Affordable Housing Market Study Apache Manor Apartments 2402 N

Affordable Housing Market Study Apache Manor Apartments 2402 N. Marion Avenue, Tulsa, Tulsa County, OK 74115 Effective Date: September 5, 2018 JLL File Number: 1408-18-141879

Apache Manor Apartments 2402 N. Marion Avenue Tulsa, OK 74115

1323 E. 71st St., Suite 105 Phone: 918-492-4844 Tulsa, OK 74136 Fax: 918-493-7155

October 16, 2018

Mr. Gary Kammer Tulsa Housing Authority 415 E. Independence Tulsa, OK 74148

Re: Affordable Housing Market Study

Apache Manor Apartments 2402 N. Marion Avenue Tulsa, Tulsa County, OK 74115

JLL VAS File Number: 1408-18-141879

Dear Mr. Kammer: In accordance with your request, we have inspected the site of the proposed development and have completed a market study regarding the feasibility of the addition of multifamily units to the Tulsa area. This study has been prepared for the exclusive benefit or interest of Mr. Gary Kammer, Tulsa Housing Authority and the Oklahoma Housing Finance Agency for use in the Federal Low-Income Housing Tax Credit program. This report may also be relied upon by any other entity related to the financing of the proposed property. Any other party who uses or relies upon any information in this report, without the preparer's written consent, does so at his or her own risk. This report is intended to comply with the reporting requirements set forth by the Oklahoma Housing Finance Agency. As such, it presents only minimal discussions of the data, reasoning and analyses that were used in the process to develop the analyst's opinions and conclusions. Supporting documentation concerning the data, reasoning and analyses is retained in the analyst’s file. The market study is true and correct to the best of the professional’s knowledge and belief, and there is no identity of interest between Andrea Gillman, Owen S. Ard, MAI or JLL Valuation & Advisory Services and the Applicant, Developer, or Owner. The property and surrounding area was inspected on September 5, 2018. Conditions pertinent to or indicative of the market were investigated. Please note the Contingent and Limiting Conditions. The conclusions of this analysis are detailed at the end of this report.

If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted,

JLL Valuation & Advisory Services, LLC

Owen S. Ard, MAI Andrea Gillman Certified General Real Estate Appraiser Certified General Real Estate Appraiser OK Certificate # 11245CGA OK Certificate # 13250CGA Telephone: 918-523-5480 Telephone: 918-523-5492 Email: [email protected] Email: [email protected]

Apache Manor Apartments Affordable Housing Market Study

Contents

Market Study Summary 1 Summary of Salient Facts and Conclusions 3 General Information 4 Property Analysis 7 Site Description 7 Conclusion of Site Analysis 10 Improvements Description and Analysis 12 Conclusion of Improvements Analysis 16 Market Area Analysis 24 Definition of Primary Market Area 24 Demographic Analysis 26 Population and Households 26 Selection Criterion 3 – Population Growth Area 26 Income Distribution 29 Employment and Economy 32 Employment and Unemployment 32 Employment and Wages by Industrial Supersector 34 Major Employers 38 Current Housing Stock Evaluation 40 Housing Overview 40 Substandard Housing 40 Building Permits 42 Cost of Home Ownership 43 Size of Primary Market Area Apartment Market 44 Analysis of Comparable Rentals 44 Market Rental Conclusion 55 Impact on Subsidized Housing Alternatives 55 Analysis of Occupancy in the Market 56 Subject Property Absorption Estimate 56 Evaluation of Need for Affordable Housing 57 Cost Burden by Income Threshold 57 Cost Burden by Household Type 59 CHAS Conclusions 61 Statewide Affordable Housing Study 61 Summary of Need for Affordable Housing 62 Market Demand and Capture Rate Analysis 63 Required Income Levels 63

Apache Manor Apartments Affordable Housing Market Study

Analysis of Affordability of Rental Units 63 Capture Rate Analysis 64 Conclusion 67 Certification 68 Assumptions and Limiting Conditions 70 Appendices A. Appraiser Qualifications B. Property Information C. Rent Comparables

Apache Manor Apartments Affordable Housing Market Study

Market Study Summary

Development Name: Apache Manor Apartments The Market Study prepared by: Owen S. Ard, MAI and Andrea Gillman, JLL Valuation & Advisory Services, LLC Date of Study: September 5, 2018

24 A map delineating the primary market area (pma).

21 A photograph of the site.

7 A full description of the site.

10 Discussion of the appropriateness of the location.

26 A demographic summary of the market area, including incomes, households, growth trends, economic factors relating to employment, labor force, and community facilities (i.e. parks, schools, etc.)

40 An evaluation of the current affordable housing stock existing in the market area, including an identification of geographical location, occupancy levels, age of stock, upkeep condition, bedroom mix, amenities and rents being charged.

44 Include comparable rental residential Developments in the primary market area and all Tax Credit Developments.

57 A discussion of any relevant information regarding existing rent overburden statistics. (Not applicable to rehabs with current occupancy of 90% or more.)

62 An evaluation of the need for affordable housing within the primary market area. (Not applicable to rehabs with current occupancy of 90% or more.)

55 A discussion of whether or not the proposed Development, in light of vacancy and absorption rates for the applicable market areas, is likely to result in an increased vacancy rate for comparable units within such market area, (i.e., standard, well-maintained units within such market area that are reserved for occupancy by low and very low Income tenants).

56 A projection of the time necessary for the Development to achieve sustaining occupancy. (Not applicable to rehabs with current occupancy of 90% or more.)

56 Provide the recommended vacancy rate.

64 Discuss the capture rate for the primary market area. A 30% affordability factor must be used when calculating the number of Income Qualified Renter Households.

Apache Manor Apartments Affordable Housing Market Study

63 An evaluation of whether the projected initial rents for the Development are or are not reasonably affordable by low and very low-Income tenants and within the rental range for the comparable Developments within the market area. Include market advantage/disadvantage analysis.

61 Analysis of the Oklahoma Housing Needs Assessment in relation to proposed Development, including analysis of number of units needed for County.

Addn A A summary of qualifications for the individuals who participated in the development of the market study.

68 A signed written statement is required from the preparer of the market study which certifies that the market study is true and correct to the best of the professional’s knowledge and belief, and that there is no identity of interest between the professional and the Applicant, Developer, Owner or the entity for whom the report is prepared.

Apache Manor Apartments Affordable Housing Market Study

Summary of Salient Facts and Conclusions

1. The subject property is an existing 160-unit public housing development in Tulsa, Oklahoma, intended for family occupancy. The owner has applied to HUD under the Rental Assistance Demonstration (RAD) for the conversion of the units to a project-based rental assistance program. There is high demand for good quality affordable rental housing in this area. This demand will grow due to household growth in the surrounding area. 2. The site is generally level and at street grade, and the site is not located within a flood plain. The site consists of approximately 17.11 acres. The site is located in a residential neighborhood and has all utilities in place. 3. The subject property will be rented to low and moderate income family households. The following table summarizes the proposed unit mix: Unit Mix and Rent Summary Developer's Asking Net Unit Size Asking Rent Utility Unit Type Rent (SF) per SF Units Allowance 2 Bedroom- RAD HAP/LIHTC $567 905 $0.63 56 $82 3 Bedroom- RAD HAP/LIHTC $769 1,216 $0.63 86 $90 4 Bedroom- RAD HAP/LIHTC $835 1,192 $0.70 12 $97 5 Bedroom- RAD HAP/LIHTC $961 1,423 $0.68 6 $105 Totals / Averages $710 1,113 $0.64 160 4. Based on the analysis in this report, we have concluded that there is demand for the subject property as proposed, and that the proposed rents will be affordable under the RAD program. 5. The proposed use should be adequately compatible with surrounding land uses. Other affordable housing developments in the area typically maintain nearly 100% occupancy among habitable units. 6. To achieve stabilized occupancy, the subject’s units will need to capture 1.44% of all income- qualified renter households within the defined Primary Market Area.

Apache Manor Apartments Affordable Housing Market Study

General Information

Identification of Subject The subject property is an existing public housing development constructed in 1969. It consists of 160 units for family occupancy. The site area is 17.11 acres or 745,286 square feet in size. The improvements are 97% occupied as of the effective date. Property Identification Property Name Apache Manor Apartments Address 2402 N. Marion Avenue Tulsa, OK 74115 Legal Description Blocks 1, 2, 3, and 4 of Apache Manor Subdivision, City of Tulsa, Tulsa County, Oklahoma Census Tract Number 405381-0003.00 Purpose and Function of the Market Study The purpose of this market study is to evaluate the need for family rental units in Tulsa, Oklahoma. The analysis will consider existing supply and projected demand and overall market trends in the Tulsa area. Property Rights and Effective Date Fee simple estate, subject to zoning, easements, and restrictions of record. In relation to the proposed development site, this is for surface rights only and does not consider any mineral reservation which may be included with the property. The effective date of the market study is September 5, 2018. The date of the report is October 16, 2018. The market study is valid only as of the stated effective date or dates. Definition of Market Value Market value is defined as: “The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

■ Buyer and seller are typically motivated; ■ Both parties are well informed or well advised, and acting in what they consider their own best interests; ■ A reasonable time is allowed for exposure in the open market; ■ Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and ■ The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”

Apache Manor Apartments Affordable Housing Market Study

(Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Definition of Property Rights Fee simple estate is defined as, “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.” Lease is defined as: “A contract in which rights to use and occupy land or structures are transferred by the owner to another for a specified period of time in return for a specified rent.”

(Source: The Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute, Chicago, Illinois, 2010) Client, Intended User and Intended Use The client and intended user is Tulsa Housing Authority. This report is intended to assist the client and the Oklahoma Housing Finance Agency, for use in the Federal Low Income Housing Tax Credit program. This report is also intended for any other entity related to the financing of the proposed improvements. The report is designed to meet the specific needs of the client, and the guidelines of the National Council of Housing Market Analysts and the Oklahoma Housing Finance Agency, and should not be relied upon by any other party. Applicable Requirements This market study is intended to conform to the requirements of the following:

■ Uniform Standards of Professional Appraisal Practice (USPAP); ■ Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; ■ Market study guidelines of the National Council of Housing Market Analysts; ■ Market study guidelines of the Oklahoma Housing Finance Agency. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Scope of Work This analysis is a market study summary report written in compliance with the Uniform Standards of Appraisal Practice published by the Appraisal Foundation, the Professional Ethics and Standards of the Appraisal Institute, and the National Council of Housing Market Analysts guidelines. The analyst's adherence to these requirements involves the following. 1. The Tulsa market area and site of the proposed development was originally inspected on September 5, 2018.

Apache Manor Apartments Affordable Housing Market Study

2. Regional and city data is based on information retained from the national, state, and local government entities, news publications, and other sources of economic indicators. This information is constantly updated and analyzed and is held as file memorandum. 3. Neighborhood data is based on the analyst’s physical inspection of the area and information available from the City of Tulsa, Federal Emergency Management Agency (FEMA), local utility purveyors, and individuals knowledgeable of the local real estate market. This information is constantly updated and analyzed and is held as file memorandum. 4. Information on the subject site was obtained from the client. Flood plain and zoning information is based on reference to FEMA Flood Maps and the City of Tulsa. This information is constantly updated and analyzed and is held as file memorandum. 5. Improvement data is based on preliminary building plans supplied by the client. 6. The analyst interpreted data compiled in the previous steps with emphasis on neighborhood trends, the physical adaptability of the site and improvements, existing land use regulations, and financial feasibility. 7. This is a market study which attempts to determine the state of the rental market in Tulsa, Oklahoma. The state of the market then leads this analyst to conclude as to the displayed need for new units. Research and Analysis The process employed to collect, verify, and analyze relevant data is detailed in individual sections of the report. This includes the steps we took to verify comparable rental properties, which are disclosed in the comparable rental profile sheets in the addenda to the report. Inspection Owen S. Ard, MAI has not inspected the subject property. Andrea Gillman performed an inspection of the subject property on September 5, 2018. A total of five units were inspected, representing two, three, four, and five bedrooms. Report Format To report the assignment results, we use the Appraisal Report option of Standards Rule 2-2(a) of USPAP. As such, it contains summary discussions of the data, reasoning, and analyses that are used in the market analysis process whereas supporting documentation is retained in our file. The depth of discussion contained in this report is specific to the needs of the client and the intended use of the market study.

Apache Manor Apartments Affordable Housing Market Study

Property Analysis

Site Description The subject is located in the northern area of Tulsa, approximately 6 miles northeast of the Central Business District. The property is located on the south side of E. Apache Street approximately ¼ mile east of N. Harvard Avenue. Aerial Map

Land Area Summary Gross Land Gross Land Usable Land Usable Land Parcel ID Area (Acres) Area (Sq. Ft.) Area (Acres) Area (Sq. Ft.) 01850-03-28-00010 17.11 745,286 17.11 745,286 Totals 17.11 745,286 17.11 745,286

Apache Manor Apartments Affordable Housing Market Study

Land Description Shape Irregular rectangle Corner Location No Access Rating Average Visibility Rating Average Functional Utility Average Topography Generally level and at street grade Drainage No drainage problems were observed or disclosed to us during our inspection. This appraisal assumes that surface water collection is adequate. Soil Conditions Appears adequate for development Wetlands/Watershed No wetlands were observed during our site inspection. Flood Zone Designation X Flood Zone Description Outside 500-year floodplain FEMA Map Number 40143C0233L FEMA Map Date October 16, 2012 Utilities All public utilities are available to the site including public water and sewer, gas, electric, and telephone Utilities Adequacy The subject's utilities are typical and adequate for the market area.

Environmental Hazards An environmental assessment was not provided for review. No environmental hazards were apparent from inspection and it is assumed the Subject is free and clear of any environmental hazards including, without limitation, hazardous waste, toxic substances and mold. Streets, Access and Frontage Details pertaining to street access and frontage are provided in the following table.

Apache Manor Apartments Affordable Housing Market Study

Streets, Access, Frontage Street East Apache Street North Marion Avenue Frontage Feet 609 2,177 Paving Asphalt Asphalt Curbs Yes Yes Sidewalks No Yes Lanes 4 2 Direction of Traffic East / West North / South Condition Average Average Traffic Levels Moderate Low Signals / Traffic Control Lights at major intersections Stop Sign Access / Curb Cuts None 9 Visibility Good Good Zoning Summary The subject is zoned RM1, Residential Multifamily and RS-3, Residential Single-Family, by the City of Tulsa. The RM1 and RS-3 zones are intended to create, maintain and promote a variety of housing opportunities for individual households and to maintain and promote the desired physical character of existing and developing neighborhoods. It appears that the existing use of the site is a legally conforming use. Other Land Use Regulations The subject is operated by the Tulsa Housing Authority (THA) as public housing. THA has applied for a conversion of all units to project-based assistance under the Rental Assistance Demonstration (RAD) program. The tenants at the subject pay rent based on 30% of income. If approved for tax credits, the development would also be subject to income / rent limitations as defined by the Low Income Housing Tax Credit program administered by the Oklahoma Housing Finance Agency. Upon final completion, a land use restriction will be attached to the site. This land use restriction affects the use of the site (see “Rent Control Regulations” below). We are not aware of any other land use regulations that would affect the property. Rent Control Regulations Tenants at the subject development pay rent based on 30% of household income as established by HUD. If approved for tax credits, the development would also be subject to income / rent limitations as defined by the Low Income Housing Tax Credit program administered by the Oklahoma Housing Finance Agency, although rents established under the RAD program would govern base rents. Easements, Encroachments and Restrictions Although we were not provided a current title report to review, we are not aware of any easements, encumbrances, or restrictions that would adversely affect the use of the site. An application for federal Low Income Housing Tax Credits will be submitted by the client. At a later date a land use restriction would be attached to the site, if approved. This land use restriction would affect the use of the site (see “Rent Control Regulations”). A title search is recommended to determine whether any

Apache Manor Apartments Affordable Housing Market Study

adverse conditions exist. We are not aware of any type of development moratorium that would affect the property. Conclusion of Site Analysis Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning. Uses permitted by zoning include single and multifamily residential use. There are no other particular restrictions on development noted in the analysis apart from those that would be related to the RAD conversion and the Low Income Housing Tax Credit program. The site is located with other residential uses and is sufficiently close to retail goods and services.

Apache Manor Apartments Affordable Housing Market Study

Site Plan

Apache Manor Apartments Affordable Housing Market Study

Improvements Description and Analysis The subject property is an existing public housing development constructed in 1969. It consists of 160 units for family occupancy. The site area is 17.11 acres or 745,286 square feet in size. The improvements are 97% occupied as of the effective date. Overview Building Description: Multifamily Construction: Class D - Wood Frame Construction Quality: Average Year Built: 1969 Effective Age: 30 years Remaining Economic Life: 20 years Condition: Fair to Average Appeal/Appearance: Fair to Average Areas & Numbers: Number of Stories: 2 Rentable Area: 178,098 Number of Units: 160 Unit Mix The subject’s unit mix is detailed in the following table. Unit Mix and Rent Summary Developer's Asking Net Unit Size Asking Rent Utility Unit Type Rent (SF) per SF Units Allowance 2 Bedroom- RAD HAP/LIHTC $567 905 $0.63 56 $82 3 Bedroom- RAD HAP/LIHTC $769 1,216 $0.63 86 $90 4 Bedroom- RAD HAP/LIHTC $835 1,192 $0.70 12 $97 5 Bedroom- RAD HAP/LIHTC $961 1,423 $0.68 6 $105 Totals / Averages $710 1,113 $0.64 160

Apache Manor Apartments Affordable Housing Market Study

Foundation, Frame & Exterior Foundation: Poured concrete slab Structural Frame: Wooden frame Exterior: Wood siding/ Brick / EFIS Windows: Double pane in aluminum frame Roof/Cover: Gable / Asphalt shingles Interior Entry Type: Individual exterior entrances Floor Cover: Vinyl Walls: Taped and painted gypsum board Ceiling Height: Standard 8' Kitchen Equipment: Gas range; refrigerator; double-basin stainless steel sink; laminate countertops Bathroom Fixtures: Tub/shower combo; toilet; vanity cabinet with lay-in sink Laundry Facilities: Washer connections only; on-site laundry facility Garages: None Mechanical Systems Heating: Forced gas Cooling: Pad-mounted condenser unit Water Heater Gas-fired water heaters Sprinklers: None Elevators: None Security: Security patrol/ cameras

Parking Parking Type and Number Type: Surface of Spaces: Unmarked Total Spaces Condition: Fair/ Parking spaces unidentifiable Adequacy: Adequate

Utilities The division of expense responsibilities between the tenants and the property owner is detailed as follows.

Apache Manor Apartments Affordable Housing Market Study

Utility Responsibilities Type Who Pays? Comments In-Unit Electric: Tenant Tenants pay gas in 4 & 5 bedrooms; Natural Gas: Tenant / Landlord Landlord pays gas in 2 & 3 bedrooms Water: Landlord Sewer: Landlord Trash Removal: Landlord Unit Features and Project Amenities Standard unit features and project amenities for this market are shown in the table below, followed by a notation of whether the features and amenities are present at the subject. Unit Features and Project Amenities At Subject Comments Unit Features Air Conditioning X High or Vaulted Ceilings Fireplace Balconies or Patios X Exterior Storage Drapes or Blinds X Hardwood or Hardwood-Style Flooring Microwave Dishwasher Disposal Walk-in Closets Ceiling Fans Washer/Dryer Hookup X Washer only Washer/Dryer in Unit Project Amenities Clubhouse X Community center with gymnasium Fitness Room Business Center / Library Laundry Facility X Playground X Swimming Pool Storage Units Storm Shelter / Safe Room Basketball / Tennis / etc. X Basketball court Gated Entrance Security X Security patrol / cameras Carports Garages

Apache Manor Apartments Affordable Housing Market Study

Improvements Analysis Overview The subject is comprised of two and three bedroom units in the interior townhome buildings, and four and five bedroom units in the single-story flats on the perimeter. Exterior renovations were completed between 2015-2018, and included security camera installation, roof replacement, concrete replacement, and exterior painting. Tenants pay rent based on established maximums from HUD, or 30% of a tenant’s adjusted income, whichever is greater. Current occupancy is 97%. Units include washer hook-ups only, and a central laundry is located on-site. Project amenities include a basketball court, community room with gymnasium, and playgrounds. Surface parking is available and appears adequate; however, space markings are worn beyond recognition. Functional Utility The improvements appear to be adequately suited to their current use. Our analysis did not reveal any significant items of functional obsolescence. Deferred Maintenance No deferred maintenance is apparent from our inspection, and none is identified based on discussions with management. Planned Capital Expenditures The owner of the property has proposed renovations to the subject pending approval of the tax credit application. This renovation would include both exterior and interior repairs and replacement, as well as repairs to parking lots and sidewalks. A complete scope of work is included in the Appendix. The total renovation costs are projected to be $7,363,000, or $46,019 per unit. ADA Compliance Based on the information provided, we are not aware of any ADA issues. However, we are not experts in ADA matters, and further study by an appropriately qualified professional would be recommended to assess ADA compliance. Hazardous Substances An environmental assessment report was not provided for review and environmental issues are beyond our scope of expertise. No hazardous substances were observed during our inspection of the improvements; however, we are not qualified to detect such substances. Unless otherwise stated, we assume no hazardous conditions exist on or near the subject. Personal Property Personal property items necessary for the continued operation of the property include kitchen equipment such as refrigerators, and any leasing office furniture and equipment. These items are typically transferred in the sale of a multifamily property such as the subject.

Apache Manor Apartments Affordable Housing Market Study

Conclusion of Improvements Analysis Overall, the quality, condition, and functional utility of the improvements are below average for their age and location, and would benefit from updates to the units and property. Renovations are planned pending approval of the tax credit program. Once the renovation is complete, the property will be average to above average in appearance and condition. The availability of four and five bedrooms will continue to appeal to larger families.

Apache Manor Apartments Affordable Housing Market Study

Floor Plans

Apache Manor Apartments Affordable Housing Market Study

Subject Photographs

Apache Manor- 2 & 3 bed townhouses 4 & 5 bed flats (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Basketball court Pavilion / central lawn (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Community center Gymnasium (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Apache Manor Apartments Affordable Housing Market Study

Office Waiting room (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Laundry Playground (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Standard kitchen Standard kitchen (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Apache Manor Apartments Affordable Housing Market Study

Standard bath Standard bath (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Standard living room Standard living room (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Standard bedroom Street view looking west on E. Young St. (Photo Taken on September 5, 2018) (Photo Taken on September 5, 2018)

Apache Manor Apartments Affordable Housing Market Study

Market Area Analysis

Definition of Primary Market Area The primary market area (PMA) for the subject property will be defined as follows: Northern Boundary West Edison St. Southern Boundary East 41st Street Eastern Boundary South Union Avenue Western Boundary South 129th West Avenue The market area includes the northern area of Tulsa. It is the opinion of this analyst that the area within these boundaries provides the heaviest influence on the subject property. Because the subject property will target a specific population, low-to-moderate income family households, the subject will likely attract tenants from a wider market area. The following map highlights the boundaries of the Primary Market Area. Primary Market Area Map

Apache Manor Apartments Affordable Housing Market Study

Access and Linkages The subject neighborhood has good access to the Tulsa area expressway system with almost every regional highway joining the inner dispersal loop. The Inner dispersal Loop circles the downtown area and provides expressway access away from the CBD in all directions. Interstate-244 provides access to the east and U.S. Highway 75 is the major north/south route in the city. All of the expressways are a minimum of four lanes, with most being six or eight in the vicinity of the inner dispersal loop. The primary arterials servicing the neighborhood include the Peoria Avenue, Lewis Avenue, Harvard Avenue, Yale Avenue, Sheridan Avenue, Memorial Avenue, Pine Avenue, and Apache Avenue. Each of these arterials have asphalt and/or concrete paving, are in average to above average condition, and appear to be adequately maintained. The neighborhood arterials are generally four lanes wide with traffic control signals at primary intersections. Containment and diversion of runoff water appears adequate and is typically facilitated by a concrete curb and gutter storm sewer system. Demand Generators Major employers in the area include Tulsa Community College and Domestic Violence Intervention Services (DVIS). DVIS completed construction on a new 32,000 square foot facility in 2017 less than ½ mile west of the subject. John Crane is located just west of the subject, and provides engineered products and services in the energy sector. Catholic Charities constructed an 80,000 square foot facility just west of the subject in 2009. The closest major commercial corridors line Interstate 244 to the east, providing average supporting retail and entertainment services. Growth in the immediate neighborhood has been much slower than the south and east sections of Tulsa. Land uses are expected to remain similar to existing development patterns with sporadic commercial development north of downtown with some infill single family and multifamily development. Retail and Public Services The closest elementary school is Unity Learning Academy, which is located approximately 0.60 miles south of the subject. The area middle and high school is McLain, located 5± miles northwest of the subject. Fire and police protection is considered to be average for the Tulsa area. St. John’s Hospital and Hillcrest Hospital area located approximately 3.5 miles southwest of the subject. These hospitals are quickly accessible by highway. Grocery, banking, restaurants, and various other retail stores and services are all located in this area. The nearest grocery store is a Save-A-Lot located near the northwest corner of Pine and Lewis, approximately 1.3 miles southwest. A Walgreens pharmacy is also located at this intersection. In addition, Warehouse Market is located approximately 3.5 miles southeast at 845 N. Sheridan. The nearest library is Maxwell Park Library, located approximately 1.7 miles southeast of the subject near Yale and Pine. Finally, the north campus of Tulsa Community College is located just north of the subject at the northeast corner of Apache and Harvard. Outlook and Conclusion The area is in the stability/decline stage of its life cycle. Given the history of the area and the growth trends, it is anticipated that property values will remain stabilized for the near future.

Apache Manor Apartments Affordable Housing Market Study

Demographic Analysis

The following sections will analyze the demographic factors influencing the subject’s Primary Market Area, compared and contrasted with Tulsa County and the State of Oklahoma. Population and Households Population Levels The following table shows population levels in the Primary Market Area, Tulsa County and the State of Oklahoma. This data is provided by Esri for the 2000 Census, the 2010 Census, a 2018 estimate, and a 2023 forecast.

Population Levels and Annual Changes 2000 2010 Annual 2018 Annual 2023 Annual Census Census Change Estimate Change Forecast Change Primary Market Area 59,528 57,537 -0.34% 59,454 0.41% 61,039 0.53% Tulsa County 563,299 603,403 0.69% 662,978 1.18% 700,814 1.12% State of Oklahoma 3,450,654 3,751,351 0.84% 4,035,516 0.92% 4,198,113 0.79% Source: Esri ArcGIS Business Analyst

The PMA saw some decline between 2000 and 2010, with annualized decline at -0.34% per year. This rate was below growth rates in the State of Oklahoma as a whole (0.84%). Since the 2010 Census, Esri estimates the area has experienced renewed population growth which is expected to continue and increase over the next five years. The market area’s growth rate over the next five years is expected to be slower than the growth rate of the State of Oklahoma. Tulsa County as a whole has experienced more rapid growth than the PMA. Selection Criterion 3 – Population Growth Area Under the Oklahoma Housing Finance Agency’s current Qualified Allocation Plan, selection points may be awarded to developments situated in locations that meet the following criteria:

■ Criteria 1: The population for the most recent published year and the three (3) years prior, as well as the total percentage of population growth during that time, for the County in which the Development is located. The total growth percentage must be equal to or exceed 2.5% for the three year period. No rounding. OR ■ The population for the most recent published year and the three (3) years prior, as well as the total percentage of population growth during that time, for the Town or City in which the Development is located. The total growth percentage must be equal to or exceed 2.5% for the three year period. No rounding. In order to determine the subject site’s eligibility for selection points under this criterion, we have relied on data from the U.S. Census Bureau, since Esri does not have 3-year population growth estimates available. For estimating both the county’s and city’s populations we rely on the Census

Apache Manor Apartments Affordable Housing Market Study

Bureau’s Population Estimates Program, which is the most recent and accurate estimate of city and county population levels. The data is presented in the following table:

Population Levels and Annual Changes - Criterion 3 2014 2017 Total Estimate Estimate Growth Tulsa 399,779 401,800 0.51% 2014 2017 Total Estimate Estimate Growth Tulsa County 630,818 646,266 2.45% Sources: U.S. Census Bureau, Population Estimates Program

Over the most recent 3-year estimate neither total population growth in the county, nor total population in the city of Tulsa, met or exceeded 2.5%. Therefore the subject site does not qualify for selection points under Criterion 3, Population Growth Area. Household Levels The following table shows total household levels in the PMA as well as family household levels. This data is also provided for Tulsa County and the State of Oklahoma.

Household Levels and Annual Changes 2000 2010 Annual 2018 Annual 2023 Annual Total Households Census Census Change Estimate Change Forecast Change Primary Market Area 22,794 21,522 -0.57% 21,914 0.23% 22,406 0.45% Tulsa County 226,892 241,737 0.64% 261,454 0.98% 275,190 1.03% State of Oklahoma 1,342,293 1,460,450 0.85% 1,556,997 0.80% 1,615,165 0.74% 2010 2018 Annual 2023 Annual Family Households Census Estimate Change Forecast Change Primary Market Area 13,764 13,729 -0.03% 13,925 0.28% Tulsa County 154,084 164,535 0.82% 172,345 0.93% State of Oklahoma 975,267 1,027,060 0.65% 1,060,408 0.64% Source: Esri ArcGIS Business Analyst

From 2000 to 2010, the market area experienced household decline of -0.57% annually. This was followed by household growth of 0.23% per year for the next eight years. It is projected by Esri that this growth will continue at a faster rate over the next five years. The family household growth rate is slightly slower which indicates faster growth is expected in non-family households, including elderly persons living alone. Households by Household Size The following table presents data regarding households by household size, provided by Esri. This data is for the Primary Market Area.

Apache Manor Apartments Affordable Housing Market Study

Households in Primary Market Area by Household Size, 2012-2016 ACS Total Households Family Households Non-Family HHs Households by Household Type and Size No. % No. % No. % Total Households 21,341 13,455 7,886 1-person household 6,532 30.61% N/A N/A 6,532 82.83% 2-person household 5,714 26.77% 4,590 34.11% 1,124 14.25% 3-person household 3,635 17.03% 3,473 25.81% 162 2.05% 4-person household 2,736 12.82% 2,690 19.99% 46 0.58% 5-person household 1,469 6.88% 1,455 10.81% 14 0.18% 6-person household 742 3.48% 734 5.46% 8 0.10% 7 or more person household 513 2.40% 513 3.81% 0 0.00% Source: Esri ArcGIS Business Analyst

The largest percentage of non-family households have one person, and the largest percentage of family households have two persons, which is very typical at county, state, and national levels. Age Distribution The following table shows population in the Primary Market Area by age category. This data is provided for the 2010 Census, a 2018 estimate, and a 2023 forecast.

Population in the Primary Market Area by Age 2010 Percent 2018 Percent 2023 Percent 2010 - 2018 2018 - 2023 Census of Total Estimate of Total Forecast of Total Ann. Chng. Ann. Chng. Population by Age 57,537 59,454 61,040 0.41% 0.53% Age 0 - 4 5,593 9.72% 5,353 9.00% 5,464 8.95% -0.55% 0.41% Age 5 - 9 5,168 8.98% 5,020 8.44% 5,048 8.27% -0.36% 0.11% Age 10 - 14 4,464 7.76% 4,753 7.99% 4,839 7.93% 0.79% 0.36% Age 15 - 19 4,422 7.69% 4,408 7.41% 4,641 7.60% -0.04% 1.04% Age 20 - 24 3,811 6.62% 4,030 6.78% 4,073 6.67% 0.70% 0.21% Age 25 - 34 7,804 13.56% 7,934 13.34% 7,827 12.82% 0.21% -0.27% Age 35 - 44 6,881 11.96% 6,936 11.67% 7,286 11.94% 0.10% 0.99% Age 45 - 54 7,313 12.71% 6,623 11.14% 6,552 10.73% -1.23% -0.22% Age 55 - 64 5,873 10.21% 6,721 11.30% 6,552 10.73% 1.70% -0.51% Age 65 - 74 3,227 5.61% 4,497 7.56% 5,187 8.50% 4.24% 2.90% Age 75 - 84 2,125 3.69% 2,220 3.73% 2,630 4.31% 0.55% 3.45% Age 85 and over 856 1.49% 959 1.61% 941 1.54% 1.43% -0.38% Age 55 and over 12,081 21.00% 14,397 24.22% 15,310 25.08% 2.22% 1.24% Age 62 and over 7,970 13.85% 9,692 16.30% 10,724 17.57% 2.48% 2.04%

Median Age 31.7 32.7 33.2 0.39% 0.30% Source: Esri ArcGIS Business Analyst

As shown, the median age within the market area is estimated to be 32.7 in 2018. The median age for the State of Oklahoma is 37.60. This indicates that the age of the population in the market area is moderately younger compared with the rest of Oklahoma. The age 55 and over group is expecting 1.24% annual growth over the next five years, which is nearly two and a half times the rate of growth of the general population.

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Households by Tenure Detailed data regarding households by tenure is not available from Esri. Esri does estimate that, within the Primary Market Area, the overall tenure distribution is 52.73% renter households and 47.27% owner households. This tenure distribution is typical of urban areas, particularly highly built- up urban areas where most new housing construction consists of multifamily developments for rental occupancy (as opposed to condominiums). However, the percentage of renters in any area is typically greater among lower-income levels than among all households regardless of income. The following table shows household tenure in Tulsa by household income. This data is taken from the Census Bureau’s 2012-2016 American Community Survey, which is the most recent data available at such a detail level.

Tulsa: Owner/Renter Percentages by Income Band in 2012-2016 Household Income Total Households Total Renters % Renters Total Owners % Owners Less than $5,000 7,903 6,233 78.87% 1,670 21.13% $5,000-$9,999 8,120 6,476 79.75% 1,644 20.25% $10,000-$14,999 10,085 7,279 72.18% 2,806 27.82% $15,000-$19,999 10,127 6,778 66.93% 3,349 33.07% $20,000-$24,999 10,805 7,048 65.23% 3,757 34.77% $25,000-$34,999 20,110 11,889 59.12% 8,221 40.88% $35,000-$49,999 25,440 13,433 52.80% 12,007 47.20% $50,000-$74,999 29,398 12,577 42.78% 16,821 57.22% $75,000-$99,999 14,678 4,627 31.52% 10,051 68.48% $100,000-$149,999 15,068 3,116 20.68% 11,952 79.32% $150,000 or more 13,293 1,203 9.05% 12,090 90.95% Source: U.S. Census Bureau, 2012-2016 American Community Survey

This data shows that 63.06% of households earning less than $53,160 were renter households in 2012- 2016 and 36.94% were owner households. Income Distribution The following table shows the income distribution in the subject’s market area. This data is available as a 2018 estimate, as well as a 2023 forecast. It should be noted that none of this data has been adjusted for inflation.

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Household Income Distribution in the Primary Market Area 2018 2023 Estimate Pct. Forecast Pct. Households by Household Income 21,915 22,406 Income Less than $15,000 5,592 25.52% 5,304 23.67% Income $15,000 - $24,999 3,655 16.68% 3,580 15.98% Income $25,000 - $34,999 3,439 15.69% 3,480 15.53% Income $35,000 - $49,999 3,305 15.08% 3,306 14.75% Income $50,000 - $74,999 3,370 15.38% 3,530 15.75% Income $75,000 - $99,999 1,214 5.54% 1,436 6.41% Income $100,000 - $149,999 942 4.30% 1,269 5.66% Income $150,000 - $199,999 239 1.09% 306 1.37% Income $200,000 or more 159 0.73% 195 0.87%

Per Capita Income $15,085 $16,712 Average Household Income $40,082 $44,702 Median Household Income $29,165 $30,927 Source: Esri ArcGIS Business Analyst

Median household income in 2018 is estimated to be $29,165. This income level is significantly lower than the State of Oklahoma as a whole. The following table compares the income distribution of the PMA with the county and the state based on 2018 Esri estimates.

Household Income Distribution in 2018 Primary Market Area Tulsa County State of Oklahoma No. Pct. No. Pct. No. Pct. Households by Household Income 21,915 261,454 1,556,988 Income Less than $15,000 5,592 25.52% 32,170 12.30% 205,223 13.18% Income $15,000 - $24,999 3,655 16.68% 27,712 10.60% 173,926 11.17% Income $25,000 - $34,999 3,439 15.69% 27,623 10.57% 172,101 11.05% Income $35,000 - $49,999 3,305 15.08% 35,413 13.54% 220,487 14.16% Income $50,000 - $74,999 3,370 15.38% 46,514 17.79% 288,514 18.53% Income $75,000 - $99,999 1,214 5.54% 31,187 11.93% 188,172 12.09% Income $100,000 - $149,999 942 4.30% 33,982 13.00% 188,854 12.13% Income $150,000 - $199,999 239 1.09% 12,826 4.91% 62,193 3.99% Income $200,000 or more 159 0.73% 14,027 5.36% 57,518 3.69%

Per Capita Income $15,085 $30,342 $26,966 Average Household Income $40,082 $76,083 $68,672 Median Household Income $29,165 $52,959 $50,384 Source: Esri ArcGIS Business Analyst

As shown, the median household income in the State of Oklahoma is estimated to be $50,384, which is 72.76% higher than the median household income in the PMA. Approximately 25.52% of all households in the PMA are estimated to have incomes less than $15,000. Compared with the rest of

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the state, the PMA is comparatively poorer with a larger proportion of its residents in the lowest income brackets. The following chart graphically shows the difference in income distributions between the PMA and the State of Oklahoma. As shown, the primary market area is much more heavily weighted in the income brackets below $35,000 (57.89%) compared with the State of Oklahoma (35.40%).

Household Income Distribution Source: Esri ArcGIS Business Analyst 30.00%

25.00%

20.00%

15.00%

10.00% %of Households

5.00%

0.00%

PMA Tulsa County Oklahoma

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Employment and Economy

Employment and Unemployment The following table presents total employment figures and unemployment rates for Tulsa County, with figures for Oklahoma and the United States for comparison. This data is as of May 2018.

Employment and Unemployment May-2013 May-2018 Annual May-2013 May-2018 Change Employment Employment Growth Unemp. Rate Unemp. Rate (bp) Tulsa County 293,429 314,703 1.41% 4.7% 3.8% -90 State of Oklahoma 1,702,028 1,786,701 0.98% 5.8% 4.0% -180 United States (thsds) 144,432 156,009 1.55% 8.5% 3.6% -490 Sources: Bureau of Labor Statistics, Local Area Unemployment Statistics and Current Population Survey As of May 2018, total employment in Tulsa County was 314,703 persons. Compared with figures from May 2013, this represents annualized employment growth of 1.41% per year. The unemployment rate in May was 3.8%, a decrease of -90 basis points from May 2013, which was 4.7%. Over the last five years, both the statewide and national trends have been improving employment levels and declining unemployment rates, and Tulsa County has generally mirrored both the state and nation in these statistics. Employment Level Trends The following chart shows total employment and unemployment levels in Tulsa County from January 2000 through May 2018, as reported by the Bureau of Labor Statistics, Local Area Unemployment Statistics program.

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Employment and Unemployment in Tulsa County January 2000 through May 2018

350,000

300,000

250,000

200,000

150,000

100,000

50,000

Employment Unemployment

Source: Bureau of Labor Statistics, Local Area Unemployment Statistics

As shown, total employment levels have generally been stagnant from 2000 through 2008. The national economic downturn briefly affected the area in late 2008 through 2009. However, in 2010, the area began consistent employment growth, likely influenced in part by rising energy prices. Employment growth resumed in early 2010, and has continued to grow to its current level of 314,703 persons. The number of unemployed persons in May 2018 was 12,432, out of a total labor force of 327,135 persons. Unemployment Rate Trends The next chart shows historic unemployment rates for Tulsa County, as well as Oklahoma and the United States for comparison. This data covers the time period of January 2000 through May 2018, and has not been seasonally adjusted.

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Unemployment Rates in Tulsa County, Oklahoma and the United States January 2000 through May 2018 12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Tulsa County Oklahoma United States

Sources: Bureau of Labor Statistics, Local Area Unemployment Statistics and Current Population Survey

As shown, unemployment rates in Tulsa County increased moderately from 2000 through 2003, and then generally declined until the 4th quarter of 2008 as the effects of the national economic recession were felt. Unemployment rates began to decline again in 2010, to their current level of 3.8%. On the whole, unemployment rates in Tulsa County track very well with statewide figures but are typically below the state. Compared with the United States, unemployment rates in Tulsa County and Oklahoma are and have historically been well below the national average, although they currently mirror the national average. Employment and Wages by Industrial Supersector The next table presents data regarding employment in Tulsa County by industry, including total number of establishments, average number of employees in September 2017, average annual pay, and location quotients for each industry compared with the United States. This data is furnished by the Bureau of Labor Statistics, Quarterly Census of Employment and Wages program.

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Employees and Wages by Supersector - September 2017 (Tulsa County, Oklahoma) Avg. No. of Percent of Avg. Annual Location Supersector Establishments Employees Total Pay Quotient Federal Government 59 3,363 0.95% $71,344 0.49 State Government 33 3,731 1.06% $34,944 0.33 Local Government 175 26,956 7.63% $38,428 0.78 Natural Resources and Mining 411 5,896 1.67% $107,848 1.21 Construction 1,841 17,461 4.94% $51,168 1.01 Manufacturing 1,062 34,906 9.88% $57,668 1.15 Trade, Transportation, and Utilities 4,743 74,848 21.18% $46,436 1.13 Information 336 6,713 1.90% $61,620 0.98 Financial Activities 2,496 19,911 5.64% $60,164 1.00 Professional and Business Services 4,914 56,282 15.93% $49,348 1.13 Education and Health Services 3,140 55,063 15.58% $51,480 1.02 Leisure and Hospitality 1,864 38,967 11.03% $17,836 0.99 Other Services 1,494 9,211 2.61% $35,100 0.85 Total 22,568 353,308 $47,216 1 Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 3rd Quarter 2017 Employment Sectors - 3rd Quarter 2017

0.95% Federal Government 3.0% 1.06% State Government 4.3% 7.63% Local Government 13.0% 1.67% Natural Resources and Mining 3.8% 4.94% Construction 4.9% 9.88% Manufacturing 8.1% 21.18% Trade, Transportation, and Utilities 18.8% 1.90% Information 1.2% 5.64% Financial Activities 4.8% 15.93% Professional and Business Services 11.8% 15.58% Education and Health Services 13.2% 11.03% Leisure and Hospitality 10.7% 2.61% Other Services 2.3% 0% 5% 10% 15% 20% 25%

Tulsa County State of Oklahoma

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 3rd Quarter 2017

Among private employers, the largest percentage of persons (21.18%) are employed in Trade, Transportation, and Utilities. The average annual pay in this sector is $46,436 per year. The industry

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with the highest annual pay is Natural Resources and Mining, with average annual pay of $107,848 per year. The rightmost column of the previous table provides location quotients for each industry for Tulsa County, as compared with the United States. Location quotients (LQs) are ratios used to compare the concentration of employment in a given industry to a larger reference, in this case the United States. They are calculated by dividing the percentage of employment in a given industry in a given geography (Tulsa County in this instance), by the percentage of employment in the same industry in the United States. For example, if manufacturing in a certain county comprised 10% of total employment, while in the United States manufacturing comprised 5% of total employment, the location quotient would be 2.0: 10% (county manufacturing %) / 5% (U.S. manufacturing %) = 2.0 Location quotients greater than 1.0 indicate a higher concentration of employment compared with the nation, and suggest that the industry in question is an important contributor to the local economic base. Quotients less than 1.0 indicate that the industry makes up a smaller share of the local economy than the rest of the nation. Within Tulsa County, among all industries the largest location quotient is in Natural Resources and Mining, with a quotient of 1.21. Among private employers, the largest is Natural Resources and Mining, with a quotient of 1.21. The next table presents average annual pay in Tulsa County by industry, in comparison with Oklahoma as a whole and the United States.

Comparison of 3rd Quarter 2017 Average Annual Pay by Supersector State of United Percent of Percent of Supersector Tulsa County Oklahoma States State Nation Federal Government $71,344 $68,380 $80,028 104.3% 89.1% State Government $34,944 $49,764 $59,488 70.2% 58.7% Local Government $38,428 $36,712 $49,036 104.7% 78.4% Natural Resources and Mining $107,848 $78,572 $52,832 137.3% 204.1% Construction $51,168 $49,608 $59,280 103.1% 86.3% Manufacturing $57,668 $54,080 $63,492 106.6% 90.8% Trade, Transportation, and Utilities $46,436 $40,352 $44,772 115.1% 103.7% Information $61,620 $54,652 $102,804 112.7% 59.9% Financial Activities $60,164 $52,936 $78,884 113.7% 76.3% Professional and Business Services $49,348 $48,464 $68,120 101.8% 72.4% Education and Health Services $51,480 $43,836 $48,932 117.4% 105.2% Leisure and Hospitality $17,836 $17,368 $22,880 102.7% 78.0% Other Services $35,100 $34,372 $37,128 102.1% 94.5% Total $47,216 $43,836 $53,092 107.71% 88.93% Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 3rd Quarter 2017

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Average Annual Pay - 3rd Quarter 2017 $0 $40,000 $80,000 $120,000 $160,000

$71,344 Federal Government $68,380 $34,944 State Government $49,764 $38,428 Local Government $36,712 $107,848 Natural Resources and Mining $78,572 $51,168 Construction $49,608 $57,668 Manufacturing $54,080 $46,436 Trade, Transportation, and Utilities $40,352 $61,620 Information $54,652 $60,164 Financial Activities $52,936 $49,348 Professional and Business Services $48,464 $51,480 Education and Health Services $43,836 $17,836 Leisure and Hospitality $17,368 $35,100 Other Services $34,372

Tulsa County State of Oklahoma

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 3rd Quarter 2017 In comparison with the rest of Oklahoma, Tulsa County has higher average wages in natural resources and mining, information, financial activities, and federal government, and lower average wages in state government. The following table shows employment by occupation for the PMA for the persons that reside in the PMA, as well as the county for comparison purposes. This data is provided by Esri and represents trended data from the 2010 Census. The important difference between this data and the data presented earlier is that it is for persons who reside within the Primary Market Area, as opposed to persons who are employed in the Primary Market Area.

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Employment Characteristics by Place of Residence Primary Market Area Tulsa County No. Pct. No. Pct. 2018 Est. Pop Age 16+ in Labor Force 24,866 347,359 Civilian - Employed 22,255 89.5% 329,991 95.0% Civilian - Unemployed 2,611 10.5% 17,368 5.0%

2018 Est. Civ Employed Pop 16+ by Occupation 22,255 329,991 White Collar 8,880 39.9% 207,234 62.8% Management/Business/Financial 1,469 6.6% 50,489 15.3% Professional 2,493 11.2% 72,928 22.1% Sales 1,958 8.8% 36,629 11.1% Administrative Support 2,960 13.3% 47,189 14.3% Services 5,541 24.9% 55,768 16.9% Blue Collar 7,834 35.2% 66,988 20.3% Farming/Forestry/Fishing 22 0.1% 660 0.2% Construction/Extraction 2,270 10.2% 16,500 5.0% Installation/Maintenance/Repair 868 3.9% 11,220 3.4% Production 2,448 11.0% 22,439 6.8% Transportation/Material Moving 2,203 9.9% 16,170 4.9%

2018 Est. Pop 25+ by Educational Attainment 35,891 441,733 Less than 9th Grade 3,158 8.8% 16,786 3.8% 9th - 12th Grade, No Diploma 5,025 14.0% 28,713 6.5% High School Graduate 11,019 30.7% 94,973 21.5% GED/Alternative Credential 1,795 5.0% 16,344 3.7% Some College, No Degree 8,004 22.3% 102,924 23.3% Associate Degree 2,584 7.2% 41,081 9.3% Bachelor's Degree 2,907 8.1% 95,856 21.7% Graduate/Professional Degree 1,436 4.0% 45,498 10.3% Source: Esri ArcGIS Business Analyst

Note that this table shows 22,255 persons living in the PMA are employed. By occupation, it is seen that employment in the PMA is most heavily concentrated in the Services sector, followed by Administrative Support. The percentage of workers classifying themselves as “blue collar” is 35.2%, significantly higher than the county indication of 20.3%. Major Employers The following chart summarizes the major employers in Tulsa County, as reported by the Tulsa Area Partnership:

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As can be seen, Tulsa County has a wide variety of major employers, including oil & gas, health care, aerospace, and a variety of manufacturers in numerous industries. The large variety of employers should provide Tulsa a degree of insulation from cyclical economic fluctuations, which will be observed in its total employment levels.

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Current Housing Stock Evaluation

Housing Overview Available 2018 estimates reflected 26,246 housing units in the Primary Market Area. This included single and multifamily units that were owner occupied and rentals. The following table includes a breakdown of housing units within the county and owner/renter percentages. The table also includes estimates of median home values.

Housing Unit Data for the Primary Market Area

Housing Owner Renter Median Units Vacancy % Occupied Occupied Home Value Primary Market Area 26,246 16.5% 47.3% 52.7% $73,496 Tulsa County 290,494 10.0% 57.3% 42.7% $160,904 Oklahoma 1,772,922 12.2% 64.7% 35.3% $140,997 Source: Esri ArcGIS Business Analyst

As shown, the overall vacancy rate in the PMA in 2018 is estimated to be 16.5%, which is well above the Tulsa County level of 10.0%. It should also be noted that this data includes all housing units in the PMA, including those intended for home ownership and dilapidated structures unfit for habitation. Approximately 47.3% of the housing units in the PMA are owner-occupied, and the remaining 52.7% are renter occupied. The median home value in the PMA is estimated by Esri to be $73,496 in 2018, significantly lower (54%) than the county indication. Substandard Housing The city of Tulsa does not have an inventory of substandard housing. Substandard housing can be defined to have incomplete kitchen or plumbing facilities. The Census Bureau's 2012-2016 American Community Survey for Tulsa identified 1,101 housing units lacking complete kitchen facilities. Approximately 450 housing units lacked adequate plumbing. It also is noted that 375 housing units were heated by wood fuel. This also is considered to be a substandard item. It is unknown if some of these units have both kitchen and plumbing deficiencies. It is reasonable to assume that this number has remained relatively level as units have been demolished and other units have fallen in disrepair. The following chart summarizes substandard housing for the city of Tulsa and all of Tulsa County.

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Substandard Housing Inadequate Inadequate Uses Wood Sample Count of Plumbing Kitchen for Fuel Housing Units No. Pct. No. Pct. No. Pct. City of Tulsa 165,027 450 0.27% 1,101 0.67% 375 0.23% Tulsa County 248,811 666 0.27% 1,736 0.70% 894 0.36% Oklahoma 1,461,500 5,769 0.39% 12,765 0.87% 27,916 1.91% Source: United States Census Bureau, 2012-2016 American Community Survey

Units in Structure and Age of Construction The following chart summarizes the distribution of the types of housing units in the Primary Market Area, Tulsa County and the State of Oklahoma.

2012-2016 ACS Housing Units by Units in Structure PMA Tulsa County Oklahoma Total Housing Units 25,383 277,178 1,699,462 1 Unit Detached 20,854 82.16% 190,766 68.82% 1,235,776 72.72% 1 Unit Attached 435 1.71% 7,815 2.82% 34,510 2.03% 2 Units 615 2.42% 4,529 1.63% 33,923 2.00% 3 or 4 Units 974 3.84% 9,596 3.46% 43,816 2.58% 5 to 9 Units 870 3.43% 15,155 5.47% 63,823 3.76% 10 to 19 Units 456 1.80% 21,057 7.60% 58,564 3.45% 20 to 49 Units 206 0.81% 10,895 3.93% 32,263 1.90% 50 or More Units 344 1.36% 9,725 3.51% 32,766 1.93% Mobile Home or Trailer 584 2.30% 7,338 2.65% 161,687 9.51% Boat, RV, Van, etc. 45 0.18% 302 0.11% 2,334 0.14% Source: Esri ArcGIS Business Analyst

Within the primary market area, the largest percentage of housing units (82.16%) are single unit detached. This is moderately higher than the percentage of single unit detached housing units in Tulsa County and higher than the entire State of Oklahoma. Multi-family units comprise only 13.65% of all housing units in the PMA, modestly lower than in Oklahoma as a whole which is 15.60%. Mobile homes comprise 2.30% of housing units in the PMA, a far lower percentage than the statewide indication. The following chart shows the age distribution of housing units.

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2012-2016 ACS Housing Units by Year of Construction PMA Tulsa County Oklahoma Total Housing Units 25,383 277,178 1,699,462 Built 2010 or later 169 0.67% 7,269 2.62% 49,436 2.91% Built 2000 to 2009 1,139 4.49% 34,862 12.58% 242,659 14.28% Built 1990 to 1999 967 3.81% 30,929 11.16% 201,045 11.83% Built 1980 to 1989 1,138 4.48% 40,865 14.74% 252,187 14.84% Built 1970 to 1979 2,400 9.46% 57,107 20.60% 328,259 19.32% Built 1960 to 1969 3,219 12.68% 33,159 11.96% 202,298 11.90% Built 1950 to 1959 7,728 30.45% 35,796 12.91% 180,192 10.60% Built 1940 to 1949 4,742 18.68% 14,911 5.38% 95,874 5.64% Built 1939 or earlier 3,862 15.21% 20,827 7.51% 138,453 8.15% Median Year of Construction 1955 1976 1977 Source: Esri ArcGIS Business Analyst

Within the PMA, 15.21% of the housing units were constructed prior to 1940. This is a higher percentage than the rest of Oklahoma, and reflects a comparatively older housing stock. Approximately 5.15% of the housing stock was constructed since 2000, which is lower than both Tulsa County and the state as a whole, reflecting the stagnant population in the area since the year 2000. The median year of construction for homes in the market area is 1955, or 22 years older than the state as a whole. This data indicates an aging housing stock, with a relatively larger number of dilapidated structures. Building Permits The following building permit data is provided by the U.S. Census Bureau Residential Construction Branch, Manufacturing and Construction Division.

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Tulsa New Residential Building Permits Issued, 2004-2017 Single Family Avg. Construction Multifamily Avg. Multifamily Year Units Cost Units Construction Cost 2004 519 $176,690 0 N/A 2005 717 $191,631 394 $62,634 2006 699 $241,565 2 $227,000 2007 667 $230,619 406 $18,085 2008 436 $245,265 394 $95,587 2009 372 $209,114 350 $83,024 2010 335 $227,614 111 $115,950 2011 319 $226,999 788 $80,560 2012 577 $198,431 594 $92,278 2013 436 $241,266 164 $92,573 2014 402 $261,170 963 $81,118 2015 344 $284,346 220 $97,843 2016 436 $241,175 414 $51,670 2017 389 $271,237 255 $129,016 Source: United States Census Bureau Building Permits Survey

In Tulsa, building permits for 11,703 housing units were issued between 2004 and 2017, for an average of 975 units per year. 56.81% of these housing units were single family homes, and 43.19% consisted of multifamily units. Cost of Home Ownership The following chart outlines the value of owner-occupied single family housing. As discussed later, the subject will rent to households earning less than approximately $53,160 per year. A household earning at this income level could qualify for a mortgage of approximately $133,000. Approximately 79.65% of the owner-occupied housing units in the PMA are valued below $133,000. However, the newer, more desirable properties typically cost much more than $133,000 and are not affordable to households at the 60% of area median income level.

Apache Manor Apartments Affordable Housing Market Study

2018 Estimated Owner-Occupied Home Values PMA Tulsa County Oklahoma Total Owner-Occupied Housing Units 10,359 149,743 1,007,621 <$50,000 3,139 30.3% 9,284 6.2% 118,899 11.8% $50,000 - $99,999 4,340 41.9% 25,606 17.1% 221,677 22.0% $100,000 - $149,999 1,171 11.3% 33,542 22.4% 198,501 19.7% $150,000 - $199,999 1,026 9.9% 29,350 19.6% 176,334 17.5% $200,000 - $249,999 280 2.7% 16,472 11.0% 95,724 9.5% $250,000 - $299,999 104 1.0% 11,530 7.7% 68,518 6.8% $300,000 - $399,999 186 1.8% 11,081 7.4% 63,480 6.3% $400,000 - $499,999 31 0.3% 4,942 3.3% 25,191 2.5% $500,000 - $749,999 62 0.6% 5,091 3.4% 24,183 2.4% $750,000 - $999,999 10 0.1% 1,497 1.0% 7,053 0.7% $1,000,000 + 31 0.3% 749 0.5% 5,038 0.5% Median Home Value $73,496 $160,904 $140,997 Source: Esri ArcGIS Business Analyst

Size of Primary Market Area Apartment Market Data provided by Esri shows a total of 3,465 housing units in the Primary Market Area that are in structures of 2 units or more. It is likely that the overwhelming majority of such units are for rental occupancy, as Tulsa does not have a significant condominium market. Esri also shows that 11,555 housing units in the PMA are renter occupied. It is reasonable to assume that the balance of these housing units are single-family homes or mobile homes that are renter occupied. There are currently seven operational properties under the Low Income Housing Tax Credit program in the PMA: Gilcrease Hills Estates (80 units); Heritage Landing (39 units); Northwind Estates (60 units Phase I and 56 units Phase II); Crestview Duplexes (112 units); Cherokee Meadows (48 units); Cornerstone Village (30 units); and Country Club Gardens (353 units). Country Club Gardens is comprised of five phases for family occupancy and is operated by the Tulsa Housing Authority (THA) and The Michaels Group under four different project names (Osage Center, Osage Duplexes, Osage North, Country Club North). It includes affordable and market rate units, although the market rate units are kept below market by the Low Income Housing Tax Credit program, and tenants pay rent based on 30% of income for the affordable units. Gilcrease Hills Estates, Heritage Landing, Northwind Estates, Crestview Duplexes, Cherokee Meadows, and Cornerstone Village are for senior occupancy and are therefore not competitive with nor comparable to the subject. Analysis of Comparable Rentals An opinion of market rent is developed for each unit type in the subject based on an analysis of rental rates for similar types of units in the competitive properties. The comparables summarized in the following table were selected as the best indicators of market rent for the subject. For the purposes of establishing market rent, we have included some recently constructed or renovated market rate facilities.

Apache Manor Apartments Affordable Housing Market Study

Country Club Gardens has been excluded from the market rate properties, although they advertise market rate units. The property has a HUD contract with rent and income limits on 243 units, as well as a tax credit overlay under the Low Income Housing Tax Credit program on all 353 units. Rents on the 110 units not considered public housing are subject to rent restrictions under the LIHTC program. The initial compliance period for the first four phases will expire in December, 2018, with the fifth phase expiring in December, 2019. A rent comparable report is included in the LIHTC section of the addendum, and detailed reports for each rent comparable are located in the addendum.

Comparable Rentals Summary- Market Rate No. Name; Occ. %; Year Built; Units; Bedroom Range; Utilities Miles Address Surv. Date Yr. Renov. Proj. Size (SF); Rent Range/Mo.; Paid by from Avg. Unit Size Rent Range/SF Owner Subj. 1 Sierra Pointe Apartments 85.0% 1968 348 1 - 3 W,T,S 5.4 1433 S. 107th East Ave. 9/7/2018 292,480 $570 - $850 Tulsa, OK 74128 840 $0.71 - $0.85

Unit Amenities: Patios/Balcony, Disposal, Central AC, Carpets/Drapes/Blinds Project Amenities: Swimming Pool, Playground, Laundry Facility, Clubhouse/Rec. Bldg. Rent Survey Comments: Is Rent Controlled: No ; Vacancy Percentage: 15% ; Is Subsidized Restricted: No ; (539) 999-0957

2 Waterside Apartments 100.0% 1984 682 1 - 2 T,S 5.2 1703 South Jackson Avenue 7/25/2018 463,900 $589 - $1,173 Tulsa, OK 74107 680 $0.91 - $1.28

Unit Amenities: Washer/Dryer In Unit, Washer/Dryer Hookup, Patios/Balcony, Fireplace, Disposal, Dishwasher, Ceiling Fans

Project Amenities: Swimming Pool, Laundry Facility, Fitness Room, Clubhouse/Rec. Bldg. Rent Survey Comments: 918-599-7180 ; Vacancy Percentage: 0% ; There are non-renovated units that average $100 less than the renovated units.

3 Stonecrest Apartments 96.0% 1983 293 1 - 3 W,T,S 9.5 4020 S. 130th Ave. E. 9/6/2018 220,200 $495 - $1,050 Tulsa, OK 74134 752 $0.70 - $0.94

Unit Amenities: Range-Refrig., Patios/Balcony, Fireplace, Dishwasher, Central AC Project Amenities: Swimming Pool, Laundry Facility, Clubhouse/Rec. Bldg. Rent Survey Comments: Is Rent Controlled: No ; Source Company: 918-664-1102 ; Vacancy Percentage: 4.00 % ; Is Subsidized Restricted: No ; Covered parking available for $20/month. Students and preferred employers receive 5% off each month's rent. Kitchens and baths are being remodeled as units are turned over.

4 West Park I 96.0% 2013 128 1 - 3 S,W,T 2.7 2405 E. 4th Place Ave. 8/2/2018 $264 - $1,225 Tulsa, OK 74104 $0.37 - $1.10

Unit Amenities: Air Conditioning,Washer/Dryer In Unit,Dishwasher,Carpets/Drapes/Blinds,Walk-in Closets,Storage in Unit,Patios/Balcony,Disposal Project Amenities: Fitness Room,Clubhouse/Rec. Bldg.,Playground Rent Survey Comments: Is Rent Controlled: Yes ; Is Subsidized Restricted: Yes ; Subsidized Restricted Comment: Mixed income: contains both market rate units and ; Property is at 96% occupancy.

5 Metro Plex 89.0% 1975 216 1 - 3 W,S,T 7.4 2302 South 137th East Avenue 9/7/2018 2014 215,540 $675 - $905 Tulsa, OK 74134 998 $0.66 - $0.82

Unit Amenities: Air Conditioning,Washer/Dryer Hookup,Dishwasher,Carpets/Drapes/Blinds,Walk-in Closets,Patios/Balcony,Vaulted Ceilings,Disposal Project Amenities: Fitness Room,Clubhouse/Rec. Bldg.,Laundry Facility,Swimming Pool,Playground,Basketball

Rent Survey Comments: Property was renovated in 2014 and has good unit and project amenities.

S Apache Manor Apartments 1969 160 2 - 5 W, S, T Proposed for 2019 170,250 Tulsa, OK 74115 1,064

Apache Manor Apartments Affordable Housing Market Study

Market Rate Rent Comparable Photographs

Rent Comp #1 Rent Comp #2 Sierra Pointe Apartments Waterside Apartments

Rent Comp #3 Rent Comp #4 Stonecrest Apartments West Park I

Rent Comp #5 Metro Plex

Apache Manor Apartments Affordable Housing Market Study

Market Rate Rent Comparables Map

Miles From Base Average No. Name Location Subject Rent/SF Rent/Month 1 Sierra Pointe Apartments Tulsa, OK 5.4 $0.72 $650 2 Waterside Apartments Tulsa, OK 5.2 $0.91 $983 3 Stonecrest Apartments Tulsa, OK 9.5 $0.79 $750 4 West Park I Tulsa, OK 2.7 $1.00 $1,010 5 Metro Plex Tulsa, OK 7.4 $0.79 $785 S Apache Manor Apartments Tulsa, OK

Apache Manor Apartments Affordable Housing Market Study

Comparable Rentals Summary- LIHTC Properties No. Name; Occ. %; Year Built; Units; Bedroom Range; Utilities Miles Address Surv. Date Yr. Renov. Proj. Size (SF); Rent Range/Mo.; Paid by from Avg. Unit Size Rent Range/SF Owner Subj. 1 Gilcrease Hills Estates 99.0% 2005 80 1 - 2 W,T,S 5.0 1150 N. 24th West Ave. 9/6/2018 70,192 $492 - $611 Tulsa, OK 74127 877 $0.67 - $0.68 Unit Amenities: Washer/Dryer Hookup, Walk-in Closets, Storage in Unit, Patios/Balcony, Dishwasher, Central AC, Ceiling Fans, Carpets/Drapes/Blinds Project Amenities: Security, Laundry Facility, Clubhouse/Rec. Bldg. Rent Survey Comments: Is Rent Controlled: Yes ; Vacancy Percentage: 1% ; Vacant Unit Count: ; Is Subsidized Restricted: Yes ; 918-582-0220 2 Heritage Landing 95.0% 2010 40 1 - 2 W,T,S,G 0.4 3102 E. Apache St. 9/6/2018 20,971 $424 - $534 Tulsa, OK 74110 538 $0.71 - $0.84 Unit Amenities: Range-Refrig., Central AC, Ceiling Fans, Carpets/Drapes/Blinds Project Amenities: Security, Laundry Facility, Clubhouse/Rec. Bldg. Rent Survey Comments: Is Rent Controlled: Yes ; Vacancy Percentage: 5 % ; Vacant Unit Count: 2 ; Is Subsidized Restricted: Yes ; Subsidized Restricted Comment: LIHTC - Senior Occupancy ; There are 40 units total but one unit is for the on-site manager. ; 918-836-7070

3 Northwind Estates- Phase I 100.0% 2013 60 1 - 2 W,T,S 3.4 3355 N. Martin Luther King Jr. Blvd. 9/6/2018 55,008 $480 - $570 Tulsa, OK 74106 917 $0.58 - $0.64 Unit Amenities: Washer/Dryer In Unit, Walk-in Closets, Patios/Balcony, Disposal, Dishwasher, Central AC, Ceiling Fans, Carpets/Drapes/Blinds Project Amenities: Fitness Room, Clubhouse/Rec. Bldg. Rent Survey Comments: Is Rent Controlled: Yes ; Source Company: 918-933-6983 ; Is Subsidized Restricted: No ; Subsidized Restricted Comment: LIHTC ; Cottage-style residences for seniors built in 2 phases. Phase II was built in 2016 and rents for $545 (50% AMI), and $650 (60% AMI). Phase II includes another 56 units, but we were not given the breakdowns of 1 and 2 bedroom units. Both properties are fully occupied with waiting lists.

4 Crestview Duplexes 98.0% 1998 112 1 - 2 W,T,S 3.4 3535 N. Cincinnati Ave. 9/5/2018 91,264 $620 - $735 Tulsa, OK 74106 815 $0.72 - $0.82 Unit Amenities: Washer/Dryer Hookup, Walk-in Closets, Patios/Balcony, Disposal, Dishwasher, Central AC, Ceiling Fans, Carpets/Drapes/Blinds Project Amenities: Security, Fitness Room, Clubhouse/Rec. Bldg. Rent Survey Comments: Is Rent Controlled: Yes ; Source Company: Mary 918-430-0030 ; Vacancy Percentage: 2.00 % ; Is Subsidized Restricted: No ; Subsidized Restricted Comment: LIHTC ; Property consists of 2 phases: Phase I is for persons 55 and over, and Phase II is for persons 62 and over. They have a combined occupancy of 98%. Phase I was built in 1998 and Phase II in 2001.

5 Cherokee Meadows Apartments 100.0% 2016 48 1 - 2 W,S,E,T 2.4 1505 E. Reading St. 7/6/2018 42,648 $554 - $806 Tulsa, OK 74106 889 $0.66 - $0.86 Unit Amenities: Washer/Dryer Hookup,Dishwasher,Carpets/Drapes/Blinds,Walk-in Closets,Storage in Unit,Patios/Balcony,Fireplace,Disposal Project Amenities: Security,Garage/Under Building,Fitness Room,Clubhouse/Rec. Bldg.,Covered Parking,Playground Rent Survey Comments: Landlord pays electric in addition to water, sewer, and trash. 6 Cornerstone Village 97.5% 2004 40 1 - 2 W,T,S,G 1.6 1045 N. Yale Ave. 9/26/2018 16,820 $441 - $508 Tulsa, OK 74115 561 $0.65 - $0.89 Unit Amenities: Range-Refrig., Dishwasher, Ceiling Fans, Carpets/Drapes/Blinds Project Amenities: Security, Laundry Facility, Clubhouse/Rec. Bldg. Rent Survey Comments: Is Rent Controlled: Yes ; Vacancy Percentage: 2.5% ; Vacant Unit Count: ; Is Subsidized Restricted: Yes ; Subsidized Restricted Comment: LIHTC - Senior Occupancy

7 Country Club Gardens 2005 353 2 - 3 W,S,T 4.0 959 Country Club Drive 8/7/2018 $575 - $700 Tulsa, OK 74127 $0.50 - $0.57 Unit Amenities: Air Conditioning,Washer/Dryer Hookup,Dishwasher,Carpets/Drapes/Blinds,Patios/Balcony,Disposal Project Amenities: Clubhouse/Rec. Bldg.,Laundry Facility,Playground,Basketball S Apache Manor Apartments 1969 160 2 - 5 W, S, T Proposed for 2019 170,250 Tulsa, OK 74115 1,064

Apache Manor Apartments Affordable Housing Market Study

LIHTC Rent Comparables Map

Miles From Base Average No. Name Location Subject Rent/SF Rent/Month 1 Gilcrease Hills Estates Tulsa, OK 4.9 $0.68 $611 2 Heritage Landing Tulsa, OK 0.4 $0.71 $534 3 Northwind Estates- Phase I Tulsa, OK 3.4 $0.58 $540 4 Crestview Duplexes Tulsa, OK 3.4 $0.72 $735 5 Cherokee Meadows Apartments Tulsa, OK 2.4 $0.81 $806 6 Cornerstone Village Tulsa, OK 1.6 $0.65 $508 7 Country Club Gardens Tulsa, OK 4.0 $0.57 $575 S Apache Manor Apartments Tulsa, OK

Apache Manor Apartments Affordable Housing Market Study

Analysis and Adjustment of Comparable Rentals The rent comparables have been analyzed and compared with the subject property. Adjustments are considered for the following factors, in the sequence shown below.

Rent Adjustment Summary Adjustment Factor Accounts For Comments Tenant Paid Utilities Utilities costs for which tenants are No adjustments for tenant paid utilities were required. responsible. Unit Size Floor area in square feet. Adjustments for size differences are based on the assumption that rent will vary at less than one-to-one ratio to unit size differences. In this case, a value ratio of 50% is applied. Market Conditions Changes in the economic environment over The rents took place from July 2018 to September time that affect the appreciation and 2018. Market conditions generally have been stable depreciation of real estate. over this period through the effective date of value. As a result, we apply no adjustments for market trends.

Location Market or submarket area influences on sale Comparables 2, 3 and 4 have been adjusted price or rental rate; surrounding land use downward due to their superior location when influences. compared to the subject property. Comparables 1 and Age/Condition Effective age; physical condition. Comparable 4 has been adjusted downward due to its Quality Construction quality, market appeal No adjustments for quality were required. Unit Features Features included in individual residential Comparables 2, 3, 4 and 5 have been adjusted units. downward due to their superior unit features when Project Amenities Amenities available to the entire property. Comparables 2, 3 and 5 have been adjusted On the following page is a rent comparison grid displaying the subject property, the market rate comparables and the adjustments applied.

Apache Manor Apartments Affordable Housing Market Study

Rental Adjustment Grid - 2 Bedroom Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5

Name Apache Manor Sierra Pointe Waterside Stonecrest West Park I Metro Plex Apartments Apartments Apartments Apartments Address 2402 N Marion Ave 1433 S. 107th East 1703 South 4020 S. 130th Ave. 2405 E. 4th Place 2302 South 137th Ave. Jackson Avenue E. Ave. East Avenue City Tulsa Tulsa Tulsa Tulsa Tulsa Tulsa County Tulsa Tulsa Tulsa Tulsa Tulsa Tulsa State OK OK OK OK OK OK Date Sep-2018 Sep-2018 Jul-2018 Sep-2018 Aug-2018 Sep-2018 Unit Type 2 Bedroom 2 BD/ 1.5 BA - TH 2 BD / 2 BA 2 BD/ 2 BA 2-Bedroom TH 2 BR/ 1 BA Average Unit SF 905 900 962 950 1,006 995 Average Rent/Month $650 $983 $750 $1,010 $785 Year Built 1969 1968 1984 1983 2013 1975 Base Rent/SF $0.77 $0.72 $0.91 $0.79 $1.00 $0.79 Average Rent/Month $650 $983 $750 $1,010 $785 Utilities $ Adjustment – – – – – Size % Adjustment 50% Size $ Adjustment $1.81 -$29.27 -$17.76 -$50.70 -$35.50 Cumulative Adjusted Rent $652 $953 $732 $959 $749 Market Trends/Year – – – – – – Cumulative Adjusted Rent $652 $953 $732 $959 $749 Location – -10% -5% -5% – Age/Condition 5% – – -15% – Quality – – – – – Unit Features – -5% -5% -5% -5% Project Amenities – -5% -3% – -3% Economic Characteristics – – – – – Net % Adjustments 5% -20% -13% -25% -8% Final Adjusted Price $684 $763 $637 $719 $690 Overall Adjustment 5% -22% -15% -29% -12%

Summary Indicators Range Average Average/SF Comparables - Unadjusted $650 - $1,010 $836 $0.84 Comparables - Adjusted $637 - $763 $699 $0.73 Concluded Market Rent $695

Apache Manor Apartments Affordable Housing Market Study

Rental Adjustment Grid - 3 Bedroom Subject Comp 1 Comp 2 Comp 3 Comp 4

Name Apache Manor Sierra Pointe Stonecrest West Park I Metro Plex Apartments Apartments Apartments Address 2402 N Marion Ave 1433 S. 107th East 4020 S. 130th Ave. 2405 E. 4th Place 2302 South 137th Ave. E. Ave. East Avenue City Tulsa Tulsa Tulsa Tulsa Tulsa County Tulsa Tulsa Tulsa Tulsa Tulsa State OK OK OK OK OK Date Sep-2018 Sep-2018 Sep-2018 Aug-2018 Sep-2018 Unit Type 3 Bedroom 3BR/1.5BA - Flat 3 BD/ 2 BA 3-Bedroom TH 3 BR/2 BA Average Unit SF 1,216 1,000 1,500 1,362 1,340 Average Rent/Month $815 $1,050 $1,225 $905 Year Built 1969 1968 1983 2013 1975 Base Rent/SF $0.70 $0.82 $0.70 $0.90 $0.68 Average Rent/Month $815 $1,050 $1,225 $905 Utilities $ Adjustment – – – – Size % Adjustment 50% Size $ Adjustment $88.02 -$99.40 -$65.66 -$41.87 Cumulative Adjusted Rent $903 $951 $1,159 $863 Market Trends/Year – – – – – Cumulative Adjusted Rent $903 $951 $1,159 $863 Location – -5% -5% – Age/Condition 5% – -15% – Quality – – – – Unit Features -3% -8% -8% -8% Project Amenities – -3% – -3% Economic Characteristics – – – – Net % Adjustments 2% -16% -28% -11% Final Adjusted Price $921 $799 $835 $768 Overall Adjustment 13% -24% -32% -15%

Summary Indicators Range Average Average/SF Comparables - Unadjusted $815 - $1,225 $999 $0.77 Comparables - Adjusted $768 - $921 $831 $0.66 Concluded Market Rent $850

Apache Manor Apartments Affordable Housing Market Study

Rental Adjustment Grid - 4 Bedroom Subject Comp 1 Comp 2 Comp 3 Comp 4

Name Apache Manor Sierra Pointe Stonecrest West Park I Metro Plex Apartments Apartments Apartments Address 2402 N Marion Ave 1433 S. 107th East 4020 S. 130th Ave. 2405 E. 4th Place 2302 South 137th Ave. E. Ave. East Avenue City Tulsa Tulsa Tulsa Tulsa Tulsa County Tulsa Tulsa Tulsa Tulsa Tulsa State OK OK OK OK OK Date Sep-2018 Sep-2018 Sep-2018 Aug-2018 Sep-2018 Unit Type 4 Bedroom 3BR/1.5BA - TH 3 BD/ 2 BA 3-Bedroom TH 3 BR/2 BA Average Unit SF 1,192 1,000 1,500 1,362 1,340 Average Rent/Month $850 $1,050 $1,225 $905 Year Built 1969 1968 1983 2013 1975 Base Rent/SF $0.80 $0.85 $0.70 $0.90 $0.68 Average Rent/Month $850 $1,050 $1,225 $905 Utilities $ Adjustment – – – – Size % Adjustment 50% Size $ Adjustment $81.60 -$107.80 -$76.45 -$49.98 Cumulative Adjusted Rent $932 $942 $1,149 $855 Market Trends/Year – – – – – Cumulative Adjusted Rent $932 $942 $1,149 $855 Location – -5% -5% – Age/Condition 5% 5% -15% – Quality – – – – Unit Features 10% 3% 3% 3% Project Amenities – -3% – -3% Economic Characteristics – – – – Net % Adjustments 15% – -17% – Final Adjusted Price $1,071 $942 $953 $855 Overall Adjustment 26% -10% -22% -6%

Summary Indicators Range Average Average/SF Comparables - Unadjusted $850 - $1,225 $1,008 $0.78 Comparables - Adjusted $855 - $1,071 $955 $0.76 Concluded Market Rent $950

Apache Manor Apartments Affordable Housing Market Study

Rental Adjustment Grid - 5 Bedroom Subject Comp 1 Comp 2 Comp 3 Comp 4

Name Apache Manor Sierra Pointe Stonecrest West Park I Metro Plex Apartments Apartments Apartments Address 2402 N Marion Ave 1433 S. 107th East 4020 S. 130th Ave. 2405 E. 4th Place 2302 South 137th Ave. E. Ave. East Avenue City Tulsa Tulsa Tulsa Tulsa Tulsa County Tulsa Tulsa Tulsa Tulsa Tulsa State OK OK OK OK OK Date Sep-2018 Sep-2018 Sep-2018 Aug-2018 Sep-2018 Unit Type 5 Bedroom 3BR/1.5BA - TH 3 BD/ 2 BA 3-Bedroom TH 3 BR/2 BA Average Unit SF 1,423 1,000 1,500 1,362 1,340 Average Rent/Month $850 $1,050 $1,225 $905 Year Built 1969 1968 1983 2013 1975 Base Rent/SF $0.76 $0.85 $0.70 $0.90 $0.68 Average Rent/Month $850 $1,050 $1,225 $905 Utilities $ Adjustment – – – – Size % Adjustment 50% Size $ Adjustment $179.78 -$26.95 $27.43 $28.03 Cumulative Adjusted Rent $1,030 $1,023 $1,252 $933 Market Trends/Year – – – – – Cumulative Adjusted Rent $1,030 $1,023 $1,252 $933 Location – -5% -5% – Age/Condition 5% 5% -15% – Quality – – – – Unit Features 10% 8% 8% 8% Project Amenities – -3% – -3% Economic Characteristics – – – – Net % Adjustments 15% 5% -12% 5% Final Adjusted Price $1,184 $1,074 $1,102 $980 Overall Adjustment 39% 2% -10% 8%

Summary Indicators Range Average Average/SF Comparables - Unadjusted $850 - $1,225 $1,008 $0.78 Comparables - Adjusted $980 - $1,184 $1,085 $0.86 Concluded Market Rent $1,075

Apache Manor Apartments Affordable Housing Market Study

Market Rental Conclusion In establishing market rent for the subject, Rentals #1 and #4 are considered be best indicators of market rent due to overall age, location and physical characteristics. Note that the tax credit properties cannot be used to establish market rent for the subject since they are not market rate properties. Predicated on the comparable rents from competitive complexes in the area, the proposed subject's market rents are shown as follows. It should be noted that the subject’s market rent is generated from the adjusted monthly rents for the comparable properties, taking into account the subject’s utility structure and notable features such as age, condition, and amenities. Note that these estimates assume prudent management and that property is properly maintained and managed. It also assumes that the tenant is responsible for in-unit electric expenses and that the unit and project amenities are included as indicated in the building plans. It should be noted that the following rents assume no income or rent restrictions; the subject property will be leased to tenants based on the restrictions of the Low Income Housing Tax Credit program and HUD RAD contract. Market Rent Conclusions Avg. Unit Market Rent Market Rent Unit Type Total Units Size / Month / SF 2 Bedroom- RAD HAP/LIHTC 56 905 $695 $0.77 3 Bedroom- RAD HAP/LIHTC 86 1,216 $850 $0.70 4 Bedroom- RAD HAP/LIHTC 12 1,192 $950 $0.80 5 Bedroom- RAD HAP/LIHTC 6 1,423 $1,075 $0.76 Totals / Averages 160 1,113 $812 $0.73 Impact on Subsidized Housing Alternatives There are currently seven operational tax credit properties in the PMA. Six of the seven (excluding Country Club Gardens) are intended for senior occupancy, and therefore would not compete with the subject and the subject would not have any meaningful impact on those developments. Country Club Gardens consists of 353 total units, with 80 units for senior occupancy and the remainder for family occupancy. 243 units are operated as public housing, with the remainder designated as market rate units. However, all of the units have a tax credit overlay which restricts rents under the LIHTC program. The five phases have a combined occupancy of 96%, and the property maintains high occupancy levels. The Tulsa Housing Authority has a first right of refusal upon expiration of the initial compliance period of the tax credit program, and plans to convert the property to Section 8 under HUD’s RAD program within the next year. The best indicator of occupancy at the subject property is its operating history, as the property has been open since 1969. It is currently 97% occupied and maintains a strong occupancy history. The Tulsa Housing Authority has proposed renovations to the property and intends to convert the property to Section 8. Tenants who reside at the subject property have already met the requirements for rental subsidy assistance. Tenants would be required to relinquish their current subsidy and meet new requirements/income guidelines under the LIHTC program before moving to a new tax credit

Apache Manor Apartments Affordable Housing Market Study

development. Therefore, the subject will not compete with any new tax credit developments in the market area. As the renovation of the subject would add no units to the market, the proposed renovation and conversion would have no impact on other affordable housing properties in the area. Analysis of Occupancy in the Market The rent comparables included in this report had occupancies of at least 85%, and several were 100% occupied with a waiting list. It is the opinion of this analyst that enough pent-up demand and expected demand due to continued population and household growth in the Tulsa market area currently exists that no significant decline in citywide or neighborhood occupancy would occur. Once the renovation is complete, the property’s appeal will increase markedly, which should help maintain the high level of occupancy. The property will operate as a HUD Section 8 affordable housing property, with rents set at a maximum of 30% of a tenant’s income. Therefore, the units will remain affordable once the renovation is complete. Based on these indications of demand for family units, a 7% vacancy and collection loss factor is considered reasonable and well supported. It should be noted that nearly all other similar tax credit developments in Oklahoma intended for family occupancy have performed very well and operate at or near 100% occupancy year round. Subject Property Absorption Estimate There has been no new apartment construction in the Primary Market Area other than tax credit developments mentioned in this report. All of the tax credit developments within the PMA constructed since 2010 have been for senior occupancy and would not compete with a family development. The subject property typically maintains a very high level of occupancy. The renovation of the subject can be done on a building by building basis which should minimize the extent of vacancy during the construction period. Therefore, no significant absorption will be required. Further, should units become vacant during renovation, the subject typically has sufficient demand for available units. The subject has had good historic demand and occupancy and this should only improve after renovation. Based on these assumptions, absorption estimates are not necessary.

Apache Manor Apartments Affordable Housing Market Study

Evaluation of Need for Affordable Housing

This section will analyze data from the U.S. Department of Housing and Urban Development’s Comprehensive Housing Affordability Strategy (CHAS) dataset for Tulsa. This data is typically separated into household income thresholds, defined by HUD Area Median Family Income (HAMFI). HUD Area Median Family Income (HAMFI) is equivalent to Area Median Income (AMI) for the purposes of this report. This data is considered the best indicator of housing need available which separates need into household income thresholds as defined by HUD. Cost Burden by Income Threshold The next table presents CHAS data for Tulsa regarding housing cost burden as a percentage of household income. Renter costs are considered to be the sum of contract rent and any utilities not paid by the landlord (such as electricity, natural gas, and water, but not including telephone service, cable service, internet service, etc.). Homeowner costs include mortgage debt service (or similar debts such as deeds of trust or contracts for deed), utilities, property taxes and property insurance. Households are considered to be cost overburdened if their housing costs (renter or owner) are greater than 30% of their gross household income. A household is “severely” overburdened if their housing costs are greater than 50% of their gross household income.

Apache Manor Apartments Affordable Housing Market Study

City of Tulsa : CHAS - Housing Cost Burden by HAMFI Owners Renters Household Income / Cost Burden Number Percent Number Percent Income < 30% HAMFI 5,995 18,745 Cost Burden Less Than 30% 950 15.85% 2,450 13.07% Cost Burden Between 30%-50% 1,120 18.68% 2,110 11.26% Cost Burden Greater Than 50% 3,285 54.80% 11,880 63.38% Not Computed (no/negative income) 640 10.68% 2,305 12.30% Income 30%-50% HAMFI 7,990 14,785 Cost Burden Less Than 30% 3,750 46.93% 3,185 21.54% Cost Burden Between 30%-50% 2,065 25.84% 7,485 50.63% Cost Burden Greater Than 50% 2,180 27.28% 4,120 27.87% Not Computed (no/negative income) 0 0.00% 0 0.00% Income 50%-80% HAMFI 13,400 17,330 Cost Burden Less Than 30% 8,080 60.30% 11,310 65.26% Cost Burden Between 30%-50% 3,955 29.51% 5,370 30.99% Cost Burden Greater Than 50% 1,365 10.19% 650 3.75% Not Computed (no/negative income) 0 0.00% 0 0.00% Income 80%-100% HAMFI 9,470 8,465 Cost Burden Less Than 30% 7,590 80.15% 7,255 85.71% Cost Burden Between 30%-50% 1,675 17.69% 1,040 12.29% Cost Burden Greater Than 50% 200 2.11% 170 2.01% Not Computed (no/negative income) 0 0.00% 0 0.00% All Incomes 86,560 76,965 Cost Burden Less Than 30% 67,050 77.46% 41,285 53.64% Cost Burden Between 30%-50% 11,460 13.24% 16,440 21.36% Cost Burden Greater Than 50% 7,405 8.55% 16,945 22.02% Not Computed (no/negative income) 640 0.74% 2,305 2.99% Source: 2010-2014 HUD Comprehensive Housing Affordability Strategy, Table 8 The next table summarizes the data from the previous table for households with cost burden greater than 30% of gross income, followed by a chart comparing these figures for Tulsa with the State of Oklahoma as a whole, and the United States.

City of Tulsa : Households by Income by Cost Burden Owners Renters % w/ Cost > % w/ Cost > Household Income Threshold Total 30% Income Total 30% Income Income < 30% HAMFI 5,995 73.48% 18,745 74.63% Income 30%-50% HAMFI 7,990 53.13% 14,785 78.49% Income 50%-80% HAMFI 13,400 39.70% 17,330 34.74% Income 80%-100% HAMFI 9,470 19.80% 8,465 14.29% All Incomes 86,560 21.79% 76,965 43.38% Source: 2010-2014 HUD Comprehensive Housing Affordability Strategy, Table 8

Apache Manor Apartments Affordable Housing Market Study

Households by Income Threshold: Percentage with Housing Cost Over 30% of Income Renters Owners 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0%

Tulsa State of Oklahoma United States Tulsa State of Oklahoma United States

Source: 2010 -2014 HUD Comprehensive Housing Affordability Strategy, Table 8 Cost Burden by Household Type The following table provides a breakdown of households by HAMFI, and by household type and size, and by housing cost burden. The categories of household type provided by HUD are:

■ Elderly Family: Households with two persons, either or both age 62 or over. ■ Small Family: 2 persons, neither age 62 or over, or families with 3 or 4 persons of any age. ■ Large Family: families with 5 or more persons. ■ Elderly Non-Family (single persons age 62 or over, or unrelated elderly individuals) ■ Non-Elderly, Non-Family: all other households.

Apache Manor Apartments Affordable Housing Market Study

City of Tulsa : CHAS - Housing Cost Burden by Household Type / HAMFI Owners Renters No. w/ Cost Pct. w/ No. w/ Cost Pct. w/ > 30% Cost > 30% > 30% Cost > 30% Income, Household Size/Type Total Income Income Total Income Income Income < 30% HAMFI 5,995 4,400 73.39% 18,745 13,990 74.63% Elderly Family 650 415 63.85% 240 200 83.33% Small Family (2-4 persons) 1,345 1,175 87.36% 6,840 5,075 74.20% Large Family (5 or more persons) 350 320 91.43% 1,410 1,145 81.21% Elderly Non-Family 2,120 1,465 69.10% 2,365 1,680 71.04% Non-Family, Non-Elderly 1,530 1,025 66.99% 7,895 5,890 74.60% Income 30%-50% HAMFI 7,990 4,240 53.07% 14,785 11,600 78.46% Elderly Family 1,050 325 30.95% 415 320 77.11% Small Family (2-4 persons) 1,985 1,270 63.98% 5,625 4,470 79.47% Large Family (5 or more persons) 625 435 69.60% 1,440 1,100 76.39% Elderly Non-Family 2,990 1,300 43.48% 2,115 1,505 71.16% Non-Family, Non-Elderly 1,335 910 68.16% 5,190 4,205 81.02% Income 50%-80% HAMFI 13,400 5,325 39.74% 17,330 6,020 34.74% Elderly Family 2,610 775 29.69% 535 275 51.40% Small Family (2-4 persons) 4,240 2,025 47.76% 6,595 2,075 31.46% Large Family (5 or more persons) 1,195 310 25.94% 1,270 425 33.46% Elderly Non-Family 3,150 970 30.79% 1,535 750 48.86% Non-Family, Non-Elderly 2,205 1,245 56.46% 7,395 2,495 33.74% Income 80%-100% HAMFI 9,470 1,880 19.85% 8,465 1,209 14.28% Elderly Family 1,955 340 17.39% 220 64 29.09% Small Family (2-4 persons) 3,240 695 21.45% 3,440 330 9.59% Large Family (5 or more persons) 925 90 9.73% 530 20 3.77% Elderly Non-Family 1,290 185 14.34% 760 305 40.13% Non-Family, Non-Elderly 2,055 570 27.74% 3,515 490 13.94% All Incomes 86,560 18,865 21.79% 76,965 33,379 43.37% Elderly Family 16,395 2,310 14.09% 2,255 964 42.75% Small Family (2-4 persons) 34,820 6,485 18.62% 29,340 12,025 40.99% Large Family (5 or more persons) 6,695 1,410 21.06% 5,535 2,710 48.96% Elderly Non-Family 13,570 4,220 31.10% 8,045 4,465 55.50% Non-Family, Non-Elderly 15,075 4,440 29.45% 31,795 13,215 41.56% Source: 2010-2014 HUD Comprehensive Housing Affordability Strategy, Table 7

Apache Manor Apartments Affordable Housing Market Study

City of Tulsa : Households under 50% AMI by Cost Burden Owners Renters No. w/ Cost Pct. w/ No. w/ Cost Pct. w/ > 30% Cost > 30% > 30% Cost > 30% Household Size/Type Total Income Income Total Income Income Income < 50% HAMFI 13,985 8,640 61.78% 33,530 25,590 76.32% Elderly Family 1,700 740 43.53% 655 520 79.39% Small Family (2-4 persons) 3,330 2,445 73.42% 12,465 9,545 76.57% Large Family (5 or more persons) 975 755 77.44% 2,850 2,245 78.77% Elderly Non-Family 5,110 2,765 54.11% 4,480 3,185 71.09% Non-Family, Non-Elderly 2,865 1,935 67.54% 13,085 10,095 77.15% Source: 2010-2014 HUD Comprehensive Housing Affordability Strategy, Table 7

Households Under 50% of AMI: Percentage Housing Cost Overburdened Renters 100% 100% Owners 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Elderly Small Family Large Family Elderly Non- Non-Family, Elderly Small Family Large Family Elderly Non- Non-Family, Family (2-4 persons) (5 or more Family Non-Elderly Family (2-4 persons) (5 or more Family Non-Elderly persons) persons) Tulsa State of Oklahoma United States Tulsa State of Oklahoma United States

Source: 2010-2014 HUD Comprehensive Housing Affordability Strategy, Table 7 CHAS Conclusions The previous data notes many areas of need (and severe need) among the existing population of Tulsa. The greatest needs are among households with incomes less than 30% of Area Median Income. Several other areas of note:

■ Among households with incomes less than 50% of Area Median Income, there are 25,595 renter households that are cost overburdened, and 8,650 homeowners that are cost overburdened. ■ Among elderly households with incomes less than 50% of Area Median Income, there are 3,705 renter households that are cost overburdened, and 3,505 homeowners that are cost overburdened. Statewide Affordable Housing Study A statewide study of affordable housing was completed by this firm in early 2016, for each of Oklahoma’s 77 counties. The study for Tulsa County identified a need for 3,535 housing units for households with incomes less than 60% of Area Median Income, through the year 2020. Of the total,

Apache Manor Apartments Affordable Housing Market Study

2,397 of those housing units will be needed by renters. The calculations are shown in the following table:

Summary of Need for Affordable Housing Data from HUD’s Consolidated Housing Affordability Strategy identified 25,595 renter households in Tulsa with incomes less than 50% of Area Median Income that have housing cost burdens greater than 30% of their income. In addition, the Statewide Affordable Housing Study shows a need for 2,397 rental units for households through the year 2020. Combined, this data shows a strong need for affordable rental housing units in Tulsa County, and the subject property is well-suited to meet this need.

Apache Manor Apartments Affordable Housing Market Study

Market Demand and Capture Rate Analysis

Required Income Levels The maximum income guidelines for the subject property will be based on 50% and 60% of Area Median Income for Tulsa County for all 160 units. The maximum income guidelines provided by the Oklahoma Housing Finance Agency are as follows: Maximum Household Income Guidelines Household Size 1 2 3 4 5 6 7 8 50% MFI $23,500 $26,850 $30,200 $33,550 $36,250 $38,950 $41,650 $44,300 60% MFI $28,200 $32,220 $36,240 $40,260 $43,500 $46,740 $49,980 $53,160 The subject property will consist of two, three, four, and five bedroom units. Because the subject will consist of two – five bedrooms intended for family occupancy, we believe most tenants will consist of one to eight persons. Therefore, the maximum income criteria for the subject should be no greater than $53,160 in most circumstances, which is the maximum income for an eight-person household at the 60% level. The following is the developer’s proposed unit mix: Unit Mix and Rent Summary Developer's Asking Net Unit Size Asking Rent Utility Unit Type Rent (SF) per SF Units Allowance 2 Bedroom- RAD HAP/LIHTC $567 905 $0.63 56 $82 3 Bedroom- RAD HAP/LIHTC $769 1,216 $0.63 86 $90 4 Bedroom- RAD HAP/LIHTC $835 1,192 $0.70 12 $97 5 Bedroom- RAD HAP/LIHTC $961 1,423 $0.68 6 $105 Totals / Averages $710 1,113 $0.64 160 All of the subject units are planned for conversion to HUD’s Section 8 program for rental housing assistance. Thus, fair market rents are determined by HUD and govern the maximum allowable rents for the subject. The accepted definition of “affordable” housing is that the tenant should be paying no more than 30% of his or her income in gross housing costs. The proposed subject rents are considered affordable for the target tenant population. The proposed HUD rents under the RAD conversion will govern the subject; therefore, tax credit rents will not be necessary. Analysis of Affordability of Rental Units The market rent for the subject property’s units was derived earlier in this report. The concluded market rents are as follows:

Apache Manor Apartments Affordable Housing Market Study

Market Rent Conclusions Avg. Unit Market Rent Market Rent Unit Type Total Units Size / Month / SF 2 Bedroom- RAD HAP/LIHTC 56 905 $695 $0.77 3 Bedroom- RAD HAP/LIHTC 86 1,216 $850 $0.70 4 Bedroom- RAD HAP/LIHTC 12 1,192 $950 $0.80 5 Bedroom- RAD HAP/LIHTC 6 1,423 $1,075 $0.76 Totals / Averages 160 1,113 $812 $0.73 However, the subject property will be leased to tenants with incomes below limits set by HUD and the Oklahoma Housing Finance Agency. The proposed restricted rents are as follows: Unit Mix and Rent Summary Developer's Asking Net Unit Size Asking Rent Utility Unit Type Rent (SF) per SF Units Allowance 2 Bedroom- RAD HAP/LIHTC $567 905 $0.63 56 $82 3 Bedroom- RAD HAP/LIHTC $769 1,216 $0.63 86 $90 4 Bedroom- RAD HAP/LIHTC $835 1,192 $0.70 12 $97 5 Bedroom- RAD HAP/LIHTC $961 1,423 $0.68 6 $105 Totals / Averages $710 1,113 $0.64 160 The National Council of Housing Market Analysts defines “market advantage” as follows: The difference, expressed as a percentage, between the estimated market rent for the apartment property without income restrictions and the lesser of (a) the owner’s proposed rents or (b) the maximum rents permitted by the financing program for the same apartment property Normally, with tax credit properties, it is typically desirable to have a market advantage of 10% or higher. However, the subject will receive guaranteed rents under its proposed Section 8 HUD contract. Therefore, there is no market advantage associated with the addition of the tax credit allocation. Capture Rate Analysis The National Council of Housing Market Analysts defines a capture rate as follows: The percentage of age, size and income qualified renter Households in the Primary Market Area that the property must capture to achieve the Stabilized Level of Occupancy. For the subject property, a Stabilized Level of Occupancy should be no less than 93%. Since the property will consist of 160 units, the Stabilized Level of Occupancy is considered to be 149 units after rounding up. It is the opinion of this analyst that the largest portion of the households at the subject property would consist of one to eight persons. The highest income level that would qualify to live at the subject property is $53,160, which is the limit for an eight-person household at the 60% income level.

Apache Manor Apartments Affordable Housing Market Study

It is the opinion of this analyst that most of the family households that fall within the income range will have one to eight persons. The following table presents 2018 households by household income, as reported by Esri.

Per Capita Income $15,085 $16,712 Average Household Income $40,082 $44,702 Median Household Income $29,165 $30,927 Source: Esri ArcGIS Business Analyst

This data shows that in 2018, approximately 16,417 households earned less than $53,160. The next step is to estimate the percentage of households with sizes between one and eight persons. The following table presents households within the Primary Market Area by household size for 2018 as estimated by Esri:

As shown, approximately 100.00% of all households within the Primary Market Area consist of between one and eight persons. This percentage will be applied to the number of income qualified households within the PMA.

Apache Manor Apartments Affordable Housing Market Study

Finally, not all households are renter households. Esri estimates that in the Primary Market Area, in 2018, 52.7% of all housing units are renter occupied. The percentage of renters in any area is typically greater among lower-income levels than among all households regardless of income. The following data, provided by the Census Bureau, shows housing units by tenure by household income for Tulsa, as of the 2012-2016 American Community Survey prepared by the Census Bureau.

Based on this data, 63.06% of households earning less than $53,160 per year are renters. A tenure rate of 63.06% renter will be applied to the households under the subject property’s income limits based on a weighted average of households in the qualifying income bracket. Based on the preceding analysis, the total number of size and income qualified renter households, as well as the implied capture rate, is shown below.

Number of Income Qualifed Households 16,417 X Percentage of Renters 63.06% X Percentage of Households 1 - 8 Persons in Size 100.00% = Total Income Qualified Renter Households 10,352 ÷ Units to be Absorbed to Achieve Stabilized Occupancy (93%) 149 = Implied Capture Rate 1.44%

As shown, there are approximately 10,352 income and size qualified renter households in the Primary Market area. The subject property will need to capture 1.44% of these qualifying households.

Apache Manor Apartments Affordable Housing Market Study

Conclusion

The previous analysis has attempted to survey the rental housing market in the Tulsa, Oklahoma area. This analysis intends to identify demand for affordable housing and survey supply of existing alternatives. Several issues have been defined. This analyst surveyed several market rate and subsidized properties in the area. The market rate complexes appear to be in average to good condition and usually maintain strong occupancy levels. Affordable housing for families in particular appears to be in very short supply in the Primary Market Area; Sierra Pointe and Metro Plex are the most similar to the subject in age and location. Sierra Pointe has an 85% occupancy rate, but has only had minor renovations since its construction in 1968. Metro Plex is 89% occupied, and received fairly extensive renovations in 2014. It was constructed in 1975. There are relatively few such properties in Tulsa that are intended to meet the needs of families, particularly families in need of three or more bedrooms. The subject property has been instrumental in meeting these needs, but would benefit from renovations and updates to the units to reflect current designs and meet current needs of families, while increasing subject demand and appeal. The subject’s Primary Market Area is expected to experience renewed growth in its family population over the next five years. Esri forecasts 0.53% annual growth in the PMA over the next five years, but the area has not had new construction in the last decade, with the exception of tax credit properties for seniors. Based on the number of age and income qualified renter households, the subject property would be required to capture 1.44% of this demand. Strong demand exists and will continue to grow for good quality affordable units for family households within the primary market area. It should be noted that the proposed renovation will improve existing affordable housing units and enhance the existing market standard, but will not add any units to the market. The subject property historically operates at a high level of occupancy, and is currently 97% occupied. There is no additional demand that needs to be captured for the subject property to continue to operate at stabilized occupancy.

Apache Manor Apartments Affordable Housing Market Study

Certification

We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined conclusion that favors the cause of the client, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this market study. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations and the market study guidelines of the National Council of Housing Market Analysts. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. Owen S. Ard, MAI has not made a personal inspection of the property that is the subject of this report. Andrea Gillman has personally inspected the subject. 12. No one provided significant real property market analysis assistance to the persons signing this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. 14. As of the date of this report, Owen S. Ard, MAI, has completed the continuing education program for Designated Members of the Appraisal Institute.

Apache Manor Apartments Affordable Housing Market Study

15. This market study has been prepared by JLL Valuation & Advisory Services, a member in good standing of the National Council of Housing Market Analysts (NCHMA). This study has been prepared in conformance with the standards adopted by NCHMA for the market analysts’ industry. These standards include the Standard Definitions of Key Terms Used in Market Studies for Affordable Housing Projects, and Model Content Standards for the Content of Market Studies for Affordable Housing Projects. These Standards are designed to enhance the quality of market studies and to make them easier to prepare, understand, and use by market analysts and by the end users. These Standards are voluntary only, and no legal responsibility regarding their use is assumed by the National Council of Housing Market Analysts. 16. The market study is true and correct to the best of the professional’s knowledge and belief, and there is no identity of interest between Andrea Gillman, Owen S. Ard, MAI or JLL Valuation & Advisory Services and the Applicant, Developer, Owner or developer.

Owen S. Ard, MAI Andrea Gillman Certified General Real Estate Appraiser Certified General Real Estate Appraiser OK Certificate # 11245CGA OK Certificate # 13250CGA

Apache Manor Apartments Affordable Housing Market Study

Assumptions and Limiting Conditions

This market study is based on the following assumptions, except as otherwise noted in the report. 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos or toxic mold in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This market study is subject to the following limiting conditions, except as otherwise noted in the report. 7. A market study is inherently subjective and represents our opinion as to the value of the property appraised. 8. The conclusions stated in our market study apply only as of the effective date of the market study, and no representation is made as to the effect of subsequent events. 9. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 10. No environmental impact studies were either requested or made in conjunction with this market study, and we reserve the right to revise or rescind any of the opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the market study assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 11. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment.

Apache Manor Apartments Affordable Housing Market Study

12. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The market study covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 13. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our market study. 14. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and environmental matters. 15. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the analysts, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the person signing the report. 16. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified. 17. Any income and expense estimates contained in the report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 18. If the property is subject to one or more leases, any estimate of residual value contained in the market study may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the analyzed property at the time these leases expire or otherwise terminate. 19. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 20. The current purchasing power of the dollar is the basis for the values stated in our market study; we have assumed that no extreme fluctuations in economic cycles will occur. 21. The value found herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions.

Apache Manor Apartments Affordable Housing Market Study

22. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 23. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 24. The market study report is prepared for the exclusive benefit of the Client, its subsidiaries and/or affiliates, and any applicable state agencies. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 25. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our analysis is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. JLL Valuation & Advisory Services, JLL Valuation & Advisory Services, LLC and/or any of their respective officers, owners, managers, directors, agents, subcontractors or employees (the “JLL Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the report cannot be considered as an environmental assessment of the subject property. 26. The person signing the report may have reviewed available flood maps and may have noted in the report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the property, and the conclusions are predicated on the assumption that wetlands are non-existent or minimal. 27. JLL Valuation & Advisory Services is not a building or environmental inspector. JLL VAS does not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended.

Apache Manor Apartments Affordable Housing Market Study

28. The market study report assumes the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 29. It is expressly acknowledged that in any action which may be brought against any of the JLL Parties, arising out of, relating to, or in any way pertaining to this engagement, the market study reports, and/or any other related work product, the JLL Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the market study was fraudulent or prepared with intentional misconduct. It is further acknowledged that the collective liability of the JLL Parties in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the market study was fraudulent or prepared with intentional misconduct. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. 30. JLL Valuation & Advisory Services, an independently owned and operated company, has prepared the market study for the specific purpose stated elsewhere in the report. The intended use of the market study is stated in the General Information section of the report. The use of the report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the market study report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the report (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the report (even if their reliance was foreseeable). 31. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The JLL Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment.. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property.

Apache Manor Apartments Affordable Housing Market Study

32. All prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future.

Appendix A Appraiser Qualifications

Appendix B Property Information

Aerial Map

Flood Map

Zoning Map

Parcel Map

APACHE MANOR

The interior scope of work related to each building type is identified as follows:

Bathroom

• All sheetrock in the bathrooms is to be removed and replaced. • All lighting in the bathroom is to be replaced with LED • All medicine cabinets are to be replaced • All vanities, sinks and plumbing fittings are to be replaced. All countertops and backsplashes are to be solid surface • All toilets are to be replaced • New exhaust fans are to be provided • The tubs and wall surround will be replaced • New epoxy paint finish • New LVT tile flooring • New 3 ¼: wood baseboard • New electrical wiring and electrical devices (GFI within 6' of the sink)

Living

• All sheetrock on walls and ceilings is to be removed and replaced. New ceilings will have knock down finish. • New insulation will be installed • Replace all light fixtures with surface mount LED • New electrical wiring and electrical devices • Upgrade with data and cable • New LVT plank flooring • New satin sheen paint • New 3 ¼” wood baseboard

Kitchen

• All sheetrock on walls and ceilings is to be removed and replaced. New ceilings will have knock down finish. • Reconfigure kitchens with new millwork • Replace all lighting with LED recessed can lights • Replace appliances including vent-a-hood (by owner) with upgraded Energy Star

• New electrical wiring and electrical devices (GFI within 6' of the sink) • New LVT tile flooring • New 3 ¼” wood baseboard • New solid surface countertops and backsplash • New satin sheen paint • New double stainless sink and plumbing fittings (w/ disposal) • Designed for in unit washer/dryer space

Bedrooms

• All sheetrock on walls and ceilings is to be removed and replaced. New ceilings will have knock down finish. • New insulation will be installed. • Replace all light fixtures with surface mount LED fixtures • New electrical wiring and electrical devices • Upgrade with data • New LVT plank flooring • New 3 ¼” wood baseboard • New satin sheen paint • New reconfigured closet shelving and hang rods

General Interior

• Replace all HVAC ductwork, devices, equipment and controls with 90% efficiency and setback thermostats • Replace all doors and hardware ((will specify lever hardware) • Replace all door trim. • Replace all hot water tanks serving the units • Remove all plumbing down to existing concrete slab and provide new plumbing piping throughout. • New window blinds throughout • Replace all electrical panels

Common Buildings

• All sheetrock on walls and ceilings is to be removed and replaced. New ceilings will have smooth finish. • New insulation will be installed. • Replace all light fixtures with LED. • New electrical wiring and electrical devices. • Upgrade with data. • New LVT tile/plank flooring. • New 3 ¼” wood baseboard.

• New satin sheen paint.

Exterior Scope of Work

• All siding will be removed and replaced with cementuous siding per architectural plans • New windows will be installed per architectural plans • All roofing will be replaced with 35 yr Architectural shingles • All exterior brick to remain and will be repaired and re-tucked as needed. • Concrete patios with overhangs will be built per architectural plans • Replace main electrical meters and pedestals • Install new underground plumbing • Install LED building lighting and signage

Landscape and Common areas

• New entry monument with split rail fence • Blvd entry with trees and planting beds • Shade structures and walking trail place per landscape plans • Concrete sidewalk and asphalt parking replacement as needed. • Exercise stations along walking trail

Appendix C Rent Comparables

Market Rate Comparables

Multi-Family Rent Comparable 1

Property Information Property Name Sierra Pointe Apartments Address 1433 S. 107th East Ave. City Tulsa State OK Zip 74128 Market Suburban ID 18714

Transaction Details Vacancy Rate 15.0% Utilities Paid By Owner W,T,S Multifamily Project Swimming Pool, Improvement Data Amenities Playground, Laundry No. of Buildings 59 Facility, Stories 2 Clubhouse/Rec. Bldg. Units 348 Multifamily Unit Patios/Balcony, Building Class C Amenities Disposal, Central AC, Year Built 1968 Carpets/Drapes/Blinds

Amenities Unit Mix MF Lease Survey Date 9/7/2018

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BD/1 BA 80 670 1 1 $570 $0.85 2 BD/ 1 BA - Flat 152 840 2 1 $600 $0.71 2 BD/ 1.5 BA - TH 48 900 2 1.5 $650 $0.72 3BR/1.5BA - Flat 48 1000 3 1.5 $815 $0.82 3BR/1.5BA - TH 20 1000 3 1.5 $850 $0.85

Comments Is Rent Controlled: No

Vacancy Percentage: 15%

Is Subsidized Restricted: No

(539) 999-0957

Multi-Family Rent Comparable 2

Property Information Property Name Waterside Apartments Property Type Garden/Low-Rise Address 1703 South Jackson Avenue City Tulsa State OK Zip 74107 Market Urban ID 45437

Transaction Details Vacancy Rate 0.0% Utilities Paid By Owner T,S Multifamily Project Swimming Pool, Amenities Laundry Facility, Improvement Data Fitness Room, No. of Buildings 40 Clubhouse/Rec. Bldg. Stories 2 Multifamily Unit Washer/Dryer In Unit, Units 682 Amenities Washer/Dryer Hookup, Building Class B Patios/Balcony, Year Built 1984 Fireplace, Disposal, Dishwasher, Ceiling Amenities Fans Unit Mix MF Lease Survey Date 7/25/2018

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BD / 1 BA 136 460 1 1 $589 $1.28 1 BD / 1 BA 184 605 1 1 $648 $1.07 1 BD / 1 BA 210 710 1 1 $725 $1.02 2 BD / 2 BA 80 868 2 2 $875 $1.01 2 BD / 2 BA 64 988 2 2 $900 $0.91 2 BD / 2 BA 8 1031 2 2 $1,173 $1.14

Comments 918-599-7180

Vacancy Percentage: 0%

There are non-renovated units that average $100 less than the renovated units.

Multi-Family Rent Comparable 3

Property Information Property Name Stonecrest Apartments Address 4020 S. 130th Ave. E. City Tulsa State OK Zip 74134 Market Suburban ID 62745

Transaction Details Amenities Vacancy Rate 4.0% Multifamily Project Swimming Pool, Utilities Paid By Owner W,T,S Amenities Laundry Facility, Clubhouse/Rec. Bldg. Improvement Data Multifamily Unit Range-Refrig., Amenities Patios/Balcony, Stories 2 Fireplace, Dishwasher, Units 293 Central AC Building Class B Year Built 1983 Unit Mix MF Lease Survey Date 9/6/2018

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BD/ 1 BA Small 72 525 1 1 $495 $0.94 1 BD/ 1 BA 90 750 1 1 $550 $0.73 1 BD/ 1 BA Large 64 775 1 1 $575 $0.74 2 BD/ 2 BA 64 950 2 2 $750 $0.79 3 BD/ 2 BA 3 1500 3 2 $1,050 $0.70

Comments Is Rent Controlled: No

Source Company: 918-664-1102

Vacancy Percentage: 4.00 %

Is Subsidized Restricted: No

Public Comments: Covered parking available for $20/month. Students and preferred employers receive 5% off each month's rent. Kitchens and baths are being remodeled as units are turned over.

Multi-Family Rent Comparable 4

Property Information Property Name West Park I Property Type LIHTC Tax Credits Address 2405 E. 4th Place Ave. City Tulsa State OK Zip 74104 Market Suburban ID 214351

Transaction Details Vacancy Rate 4.0% Utilities Paid By S,W,T Owner Multifamily Unit Air Amenities Conditioning,Washer/Dry Improvement Data er In Unit, No. of Buildings 20 Dishwasher,Carpets/Dra Stories 3 pes/Blinds,Walk-in Units 128 Closets,Storage in Year Built 2013 Unit,Patios/Balcony,Disp osal Amenities Multifamily Project Fitness Unit Mix Amenities Room,Clubhouse/Rec. MF Lease Survey 8/2/2018 Bldg.,Playground Date

Multi-Family Rent Comparable 4

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1-Bedroom Mkt - 702 1 1 $775 $1.10 2-Bedroom Mkt - 857 2 1 $935 $1.09 2-Bedroom TH Mkt - 1006 2 1.5 $1,010 $1.00 3-Bedroom TH Mkt - 1362 3 2.5 $1,225 $0.90 1-Bedroom 25% AMI - 702 1 1 $264 $0.38 1-Bedroom 50% AMI - 702 1 1 $529 $0.75 1-Bedroom 60% AMI - 702 1 1 $649 $0.92 2-Bedroom 25% AMI - 857 2 1 $317 $0.37 2-Bedroom 50% AMI - 857 2 1 $634 $0.74 2-Bedroom 60% AMI - 857 2 1 $778 $0.91 2-Bedroom TH 50% AMI - 1006 2 1.5 $628 $0.62 2-Bedroom TH 60% AMI - 1006 2 1.5 $772 $0.77 3-Bedroom TH 50% AMI - 1362 3 2.5 $724 $0.53 3-Bedroom TH 60% AMI - 1362 3 2.5 $890 $0.65

Comments Is Rent Controlled: Yes

Is Subsidized Restricted: Yes

Subsidized Restricted Comment: Mixed income: contains both market rate units and

Property is at 96% occupancy.

Multi-Family Rent Comparable 5

Property Information Property Name Metro Plex Property Type Garden/Low-Rise Address 2302 South 137th East Avenue City Tulsa State OK Zip 74134 ID 264846

Transaction Details Vacancy Rate 11.0% Multifamily Unit Air Utilities Paid By Owner W,S,T Amenities Conditioning,Washer/ Dryer Improvement Data Hookup,Dishwasher,C No. of Buildings 12 arpets/Drapes/Blinds, Stories 2 Walk-in Closets,Patios/Balcony Units 216 ,Vaulted Building Class C Ceilings,Disposal Year Built 1975 Renovations 2014 Unit Mix Amenities MF Lease Survey Date 9/7/2018 Multifamily Project Fitness Amenities Room,Clubhouse/Rec. Bldg.,Laundry Facility,Swimming Pool,Playground,Bask etball

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BR/1 BA 70 820 1 1 $675 $0.82 2 BR/ 1 BA 100 995 2 1 $785 $0.79 2 BD/ 2 BA Townhome 30 1240 2 2 $815 $0.66 3 BR/2 BA 16 1340 3 2 $905 $0.68

Comments Property was renovated in 2014 and has good unit and project amenities.

LIHTC Comparables

Multi-Family Rent Comparable 1

Property Information Property Name Gilcrease Hills Estates Property Type LIHTC Tax Credits Address 1150 N. 24th West Ave. City Tulsa State OK Zip 74127 Market Urban ID 11469

Transaction Details Vacancy Rate 1.0% Utilities Paid By Owner W,T,S Multifamily Unit Washer/Dryer Hookup, Improvement Data Amenities Walk-in Closets, Units 80 Storage in Unit, Year Built 2005 Patios/Balcony, Dishwasher, Central AC, Ceiling Fans, Amenities Carpets/Drapes/Blinds Multifamily Project Security, Laundry Amenities Facility, Clubhouse/Rec. Bldg. Unit Mix MF Lease Survey Date 9/6/2018

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BD / 1 BA 8 737 1 1 $492 $0.67 2 BD / 1 BA 72 893 2 1 $611 $0.68

Comments Is Rent Controlled: Yes

Vacancy Percentage: 1%

Vacant Unit Count:

Is Subsidized Restricted: Yes

918-582-0220

Multi-Family Rent Comparable 2

Property Information Property Name Heritage Landing Property Type LIHTC Tax Credits Address 3102 E. Apache St. City Tulsa State OK Zip 74110 Market Urban ID 96276

Transaction Details Vacancy Rate 5.0% Utilities Paid By Owner W,T,S,G Multifamily Project Security, Laundry Amenities Facility, Improvement Data Clubhouse/Rec. Bldg. No. of Buildings 1 Multifamily Unit Range-Refrig., Central Stories 2 Amenities AC, Ceiling Fans, Units 40 Carpets/Drapes/Blinds Building Class B Year Built 2010 Unit Mix MF Lease Survey Date 9/6/2018 Amenities

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 Bed / 1 Bath - 50% AMI 16 532 1 1 $424 $0.80 1 Bed / 1 Bath - 60% AMI 22 532 1 1 $449 $0.84 2 Bed / 1 Bath - 60% AMI 1 755 2 1 $534 $0.71

Comments Is Rent Controlled: Yes

Vacancy Percentage: 5 %

Vacant Unit Count: 2

Is Subsidized Restricted: Yes

Subsidized Restricted Comment: LIHTC - Senior Occupancy

There are 40 units total but one unit is for the on-site manager.

918-836-7070

Multi-Family Rent Comparable 3

Property Information Property Name Northwind Estates- Phase I Property Type LIHTC Tax Credits Address 3355 N. Martin Luther King Jr. Blvd. City Tulsa State OK Zip 74106 Market Suburban ID 145442

Transaction Details Vacancy Rate 0.0% Multifamily Project Fitness Room, Utilities Paid By Owner W,T,S Amenities Clubhouse/Rec. Bldg. Multifamily Unit Washer/Dryer In Unit, Improvement Data Amenities Walk-in Closets, No. of Buildings 15 Patios/Balcony, Stories 1 Disposal, Dishwasher, Units 60 Central AC, Ceiling Building Class B Fans, Carpets/Drapes/Blinds Year Built 2013

Amenities Unit Mix MF Lease Survey Date 9/6/2018

Multi-Family Rent Comparable 3

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BD / 1 BA- Phase I 14 752 1 1 $480 $0.64 2 BD / 1 BA- Phase I 16 935 2 1 $540 $0.58 2 BD / 2 BA- Phase I 30 984 2 2 $570 $0.58

Comments Is Rent Controlled: Yes

Source Company: 918-933-6983

Is Subsidized Restricted: No

Subsidized Restricted Comment: LIHTC

Public Comments: Cottage-style residences for seniors built in 2 phases. Phase II was built in 2016 and rents for $545 (50% AMI), and $650 (60% AMI). Phase II includes another 56 units, but we were not given the breakdowns of 1 and 2 bedroom units. Both properties are fully occupied with waiting lists.

Multi-Family Rent Comparable 4

Property Information Property Name Crestview Duplexes Property Type LIHTC Tax Credits Address 3535 N. Cincinnati Ave. City Tulsa State OK Zip 74106 Market Suburban ID 146669

Transaction Details Vacancy Rate 2.0% Utilities Paid By Owner W,T,S Multifamily Unit Washer/Dryer Hookup, Improvement Data Amenities Walk-in Closets, Patios/Balcony, No. of Buildings 56 Disposal, Dishwasher, Stories 1 Central AC, Ceiling Units 112 Fans, Building Class B Carpets/Drapes/Blinds Year Built 1998 Unit Mix Amenities MF Lease Survey Date 9/5/2018 Multifamily Project Security, Fitness Amenities Room, Clubhouse/Rec. Bldg.

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BD / 1 BA 88 760 1 1 $620 $0.82 2 BD / 2 BA 24 1016 2 2 $735 $0.72

Comments Is Rent Controlled: Yes

Source Company: Mary 918-430-0030

Vacancy Percentage: 2.00 %

Is Subsidized Restricted: No

Subsidized Restricted Comment: LIHTC

Public Comments: Property consists of 2 phases: Phase I is for persons 55 and over, and Phase II is for persons 62 and over. They have a combined occupancy of 98%. Phase I was built in 1998 and Phase II in 2001.

Multi-Family Rent Comparable 5

Property Information Property Cherokee Meadows Apartments Name Property LIHTC Tax Credits Type Address 1505 E. Reading St. City Tulsa State OK Zip 74106 Market Urban ID 158221

Transaction Details Vacancy 0.0% Amenities Rate Multifam Security,Garage/Under Utilities W,S,E,T ily Building,Fitness Paid By Project Room,Clubhouse/Rec. Bldg.,Covered Owner Amenitie Parking,Playground s Improvement Data Multifam Washer/Dryer No. of 1 ily Unit Hookup,Dishwasher,Carpets/Drapes Buildings Amenitie /Blinds,Walk-in Closets,Storage in Stories 1 s Unit,Patios/Balcony,Fireplace,Dispos Units 48 al Building 0 Class Year 2016 Built Unit Mix Renovati 0 MF Lease 7/6/2018 ons Survey Date

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 BD/1 BA 50% AMI 13 777 1 1 $554 $0.71 1 BD/1 BA 60% AMI 11 777 1 1 $671 $0.86 2 BD/1 BA 50% AMI 7 1000 2 2 $655 $0.66 2 BD/1 BA 60% AMI 17 1000 2 2 $806 $0.81

Comments Landlord pays electric in addition to water, sewer, and trash.

Multi-Family Rent Comparable 6

Property Information Property Name Cornerstone Village Property Type LIHTC Tax Credits Address 1045 N. Yale Ave. City Tulsa State OK Zip 74115 Market Suburban ID 206964

Transaction Details Vacancy Rate 2.5% Utilities Paid By Owner W,T,S,G Multifamily Project Security, Laundry Improvement Data Amenities Facility, No. of Buildings 1 Clubhouse/Rec. Bldg. Stories 2 Multifamily Unit Range-Refrig., Units 40 Amenities Dishwasher, Ceiling Building Class B Fans, Year Built 2004 Carpets/Drapes/Blinds

Amenities Unit Mix MF Lease Survey Date 9/26/2018

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 1 Bed / 1 Bath 50% AMI 14 545 1 1 $441 $0.81 1 Bed / 1 Bath 60% AMI 14 545 1 1 $486 $0.89 2 Bed / 1 Bath 2 780 2 1 $508 $0.65

Comments Is Rent Controlled: Yes

Vacancy Percentage: 2.5%

Vacant Unit Count:

Is Subsidized Restricted: Yes

Subsidized Restricted Comment: LIHTC - Senior Occupancy

Multi-Family Rent Comparable 7

Property Information Property Country Club Gardens Name Property Government Subsidized Type Address 959 Country Club Drive City Tulsa State OK Zip 74127 ID 296310

Transaction Details Vacancy 4% Utilities Paid W,S,T By Owner Amenities Multifamily Clubhouse/Rec. Bldg.,Laundry Project Facility,Playground,Basketball Improvement Data Amenities Stories 3 Units 353 Multifamily Air Conditioning,Washer/Dryer Building B Unit Hookup,Dishwasher,Carpets/Dra Class Amenities pes/Blinds,Patios/Balcony,Dispo Year Built 2005 sal

Unit Mix MF Lease 8/7/2018 Survey Date

Unit Mix Unit Type # of Units SF/Unit BR BA Rent/Mo Rent/SF/Mo 2 bedroom- mkt. 1000 2 1 $575 $0.58 3 bedroom- mkt. 1394 3 2.5 $700 $0.50

Comments Overall vacancy not disclosed by phase, but historically has high occupancy. 243 of the units are public housing units, and all of the units have a tax credit overlay. Rent restrictions apply to the 110 market rate units under the LIHTC program. Initial compliance will expire for the first four phases in December, 2018, with the fifth phase expiring in December, 2019. The Tulsa Housing Authority has a first right of refusal and plans to convert the entire project to Section 8 under HUD’s RAD conversion program.