DUS Lenders.

In accordance with HUD’s Section 8 Renewal Policy and Chapter 9, Mr. Kincer has
completed numerous Rent Comparability Studies for various property owners and local
housing authorities. The properties were typically undergoing recertification under HUD’s
Mark to Market Program.
DAVID BOISTURE
I.
Education
Ohio University, Athens, Ohio
Masters of Public Administration
Frostburg State University, Frostburg, Maryland
Bachelor of Science in Political Science and Justice Studies
II.
Professional Experience
Principal, Novogradac & Company LLP
Graduate Assistant, Institute for Local Government and Rural Development
III.
Professional Affiliation
IV.
Real Estate Assignments
A representative sample of Due Diligence, Consulting, or Valuation Engagements includes:

Have managed and prepared market studies for proposed Low-Income Housing Tax
Credit, market rate, HOME financed, USDA Rural Development, and HUD subsidized
properties, on a national basis. Analysis includes property screenings, market analysis,
comparable rent surveys, demand analysis based on the number of income qualified
renters in each market, supply analysis, and operating expenses analysis. Property types
include proposed multifamily, senior independent living, large family, and acquisition
with rehabilitation.

Have managed and assisted in appraisals of proposed new construction, rehabilitation,
and existing Low- Income Housing Tax Credit properties, USDA Rural Development,
HUD subsidized properties, and market rate multifamily developments. Analysis includes
property screenings, valuation analysis, rent comparability studies, expense comparability
analysis, determination of market rents, and general market analysis.

Assisted in preparing a comprehensive senior housing study in Seattle, Washington for
the Seattle Housing Authority. This study evaluated the Seattle Housing Authority’s
affordable senior housing project for their position within the entire city’s senior housing
market. The research involved analysis of the senior population by neighborhood,
income, household size, racial composition, and tenure.

Have managed and assisted in the preparation of Rent Comparability Studies according
the HUD Section 8 Renewal Policy in the Chapter 9 guidelines.

Assisted in the review of Rent Comparability Studies for HUD Contract Administrators.
David Boisture Resume
Page 2

Assisted in the HUD MAP Quality Control market study and appraisal reviews.

Managed and assisted in the preparation of market studies for projects under the HUD
Multifamily Accelerated Processing program. The market studies meet the requirements
outlined in Chapter 7 of the HUD MAP Guide.

Managed and assisted in appraisals of proposed new construction and existing properties
under the HUD Multifamily Accelerated Processing program. The appraisals meet the
requirements outlined in Chapter 7 of the HUD MAP Guide.

Assisted in preparing an approved HUD Consolidated Plan for the City of Gainesville,
GA; which included a housing and homeless needs assessment, market analysis, nonhousing needs analysis, and a strategic plan, which conformed to 24CFR Part 91,
Consolidated Plan Regulations for the ensuing five-year period (2004-2009).

Assisted in various appraisals for the US Army Corps of Engineers including Walter
Reed Army Medical Center, proposed office site on the Enhanced Use Lease sites Y and
Z at Fort Meade, proposed automobile testing facility at the Yuma Proving Grounds,
proposed industrial park at Camp Navajo, and the National Geospatial-Intelligence
Agency.

Managed the preparation of Site Inspection Reports and Appraisals as the subcontractor
to the Transaction Team Specialist hired by the Department of Housing and Urban
Development to facilitate the design and sale of HUD’s nonperforming Multifamily and
Healthcare notes.

Assisted in the preparation of the Fair Market Value analyses for solar panel installations,
wind turbine installations, and other renewable energy assets in connection with
financing and structuring analyses performed by various clients. The reports are used by
clients to evaluate with their advisors certain tax consequences applicable to ownership.
Additionally, the reports can be used in connection with the application for the federal
grant identified as Section 1603 American Recovery & Reinvestment Act of 2009 and in
the ITC funding process.
K. DAVID ADAMESCU
I.
Education
The Ohio State University, Columbus, OH
Masters of City and Regional Planning
Bachelors of Arts, Economics
II.
Real Estate Analyst, Novogradac & Company LLP
Project Director, VWB Research
Field Analyst, The Danter Company
III.
Real Estate Assignments
A representative of assignments relating to research and market feasibility studies includes:

Written and supervised the production of affordable rental housing market studies for
projects located throughout the continental United States as well as Alaska. The
preponderance of experience is with the Section 42 Low-income Housing Tax Credit,
HUD Section 8, and USDA Rural Development programs.

Additional experience authoring market feasibility analyses for market-rate rental
housing, condominium housing, single-family housing, senior-oriented housing, seasonal
housing, retail, office, golf course/marina resorts, and mixed-use developments.

Assisted in numerous appraisals of proposed LIHTC rental housing, commercial office,
and commercial retail properties. Analysis typically includes physical inspection of the
property and market, concept analysis, demographic and economic analysis, demand and
absorption projections, comparable surveying, supply analysis and rent determination,
operating expense analysis to determine cost estimates, capitalization rate determination,
valuation utilizing the three approaches to value, insurable value estimation, and LIHTC
equity valuation.

Conducted special research for highest and best use evaluations, the impact of “green”
development principals on marketability, and seasonal housing dynamics.

Reviewed third-party market studies and appraisals for investors in the secondary market.
Jimmy McCune
I.
Education
The Ohio State University, Columbus, OH
Masters of City and Regional Planning
West Virginia University, Morgantown, WV
Bachelor of Arts in Geography
II.
Researcher, Novogradac & Company LLP, January 2013 – Present
Planning and Policy Research Assistant, Ohio Housing Finance Agency, September 2012September 2014
III.
Research Assignments
A representative sample of Due Diligence, Consulting, or Valuation Engagements includes:
▪
Assisted numerous market and feasibility studies for family and senior affordable housing. Local
housing authorities, developers, syndicators and lenders have used these studies to assist in the
financial underwriting and design of market-rate and Low-Income Housing Tax Credit (LIHTC)
properties. Analysis typically includes; unit mix determination, demand projections, rental rate
analysis, competitive property surveying and overall market analysis.
▪
Assisted with numerous appraisals of new construction and existing LIHTC and market-rate
properties.
▪
Performed all aspects of data collection and data mining for web-based rent reasonableness
systems for use by local housing authorities.

A MARKET FEASIBILITY STUDY OF

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