HomeMy WebLinkAboutSummit Housing 1 of 2 TO: Community Affordable Housing Advisory Board
FROM: Wendy Thomas, Community Development Director
SUBJECT: Summit Housing, Inc., request for financial support from the Community
Housing Fund for the payment of$18,010 in impact fees for the
construction of 42 affordable rental units serving seniors at or below 60%
AMI units on property located on the southwest corner of 27th Avenue and
Turbulence Lane.
MEETING DATE: October 14, 2015
RECOMMENDED MOTION: I move to recommend the City Commission authorize the use
of$18, 010 in Community Housing Funds for the payment of impact fees for the Summit
Housing Inc., Low Income Housing Tax Credit(LIHTC) development of 42 rental housing units
for senior households earning 60% or less of Area Median Income (AMI).
BACKGROUND: Summit Housing, Inc., has submitted a request for the City's financial
support of the group's construction of an affordable apartment building, with 42 units affordable
to senior households earning 60% or less of area median household income. On September 28,
2015 the City Commission approved a letter of support for the LIHTC application.
The Community Housing Fund has $50,000 for the payment of impact fees for the development
of affordable rental housing for FY 2016. The City Commission will be acting upon a request by
REACH, Inc., for the allocation of approximately $32,000 for the development of six affordable
units on October 5, 2015. The Community Affordable Housing Advisory Board (CAHAB)
reviewed this item at their September, 2015 meeting and voted unanimously to recommend to
the City Commission to allocate the funds for the REACH project. Summit Housing is
requesting the remainder of the funding be allocated to their proposed development. The
developer requested partial funding for the impact fees for the proposed development. The
proposed project will move the community further toward the five year goal of creating 200
multi-family affordable rentals.
1.4. Build rental Goal: Over five years,build and rent 200 multifamily units using the federal
housing with Low-Income Tax Credit(LIHTC)and other federal subsidies to make rents
below-market affordable to households with incomes from 30%to 60%of AMI.The City will
rate rents encourage and support projects that meet the City's criteria for quality and
affordability.Encourage the inclusion of supportive housing units where feasible.
Implementers: For-profit and potentially nonprofit developers.
Considerations: The City should assist nonprofit and for-profit developers in
seeking federal HOME and CDBG subsidies,as well as assistance from the City's
Workforce Housing Fund,to make some units affordable at 30%and 40%AMI.
The City will use the evaluation criteria in Appendix B to determine whether to
endorse applications for LIHTC,HOME and CDBG,to provide assistance from
Workforce Housing Fund and sponsor HOME and CDBG applications to the State
of Montana.
Based on the Action Plan,the community goal between 2012 and 2016 is to create 200 multi-
family units using LIHTC to make rents affordable to households earning between 30 and 60%
AMI. This project will address housing needs for senior households earning 60% or less of
AMI. We now have the following rental housing projects seeking approval or under
construction:
Project Name Units Status
Stonerid e Apartments 48 Under construction
Larkspur Commons A is 136 Seeking site plan approval
REACH A is 6 Site plan approved
Rose Park Apts 42 Seeking tax credit approval
The Affordable Housing Action Plan 2012-2016 recommends that the Green Building standards
outlined in Appendix C be required of applicants requesting funds. If this funding request is
approved, during the review process for the site plan a condition of approval will require the
green building requirements of the Action Plan will be met.
The Action Plan states that an evaluation criteria be used to determine if an application should be
supported. In 2014, the City Commission approved the application and scoring sheet
recommended for use by CAHAB. You will find the scoring sheet as an attachment to this
report.
Attachments:
Scoring Sheet
Summit Housing Application
Letter of Support from City of Bozeman
r 283 W Front Street, Suite 1
''%,� Missoula,MT 59802
Summit Phone(406) 5410999
I:%ousiu Fax(406) 541-0997
Groian, Int.
September 10th,2015
Bozeman City Commission
121 N. Rouse
Bozeman MT 59771-1230
RE: Rose Park Apartments-Letter of Support,Reduction of Impact Fees for Affordable Housing
Dear Bozeman City Commission:
Summit Housing Group is intending on submitting an application for tax credits for a 42 unit senior
development in the West Winds Subdivision to the MBOH in early October. We are requesting that the
City Commission provide a letter of support for this much needed project,as well as a reduction in
impact fees provided by the city's affordable housing fund. All units will be rented to senior households
at or below 60%AMI.
If you have any questions please contact me at:(406)541-0999 x 233
Sincere1 ,
Rusty Snow
Full criteria for City support of Affordable Housing Activities can be found in Appendix B of ths;ituaei�aa�t^a
Affordable Housing Action Plan for 2012-2016:http://www.bozeman.net/Smarty/files/51/513668ad-f9e9-4ff7-
a 5a b-21953d 79856f.odf
Financial Support:
Financial support is based upon funding availability and meeting eligibility criteria in Appendix B. Projects
anticipating a need for financial support should contact the City as early as possible to ascertain the availability
of funding.
Ranking Process:
Requests will be evaluated to determine if they meet the threshold requirements outlined in Appendix B;those
meeting threshold requirements will be scored by city staff according to the following criteria:
• Review of market study—20 points
G To what extent do the market study and other available data demonstrate a need for the proposed
project?
• Review of financial data-20 points
12 Sources, uses and budget forecasts will be evaluated for reasonableness and long-term project
susta inability.
• Capacity of development team—20 points
1E) Do the team and key staff have experience with this type of project? How has the applicant performed
in the past? Has the developer made previous requests to the City or State Department of Commerce to
restructure commitments made on similar projects?
_ • Project Affordability —20points
lProposed rents/sales prices will be evaluated for the populations to be served to determine the extent
to which the proposed project meets the City's most critical affordable housing needs.
• Inclusion of units for lower income households(earning less than 30%AMI for rental housing, earning
less than 60%for ownership housing)—up to 20 points
The City has an interest in promoting the development of units for households earning less than 30%of
the area median income in rental developments and less than 60%AMI in ownership developments, as
these levels represent the households that are most difficult to serve.The City will reward 5 points per
unit(for up to 4 units)directed to households earning less than the outlined AMI levels for rental and
ownership projects.
City of Bozeman
Affordable Housing Support Application
Project Name: _F_
��1 Developer(s): '�JlVtltl'1
City of Bozeman
Application for City Support of Affordable Housing Activities
Applicability:
These criteria apply to proposals for use of City funds for affordable housing activities and requests for formal
City endorsement of projects for the purposes of obtaining federal, state and private grants and tax incentives.
All project and program proposals will be reviewed by City staff or their delegates and recommendations made
by the Community Affordable Housing Advisory Committee. Final decisions will be made by the City
Commission.The City may support applications through a letter of support to a funder,grant sponsorship(for
HOME and CDBG sources),and/or direct funding support.
Evaluation Criteria:
To provide funding or a letter of support for a project,the City must receive and evaluate the following data.
1. Market data. This will consist of credible and detailed market data,waiting list data or other
information indicating demand for the proposed housing or services.
2. Project financial data. This will consist of a detail project development budget showing all proposed
sources and uses of capital financing. If the project will provide rental or supportive housing, an operating
budget forecasting revenues and expenses over at least 10 years must be provided. For projects in which
supportive services are crucial,the operating budget must include forecasts of proposed revenue and
forecast expenses for these services.
3. Capacity of project or program team.The project's proposer must identify all key firms and individuals
involved in the project or program and provide resumes and corporate qualifications indicating their
capacity to carry out the program. Exceptions to this requirement may be made by City staff for proposers
who have successfully operated similar programs or developed similar projects previously in Bozeman. For
a new program, resumes must be provided for the organization's chief executive and the program
manager. For development projects, resumes or corporate qualifications statements must be provided for
the developer,the individual proposed as project manager,architect,and building contractor.
Eligible Activities and Funding Criteria:
Funding from the Workforce Housing Fund or other City sources may be provided,at the City's sole discretion
and with the recommendation of the CAHAB for those activities outlined in Appendix B. Periodically,the City
and CAHAB may solicit concept proposals from housing programs and housing developers.They may also accept
unsolicited proposals from nonprofit and for-profit organizations.
Deadline for requests:
Applications are accepted on an annual,rolling basis.Applicants are advised to communicate with City staff as
early as possible in the development of their project.Developers of LIHTC properties must submit their request
for support from the City along with the required information 45 days before applications are due to the
Montana Board of Housing.
Criteria for Support:
City of Bozeman
Low Income Housing Tax Credit
Request for Support
Project Name: Rose Park Apartments, LP
Developer(s): Summit Housing Group, Inc., HRDC
Non-profit partner(if applicable): HRDC
Project Address: TBD Tschache Lane—at the corner of Thomas Drive and Tschache Lane
Number of Buildings: 1 residential Number of Units: 42-Senior
Amount of Credits being requested: $658,750 Affordability Period:45 years
Proposed Unit Mix:
# baths #at 30% #at 40% #at 50% #at 60%
AMI or less AMI or less AMI or less AMI or less
Studio
113R 1 bath 3 13 8
21313 2 bath 2 13 3
TOTAL at rent level
TOTAL#of Units 5 26 11
Proposed Rents:
30%AMI 40%AMI 50%AMI 60%AMI
or less or less or less or less
Studio
1BR 429 557 626
21313 515 669 738
Narrative responses
Provide a brief description of the proposed project. Include information regarding project location,
number of units, type of units, development/unit amenities and any other information you would like
the city to consider.
Rose Park Apartments Proiect Information
Rose Park Apartments is located at the eastern half of Lot 5 Block 8,West Winds Major Subdivision,
Phases 2A and 213, Plat J-445 which is at the corner of Thomas Drive and Tschache Lane. The site,
which is already owned by Summit Housing Group, Inc. is currently vacant but does have all utilities and
infrastructure in place. With the infrastructure and flat topography of the site, construction of proposed
development will be cost effective. Additionally, the site is already zoned R-3 for multifamily and under
the PUD and conditional use permit for the West Winds Major subdivision the site has been specifically
set aside for the development of affordable housing. All units will target Bozeman families and will
consist of thirty (24)one bedroom units at 750SF and eighteen(18)two bedroom units at 950SF. The
community will also contain a 1200SF community room which will include an office, computer room.
The site is located less than half a mile from 19`h Avenue which has multiple desirable services and off
site amenities for the resident in our community. These include:
• Smith Food and Drugs
• Lowe's and Home Depot
• Access to several convenience stores
• Access to numerous retail stores
• Access to numerous banking centers
• Rose Park
• Sage Learning Center
• US Post Office
Indoor Amenities
Amenities are those elements in a home that are not essential but are provided to increase the efficiency,
comfort, or aesthetic appearance of the apartment s. Specific amenities include:
• High efficiency windows
• High quality flooring in living spaces and hallways
• Carpeting in all bedrooms
• ENERGY STAR Washer in each unit
• Dryer in each unit
• ENERGY STAR lighting
• ENERGY STAR appliances
• Low-Flow shower heads and toilet fixtures
• Energy efficient HVAC systems
• Handicap accessible units
Additional Amenities
As you walk through the site you will find indoor and outdoor amenities that will provide entertainment
in a safe, secure, natural environment. Please see additional amenities below:
Outdoor Areas
• Picnic areas with Pavilions with gazebos
• Playground
• Community Garden
Community Amenities
• Computer room with high speed internet
• Community room
In our conceptual plan we believe the project presents a rich communal environment that celebrate the
moments of arrival,the transitions from collective activity to privacy, and the discovery of common
interest and chance encounters. The encouragement of social interaction and sense of place are achieved
through architecture, site layout and interior and exterior amenities.
Financing
Summit Housing Group, Inc.'s finance team will be directly involved with the financing for the project
from inception. The finance team will be responsible for all financial analysis and coordination with the
lender and equity investors, and the development team to determine the most effective financing plan for
this project. Our finance team will update and sensitize project finance models so that as market
conditions change, decisions can be made to adjust our plan accordingly. To this end, the financing team
will negotiate all business points, terms and guarantees for the financing approach and will also provide
the required due diligence to bring the project to closing.
Once the project is closed and construction commences, the financing team will remain involved
throughout the construction period. The finance team will work with the development team to monitor
construction progress and construction draws and will interface with lenders and equity providers to
ensure that funding occurs as needed keeping the project moving forward.
Financial Assumptions
• Approximately $5,003,158 in hard construction costs with$250,158 in Contingency
• Total annual operating expenses=$134,981 of which$12,600 or$300/unit is replacement
reserve
• The property will cover all resident water, sewer and waste disposal expenses
• We will have a manager at our Stoneridge Apartments (currently under construction). Operations
would also include a maintenance employee.
• Financing assumes $6,069,984 in Tax Credit Equity, a$5,425,000 construction loan, a
$1,116,674 permanent loan, a reduction of city impact fees of$193,079 and no Deferred
Developer Fee.
• Federal Tax Credit Price of$0.92 per credit
• Rent and expense growth rates are underwritten and 2% and 3 %respectively
• 7%vacancy rate
Describe how the proposed project meets or exceeds the Green Building standards outlined in
Appendix C of the City of Bozeman Affordable Housing Action Plan.
Sustainable Design
Sustainable design practices are utilized on all of Summit Housing Groups,Inc.'s new communities.
Whether our design calls for certain building materials, building components, building systems or even
the building locations,we strive to utilize new technologies and building practices to ensure our
communities have little impact on the environment. These sustainable building practices also create long
term financial benefits for residents and the community as a whole. Our design will incorporate the
following sustainable design and construction standards:
All appliances and equipment will reduce energy consumption by installing only EnergyStar products.
All lighting fixture will also be EnergyStar product and will have either compact florescent or other high-
efficiency bulbs.
Water heaters will carry an efficiency rating of.93 or better will be well-insulated to reduce heat loss.
Water conservation devices will be installed through the community and will meet the following
standards:
• Showerheads—3.0 gpm(gallons per minute) or less
• Kitchen and bathroom faucets—2.75 gpm or less
• Toilets— 1.6 gallon per flush or less
Additionally the insulation of all hot water supply and heating pipes will carry an R-3 value or higher.
Seal all exposed hot air duct joints and add insulating wraps with an R-3 value or higher.
Our design will assure good indoor air quality by designing our community using the following Green
Building Standards:
• Provide local mechanical exhaust ventilation to the outdoors in each bathroom and kitchen.
• In addition, all bathroom ventilation fans shall be ENERGY STAR qualified unless multiple
bathrooms are exhausted with a multi-port fan.
• Conventional clothes dryers shall be vented to the outdoors. Electric condensing dryers are
• not vented and shall be plumbed to a drain according to the manufacturer's instructions.
Value Engineering Strategy
Our Construction Management Team will endeavor to create value engineering options to further increase
project cost savings that can be utilized toward project enhancements and site amenities without
compromising the quality of the development. This effort will require a design/build approach during the
early stages of the construction plans and specifications with the architect, engineers and general
contractor.
Construction Phase
Beyond the design phase and permitting, we will hold construction meetings that will include the Owner,
Architect and Contractor (OAC). OAC meetings are held monthly. OAC meetings are an open forum for
all field observations, requests for information, change order review, value engineering, material
selections, trouble-shooting and interaction with all respective disciplines to achieve maximum efficiency
during construction. Summit Housing Group,Inc. and the general contractor will utilize the OAC meeting
as a tool to further enhance the construction process and maintain scheduled milestones. During the
Construction Phase we will also coordinate the following meetings with our Development Team:
• Manage monthly OAC meetings
• Coordinate bank inspector reviews during construction
• Conduct construction testing(i.e. concrete, soil, asphalt)
• Coordinate with local building inspectors
• Sustainable design meetings
Asset Management
The finance team will act as asset manager during lease-up until stabilization is achieved. We will
organize the necessary documents to obtain cost certification and 8609 completion and convert the
construction loan to permanent financing.
Additionally during this time period, the financing team will interface with property management to
prepare an appropriate management plan for the project including pre-leasing and lease-up goals along
with the marketing and lease-up budgets to support the overall plan.
Summit Housing Group, Inc. has formed a team of firms that are experts in their fields. Each of our
partners has strong experience and relationships on a variety of projects resulting in a partnership that
understands how its members work, what they require and how to ensure deadlines are met. This team is
committed to the success of this project.
Explain how the proposed project is in support of the City of Bozeman's Affordable Housing plan and
serves a target income group identified by the plan.
The City of Bozeman's affordable housing plan looks to increase and preserve the supply of affordable
housing by building 200 affordable family rental units between 2012 and 2016. This community would
add 42 senior units to Bozeman a on a site that is already designated for affordable housing. Over the last
10 years the following transactions Low Income Housing Tax Credit developments have been awarded by
the Montana Board of Housing:
1. 2004 Bridger Apartments 46
2. 2005 Baxter Apartments 48
3. 2012 Haggerty Lane Apartments 11
4. 2015 Stoneridge Apartments 48
The following are the guiding principles for the City of Bozeman's Affordable Housing Plan:
All residents should have access to decent and affordable housing.
Rose Park Apartments will provide senior residents with quality, safe, and decent housing at rates that are
and will continue to be affordable.
Successful delivery of affordable housing should not be measured only by sale prices and rents, but its
performance in terms of minimizing energy use and maintenance costs.
Summit Housing Group, Inc. uses sustainable design and high quality building products to ensure that
residents and our communities as a whole minimize energy use and reduce ongoing maintenance cost.
There is no single home price or rent benchmark that defines "affordable"housing."
Rose Park Apartments will provide units to Bozeman families that have an income level of 40%, 50% and
60% of the Area Median Income. The Low Income Housing Tax Credit Program does have guidelines
and maximum rent levels that are based on the resident's income level. When setting our rents we take
into consideration not only the LIHTC Program maximum rent level, but also research the market place to
ensure our rents can be obtained. Rose Park Apartments has a 23% market advantage over the current
market rate rents.
Affordability for residents of various incomes levels should be based on ability to pay, since
affordability is a function of both housing costs and income.
Similarly to the answer above our rent levels are not only set by LIHTC maximum rent levels but also
consider what residents from specific income levels are able to pay for rent. Additionally, our sustainable
design does help the financial burden considerably for our residents.
The solutions to providing affordable housing should involve using diverse approaches and
mechanisms.
Summit Housing Group, Inc. continually looks to better the lives of our residents by looking at our past
developments and studying areas that we could improve our design, and become more cost efficient,
which in turn provides a better quality of housing and amenities for our residents. Sustainable design,
efficient use of land and innovative building practices are the key to providing quality affordable housing.
Availability of housing for residents of all income levels is essential for attracting and retaining the
employers that provide the jobs that are essential to the community's prosperity.
Summit Housing Group, Inc. could not agree more and are dedicated to providing quality housing at
affordable rents to each community we develop an apartment complex. Rose Park Apartments will
provide this quality housing.
Economic viability is the lifeblood of any successful community and employment is one of the keys to
growth and maintaining the community's economic viability. Economic growth can be measured in part
by the number of additional jobs created within a community. In the initial construction phases, Summit
Housing Group, Inc. will create countless jobs as subcontractors construct the apartment complex. After
completion, ongoing employment will be created through the operational phase of the developments. The
ongoing operations from the developments will create jobs such as property managers, assistant property
managers,maintenance staff, extermination, cleaning services, and repair contractors.
Provision of Community and Supportive Services
Programs benefiting residents with families:
Through our partnership with HRDC, our residents will receive a tailored social service plan to address
specific social issues within our community. These services will empower residents,nurture family
values,facilitate community partnerships, and foster a supportive environment that cultivates economic
growth and stability. This service plan will advocate self-sufficiency by offering social, economic, and
educational services to residents that will aid them in unlocking their potential for growth and prosperity.
Some of the programs Summit Housing Group,Inc. has utilized in the past are: Adult Literacy;
Computer Classes;English/Spanish instruction; GED preparation; Job Training/Preparation;Budgeting;
Communication Skills; Conflict Resolution; Fire and Personal Safety Awareness; Substance Abuse; Tax
Assistance; and Time and Stress Management.
How will your firm ensure that the long-term management of the project will 1) provide adequate
funding for project sustainability, and 2) be responsive to the needs of low-income residents?
Summit Housing Group,Inc.'s internal underwriting standards are constantly adjusting to the market
place based on tax credit pricing, interest rates, operational cost and construction cost. Since we own and
manage all 832 of our units,we have the benefit of having detailed historical information on development
cost and operational cost. This information allows us to accurately budget our development cost but also
us to conservatively set our operational budget and permanent debt amount so that the community will
have continued financial health.
The Montana Board of Housing and our Equity partners in the transaction will require both replacement
reserves and operating deficit reserves. Rose Park Apartments, LP will accrue $300 per unit or$12,600
for replacement reserves annually and will be used to replace any broken or damaged building
components. This reserve is in addition to the $786 per unit or$33,000 we budget annually for general
repairs and maintenance. The operating deficit reserve consists of four months of operating expense, debt
service and replacement reserves and will equal approximately $90,000. This operating deficit reserve is
put in place to cover any shortfalls or expense overruns that might occur due to unforeseen circumstances.
If the operating deficit reserve is utilized during a calendar year it must be replenished at year end at the
owner's expense.
For each unit type: proposed rent,# of bedrooms,# of bathrooms, rent level(AMI targets)
Income Level # of units Gross Max Rent Utility All. Mkt. Adj. Prop. Rent
1-BR @ 40% 3 515 86 429
2-BR @ 40% 2 618 103 515
TOTAL @ 40% 4 11.90%
1-BR @ 50% 13 643 86 557
2-BR @ 50% 13 800 103 669
TOTAL @ 50% 26 61.90%
1-BR @ 60% 8 772 86 (60) 626
2-BR @ 60% 3 927 103 (86) 738
TOTAL @ 60% 12 25.53%
Total LIHTC units 42
Mgrs. Unit 0 BR MGR unit
TOTAL UNITS 42
Unit Sq. Ft.
1 Bedroom with 1 Baths 750 SF
2 Bedroom with 2 Baths 950 SF
List of development team, including relevant experience in developing/owning similar
projects. Please attach resumes for key staff and firm principals.
Developer: Summit Housing Group,Inc.
283 W. Front Street, Suite 1
Missoula,MT 59802
Ph: 406-541-0999 ext. 233
Fax: 406-541-0997
Contact: Rusty Snow
rusty a,summithousinggroup.com
www.summithousinggroup.com
Architect: Encompass Architecture, PLLC
1535 Liberty Lane, Suite 11013
Missoula, MT 59808
Ph: 406-880-2841
Contact: Jenn Clary
J ennRwencompassdesignin.c.com
General Contractor: Oakwood Construction Co.
2380 Science Parkway Suite 101
Okemos,MI 48864
Ph: 517-347-1980
Fax: 517-347-0968
Contact: Bernie Aulgur
oakwoodcompanies(a-)gmail.com
http://www.oak.ce
Civil Engineer: JKC Engineering
111 West 2nd Street, Suite 420
Casper,WY 82601
Ph: 307-265-4601
Fax: 307-265-4672
Contact: Lewis James
lewis a,jkcengineering com
htt-o://www.jkcengineering.com
Property Management: Highland Property Management,Inc.
283 W. Front Street, Suite 1
Missoula,MT 59802
Ph: 406-541-0999 ext, 224
Fax: 406-541-0997
Contact: Casey Overland
caseynhighland-propertymanagement.com
http://www,highland-proi)ertymanagement.com/
I. EXECUTIVE SUMMARY
Rose Park Apartments-Bozeman,Montana
Client
Summit Housing Group, Inc.
283 W. Front Street Suite 1
Missoula, Montana 59802
Summary of Subject Property
The proposed Rose Park Apartments to be located in Bozeman, Montana will be a forty-
two (42) unit LIHTC senior community. The subject property is located on the west of
N. 27`h Avenue, between Turbulence Lane (on the north) & Tschache Lane (on the south),
in the northwestern part of the City of Bozeman, Gallatin County, State of Montana. The
City of Bozeman is located in the southwest part of Montana and is the State's 4t' most
populous city. All major services are available in Bozeman including a regional shopping
mall, big box retailers including Walmart, Costco and Target, banking, grocery stores,
education (public and private), and a regional hospital. The City is also home to Montana
State University.
Rose Park senior apartments will include one (1)three story building with an elevator.
Twenty-four(24) of the units will be one bedroom one bath @ 750 S.F., with the
remaining eighteen (18) units being two bedroom two bath @ 980 S.F. Five (5) of the
units will be designated for households at the 40 %AMI level, with twenty-six(26) units
at 50%and eleven (11) units will be at 60 %AMI. The proposed project will include a
community room with kitchen, computer room and an exercise room, as well as a BBQ
area w/tables and covered parking. Unit amenities will include all kitchen appliances
including a refrigerator, range, dishwasher, disposal and microwave, as well as
washer/dryers in the units, air conditioning, carpets, blinds, a patio/balcony and additional
storage.
Purpose of Study
The purpose of this study is to show continued need and demand for affordable senior
rental units in the Bozeman, Montana area. This study will establish the position of the
subject project, Rose Park Apartments within both the conventional multi-family rental
market, as well as the existing affordable housing market.
Conclusion
It is our opinion in looking at all of the factors in this study, that the proposed Rose Park
Apartments will fill a very strong need in the Bozeman area, that is for affordable rental
units for very low to low income seniors. The subject will provide good quality affordable
housing with rents running from 40 to 60 %below market. This will be accomplished
while offering a strong unit and project based amenities. The subject parcel is well located
in a mainly residential area of single family homes, attached single family and new good
quality apartments. The proposed site is however just a few blocks west of 17`" Avenue,
location of many area services including Costco, Target, Home Depot, Lowes and many
other retail and commercial businesses including grocery stores and banks. In looking at
other areas of the Bozeman rental market, it is clear that there is also a need for affordable
family housing, with existing projects being fully occupied and including wait lists. There
is however a new 48 unit family tax credit community that is under construction just east
of the subject that will help the need for affordable family units. The vacancy rate at
market rate projects is also very low at 0.2 %with two of the ten project surveyed
including a wait list. Renters in the Bozeman area currently have very few options, and in
most cases, simply have to take what's available (if anything), with no choice of floor or
location in the complex. The one existing senior tax credit community is 100 %occupied
and includes a wait list of names. While we have not included specific information,
we also talked to the managers of two low income senior projects, Darlington Manor and
Legion Villa, both of who were full with both including wait lists. All of the project
managers at existing income restricted projects expressed their support for a new senior
development and did not feel it would have any real effect on their project. Bob Ballard
with the local HRDC office, also noted that the wait list for section 8 vouchers increased
from 1,740 in August 2013 just under 2,000 at the present time. Since December 2010,
rents in the area have increased from 16 to 21 % and in fact, average rents have increased
by 7 to 11 % since July 2014. The highest increases came at the area's two bedroom two
bath units, which increased by 11 %over the past 12 months These higher rental rates are
making it increasingly difficult for very low to low income seniors (and families) to find
good quality affordable rental units in the City. As the population of the Bozeman area
increases over the next 2 - 3 years, we would expect rents to continue to climb as demand
grows. This will make the subject's below-market rents even more attractive, especially
given its strong location and amenity package. Taking into account all of the information
in this study, we feel that this proposed project should prove very successful if built as
planned.
The subject is located in one of the fastest growing cities in the State, with the population
of Bozeman continuing to increase at a good rate. Over the past four years (2010 - 2014),
Bozeman's population increased by 7,795 or 8.7 %or 2.2 % annually. In fact, over the
past year(2013 - 2014), the City's population increased by a very strong 4.6 %, more than
double the average annual increase from 2010 to 2014. Those increases over the past four
years, ranked Bozeman 2"'by total increase and also 2nd by percentage increase among all
cities in the State with a population of 3,000 or more. The senior population is by far the
fastest growing segment of that population, increasing by 4.4 %annually over the past five
years (2010 -2015).
Appropriate Development Type
As indicated in this market study, several main points show that this development is
appropriate for the market. First of all there is an indicated demand for 84 additional
units, with 281 eligible senior households currently in the market area. With the current
vacancy rate for existing competitive senior units at 0 %, it is clear the area needs a new
project. With just one competitive project in the City (which is full), we don't anticipate
the subject will have a negative effect on existing projects in the area. Secondly, after
discussions with managers of existing senior projects in the City as well as HRDC,the
biggest need in Bozeman for senior is for 1 & 2 bedroom units,which is contained in the
subject. Thirdly, given the very high rental increases in the area over the past several
years, the proposed project's rent range, will be very attractive (and affordable)to
potential renters.
Absorption
When looking at the potential lease up of a project it is always helpful to look at the recent
lease up of a similar project in the area. The last senior tax credit project to open was the
61 unit Bridger Peaks Apartments which opened in 206. However, in looking at all of the
factors in this report and taking into account its strong location and below-market rents,
we feel the subject will lease at a rate of about 20 -24 units per month with stable
occupancy achieved in three months.
IL PROJECT DESCRIPTION
a. Description of Market Area
We have determined that the primary market area will be the entire City of Bozeman.
Over the years that we have been completing market studies for affordable housing, we
have learned that potential residents are typically willing to relocate to different areas of a
given city in order to find quality affordable housing. That is especially true for seniors.
For conventional housing or market rate apartments, potential residents are more likely to
stay in certain areas, near work or certain schools, etc.
The subject parcel is located in the northwestern part of the City of Bozeman. This area
of the City includes a mix of newer residential uses as well as a high number of retail
businesses including Costco, Target, Lowes and Home Depot. Additionally, there are
grocery stores, banks, hotels and smaller retail businesses in this part of the City. Most of
these businesses are located along 19"'Avenue,just a few blocks east of the subject's
location on 27"'Avenue.
Bozeman is the State's 41' most populous City with all services available.
The market area also has a good mix of both single family and multi-family units
including apartment rentals and condominiums. According to the 2010 Census there
were 17,464 total housing units in the City of Bozeman, an increase of 5,820 from the
2000 Census total of 11,644. In addition, when looking at the building permits issued
since the April 2010 Census through May 2015, approximately 2,223 housing units have
been added for an estimated total of 19,687. Over the past three years, (2012 - 2014),the
City has permitted a very high 2,062 residential units (single and multi-family), an annual
average of 687 units, with another 189 though May 2015. The average age of housing in
Bozeman is very new with 55.7 %being built after 1990 and 74.6 % since 1970.
b. Site Amenities
Property Address: TBD - Tschache Lane
Property Identification: West Winds Major Subdivision
NW 1/4 of Section 02 Township 02S Range 05E
Geo-Code - 06079802242010000 (portion of)
Land Area: 1.89 acres
Zoning Classification: The subject parcel is currently zoned R-3 /PUD
Lot Description The proposed lot is level and is cleared of all trees.
Surrounding uses: The subject parcel is located in a mainly residential area of
new attached and detached single family homes and
apartments. A new family tax credit project is under
construction directly east of the proposed site with Vacant
R-4 zoned land (multi-family) farther east across 271"
Avenue. New duplex and attached single family homes are
to the north, west and south, with newly built market rate
apartment community farther to the south along N. 27'h
Avenue.
Access &Visibility: The site will be accessed off of N. 27"Avenue at either
Tschache Lane or Turbulence Lanes. There will be no
problems with access and visibility to the site
Inspection Date: The site was personally visited by Property Dynamics on
September 11, 2015
SITE PICTURES
SITE LOOKING SOUTH ALONG EAST BORDER
SITE LOOKING WEST ALONG TURBULENCE LANE
1
' A
SITE LOOKING SOUTH ALONG WEST BORDER
SITE LOOKING NORTH ALONG WEST BORDER
Rpm
Jill
SITE LOOKING EAST ALONG TSCHACHE LANE
NEIGHBORHOOD PICTURES
SINGLE FAMILY HOMES TO NORTH ACROSS TURBULENCE
DUPLEXES TO WEST
SINGLE FAMILY HOMES TO SOUTH
NEIGHBORHOOD SERVICES
Distances to Site:
1. 0.1 Bus Stop -Proposed(N. 271"Avenue & Tschache Ln)*
2. 0.1 Rose Park
3. 0.3 Post Office
4. 0.4 Town Pump/Conoco Convenience Store
5. 0.6 Mountain West Bank
6. 0.6 Smiths Grocery/pharmacy, Heritage Bank, Gap & 16 additional stores
7. 0.7 Fire Station
8. 1.2 Target, Ross, Etc.
9. 1.3 Family Doctors Urgent Care
10. 1.4 Costco
11. 2.3 Senior Center
12. 3.4 Library
13. 4.6 Hospital
* A city bus stop(Streamline) is at N. 271"Avenue& Tschache Ln. It is currently available
along 19", 0.3 miles from the proposed location
Distances calculated along dedicated roads - actual driving miles
Distances calculated by Property Dynamics
c. Description of Improvements
The proposed Rose Park Senior Apartments will include forty-two (42), one and two
bedroom tax credit units, with the following mix:
i. Unit Mix,Unit Amenities, Common Amenities
Proposed Unit Mix: Sq. Ft.
24 - One bedroom one bath units @ 750 S.F.
18 - Two bedroom two bath units @ 950 S.F.
42
Unit Amenities:
Refrigerator Range (oven/stove)
Dishwasher Disposal
Microwave Washer/dryer
Air conditioning Ceiling fans
Blinds Carpets
Patio/balcony Extra storage
Common Area Amenities:
Community room with:
Kitchen
Computer room
Exercise room
Elevator
Controlled entry
BBQ area w/tables
Covered parking
Parking Space: 45
Utilities:
Heat Source: Gas
Tenant Paid: Electric/gas/phone/cable
Owner Paid Utilities: Water/sewer/trash
Expect Date of Market Entry
April 2017
Proposed Rents/Income Levels
Utility Mkt.
Gross Rent Allowance Adjust. Net Rent
3 - One bdrm units @ 40/49 %of Median $ 515.00 $ 86.00 $ 0.00 $429.00
14 - One bdrm units @ 50/55 %of Median $ 643.00 $ 86.00 $ 0.00 $ 557.00
7 - One bdrm units @ 60 %of Median $ 772.00 $ 86.00 $ 60.00 $ 626.00
2 - Two bdrm units @ 40/49 %of Median $ 618.00 $ 103.00 $ 0.00 $ 515.00
12 - Two bdrm units @ 50155 %of Median $ 772.00 $ 103.00 $ 0.00 $ 669.00
4 - Two bdrm units @ 60%of Median $ 927.00 $ 103.00 $ 86.00 $ 738.00
42 - Total units
Units by Income Rangy
40 %Units - 5
50 %Units -26
60 %Units- 11
Projected Income:
3 - One bedroom units @$ 429.00= $ 1,287.00 x 12 months= $ 15,444.00
14- One bedroom units @$ 557.00= $ 7,798.00 x 12 months= $ 93,576.00
7 - One bedroom units @ $ 626.00= $ 4,382.00 x 12 months= $ 52,584.00
2 - Two bedroom units @ $ 515.00= $ 1,030.00 x 12 months= $ 12,360.00
12 - Two bedroom units @ $ 669.00= $ 8,028.00 x 12 months= $ 96,336.00
4 - Two bedroom units @ $ 738.00 = $ 2,952.00 x 12 months= $ 35,424.00
42 - Total $25,477.00 x 12 months= $ 305,724.00
Less 7 %Vacancy & Collection Loss $ (21,401.00)
Annual Forecasted Revenue $ 284,323.00
ii. Comparison to Market Rate Projects
The subject Rose Park senior apartments will be very similar to existing market rate
projects in the City in terms of condition and finishes. The ten market rate projects
surveyed were a mix of older communities to newly built(within the past few years),
and all would be considered as in good condition. We should note that at one of the
market rate projects surveyed, Castlebar,the majority of units (65) are tax credit, with
just 7 units at market. The ten projects surveyed included 1,008 units for an average of
101 units. The projects however ranged in size from 24 to 161 units and compared to
136 at the subject.
Project Amenities
The subject Rose Park Apartments will include a community room w/kitchen, computer
and exercise area, as well as a BBQ area w/tables and covered parking. On average,
existing market rate projects in Bozeman would be considered as about equal to the
subject in terms of project based amenities, with the exception of the three newest
projects in the area. Of the ten market rate projects surveyed, five included laundry
facilities, a community room and fitness center,with four including BBQ/picnic areas,
extra storage and a children's play area, with three including a business center, garages
and a pool or spa. As noted, three of the projects in our survey would be superior to the
subject when comparing project amenities. Those three projects are Mountain View,
Trout Meadows and the newly built Sundance at Baxter. Those include a business
center, fitness center and community room, with Trout Meadows and Sundance
including a pool and spa. Rents at those three projects are among the highest in the area
and well above the proposed rents at Rose Park.
Unit Amenities
The subject will include all basic kitchen appliances including refrigerator, range,
dishwasher, disposal and microwave as well as a washer/dryer in the unit, floor
coverings, blinds, air conditioning, a patio/balcony and additional storage.At the market
rate projects surveyed, all ten included carpets, blinds, all basic kitchen appliances with
nine of the ten including a dishwasher and/or disposal. Six included a microwave and
patio or balcony(three w/outside storage),with four including washer/dryers in the
units and ceiling fan. Two included washer/dryer hookups, AC and walk-in closets.
We would rate unit features at the subject as slightly superior on average to these ten
projects.
Unit Size Comparison
Range Avera e Subject
One bedroom one bath 530 - 854 S.F. 674 S.F. 750 S.F.
Two bedroom one bath 725 - 950 S.F. 851 S.F. NA
Two bedroom two bath 900 - 1,100 S.F. 1,010 S.F. 950 S.F.
The one bedroom unit size at the subject is about 11 % larger on average than the ten
market rate projects surveyed for this study. The two bedroom two bath units are
slightly smaller(by 6%), but well within the range of existing projects.
iii. Comparison to Other Rent Restricted Projects
In the market area there is just one existing senior tax credit community, the 61 unit
Bridger Peaks Apartments. Additionally,there are six family projects with 344 units.
All of the existing projects including family and senior are in good condition and would
be comparable to the subject in terms of overall condition.
Project Amenities
The subject Rose Park Apartments will include a community room w/kitchen, computer
and exercise area, as well as a BBQ area w/tables and covered parking. The one
competitive senior project, Bridger Peaks includes controlled entry, a community room
w/kitchen, as well as a common patio. We would rate the subject, as superior to Bridger
Peaks when comparing project amenities. At five of the six existing family projects, all
included a community room, laundry facilities, a BBQ/picnic area and a children's play
area, with one including a business center, basketball court and bike racks. The sixth
project, the 11 unit Haggerty Lane, includes a play area,BBQ/picnic area and bike racks.
On average the subject would be about equal to these six existing family projects.
Unit Amenities
The subject will include all basic kitchen appliances including dishwasher, disposal and
microwave as well as washer/dryers in the units, floor coverings, blinds, air conditioning,
a patio/balcony and additional storage. Bridger Peaks includes all basic kitchen
appliances including a dishwasher and disposal, as well as AC and carpets/blinds. At the
six family projects, all included all appliances including a dishwasher and/or disposal,
carpets and blinds. Two included a patio/balcony, air conditioning with one including
washer/dryer hookups. None of the existing projects include washer/dryers or
microwaves, as does the subject.
Unit Size Comparison
Range Average Subject
One bdrm one bath 440 - 750 S.F. 573 S.F. 750 S.F.
Two bdrm two bath 800 S.F. 800 S.F. 980 S.F.
The subject's one bedroom one bath units are much larger on average than existing
competitive units in the market area(by 31 %). The two bedroom units are about 22 %
larger, although we should note that there is just one project that has two bedroom with
two bath units and that unit is actually 1'/2 bath. All of these units sizes are from the
area's six family projects. The manager at the one senior project, Bridger Peaks did not
know the size of units.
III. MARKET AREA ECONOMY
a. Delineation of Market Area
We have determined that the primary market area will be entire City of Bozeman. Over
the years that we have been completing market studies for affordable housing, we have
learned that potential residents are typically willing to relocate to different areas of a
given city in order to find quality affordable housing. For conventional housing or
market rate apartments, potential residents are more likely to stay in certain areas, near
work or certain schools, etc. This market area was determined in part after discussions
with managers of existing income restricted family projects in the City, as well as with
HRDC in Bozeman.
b. Population and Household Trends
Gallatin County
With a 2014 Census estimated population of 97,308, Gallatin County is the State's 3`d
most populous County, following only Yellowstone (City of Billings) and Missoula
County (City of Missoula). Growth in Gallatin County has been very strong and steady
over the past 24 years (1990 - 2014), with its population increasing by 46,845 or 92.8 %,
a very good 3.9%annual rate of growth. The majority of that growth occurred between
2000 and 2010, when its population increased by 21,682 or 32.0 %, or 3.2 %annually,
and compared to growth of 17,368 or 34.3 % or 3.4 %per year on average between 1990
and 2000. More recently between 2010 and 2014, the County population increased by
7,795 or 8.7 %, from 89,513 in 2010 to 97,308 in 2014, a good 2.2 %per year on
average. Over the past four years (2010 - 2014), Gallatin was the State's 2"d fastest
growing County by overall increase, following only Yellowstone County. The County
also ranked tied for 4"'by percentage increase over the past four years.
City of Bozeman -Market Area
According to the U.S. Census Bureau, the 2014 estimated population for the City of
Bozeman was 41,660, making it the State's 4th most populous city and largest of Gallatin
County's five incorporated cities. The City of Bozeman has also enjoyed very strong
population growth over at least the past 24 years (1990 - 2014), with its population
increasing by 19,000 or 83.4 %or a very good 3.5 %per year on average. The majority
of that growth, like Gallatin County, occurred from 2000 to 2010,when its population
increased by 9,777 or 35.5 % or a very good 3.6% annually. That increase compared to
growth of 4,848 or 21.4 %or 2.1 %per year on average between 1990 and 2000. Over
the past four years (2010 to 2014), Bozeman's population increased by 4,374 or 11.7 %
or 2.9 % annually, from 37,286 in 2010 to 41,660 in 2014. We should also note that over
the past year(2013 -2014), the City's population increased by 4.6 %, well above the past
four year average of 2.9 %. From 2010 to 2014, Bozeman had the 2°1 largest overall
numeric increase of any city in the State, following only the City of Billings. In addition,
the City also ranked 2"by percentage increase over the same period(among cities with a
population 3,000 or more). In 2014, the City of Bozeman population made up 42.8 %of
the entire Gallatin County population, up from 40.6 % in 2000.
Nielsen is projecting an increase of 7.0 % or 1.4%annually over the next 5 years (2015 -
2020). That projection seems quite low, especially given increases over the past 2 - 3
years. As noted, from 2013 to 2014, the Census has estimated an increase of 4.6%. We
should note that the 2015 estimate for Bozeman from Nielsen is 41,138, compared to the
2014 estimate from the Census of 41,660.
In 2015 according to Nielsen, 17.6 %of the population was under age 18, while 17.8 %
were age 55+ and 9.2 %were age 65+. The median age in 2015 is 29.9, compared to
28.2 in 2010. By race, 92.6 %were White, 2.3 %were Asian or Pacific Islander, 2.3 %
were of Two or More Races and 3.2 %were of Hispanic Ancestry.
Senior Population
Over the past five years (2010 - 2015), the age 55+population in the market area has
increased by 1,326 or 22.1 % or 4.4 %per year on average. That is more than double the
increase of 2.1 % for the general population over the same period. Between 2010 and
2015,the age 65+population grew by 773 or 25.6 %, a 5.1 %annual rate of growth,
again well above the increase for the general population. Nielsen is projecting that the
number of seniors (age 55+) in the City/market are will increase by 937 over the next five
years, from 7,337 in 2015 to 8,274 in 2020. That is an increase of 12.8 % or 2.6 %
annually and compared to projected growth of 1.4 %per year on average for the general
population. Over the next five years, the age 65+population is projected to increase by
993 or 26 % or 5 %annually. It is very clear that the senior population has been, and will
continue to be,the fastest growing segment of the population in the Bozeman area.
Households
According to Nielsen/Ribbon, in 2015 there are 17,857 total households in the market
area, an increase of 2,131 or 13.6% from the 2010 Census figure of 15,726. That was an
annual average increase of 426 households and compared to growth of 503 annually
between 2000 and 2010. Of the total existing households in the market area in 2015,
12,865 or 72.0 %were non-senior, with the remaining 4,992 or 28.0%being age eligible
seniors (55+). In 2015, renter tenure for all households in the market area was a very
high 54.2%, with senior renter tenure at 28.1 %. So: 28.1 %x 4,992 (existing senior
households)= 1,403 total senior renter tenure households in 2015. Nielsen has projected
that by the year 2020,the total number of households will grow to 19,337, an increase of
1,480 or 8.3 %from the 2015 estimate, an annual average increase of 296 new
households. Of the new households entering the market area over the next five years,
Ribbon is projecting that 579 or 116 annually will be senior. Of those,they are
projecting that 295 or 59 per year on average will be renter tenure.
Economic Overview
Employment in the City of Bozeman was unchanged from 2009 and 2010, before
increasing every year since. Between 2010 and 2014, employment in Bozeman increased
by 3,661 or 17.9 %, a very strong 4.5 % annually. We should note that between 2013 and
2014, employment was up by 4.5 %, after an increase of 6.8 % from 2012 to 2013. The
latest monthly figure available for employment is from July 2015, which showed total
employment at 26,722, an increase of 1,098 or 4.3 %when compared to the July 2014
figure. In Gallatin County, employment has increased every year since 2010, growing by
6,492 or 13.3 %or 3.3 %per year on average. Like Bozeman, employment in the County
was up substantially from 2012 to 2014, increasing by 10.9 %or 5.45 %per year on
average. Again,the latest monthly figure available for employment is from July 2015,
which showed total employment in Gallatin County at 61,267, a very good increase of
2,518 or 4.3 %when compared to the July 2014 figure.
Over the past 10 years, the unemployment rate for the City and County have remained
below both State and National averages. Between 2005 and 2014, the County
unemployment rate averaged 4.5 %, compared to 4.1 % for the City of Bozeman, 5.4 % for
the State and 7.0%for the National average. The unemployment rate in both Bozeman
and Gallatin County has decreased every year since decade highs in 2009, dropping from
6.1 %to 3.1 % in 2014 in Bozeman, and from 7.0 %to 3.5 %in 2014 in Gallatin County.
The latest monthly figure available is from July 2015, which showed the unemployment
rate in the County at 2.5 %, down from 2.9% in July 2014. In the City of Bozeman, the
rate dropped from 2.8 %in July 2014 to 2.5 % in July 2015.
Overall, we would rate economic conditions in the County as very good. Total
employment in the County increased by 4.5 % in both Bozeman and Gallatin County from
2013 to 2014 and was up by 4.3 % in both areas when comparing July 2015 to July 2014.
The unemployment rate has decreased every year in both areas (City & County) since 2009
and dropped from 4.1 % in 2013 to 3.5 % in 2014 in the County, and from 3.8 % in 2013
to 3.1 % in 2014 in Bozeman. In addition, the rates were down in both areas when
comparing the latest monthly figures available.
MARKET AREA PROFILE-CITY OF BOZEMAN
Population:
Change %Chanize
2000(Census) 27,043
2010(Census) 37,280 10,237 37.9%
2015 (Estimate) 41,138 3,858 10.3 %
2020(Projection) 44,003 2,865 7.0%
Population by Race: 2010 2015 2020
White 93.6% 92.6% 91.4%
Black 0.5 % 0.8% 1.2%
American Indian 1.1 % 1.5 % 1.8%
Asian or Pacific Islander 2.0% 2.3 % 2.6%
Other Race 0.7 % 0.7 % 0.8%
Two or More races 2.1 % 2.3 % 2.4%
Hispanic Ancestry 2.9% 3.2 % 3.5 %
Population by Age:
0- 17 15.7% 17.6% 18.4%
18-24 27.8% 22.1 % 17.2 %
25 -34 20.4% 21.1 % 20.9 %
35 -44 10.6% 12.6% 14.9%
45 - 54 9.4% 8.7% 9.8 %
55 - 64 8.0 % 8.6% 7.9%
65- 74 3.7 % 5.1 % 6.7 %
75&Older 4.4% 4.1 % 4.2%
Total 100.0% 100.0% 100.0%
Median Age- 28.2 29.9 31.9
Households:
Change %of Change
2000(Census) 10,699
2010(Census) 15,726 5,027 47.0%
2015 (Estimate) 17,857 2,131 13.6%
2020(Projection) 19,337 1,480 8.3 %
2015 2020
Non-Senior Households 12,865 72.0% 13,766 71.2%
Senior Households(55+) 4,992 28.0% 5,571 28.8%
17,857 100.0% 19,337 100.0%
2015 %Households
With 1 person 35.0%
With 2 persons 35.5 %
With 3 persons 16.2%
With 4 persons 9.2%
With 5 persons 2.9%
With 6 persons 0.8%
With 7+persons 0.3 %
Average Household Size-2.13
2015 Housing Units:
Total Housing Units 19,493
Occupied Housing Units 17,857 -91.6%
Owner Occupied 7,814 -45.8%
Renter Occupied 9,298 - 54.2%
Vacant Housing Units 1,636 - 9.2%
2015 -Units in Structure:
One unit detached 42.5 %
One unit attached 9.1 %
Two units 8.5 %
Three-Four 14.7%
Five-Nineteen 13.9%
Twenty-Forty-nine 2.6%
Fifty or more 3.3 %
Mobile Homes 5.4%
Other 0.0%
Household Income: 2000 2015 2020
$ 0- $ 14,999 2,077 19.4% 2,253 12.6% 2,056 10.6%
$ 15,000- $24,999 1,939 18.2% 2,297 12.9% 2,148 11.1 %
$25,000- $34,999 1,735 16.2% 2,224 12.5 % 2,246 11.6%
$35,000-$49,999 1,956 18.3 % 2,328 13.0% 2,419 12.5 %
$ 50,000- $74,999 1,717 16.1 % 3,189 18.0% 3,361 17.4%
$ 75,000-$99,999 708 6.6% 2,115 11.8% 2,356 12.2 %
$ 100,000+ 549 5.1 % 2,451 19.3 % 4,751 24.6%
10,681 100.0% 17,857 100.0% 19,337 100.0%
Median Household Income $32,634 $48,882 $ 55,947
Average Household Income $40,637 $69,548 $78,731
Source:Nielsen 03/28/15
Households by Income
Market Area
Renter Households by Household Size-2015
Senior 55+Households 1-Person 2-Persons 3+Persons
$ 0- 10,000 78 20 4
$ 10,000-20,000 190 47 10
$20,000-30,000 65 62 17
$30,000-40,000 115 64 10
$40,000- 50,000 90 67 8
$ 50,000-60,000 69 26 13
$60,000+ 221 149 78
Totals 828 435 140
Renter Households by Household Size-2017*
Senior 55+Households 1-Person 2-Persons3+Persons
$0- 10,000 81 23 7
$ 10,000-20,000 188 47 10
$20,000-30,000 71 69 16
$30,000-40,000 123 74 10
$40,000- 50,000 96 66 8
$ 50,000-60,000 74 28 15
$60,000+ 267 169 79
Totals 900 476 145
* For the 2017 figures,we have pro-rated the difference between 2015 and 2020
Renter Households by Household Size-2020
Senior 55+Households 1-Persons 2-Persons 3+Persons
$0- 10,000 86 27 11
$ 10,000-20,000 186 47 9
$20,000-30,000 79 79 15
$30,000-40,000 135 88 10
$40,000- 50,000 104 64 8
$ 50,000-60,000 81 31 18
$60,000+ 336 202 82
Totals 1,007 538 153
Source:Ribbon Demographics
C. I lousing I -ends
Housing Units - City of Bozeman
According to the City of Bozeman Planner, Tara Hastie, there are currently several small
market rate apartment projects in planning. Those projects include about 50 - 60 total
units. Additionally, the number of single family homes permitted in the City has increased
significantly over the past few years, especially in 2013. Since 2012, the City has
permitted over 1,000 new homes and another 1,050 multi-family units. Ms. Hastie noted
that there are a large number of sub-division and PUD's planned over the next several
years. That will increase the number of single family (attached and detached)homes in the
Bozeman area. Some of those PUD's will also include a multi-family element.
Housing Units - City of Bozeman
According to the 2010 Census, there were 17,464 total housing units in the City of
Bozeman, an increase of 5,820 from the 2000 Census total of 11,644. In addition, when
looking at the building permits issued from the 04/2010 Census through July 2015,
approximately 2,358 housing units have been added for an estimated total of 19,822. The
average age of housing in Bozeman is very new with 56.0 %being built after 1990 and
75.1 % since 1970. Conversely, 18.5 %were built prior to 1960 and 9.8 %before 1940.
Sub-standard and Rent Overburden Renter Housing nits
Lacking Complete Plumbing Facilities - 17 or 0.2 %
Over Crowded - more than 1.01 persons per room - 186 or 2.1 %
Rent Overburden - paying more than 35 %of household income to rent- 3,242 or 36.6 %
paying more than 50%of household income to rent-2,069 or 23.3 %
Source: U.S. Census - 2011-2013 American Community Survey (3-Year Estimates)
Building Permits
Between 2005 and 2014, the City of Bozeman issued permits for 5,136 new residential
units (single&multi-family). Of that total, 2,459 or 47.9 %were single family, with the
remaining 2,677 or 52.1 %being multi-family units. Over the past ten years the City has
averaged about 268 multi-family units per year, with the majority of those units permitted
in the early to middle part of the decade, and in 2013 and 2014. From 2005 to 2007 the
City permitted 1,369 multi-family units or 456 new units annually, compared to just 72 per
year on average from 2008 to 2011. Over the past three years (2012-2014), the number of
multi-family permits issued has increased strongly averaging 350 per year(1,050 total).
From 2005 to 2014, Bozeman has averaged a very good 246 single family permits
annually, again with the majority of those being issued from 2005 to 2007 and 2012 to
2014. In 2014, the City permitted 295 single family homes, down from the 432 permitted
in 2013. Through July 2015,the City has permitted another 178 single family and 146
multi-family units.
d. Supply and Demand Analysis
i. Market Rate Supply
1. Existing
In 2015 the market area included 9,681 or 54.2 %rental units out of the total 17,857
occupied housing units. These units include all types of rental housing including mobile
homes, single family homes and apartment complexes. The Bozeman area has a very high
number of rentals due mainly to the student population at Montana State University. In
2015, duplex units in the market area made up 8.5 % or 1,655 units of the total, while 3 -4
unit buildings made up 14.7% or 2,865 units and structures with 5 or more units made up
19.8 % of the total or 3,864 units. In total, there are 8,384 multi-family units in the market
area. Keep in mind that many of these are owner occupied condominium units. In looking
at current vacancy rate of 0.2 %, it is clear that there is a severe shortage of market rate
units in the City.
The ten multi-family rental projects surveyed in the Bozeman area were a mix of older
projects (built in the 1970's to 1980's), to newly built(2000 to 2015). That is very similar
to the overall rental market in the City. There are a good number of older projects in the
City, with most being in good condition. Additionally,there were a large number of
projects built over the past 8 - 10 years. As noted, since 2005 the City has permitted 2,677
multi-family units. We should note that some of these units are restricted to the student
population at MSU, although the majority of rentals are open to anyone. In the market
area there is also a good variety of unit sizes (1, 2, 3 and 4 bedrooms), with the majority of
projects being 1 - 3 story garden style communities. The majority of these units are flats,
although there are several townhome style units in the City.
2. Potential/Developing
At the present time according to Tara Hastie,with the City of Bozeman Planning
Department, there are several smaller market rate multi-family projects in planning in the
City. Those projects include from 10 -20 units each for a total of 50 - 60 units.
ii. Market Rate Demand
1. Vacancy Rates, Incentives
Rental Vacancy
Our latest survey of the Bozeman area includes ten (10) market rate projects with 1,008
total units, an average complex size of 101 units and compared to 136 at the subject(note
that while the Castlebar Apartments includes just 7 market rate units,the entire complex is
72 units, with remaining units tax credit). The projects surveyed however ranged in size
from 24 to 218 units. In this most recent survey, we found just two total vacancies for a
0.2 %vacancy rate. That compared 1.0% rate in July 2014 and a 0.0 %rate in a survey of
nine of the ten projects in August 2013. In December 2011, the rate was at 1.3 %with ten
total vacancies found. Of the two vacancies found in our current study, both were two
bedrooms units.
Only one of the market rate projects surveyed (Mountain View)was offering rental
incentives, and that was $150 off the first month rent for their vacant unit.
2. Rent Trends
Since December 2010, rents at the area's one bedroom units have increased by about 18 %
on average, while two bedroom one bath rents increased by 21 %. Rents at the area's two
bedroom two bath units saw the largest increase at 58 %, with three bedroom units
increasing by 16 %. In fact, over the past 15 months (July 2014 to September 2015), rents
have grown by 7 - 11 % on average. We have listed below a summary of rents we
obtained in our rental survey of the Bozeman area. In addition,we have listed a"Net
Adjusted Market Rent." We have taken into account, unit sizes, age of the project,
comparable unit and project amenities.
Proposed
Averaize Market Rent Rose Park Rent Gan
One bedroom one bath $ 807.00 $ 888.00 $429 - 626.00 30- 52 %
Two bedroom one bath $ 923.00 $ 1,015.00 NA NA
Two bedroom two bath $ 1,101.00 $ 1,100.00 $ 515 - 738.00 33 -53 %
3. Absorption
We were not able to obtain any absorption information from existing market rate projects
as none of the newer communities were willing to divulge that information. However, the
manager at the newly opened Sundance at Baxter Apartments did comment that they were
able to fill all 192 of her units as buildings were released.
iii. Rent-Restricted Supply
1. Existiny,
The market area consists of one Senior tax credit projects with 61 units. That project, like
the subject is a 3 story elevator ed building with controlled entry. The City also includes
several low income senior communities, all of which are 100 %occupied.. Additionally,
there are eight income restricted family housing projects with 458 total units. Six of the
family projects are family tax credit communities, with two low income government
subsidized projects. The six tax credit projects include 344 total units and the two low
income family projects including 114 units. Five of the six tax credit communities are two
story garden style, with the sixth being a townhome project. Both of the low income
government subsidized projects surveyed are also two story garden style.
2. Potential/Developing
In 2014,the Montana Board of Housing funded a 48 unit family tax credit community,
Stoneridge Apartments. This project includes 2 & 3 bedroom units at 40, 50 & 60 %of the
area median income. Stoneridge is located at N. 27"Ave. & Turbulence Lane. The
subject will be located on the western part of that lot
iv. Rent-Restricted Demand
1. New Unit Demand
Using the project's pre-determined income ranges,we have calculated on the following
page that there is currently a need for an additional 689 rental units for non-senior
households with incomes at 50 - 60 %of the area median income. We have also
determined that by the projected opening in December 2016, that number will increase by
17 units for a total of 706.
NEW UNIT ANNUAL DEMAND ESTIMATE
***************************************************************************
DEMAND FROM EXISTING HOUSEHOLDS:
1. Number of existing senior households for 2015 in market area 4,992
2. Number of renter senior households - 28.1 %x 4,994= 1,403
3. Household Size Eligible (1 - 2 persons) - 90.02 %x 1,403 = 1,263
4. Number of income qualified renters 20.0 %x 1,263 = 252
($ 14,709 - $ 32,940)
5. Movership/turnover rate - 48.9 % (Geographic Mobility for Bozeman 123
for renter tenure households - U.S. Census Bureau S0701)
6. Estimated demand from existing rental households 123
DEMAND FROM NEW HOUSEHOLD GROWTH:
The figures above represent the total number of existing qualified households. If we look only
at new demand from growth, we will use projected new households who will move into the
market area by 2017
Demand from New Households for Tax Credit Units:
1. Estimated number of new non-senior 1-5 persons renter tenure households
that will enter market area between 2015 & 2017 113
2. Annual demand - 1 year divided by 113 = 56
3. Number of income qualified households -20.0 %(percentage of
households that fall into the predetermined income range - see
Calculation of Eligible Households). So 20.0 %x 56 = 11
4. Estimated annual demand from new households 11
Total annual demand from existing and new renter households - 123+ 11 = 134
2. Vacancy Rates
As noted, there is one existing competitive senior tax credit community,the 61 unit
Bridger Peaks apartments. That project is fully occupied and include names on its wait
list. We also surveyed the six existing tax credit projects in Bozeman with 344 units,with
all being 100 %occupied, the same result as in our July 2014 and August 2013 surveys. .
Lastly, we surveyed the two existing low income senior communities with 160 total units.
Both projects were 100 %occupied and included wait lists, with and names.
3. Market Penetration Anal
Calculation of Eligible Households
For the purposes of this report we will calculate the number of eligible households based
on income of 40 - 60 %AMI. The proposed Rose Park Senior apartment project to be
located in Bozeman, Montana will include of 42 tax credit units. Unit mix with net rents:
3 - One bedroom one bath @ 40 %of Median $ 429.00
14 - One bedroom one bath @ 50 %of Median $ 557.00
7 -One bedroom one bath @ 60 %of Median $ 626.00
2 - Two bedroom two bath @ 40 %of Median $ 515.00
12 - Two bedroom two bath @ 50 % of Median $ 669.00
4 - Two bedroom two bath @ 60 %of Median $ 738.00
42 - Total units
2015 Income Limits - Gallatin County
One Person $ 23,939 -49 %
$24,050 - 50%
$26,455 - 55 %
$ 28,860 - 60 %
Two Persons $ 27,324 -49%
$27,450 - 50%
$ 30,195 - 55 %
$ 32,940 - 60%
Source: Montana Board of Housing-Effective March 6, 2015
For purposes of this report we will make our calculations based on 1 person for the one
bedroom units and 2 persons for the two bedroom units.
Minimum
Typically, for the calculation of number of eligible households for the tax credit units,we
consider that prospective residents will spend no more than 30%of their income on housing.
However, for a senior development,we will assume 35 %. It is our experience that seniors will
pay a little more for good quality secure housing.
One bedroom units @ 40 %_ $429.00 divided by .35 x 12 months=$ 14,709
One bedroom units @ 50 %_ $ 557.00 divided by .35 x 12 months= $ 19,097
One bedroom units @ 60 %_$ 626.00 divided by .35 x 12 months= $ 21,463
Two bedroom units @ 40%_ $ 515.00 divided by .35 x 12 months= $ 17,657
Two bedroom units @ 50 %_ $ 669.00 divided by .35 x 12 months= $22,937
Two bedroom units @ 60 %_ $ 738.00 divided by .35 x 12 months=$25,303
Qualifying Ranges
One bedroom units @ 40%_ $ 14,709 to $23,939 (based on 1 person @ 49 %)
One bedroom units @ 50%_ $ 19,097 to $ 26,455 (based on 1 person @ 50 %)
One bedroom units @ 60 %_ $21,463 to $28,860 (based on I person @ 60 %)
Two bedroom units @ 40%_ $ 17,657 to $27,324 (based on 2 persons @ 49 %)
Two bedroom units @ 50%_ $22,937 to $ 30,195 (based on 2 persons @ 50 %)
Two bedroom units @ 60 %_$ 25,303 to $ 32,940 (based on 2 persons @ 60 %)
As to not double count households, we will narrow the income ranges
Expanded Ranges
One bedroom units @ 50 %_$ 14,709 to $ 20,960
One bedroom units @ 60 %_$ 20,960 to $ 25,660
One bedroom units @ 50 %_ $ 25,660 to $28,860
Two bedroom units @ 60%_$ 17,657 to $24,657
Two bedroom units @ 50 %_ $ 24,657 to $ 29,757
Two bedroom units @ 60%_ $29,757 to $ 32,940
Determining the Number of Eligible Households
Although some of the potential residents will come from outside the market area, we have
asked Nielsen/Ribbon Demographics to provide us with the number of households, as well as
the incomes for the primary market area,which we have previously mentioned will be the City
of Bozeman. The data we have received is based on 2015 figures, with income limits also from
2015.
Eligibility for Tax Credit Units
Step One -According to Nielsen/Ribbon, in 2015 the total number of households in the primary
market area was 17,857. Of the total households, 4,992 or 30.0 %were senior(age 55+).
Step Two - We will now determine the total eligible by tenure. While renter tenure for the
market area in 2015 was 54.21 %, for seniors it was 28.1 %, so:
4,992 - Existing senior households in market area in 2015
x 28.1 % - Senior renter tenure
= 1,403 - Senior households with renter tenure in the market area
In the market area, there are 828 one person, age 55+households (one bedroom units) and 435
two person age 55+households (two bedrooms), for a total of 1,263 1 &2 person senior renter
households
Step Three - We will now calculate the total number of income eligible households. That is,
the total number of the lowest to highest ranges of those households whose incomes range
between $ 14,709 and $ 32,940. The number of non-senior households that fit the project's
predetermined income range =20.0 %.
1,263 - Existing 1-2 person senior renter tenure households in 2015
x 20.0 % -Percentage of 2015 households with incomes between $ 14,709& $ 32,940
= 252 - Income eligible non-senior renter households
Household Projection
Between 2015 and 2020,Nielsen/Ribbon has projected that an additional 579 senior households
will enter the market area. Of those,they have projected that 295 will be renter tenure, with
282 including 1 - 2 persons, an annual average increase of 56 one to two person senior renter
households. Of those, we will assume that 0.0 % or 11 annually will also be income eligible.
On the following page, we will calculate the number of eligible households by bedroom size:
Eligibility bility for Three(3)One Bedroom Units cr.40/49%of Median:
Monthly rent: $429.00
Income eligible range: $ 14,709 - 20,960 (minimum and maximum)
Targeted group: Senior Households
Total existing senior households: 4,992
Renter tenure: 28.1 %x 4,992 = 1,403 total eligible households with renter tenure
Household size: (I persons) 59.0 %x 1,403 = 828
Financially eligible: 12.9 %x 828 = 107 eligible households
**************************************************************************
Eligibility for Fourteen (14)One Bedroom Units Q 50/55 %of Median:
Monthly rent: $ 557.00
Income eligible range: $ 20,960 - 25,660 (minimum and maximum)
Targeted group: Senior Households
Total existing senior households: 4,992
Renter tenure: 28.1 %x 4,992 = 1,403 total eligible households with renter tenure
Household size: (I persons) 59.0 %x 1,403 = 828
Financially eligible: 3.74 %x 828 =31 eligible households
***************************************************************************
Eligibility for Seven (7) One Bedroom Units @ 60 %of Median:
Monthly rent: $ 626.00
Income eligible range: $ 25,660 - 28,860 (minimum and maximum)
Targeted group: Senior Households
Total existing senior households: 4,992
Renter tenure: 28.1 %x 4,992 = 1,403 total eligible households with renter tenure
Household size: (1 persons) 59.0%x 1,403 = 828
Financially eligible: 2.54 %x 828 =21 eligible households
***************************************************************************
Eligibility for Two (2) Two Bedroom Units (a,40/49 % of Median:
Monthly rent: $ 515.00
Income eligible range: $ 17,657 - 24,657 (minimum and maximum)
Targeted group: Senior Households
Total existing senior households: 4,992
Renter tenure: 28.1 %x 4,992 = 1,403 total eligible households with renter tenure
Household size: (I persons) 31.0%x 1,403 =435
Financially eligible: 9.2 %x 435 =40 eligible households
Eli ig bility for Twelve (12)Two Bedroom Units a,50/55 %of Median:
Monthly rent: $ 569.00
Income eligible range: $ 24,657 -29,757 (minimum and maximum)
Targeted group: Senior Households
Total existing senior households: 4,992
Renter tenure: 28.1 %x 4,992 = 1,403 total eligible households with renter tenure
Household size: (I persons) 31.0 %x 1,403 =435
Financially eligible: 7.4 %x 435 =32eligible households
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Eligibility for Four(4) Two Bedroom Units 60%of Median:
Monthly rent: $ 738.00
Income eligible range: $ 29,757 - 32,940 (minimum and maximum)
Targeted group: Senior Households
Total existing senior households: 4,992
Renter tenure: 28.1 %x 4,992 = 1,403 total eligible households with renter tenure
Household size: (I persons) 31.0%x 1,403 =435
Financially eligible: 4.8 %x 435 =21 eligible households
Summary of Eligible Households
Proposed Eligible Capture
Units Households Rate
One bedroom units @ 40/49 % 3 107 2.8 %
One bedroom units @ 50/55 % 14 31 45.2 %
One bedroom units @ 60 % 7 21 33.3 %
Total One bedroom units 24 159 15.1 %
Two bedroom units @ 40/49 % 2 40 5.0 %
Two bedroom units @ 50/55 % 12 32 37.5 %
Two bedroom units @ 60% 4 21 19.0 %
Total Two bedroom units 18 93 19.4 %
Total Project 42 252 16.7 %
Capture Rate
Projected income eligible tenants who will move in the next year/proposed units
Projected income eligible tenants who will move in the next year 252
Proposed units 42
Capture Rate 16.7 %
Absorption Rate
Proposed Units/existing LIH, market area units required
Proposed/existing units (61/42) 103
LIH units Required 123
Absorption Rate 83.7 %
Penetration Rate
Existing LIH units/total eligible households
Income &tenure eligible households 252
Existing competitive LIHTC Senior Units (40 - 60%) - 61
LIHTC units in planning/under construction (40, 50 & 60 %) 0
Total 191
Units Proposed 42
Penetration Rate 22.0 %
4. Project Absorption for Project
Absorption
In looking at the potential absorption of a project, it is always helpful to look at the recent
success of similar project's opening in the market area. Unfortunately, no senior tax
credit communities have opened since Bridger Peaks in 2004. However, in looking at all
of the information in the study, it is our opinion that the subject will lease at a rate of 14 -
16 units per month with stable occupancy in 3 months.
v. Analysis of Project's Special-Needs-NA
vi. Conclusion: Proposed Project's Competitive Position
vi. Conclusion -Proposed Project's Competitive Position
In looking at all of the information in the study, it is our opinion that the subject will fill
one of the biggest needs in the community,that is for affordable rental units for very low to
low income senior. To be sure, there is also a need for low income units for families,
although as noted,there is a 48 unit family tax credit project currently under construction,
directly east of the subject location. The subject will provide good quality units, with a
strong amenity package at rents well below market(30 - 53 %). At the one existing
competitive project in the area, Bridger Peaks, all units were fully occupied. In addition is
had a wait list of names. The project manager of Bridger Peaks was very supportive of a
new senior development and felt that it would have no real affect on her project. She noted
that she receive a good number of daily phone calls and personal site visits from persons
looking for a unit, but who are in immediate need and choose not to be put on a wait list.
Additionally, all existing low income senior projects (government subsidized), are also
100%occupied with all including long wait lists. We have determined using the subject's
pre-determined income ranges, that there are currently 252 size, income and tenure eligible
senior households in the market area. While the overall capture are on the high side, keep
Taking all of these factors into consideration, we feel that there are more than enough
households in the market area to support this proposed project. The population of Bozeman has
increased at a very good rate since at least 1990 and in fact, over the past five years the City has
increased by a very good 2.9 %per year on average, including a 4.6 % increase from 2013 to
2014. While projections indicate a slowing of that growth over the next five year,the City's
population will continue to grow at a good rate. In looking at existing projects and taking into
account the subject's strong location, we feel that the proposed Larkspur Commons will be very
successful if built as planned.
IV. COMPETITIVE RENTAL MARKET
a. Description of Comparable Properties
i. Analysis of Rents, including Amenities and Utilities:
The subject Rose Park Senior will be very similar to existing market rate projects in the
City in terms of condition and finishes. The ten market rate projects surveyed were a
mix of older communities to newly built (within the past few months), and all would be
considered as in good condition. We should note that at one of the market rate projects
surveyed, Castlebar,the majority of units (65) are tax credit, with just 7 units at market
rate. The ten projects surveyed included 1,008 units for an average of 101 units. The
projects however ranged in size from 24 to 161 units and compared to 42 at the subject.
Project Amenities
The subject Rose Park Apartments will include a community room w/kitchen, computer
and exercise area, as well as a BBQ area w/tables and covered parking. On average,
existing market rate projects in Bozeman would be considered as about equal to the
subject in terms of project based amenities, with the exception of the three newest
projects in the area. Of the ten market rate projects surveyed, five included laundry
facilities, a community room and fitness center, with four including BBQ/picnic areas,
extra storage and a children's play area, with three including a business center, garages
and a pool or spa. As noted, three of the projects in our survey would be superior to the
subject when comparing project amenities. Those three projects are Mountain View,
Trout Meadows and the newly built Sundance at Baxter. Those include a business
center, fitness center and community room, with Trout Meadows and Sundance
including a pool and spa. Rents at those three projects are among the highest in the area
and well above the proposed rents at Rose Park.
Unit Amenities
The subject will include all basic kitchen appliances including refrigerator, range,
dishwasher, disposal and microwave as well as a washer/dryer in the unit, floor
coverings, blinds, air conditioning, a patio/balcony and additional storage. At the market
rate projects surveyed, all ten included carpets, blinds, all basic kitchen appliances with
nine of the ten including a dishwasher and/or disposal. Six included a microwave and
patio or balcony (three w/outside storage),with four including washer/dryers in the units
and ceiling fan. Two included washer/dryer hookups, AC and walk-in closets. We
would rate unit features at the subject as slightly superior on average to these ten
projects.
Unit Size Comparison
Range Average Subject
One bedroom one bath 530 - 854 S.F. 674 S.F. 750 S.F.
Two bedroom one bath 725 - 950 S.F. 851 S.F. NA
Two bedroom two bath 900 - 1,100 S.F. 1,010 S.F. 980 S.F.
The one bedroom unit size at the subject is about 11 % larger on average than the ten
market rate projects surveyed for this study. The two bedroom two bath units are
slightly smaller(by 3 %), but well within the range of existing projects.
Comparison to Other Rent Restricted Projects
In the market area there is just one existing senior tax credit community, the 61 unit
Bridger Peaks Apartments. Additionally, there are six family projects with 344 units.
All of the existing projects including family and senior are in good condition and would
be comparable to the subject in terms of overall condition.
Project Amenities
The subject Rose Park Apartments will include a community room w/kitchen, computer
and exercise area, as well as a BBQ area w/tables and covered parking. The one
competitive senior project, Bridger Peaks includes controlled entry, a community room
w/kitchen, as well as a common patio. We would rate the subject Rose Park, as superior
to this project when comparing project amenities. At five of the six existing family
projects, all included a community room, laundry facilities, a BBQ/picnic area and a
children's play area, with one including a business center, basketball court and bike
racks. The sixth project,the 11 unit Haggerty Lane, includes a play area, BBQ/picnic
area and bike racks. On average the subject would be about equal to these six existing
family projects.
Unit Amenities
The subject will include all basic kitchen appliances including dishwasher, disposal and
microwave as well as washer/dryers in the units, floor coverings, blinds, air conditioning,
a patio/balcony and additional storage. At the six family projects, all included all