A MARKET ANALYSIS OF
THE PROPOSED SUTRO STREET APARTMENTS AFFORDABLE SENIOR HOUSING PROJECT
LOCATED AT
1225 HILLBORO AVENUE, RENO, WASHOE COUNTY, NEVADA
PROPERTY CURRENTLY OWNED BY THE
HOUSING AUTHORITY CITY OF RENO
BEING DEVELOPED BY THE
RENO HOUSING AUTHORITY
PREPARED FOR
FRAME ARCHITECTURE, INC.
FOR THE PURPOSE OF
TYPE OF REPORT PURPOSE OF REPORT DATE OF ANALYSIS ANALYZE CURRENT CONDITIONS & MARKET STUDY JANUARY 17, 2018 NEED FOR PROPOSED PROJECT
17-156 (Market Study)
February 5, 2018
Jeff Frame, AIA Frame Architecture, Inc. 4090 South McCarran Blvd, Ste. E Reno, NV 89502
Re: Proposed Sutro Street Apartment Project Market Study
Dear Mr. Frame:
This report is in response to your request for a Market Study of the proposed Sutro Street Apartment Project, a proposed 44-unit affordable senior apartment complex, to be developed on the east side of Sutro Street in Reno, Washoe County, Nevada. The subject site is identified as Washoe County Assessor's Parcel Numbers 008-490-20, 21, 22, 23 and 24. The proposed project is summarized below:
SUBJECT PROPERTY SUMMARY Washoe County Project Land Location A.P.N.’s Description Area Proposed 44 Unit Senior East Side of Sutro 1.68± 008-490-20, 21, 22, 23 & 24 Apartment Project Street, Reno, Nevada Acres
The proposed 44-unit project will be a senior-restricted development, available to residents age 55 and above (62 and above for the project-based rental assistance units). All of the units will be affordable to seniors at or below 50% of area median income (AMI). The average rental level will be approximately 39.8% of AMI, with more than 30% of the units (14 units) serving households below 30% of AMI. Over 25% of the units at Sutro Street (12 units) will be set aside for formerly homeless seniors coming from shelters or long-term motel settings. These units will also receive project-based rental assistance through Reno Housing Authority. The project is proposed to be developed by the Reno Housing Authority.
The purpose of this market study is to analyze current market conditions as they relate to the proposed apartments as of a current date of analysis, and the need for the apartments at the
17-156 (Market Study) proposed location. This market study is for the exclusive use of our client. Any other use of this market study report requires the written authorization of these consultants.
This market study has been prepared in accordance with the Nevada Housing Division’s Qualified Allocation Plan for Low-Income Housing Tax Credits.
The market analysis and opinions as set forth herein are based upon descriptions of the proposed subject development, as provided by the client. As a result, the data, reasoning and analyses that are used in the market study to develop our opinions are subject to revision and modification upon any changes to the proposed project. This report sets forth pertinent data, statistics and other information considered necessary to evaluate current market conditions as they relate to the subject.
Respectfully Submitted,
Scott Q. Griffin, MAI Nevada Certified General Appraiser License Number A.0003504-CG
Sarah K. Fye, MBA Nevada Registered Appraiser Intern Registration Number A.0207292-INTR
17-156 (Market Study) TABLE OF CONTENTS
QUALIFICATIONS OF APPRAISER ...... 1 QUALIFICATIONS OF APPRAISER INTERN ...... 4 CERTIFICATION ...... 5 EXECUTIVE SUMMARY ...... 6 PURPOSE OF MARKET ANALYSIS ...... 9 INTENDED USE & INTENDED USER OF MARKET ANALYSIS ...... 9 SPECIAL ASSUMPTIONS AND LIMITING CONDITIONS ...... 9 SCOPE OF MARKET STUDY ...... 9 SUBJECT AERIALS ...... 10 SUBJECT PHOTOGRAPHS...... 11 SUBJECT PLOT MAP ...... 16 PROPERTY IDENTIFICATION AND SITE DESCRIPTION ...... 17 DESCRIPTION OF THE PROPOSED PROJECT ...... 26 PROPOSED PROJECT SUMMARY ...... 27 SUBJECT CONCEPTUAL SITE PLAN ...... 28 SUBJECT SCHEMATIC SITE PLAN ...... 29 SUBJECT SCHEMATICE SITE PLAN-FLOOR ONE ...... 30 SUBJECT SCHEMATIC SITE PLAN-FLOOR TWO ...... 31 SUBJECT ONE BEDROOM FLOORPLAN ...... 32 SUBJECT TWO BEDROOM FLOORPLAN ...... 33 SUBJECT ELEVATIONS ...... 34 RENO-SPARKS AREA MAP ...... 35 RENO-SPARKS AREA ANALYSIS AND DESCRIPTION...... 36 OVERALL RENO/SPARKS RENT & VACANCY DATA-ALL UNIT TYPES...... 47 NEIGHBORHOOD MAP ...... 59 NEIGHBORHOOD DESCRIPTION...... 60 DEMOGRAPHIC AREA MAP-PRIMARY MARKET AREA ...... 65 DEMOGRAPHIC ANALYSIS-PRIMARY MARKET AREA ...... 66 ANALYSIS OF HOUSING DEMAND ...... 72 DEMAND ESTIMATES FOR THE PRIMARY MARKET AREA ...... 76 CAPTURE RATE & PENETRATION RATE ANALYSIS-PRIMARY MARKET AREA ...... 80 COMPETITIVE ASSESSMENT OF COMPARABLE PROJECTS ...... 88 COMPARABLE RENT-RESTRICTED APARTMENT RENTAL CHART ...... 89 COMPARABLE RENT-RESTRICTED APARTMENT RENTAL MAP ...... 90 COMPARABLE RENT-RESTRICTED APARTMENT PHOTOGRAPHS ...... 91 DISCUSSION OF COMPETITIVE SUBSIDIZED APARTMENT PROJECTS ...... 96 AVERAGE MEDIAN INCOME & MAXIMUM ALLOWABLE RENTAL DATA ...... 100 COMPARABLE MARKET RATE APARTMENT RENTAL MAP ...... 103 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION ...... 104 MARKET RENT ANALYSIS AND CONCLUSION...... 111 OVERALL RENO/SPARKS RENT & VACANCY DATA-1 BED/1 BATH UNITS ...... 113 OVERALL RENO/SPARKS RENT & VACANCY DATA-2 BED/1 BATH UNITS ...... 115 RENTAL ANALYSIS SUMMARY ...... 117 VACANCY AND CREDIT LOSS AND TENANT CONCESSION ANALYSIS ...... 119 OTHER INCOME ANALYSIS ...... 122 TURNOVER ANALYSIS ...... 123 OPERATING EXPENSE ANALYSIS ...... 124 INCOME & EXPENSE SUMMARY & CONCLUSION ...... 127 ABSORPTION ANALYSIS AND DATE OF STABILIZATION ...... 128 ANALYSIS OF ECONOMIC SENSITIVITY TO CLOSURE OF MAJOR EMPLOYER ...... 130 SUMMARY OF NEED FOR AFFORDABLE HOUSING ...... 131 SUMMARY OF CONCLUSION OF THE MARKET STUDY ...... 132
ADDENDA
17-156 (Market Study) QUALIFICATIONS OF APPRAISER SCOTT QUINN GRIFFIN
Professional Designations MAI-Member Appraisal Institute (MAI Designation Number 12359) 2005
State Licensing and Certification Certified General Appraiser – State of Nevada 2000 License Number A.0003504-CG (Certified Through 03/31/2018)
Offices Held Board of Directors-Reno/Carson/Tahoe Chapter Appraisal Institute 2009-2013 Treasurer-Reno/Carson/Tahoe Chapter Appraisal Institute 2002-2003 President-University of Nevada Young Alumni Chapter 1999
Appraisal Education and Technical Training Appraisal Institute Course 110-Appraisal Principles 1997 Course 120-Appraisal Procedures 1998 Course 310-Basic Income Capitalization 1998 Course 400-Uniform Standards of Professional Appraisal Practice Update 2004 Course 410-Standard of Professional Practice-Part A 1999 Course 420-Standard of Professional Practice-Part B 1999 Course 510-Advanced Income Capitalization 1999 Course 520-Highest & Best Use Analysis 2002 Course 530-Advanced Sales & Cost Approaches 2004 Course 540-Course Report Writing & Valuation Analysis 2003 Course 550-Advanced Applications 2003 Other Courses and Seminars The High-Tech Appraisal Office 1997 GIS Applications for Appraisal 1997 Uniform Standard of Professional Appraisal Practice 2002 Comprehensive Appraisal Workshop 2004 Evaluating Commercial Construction 2006 Attacking & Defending An Appraisal In Litigation 2007 Analyzing Distressed Real Estate 2008 7-Hour National USPAP Update Course 2010/2012/2014/2016 Condemnation Appraising 2010 Appraising Convenience Stores 2010 Analyzing Distressed Real Estate 2012 Apartment Appraisal, Concepts & Applications 2012 Small Hotel/Motel Valuation 2012 Business Practice & Ethics 2014 Real Estate Finance Statistics and Valuation Modeling 2014 The Discounted Cash Flow Model: Concepts, Issues, and Apps 2014 Expert Witness for Commercial Appraisers 2016 Analyzing Operating Expenses 2016 Supervisor-Trainee Course (Nevada) 2016
Formal Education University of Nevada, Reno 1995 Bachelor of Science in Business Administration; Major-Finance, Minor-Economics
Occupational History Johnson Perkins Griffin, LLC 03/2015-Present Johnson-Perkins & Associates 03/1997-02/2015
17-156 (Market Study) 1 QUALIFICATIONS OF APPRAISER SCOTT QUINN GRIFFIN
Types of Property Appraised Single Family Residences Condominiums Vacant Residential Lots Subdivisions Vacant Commercial Land Industrial Buildings/Warehouses Shopping Centers Retail Buildings Professional/Medical Office Buildings Apartment Complexes Affordable Housing Apartment Complexes Hotels/Motels Casinos/Hotel-Casinos Farmland/Ranchland Various Special Use Properties Condemnation Appraisals Right-Of-Way Appraisals Conservation Easements
Admitted as Expert Witness United States District Court, District of Nevada United States Bankruptcy Court, District of Nevada United States District Court Superior Court-State of California Washoe County District Court Washoe County Board of Equalization Nevada State Board of Equalization
17-156 (Market Study) 2 QUALIFICATIONS OF APPRAISER SCOTT QUINN GRIFFIN
As required by the Nevada Housing Division’s Qualified Allocation Plan for Low- Income Housing Tax Credits (Appendix B-Market Study Guide 2018), Scott Quinn Griffin, MAI, meets the following requirements:
• Minimum of five years of experience, with a strong background assessing affordable housing markets; • Multi-state experience; • Bachelor's degree in real estate development/finance, planning, marketing, accounting, statistics or a related field; and • Certification from a nationally recognized housing or real estate market research association.
Representative Sample Of Market Studies Completed The Plaza at Fourth Street Silver Sage, Reno, NV Sierra Crest Senior, Sparks, NV Carriage Stone Senior, Reno, NV The Willow at Wells Senior, Reno, NV The Trails at Pioneer Meadows, Sparks, NV Aspen Terrace, Reno, NV City Hall Senior, Reno, NV Autumn Village, Reno, NV River Place Senior, Reno, NV Arbor Cove At Virginia Lake, Reno, NV The Village at North, Reno, NV Aspen Village, Sparks, NV Lincoln Way Apartments, Sparks, NV Juniper Village, Reno, NV Vintage at Virginia, Reno, NV Alpine Haven, Sparks, NV Marina Village, Sparks, NV Waterfront at the Marina Community Garden, Reno, NV Steamboat at the Summit, Reno, NV Plaza at 4th Street, Reno, NV 4th Street Apartments Sierra Summit Club Apartments
17-156 (Market Study) 3 QUALIFICATIONS OF APPRAISER INTERN SARAH KIMBERLY FYE
State Licensing and Certification Registered Intern – State of Nevada 2016 Registration Number A.0207293-INTR (Certified Through 01/31/2018)
Appraisal Education and Technical Training Appraisal Institute Course 110-Appraisal Principles 2015 Course 120-Appraisal Procedures 2015 15-Hour National USPAP Course 2015 General Appraiser Income Approach/Part 1 2016 General Appraiser Income Approach/Part 2 2016 Business Practices & Ethics 2017 Other Courses and Seminars 3-Hour Nevada Law 2015 Appraisal Supervisor/Trainee Course 2015
Formal Education University of Nevada, Reno 2015 Master Business Administration; Emphasis-Marketing
University of Nevada, Reno Bachelor of General Studies; Emphasis-Biology & Communications 2011
Occupational History Johnson Perkins Griffin, LLC 08/2015-Present Horizon Realty Advisors 09/2014-07/2015 The Dinerstein Companies 11/2013-09/2014 Compass Rock Real Estate 01/2013-11/2013 Gaston & Wilkerson Management Group 07/2010-01/2013
17-156 (Market Study) 4 CERTIFICATION The undersigned do hereby certify that, unless otherwise noted in this market study report: • We have made a personal inspection of the property that is the subject of this report. • We have no present or contemplated future interest in the real estate that is the subject of this market study report. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • To the best of our knowledge and belief, the statements of fact contained in this market study report, upon which the analysis, opinions, and conclusions herein are based, are true and correct. • This report sets forth all the limiting conditions (imposed by the terms of our assignment or by the undersigned) affecting the analysis, opinions, and conclusions contained in this report. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Nevada Housing Division’s Qualified Allocation Plan for Low-Income Housing Tax Credits • Our compensation is not contingent upon the 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. • The market study was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • No one other than the undersigned prepared the analyses, conclusions and opinions concerning real estate that are set forth in this market study report. • We have not performed services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • We understand that the Market Study will be used by the client to apply for the reservation or award of tax credits from the Housing Division of the Nevada Department of Business and Industry; we have no financial interest or family relationship with the officers, directors, stockholders, or partners of the Borrower, the general contractor, any subcontractors, the buyer or seller of the proposed property. We have not engaged in any business that might present a conflict in interest in completing this assignment.
Respectfully Submitted,
Scott Q. Griffin, MAI Nevada Certified General Appraiser License Number A.0003504-CG
Sarah K. Fye, MBA Nevada Registered Appraiser Intern Registration Number A.0207292-INTR
17-156 (Market Study) 5 EXECUTIVE SUMMARY SUBJECT PROPERTY PARCEL SUMMARY Existing Land Area A.P.N. Current Owner Land Acres Land Square Feet 008-490-20 Housing Authority City of Reno 0.213± AC 9,299± SF 008-490-21 Housing Authority City of Reno 0.514± AC 22,379± SF 008-490-22 Housing Authority City of Reno 0.426± AC 18,570± SF 008-490-23 Housing Authority City of Reno 0.241± AC 10,495± SF 008-490-24 Housing Authority City of Reno 0.285± AC 12,420± SF Total 1.680± AC 73,163± SF
LOCATION Washoe County A.P.N.’s General Location East Side of Sutro Street, Approximately 105.00± Feet North 008-490-20, 21, 22, 23 & 24 of Carville Drive, Reno, Washoe County, Nevada
SUBJECT ZONING AND MASTER PLAN SUMMARY City of Reno City of Reno A.P.N. Zoning Designation Proposed Master Plan Designation** 008-490-20, 21, MF-14* Mixed Neighborhood 22, 23 & 24 (Multi-Family-14 Units Per Acre) * The subject ownership went before the Planning Commission to have the zoning changed from MF- 14 (Multi-Family-14 Units Per Acre) to MF-21 (Multi-Family-21 Units Per Acre). On January 3, 2018, the Planning Commission approved the rezoning request. It now must be approved by the Reno City Council.
** The City of Reno is currently in the process of updating their Master Plan. The new Master Plan was approved by the City of Reno on December 17, 2017, although prior to being formally recognized it must also be approved by the Truckee Meadows Regional Planning Agency. The subject property’s existing land use designation (Special Planning Area-Northeast Neighborhood Plan, Mixed Residential) will be replaced by the proposed land use designation (Mixed Neighborhood) in the new Master Plan.
DATES OF ANALYSIS Date Description Date Date of Inspection January 17, 2018 Effective Date of Analysis January 17, 2018 Completion Date of Market Study February 5, 2018
17-156 (Market Study) 6 PROPOSED PROJECT SUMMARY Project Name Sutro Street Apartments Project Address 1225 Hillboro Avenue, Reno, Washoe County, Nevada Project Type Proposed 44-Unit Affordable Senior Housing Apartment Complex Current Status 4 Vacant Parcels & 1 Improved Parcel Totaling 1.680± Acres Census Tract 18.01, Washoe County Proposed Development Year 2019 Proposed Number of Buildings 1 Building Proposed Number of Stories 2 Stories Proposed Number of Units 44 Units Proposed Density per Acre 26.19 Units/Acre Proposed Unit Mix 33-One Bed/One Bath; 11-Two Bed/One Bath Proposed Total Living Area 29,205± Square Feet (Average Unit Size-664± Square Feet) Multi-Purpose Room with Kitchen/Library & Lounge/Computer Common Area Amenities Lab/Game Room/Barbeque & Picnic Area/Horseshoe Pit/Raised Gardening Beds Proposed Parking 27 Surface Spaces (2 ADA Accessible Spaces Included) Proposed Parking Density per Unit 0.61 Spaces/Unit
PROPOSED UNIT MIX-DETAILED Percent of Number of Unit Type Square Footage Area Median Income Units 1 Bed/1 Bath 625± SF 30%-PBV* 12 625± SF 40% 11 625± SF 50% 10 2 Bed/1 Bath 780± SF 30% 2 780± SF 40% 6 780± SF 50% 3 Totals/Averages 664± SF Average Unit Size --- 44 Total Units * Twelve units will be set aside for formerly homeless seniors coming from shelters or long-term motel settings under the Project-Based Voucher (PBV) Program. These 30% PBV units will be rented to individuals who qualify at 30% AMI, but will also receive project-based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR).
MARKET STUDY GENERAL FINDINGS (SUTRO STREET APARTMENTS) Indicated Need for Affordable Housing at Subject Location Very High Demand Projected Absorption Period 3 Months Projected Expenses Per Unit $4,500 Projected Rents-At or Below Maximum Allowable At Allowable Projected Rents-At, Below or Above Market Rents Below Market Projected Turnover Rate-Annually 15% Demand Yield Capture Rate-PMA 2.62%
17-156 (Market Study) 7 MARKET RENT VERSUS RESTRICTED RENTS (SUTRO STREET APARTMENTS) 2017 Net Max Net Max 2017 Market LIHTC 2017 LIHTC Rent As Rent As Unit HUD Fair Utility Unit Size AMI % Rent Max Max Net % of % of Type Market Allowance Conclusion Gross Rent* Market HUD Rent Rent* Rent FMR 1/1 625 SF 30% PBV $775 $706 $383 $56 $327** 42.19% 46.32% 1/1 625 SF 40% $775 $706 $511 $56 $455 58.71% 64.45% 1/1 625 SF 50% $775 $706 $638 $56 $582 75.10% 82.44% 2/1 780 SF 30% $875 $920 $459 $72 $387 44.23% 42.07% 2/1 780 SF 40% $875 $920 $613 $72 $541 61.83% 58.80% 2/1 780 SF 50% $875 $920 $766 $72 $694 79.31% 75.43% * The Subject’s Projected Rents Were Based Upon 2017 LIHTC Maximum Rents ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
INCOME & EXPENSE SUMMARY & CONCLUSION (Based On Projected Unit Mix & Max Allowable LIHTC Rents/Utility Allowances) Square Monthly Annual Unit Type % AMI # of Units Monthly Rent Rent/SF Feet Income Income 1 Bed/1 Bath 30% PBV* 12 $721 625 $1.15 $8,652 $103,824 1 Bed/1 Bath 40% 11 $455 625 $0.73 $5,005 $60,060 1 Bed/1 Bath 50% 10 $582 625 $0.93 $5,820 $69,840 2 Beds/1 Bath 30% 2 $387 780 $0.50 $774 $9,288 2 Beds/1 Bath 40% 6 $541 780 $0.69 $3,246 $38,952 2 Beds/1 Bath 50% 3 $694 780 $0.89 $2,082 $24,984 Totals --- 44 $25,579 29,205 --- $25,579 $306,948 Averages ------$581 664 $0.88 --- Total Potential Gross Annual Rental Income $306,948 Per Unit Per SF % Of PGI Less Stabilized Vacancy & Credit Loss ($349) ($0.01) 5.00% ($15,347) Less Tenant Concessions $0 $0.00 0.00% $0 Per Unit Per SF % Of PGI Projected Effective Gross Annual Rental Income $6,627 $0.23 95.00% $291,601 Per Unit Per SF % of PGI Add Other Income $50 $0.00 0.0163% $2,200 Per Unit Per SF % Of PGI Total Projected Effective Gross Annual Income $6,677 $0.23 95.72% $293,801 Per Unit Per SF % of EGI Total Projected Operating Expenses (Includes Reserve) $4,500 $0.15 -64.51% ($198,000) Per Unit Per SF % of EGI Projected Net Operating Income $2,177 $0.07 31.21% $95,801 ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
17-156 (Market Study) 8 PURPOSE OF MARKET ANALYSIS This report was prepared for the purpose of analyzing current market conditions as they relate to the proposed 44-Unit Sutro Street Apartment complex, as of a current date of analysis.
INTENDED USE & INTENDED USER OF MARKET ANALYSIS The client of this market analysis report is Frame Architecture, Inc. The intended users of the market study include Frame Architecture, Inc., Reno Housing Authority and their designated representatives. The intended use of the report is to assist in obtaining HOME Investment Partnership Program (HOME) funds. Any other use of this report without the express written authorization of this firm is prohibited.
SPECIAL ASSUMPTIONS AND LIMITING CONDITIONS The market analysis and opinions as set forth herein are based upon descriptions of the proposed subject development as provided by the client. As a result, the data, reasoning and analyses that are used in the market study to develop our opinions are subject to revision and modification upon any changes to the proposed project. We are not responsible for unauthorized use of this report.
SCOPE OF MARKET STUDY The preparation of this market study included: • Inspection of the subject site. • Description of the proposed project; • Description of the market area; • Analysis of housing supply and demand; • Competitive assessment of comparable projects in the market area; • Assessment of the appropriateness of the proposed unit mix, unit sizes, rent levels, complex amenities on the project site; • Estimation of the proposed project’s market rents, absorption, stabilized occupancy levels, and stabilized expenses based upon the proposed project on the site; • Analysis of demographic data as it pertains to the proposed project on the subject site, including an analysis of eligible households for the project; • Assessment of the proposed project’s impact on the housing market and other projects in the area; • Conclusions as they relate to findings in the Market Study Analysis. • Preparation of the written market analysis report.
17-156 (Market Study) 9 SUBJECT AERIALS
Source: Washoe County Regional Mapping System
Source: Bing Maps
17-156 (Market Study) 10 SUBJECT PHOTOGRAPHS
VIEW OF THE SUBJECT PROPERTY FACING SOUTHEAST FROM THE SITE’S NORTHWEST CORNER
VIEW OF THE SUBJECT PROPERTY FACING SOUTHWEST FROM THE SITE’S NORTHEAST CORNER
17-156 (Market Study) 11 SUBJECT PHOTOGRAPHS
VIEW OF THE SUBJECT PROPERTY FACING NORTHWEST FROM HILLBORO AVENUE, NEAR THE SITE’S SOUTHEAST CORNER
VIEW OF THE PORTION OF HILLBORO AVENUE, WHICH BISECTS THE SUBJECT PROPERTY, FACING WEST FROM THE SITE’S SOUTHEAST CORNER
17-156 (Market Study) 12 SUBJECT PHOTOGRAPHS
VIEW OF HILLBORO AVENUE FACING EAST FROM THE SITE’S SOUTHEAST CORNER
VIEW OF THE SUBJECT PROPERTY FACING NORTHEAST FROM HILLBORO AVENUE NEAR ITS INTERSECTION WITH SUTRO STREET
17-156 (Market Study) 13 SUBJECT PHOTOGRAPHS
VIEW OF THE GREATER HARVEST CHURCH BUILDING FACING SOUTHWEST, WHICH CURRENTLY SITS NEAR THE SITE’S SOUTHWEST PROPERTY CORNER
VIEW OF THE GREATER HARVEST CHURCH BUILDING FACING SOUTHEAST, WHICH CURRENTLY SITS NEAR THE SITE’S SOUTHWEST PROPERTY CORNER
17-156 (Market Study) 14 SUBJECT PHOTOGRAPHS
VIEW OF SUTRO STREET FACING NORTH FROM THE SITE’S SOUTHWEST CORNER
VIEW OF SUTRO STREET FACING NORTH FROM THE SITE’S NORTHWEST CORNER
17-156 (Market Study) 15 SUBJECT PLOT MAP
SUBJECT PROPERTY PARCEL SUMMARY Existing Land Area A.P.N. Current Owner Land Acres Land Square Feet 008-490-20 Housing Authority City of Reno 0.213± AC 9,299± SF 008-490-21 Housing Authority City of Reno 0.514± AC 22,379± SF 008-490-22 Housing Authority City of Reno 0.426± AC 18,570± SF 008-490-23 Housing Authority City of Reno 0.241± AC 10,495± SF 008-490-24 Housing Authority City of Reno 0.285± AC 12,420± SF Total 1.680± AC 73,163± SF
17-156 (Market Study) 16 PROPERTY IDENTIFICATION AND SITE DESCRIPTION SUBJECT PROPERTY PARCEL SUMMARY Existing Land Area A.P.N. Current Owner Land Acres Land Square Feet 008-490-20 Housing Authority City of Reno 0.213± AC 9,299± SF 008-490-21 Housing Authority City of Reno 0.514± AC 22,379± SF 008-490-22 Housing Authority City of Reno 0.426± AC 18,570± SF 008-490-23 Housing Authority City of Reno 0.241± AC 10,495± SF 008-490-24 Housing Authority City of Reno 0.285± AC 12,420± SF Total 1.680± AC 73,163± SF
SUBJECT PROPERTY CHARACTERISTICS Property Summary Project Name Sutro Street Apartments Project Address 1225 Hillboro Avenue, Reno, Washoe County, Nevada Project Type Proposed 44-Unit Affordable Senior Housing Apartment Complex Current Status 4 Vacant Parcels & 1 Improved Parcel Totaling 1.680± Acres Census Tract 18.01, Washoe County Proposed Development Year 2019 Proposed Number of Buildings 1 Building Proposed Number of Stories 2 Stories Proposed Number of Units 44 Units Proposed Density per Acre 26.19 Units/Acre Proposed Unit Mix 33-One Bed/One Bath; 11-Two Bed/One Bath Proposed Total Living Area 29,205± Square Feet (Average Unit Size-664± Square Feet) Multi-Purpose Room with Kitchen/Library & Lounge/Computer Common Area Amenities Lab/Game Room/Barbeque & Picnic Area/Horseshoe Pit/Raised Gardening Beds Proposed Parking 27 Surface Spaces (2 ADA Accessible Spaces Included) Proposed Parking Density per Unit 0.61 Spaces/Unit
SUBJECT PROPERTY LEGAL DESCRIPTION Washoe County A.P.N.’s Legal Description The subject parcel is generally located in a portion of the 008-490-20, 21, 22, 23 & 24 Southwest ¼ of the Northeast ¼ of Section 1, Township 19 North, Range 19 East, M.D.B.&M.
17-156 (Market Study) 17 LOCATION A.P.N.’s Address General Location East Side of Sutro Street, Approximately 008-490-20, 21, 1225 Hillsboro Avenue, 105.00± Feet North of Carville Drive, 22, 23 & 24 Reno, Washoe County, Nevada Reno, Washoe County, Nevada
ROADWAY FRONTAGES & ACCESS A.P.N. Roadway Frontage Roadway Access 008-490-20, 21, 22, 23 & 24 Sutro Street & Hillboro Avenue Sutro Street & Hillboro Avenue In the vicinity of the subject, Sutro Street is a two-way, two-lane asphalt paved roadway with a center turn lane, improved with concrete curbs, gutters and sidewalks. In the vicinity of the subject, Hillboro Avenue is a two-way, two-lane asphalt paved roadway, which bisects the subject property in an east to west direction. In its current configuration, Hillboro Avenue appears to be maintained up to the subject’s southeast property corner.
Two of the proposed access points onto the subject site are along the west side of the subject property; one is directly from Sutro Street and the other is from Sutro Street onto Hillboro Avenue. A third access point onto the subject site is along the east side of the subject property from Hillboro Avenue. The map below shows the vehicular access points onto the subject site from Sutro Street and Hillboro Avenue. Access Aerial
17-156 (Market Study) 18 TRAFFIC COUNTS The following chart summarizes Average Daily Traffic Counts (ADT’s), as reported by the Nevada Department of Transportation in the vicinity of the subject property.
17-156 (Market Study) 19 SUBJECT ZONING DESIGNATION A.P.N. City of Reno Zoning Designation Subject’s Compliance MF-14* 008-490-20, 21, 22, 23 & 24 Legally Non-Conforming (Multi-Family-14 Units Per Acre) According to the City of Reno Community Development Department, the subject property is zoned MF-14. The purpose of this zoning district is to provide low-density multi-family residential developments. This type of multi-residential zoning is considered to be the one that is most appropriate adjacent to single-family residences. This zoning district allows one dwelling unit per 3,000 square feet of lot area, or approximately 14 units per acres. Standards for development within the MF-14 zoning district is set forth in the addenda of this report.
Comments: The subject’s proposed use as a 44-unit apartment project on 1.68± acres indicates a density of 26.19 units per acre. It is noted that this use is a higher density than is allowed in an area zoned MF-14, unless a Special Use Permit is obtained. Without a Special Use Permit, the current use on the site is considered a legally non-conforming use. * The subject ownership went before the Planning Commission to have the zoning changed from MF-14 (Multi-Family-14 Units Per Acre) to MF-21 (Multi-Family-21 Units Per Acre). On January 3, 2018, the Planning Commission approved the rezoning request. It now must be approved by the Reno City Council.
17-156 (Market Study) 20 SUBJECT MASTER PLAN DESIGNATION Current City of Proposed City of A.P.N. Reno Master Plan Designation Reno Master Plan Designation 008-490-20, 21, Special Planning Area (Northeast Mixed Neighborhood 22, 23 & 24 Neighborhood Plan, Mixed Residential) The City of Reno is currently in the process of updating their Master Plan. The new Master Plan was approved by the City of Reno on December 17, 2017, although prior to being formally recognized it must also be approved by the Truckee Meadows Regional Planning Agency. The maps below show the subject property’s existing land use designation, and the proposed land use designation in the new Master Plan.
17-156 (Market Study) 21 SUBJECT FLOOD ZONE MAP & INFORMATION
SUBJECT FLOOD ZONE DESIGNATIONS Effective Date of FEMA A.P.N. Flood Zone Flood Zone Designation Map # Designation 008-490-20, 21, Zone “X” (Unshaded) 32031C3045G March 16, 2009 22, 23 & 24 According to the Federal Emergency Management Agency's Flood Insurance Rate Map, Community Panel Number 32031C3045G, with an effective date of March 16, 2009, the subject parcels are located in a Flood Zone “X” (Unshaded). A Flood Zone “X” designates areas of minimal flooding potential. Flood insurance is not required in a Flood Zone “X”. A map depicting the subjects’ Flood Zone designations is set forth above. 17-156 (Market Study) 22 TOPOGRAPHY A.P.N. Topographical Features Generally Level and at Grade with the Surrounding Roadways- 008-490-20, 21, 22, 23 & 24 Good Topography for Development
EASEMENTS A.P.N. Title Company Order Number Date of Report 008-490-20 & 21 First American Title 121-2524155 September 29, 2017 008-490-22 First American Title 121-2531187 November 8, 2017 008-490-23 First American Title 121-2531190 November 8, 2017 008-490-24 First American Title 121-2531192 November 8, 2017 Four separate Preliminary Title Reports were prepared on the subject property by First American Title Company. Copies of the reports are set forth in the Addenda of this market study. The Preliminary Title Reports address several exceptions to coverage. The subject site does appear to be encumbered by several utility easements, and is also encumbered by access easements.
Hillboro Avenue, which is located along the south boundaries of Washoe County Assessor’s Parcel Numbers 008-490-21, 23 and 24, is a 15-foot-wide non-exclusive right-of-way that bisects the property in an east to west direction. According to the conceptual plans provided to us by the client, which are included in a subsequent section of this report, the apartment building and parking areas will be constructed around this existing easement; therefore, it is not felt to materially impact the development potential of the site as an apartment project.
In our on-site inspection, it was noted that overhead power lines run in an east-west direction along the subject’s north property line and along Hillboro Avenue. Overhead power lines also run in a north-south direction along the subject’s west property line. Additionally, two manholes for a storm/sewage drain were observed along Hillboro Avenue. The existing utility easements, which are located near the subject’s perimeter, are considered typical of similar properties, and are not felt to materially impact the development potential of the site as an apartment project.
EARTHQUAKE ZONE In 2005, the City of Reno adopted the International Building Code. The City of Reno now relies on the 2012 International Building Code (IBC). The IBC does not directly address earthquake hazards by geologic regions. However, it requires that all building plans be reviewed by a structural engineer to assess earthquake issues. Prior to 2005, the City of Reno utilized the Uniform Building Code. According to the 1997 edition of the Uniform Building Code, the Reno- Sparks area is located in a Seismic Risk Zone 3. This zone encompasses areas which have a number of local faults and where there is a relatively strong probability of moderate to strong seismic activity. The Uniform Building Code does require special construction techniques as a result of earthquake hazards. Additionally, a structural engineer typically reviews plans for residential and commercial buildings in order to assess earthquake hazards. As a result, for the purposes of this analysis, it is being assumed that the subject property is not impacted by earthquake hazards to a greater degree than is typical for the Reno area.
17-156 (Market Study) 23 ENVIRONMENTAL & SOILS DATA An environmental site assessment of the subject parcels was not provided to us by the client. However, based upon each of the property’s surrounding improvements, it is our opinion that the subject site has adequate soil features for development. This market study report assumes that the subject’s soils are sufficient for development with uses compatible with the highest and best use of the property.
Our standard on-site inspection of the subject property did not reveal any readily apparent evidence suggesting the presence of contaminants or hazardous wastes on any portion of the subject site. For the purposes of this market study, it is assumed that development of the subject parcels is not negatively impacted by the existence of toxic materials or hazardous wastes.
UTILITIES & PUBLIC SERVICES Utility & Public Service Provider Availability On Subject Parcels Electricity NV Energy On-Site Natural Gas NV Energy On-Site Telephone Various Carriers On-Site Water TMWA On-Site Sewer City of Reno On-Site Waste Disposal Waste Management Service Available Cable Various Carriers On-Site or Reasonably Available Internet Various Carriers On-Site or Reasonably Available Fire Protection City of Reno Fire Department Covered Police Protection City of Reno Police Department Covered Public Transportation RTC Ride Stops In Vicinity The subject property has reasonable access to all utility services, including electricity, water service, natural gas service, cable and phone service, and sewer and waste removal services. The subject property is located within the City of Reno and has access to all typical public services, including police and fire protection. The subject property is also located in close proximity to public transportation from RTC.
SUBJECT SALES HISTORY The subject site includes five separate parcels of land. Washoe County Assessor’s Parcel Numbers 008-490-20 and 21 were purchased in a recent transaction which closed on December 15, 2017. The grantor in this transaction was Greater Harvest Church of God in Christ and the grantee was the Housing Authority of the City of Reno. The indicated sale price in this transaction was $449,000. The Reno Housing Authority has owned the three remaining parcels, A.P.N.s 008-490-22, 23 and 24, in excess of ten years.
17-156 (Market Study) 24 SPECIAL ASSESSMENTS A.P.N. Special Assessments 008-490-20, 21, 22, 23 & 24 None Noted A review of Special Assessments on the subject properties was conducted through Assessment Management Group. No Special Assessments on the subject parcels were indicated.
SUBJECT ASSESSMENTS, TAXABLE VALUES & REAL PROPERTY TAXES Washoe County Assessed Values (2017-18) Taxable Values (2017-18) Real Property A.P.N. Land Improvements Total Land Improvements Total Taxes (2018) 008-490-20 $16,273 $27,972 $44,245 $46,495 $79,920 $126,415 $0.00* 008-490-21 $42,296 $3,078 $45,374 $120,847 $8,795 $129,642 $0.00* 008-490-22 $37,047 $0 $37,047 $105,849 $0 $105,849 $0.00* 008-490-23 $20,856 $0 $20,856 $59,588 $0 $59,588 $0.00* 008-490-24 $24,331 $0 $24,331 $69,517 $0 $69,517 $0.00* TOTALS $140,803 $31,050 $171,853 $402,296 $88,715 $491,011 $0.00* The taxable value of the property is based upon the Assessor’s estimate of the full cash value of the site. The taxable value of the improvements is based upon the replacement cost new of the improvements which the Assessor estimates utilizing Marshall Valuation Service a nationally recognized and accepted cost estimating publication. Straight line depreciation of 1.5% per year is deducted from the replacement cost new of the improvements. * As the subject will be operated as a Low-Income Housing Tax Credit (LIHTC) project, it will be exempt from real property taxes.
17-156 (Market Study) 25 DESCRIPTION OF THE PROPOSED PROJECT Property Summary Project Name Sutro Street Apartments Project Address 1225 Hillboro Avenue, Reno, Washoe County, Nevada Project Type Proposed 44-Unit Affordable Senior Housing Apartment Complex Current Status 4 Vacant Parcels & 1 Improved Parcel Totaling 1.680± Acres Census Tract 18.01, Washoe County Proposed Development Year 2019 Proposed Number of Buildings 1 Building Proposed Number of Stories 2 Stories Proposed Number of Units 44 Units Proposed Density per Acre 26.19 Units/Acre Proposed Unit Mix 33-One Bed/One Bath; 11-Two Bed/One Bath Proposed Total Living Area 29,205± Square Feet (Average Unit Size-664± Square Feet) Multi-Purpose Room with Kitchen/Library & Lounge/Computer Common Area Amenities Lab/Game Room/Barbeque & Picnic Area/Horseshoe Pit/Raised Gardening Beds Proposed Parking 27 Surface Spaces (2 ADA Accessible Spaces Included) Proposed Parking Density per Unit 0.61 Spaces/Unit
PROPOSED UNIT MIX-DETAILED Percent of Number of Unit Type Square Footage Area Median Income Units 1 Bed/1 Bath 625± SF 30%-PBV* 12 625± SF 40% 11 625± SF 50% 10 2 Bed/1 Bath 780± SF 30% 2 780± SF 40% 6 780± SF 50% 3 Totals/Averages 664± SF Average Unit Size --- 44 Total Units * Twelve units will be set aside for formerly homeless seniors coming from shelters or long- term motel settings under the Project-Based Voucher (PBV) Program. These 30% PBV units will be rented to individuals who qualify at 30% AMI, but will also receive project-based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR).
17-156 (Market Study) 26 PROPOSED PROJECT SUMMARY Sutro Street Senior Apartments is a proposed new construction, 44-unit affordable senior supportive housing development to be located in northeast Reno, within walking distance of the Washoe County Senior Services Center. The development will include the physical spaces and social supports to allow very- and extremely low income and formerly homeless seniors to age in place in a setting that promotes independence and dignity. The project is sponsored and being developed by the Reno Housing Authority (RHA), which has a long history of providing independent living services to its senior public housing residents. Over 25% of the units at Sutro Street (12 units) will be set aside for formerly homeless seniors coming from shelter or long-term motel settings. These units will also receive project-based rental assistance through the Authority.
The property will employ a part-time Resident Service Coordinator who will assist residents to remain financially and physically self-sufficient. The Coordinator will help residents access an extensive network of on- and off-site services and will carry out group workshops and information sessions and one-on-one consultations to ensure that the needs of all residents are met.
The two-story, new construction elevator-serviced residence will include 33 one bedroom/one bath (625 SF) and 11 two bedroom/one bath (780 SF), accessible and adaptable apartments with balconies as well as community and service space.
The building is designed in a “U” configuration, with a south-facing courtyard adjacent to the multi-purpose room. The common areas will include a multi-purpose room with warming kitchen, library and lounge, computer lab, game room, and offices for management and supportive service staff, and secure and landscaped grounds, courtyards, and porches. Outdoor areas will include resident and visitor parking, a barbeque and picnic area, horseshoe pit and raised beds for resident gardening.
Sutro Street will be a certified EnergyStar-rated development. The building will include high efficiency heating and cooling equipment, EnergyStar appliances, low-E thermal pane windows, high R-value wall and attic insulation, and automatic timer thermostat controls. The development will also offset over 10.0% of projected electrical consumption through photovoltaic solar generation. It will promote sustainable building techniques through the use of low- and no-VOC paints, carpeting, padding, and adhesives, and formaldehyde-free particleboard and will promote water conservation with low-flow fixtures and extensive xeriscaping.
17-156 (Market Study) 27 SUBJECT CONCEPTUAL SITE PLAN
17-156 (Market Study) 28 SUBJECT SCHEMATIC SITE PLAN
17-156 (Market Study) 29 SUBJECT SCHEMATICE SITE PLAN-FLOOR ONE
17-156 (Market Study) 30 SUBJECT SCHEMATIC SITE PLAN-FLOOR TWO
17-156 (Market Study) 31 SUBJECT ONE BEDROOM FLOORPLAN
17-156 (Market Study) 32 SUBJECT TWO BEDROOM FLOORPLAN
17-156 (Market Study) 33 SUBJECT ELEVATIONS
17-156 (Market Study) 34 RENO-SPARKS AREA MAP
17-156 (Market Study) 35 RENO-SPARKS AREA ANALYSIS AND DESCRIPTION The Reno-Sparks metropolitan area is situated on the eastern slopes of the Sierra Nevada Mountain Range in a large valley known as the Truckee Meadows. Two major freeways serve the region. Interstate 80 runs in an east-west direction through Reno, while U.S. 395/I-580 runs in a north-south direction through Reno. The following summarizes Reno’s vicinity to other major metropolitan areas in the region.
MILES BETWEEN RENO & MAJOR METROPOLITAN AREAS Market Direction From Reno Miles From Reno San Francisco West/Southwest 190± Miles Los Angeles Southwest 450± Miles Portland Northwest 440± Miles Salt Lake City East 520± Miles Las Vegas Southeast 450± Miles Phoenix Southeast 745± Miles
McCarran Boulevard is a ring road that encircles the Reno-Sparks area and facilitates access between the various quadrants of the region. Overall, the Reno-Sparks area has very good roadway and highway access.
The Reno-Sparks metropolitan area’s location is a positive amenity due to its proximity to major California markets, as well as the recreational and scenic amenities afforded by its proximity to the Sierra-Nevada Mountains and Lake Tahoe. Lake Tahoe is a 45-minute drive from downtown Reno and is the second largest alpine lake in the world, with 72 miles of Lake Frontage. Lake Tahoe also offers the greatest concentration of downhill skiing facilities in North America.
The Truckee Meadows is located at an elevation of approximately 4,400 feet above sea level and offers a semi-arid climate. The following chart summarizes weather data for the Reno area.
17-156 (Market Study) 36 RENO WEATHER
The primary source of water for the region is the Truckee River, which originates at Lake Tahoe, approximately 30 miles southwest of Reno, and terminates at Pyramid Lake approximately 30 miles north of Sparks. The river flows through the heart of downtown Reno and along the southern edge of Sparks. The Truckee River is a major recreational and scenic amenity for the region.
17-156 (Market Study) 37 Population, Growth and Employment Since 1970, the Truckee Meadows have been one of the fastest growing areas in the nation, with the population increasing by over 100% by 1990. According to the Nevada State Demographer’s Office at the University of Nevada, the population of Washoe County was estimated to be 436,797 in 2014. The following summarizes historical population estimates for the region.
HISTORICAL POPULATION ESTIMATES Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reno 214,371 220,613 223,012 218,143 217,282 222,801 229,859 232,243 235,371 238,615 242,158 Sparks 87,846 89,449 91,684 91,237 92,331 92,302 90,214 91,551 92,396 93,581 95,726 Unincorporated 106,868 107,999 109,137 107,252 107,766 106,490 107,131 108,530 109,030 109,750 110,432 Washoe County 409,085 418,061 423,833 416,632 417,379 421,593 427,204 432,324 436,797 441,946 448,316 Source: Nevada State Demographer
The downturn in the economy has particularly impacted the labor force in Nevada, although over the past two years unemployment has decreased significantly. Unemployment rates for Nevada and individual counties in the state are summarized on the following chart.
NEVADA UNEMPLOYMENT DATA-NOVEMBER 2017 Area Labor Force Employed Unemployed Rate Nevada 1,471,481 1,399,433 72,048 4.90% Carson City 25,088 23,841 1,247 4.97% Churchill County 10,451 9,984 467 4.47% Clark County 1,086,144 1,030,496 55,648 5.12% Douglas County 21,985 20,964 1,021 4.64% Elko County 26,963 26,031 932 3.46% Esmeralda County 521 497 24 4.61% Eureka County 1,038 1,008 30 2.89% Humboldt County 8,042 7,723 319 3.97% Lander County 3,101 2,976 125 4.03% Lincoln County 2,000 1,901 99 4.95% Lyon County 21,695 20,469 1,226 5.65% Mineral County 2,110 1,999 111 5.26% Nye County 16,209 15,174 1,035 6.39% Pershing County 2,513 2,401 112 4.46% Storey County 1,954 1,862 92 4.71% Washoe County 237,107 227,712 9,395 3.96% White Pine County 4,560 4,396 164 3.60%
The unemployment rate for Washoe County and Nevada has historically averaged between 1% and 2% below the national average. However, with the economic downturn which
17-156 (Market Study) 38 began in 2008, Nevada was one of the hardest hit in the nation and currently has among the highest unemployment rate in the country. Improvement has occurred in the employment market, with the State of Nevada now under 5% unemployment. The following chart summarizes the unemployment rate gap between the State of Nevada and the United States.
UNEMPLOYMENT GAP-UNITED STATES VERSUS NEVADA
Nevada offers one of the most liberal tax structures in the country. Nevada levies no personal or corporate income tax. Nevada’s Freeport law exempts from taxation merchandise warehoused, assembled or processed in the State of Nevada. Real estate taxes in the State of Nevada are limited by State constitution to a maximum of $5 per $100 of assessed valuation. The assessed valuation is 35% of the Assessor’s estimate of the taxable value of the property.
Although it is not located in Washoe County, construction of the new Tesla Gigafactory in nearby Storey County within the Tahoe Reno Industrial Center is expected to have a huge impact on the entire region. On September 5, 2014, Tesla announced that the Tahoe Reno Industrial Park (TRIC), located east of Sparks, had landed the coveted Gigafactory. Over $1.25 billion in State of Nevada incentives were approved for development of the project. In return, Tesla will be required to complete $5 billion in capital investments on the facility through 2028. The cost for the building and site infrastructure will be $1.1 billion. Machinery and equipment will account for the remaining $3.9 billion, including materials processing and product assembly.
17-156 (Market Study) 39 Once the 5.5 million square foot facility reaches full operation, it will produce enough batteries for 500,000 Tesla electric cars each year. As part of the deal, the USA Parkway extension was fast-tracked; this $43 million project extends USA Parkway from its current terminus in TRIC, to U.S. Highway 50 in Silver Springs, greatly reducing travel times between Interstate 80 and U.S. Highway 50. In January 2015, Las Vegas-based Switch announced plans to build a 3 million square foot data center project in the same industrial center. The project is expected to be built in phases with a total of $1 billion in investment with it; the first phase was completed in 2017.
Gaming and Tourism Market It is estimated that the Reno-Sparks area currently offers approximately 25,000 hotel and motel rooms. The vast majority of the hotel-casino facilities are located within the downtown Reno core area. As a result, this area is one of the primary employment centers in the Reno- Sparks area. Additional hotel-casino developments are located in southern Reno along South Virginia Street including the Atlantis Casino resort and the Peppermill Hotel/Casino. The Grand Sierra Resort is located on the Reno-Sparks border and John Ascuaga’s Nugget is located east of Reno in central Sparks. It is noted that the Nugget was recently purchased by a new owner and is undergoing major renovations. The following chart summarizes the most recent data available for gaming revenue for the Reno-Sparks/Washoe County area, as well as other areas within the state.
GAMING WIN DATA
Source: Nevada Gaming Control Board
17-156 (Market Study) 40 Within the past decade, legalized gaming has continued to spread across the country and gaming revenues for northern Nevada have been impacted. The opening of several Indian casinos in the State of California in recent years and the proposed openings of several other Indian Casinos in California have had a dramatic effect on the gaming economy in the Reno- Sparks area. Over the past decade, several casinos in the downtown Reno market, including the Sundowner Hotel Casino, the Comstock Hotel Casino, Fitzgerald, and the Golden Phoenix Hotel Casino, have closed.
The following summarizes data provided by the Reno-Sparks Convention and Visitors Authority, regarding visitor counts for the Reno-Sparks area.
ESTIMATED VISITOR COUNTS-RENO/SPARKS AREA
Source: Reno-Sparks Convention and Visitors Authority
Residential Market The residential market in the Reno-Sparks area grew tremendously in the 1990’s and this growth continued until 2006, when the residential housing crisis began. The downturn in the residential market had a tremendous impact on residential development and sales within the Reno-Sparks market, resulting in very limited new construction for the past five years. Although the residential real estate market has struggled there are signs of recovery. The existing residential home sales and prices are on the rebound. Market activity has increased significantly in Northern Nevada in recent months and the residential market is on the rebound after a long period of decline. Sale offers are reported at or above list prices and sellers are receiving multiple offers.
The December 2017 Market Report presented by the Reno/Sparks Association of Realtors reports that, “The Reno/Sparks market saw a decline in sales in November,” said Doug
17-156 (Market Study) 41 McIntyre, 2018 President of the Reno/Sparks Association of REALTORS. “However, year-to- date sales are at a record high of 6,809. That’s a 3% increase over 2016.”
• The December median price at $345,000 is down 2% from November and up 15% from a year ago. • December unit sales at 482 are down 9% from November and down 9% compared to December 2016. • December new listings are down 24% at 292 compared to November and down 14% from one year ago. • The Reno market is a seller’s market, at 1.3 months supply of inventory. Months supply of inventory is the time it would take to exhaust the active inventory at the current rate of sales. • Unit sales were strong in 2017 ending the year at 6,809 up 3% from the previous year. • In 2017, pending sales kept pace with new listings as compared to prior years. It’s understandable why we have only 1.3 months supply of inventory. • The median sales price started 2017 at $302,000. By July it reached a high of $355,000. Since that time the median price leveled and ended the year at $345,000. We anticipate this leveling trend to continue through the winter months. During the selling season, April through July, we expect continued pressure on inventory which will drive the median price higher in 2018. • New listings in 2017 were down 11% after reaching a five-year record high in 2016. • December 2017 available active inventory were at a low of 637 available listings. • The average days to contract were 57 in December down less than 1% compared to December 2016. • Properties are remaining on the market an average of 94 days down 13% from December 2016. • Sellers are receiving an average of 98.6% of list price up less than 1% from December 2016.
17-156 (Market Study) 42 RENO-SPARKS DECEMBER 2017 MEDIAN PRICE SOLD
RENO-SPARKS DECEMBER 2017 UNITS SOLD
17-156 (Market Study) 43 RENO-SPARKS DECEMBER 2017 NEW LISTINGS
RENO-SPARKS DECEMBER 2017 PRICE PER SQUARE FOOT
17-156 (Market Study) 44 RENO-SPARKS DECEMBER 2017 INVENTORY
RENO-SPARKS DECEMBER 2017 MONTHS SUPPLY OF INVENTORY
17-156 (Market Study) 45 Improvement in the residential market is stimulating new construction. Most of the bulk finished lots within the market have been purchased by developers; most of these lots were bank owned during the recession. With job growth projected at over 50,000 new jobs in the coming years, demand for new housing in the area is expected to be extremely strong.
Multifamily Market The following summarizes data from the 4th Quarter 2017 Apartment Survey, which is a quarterly survey conducted by Johnson Perkins Griffin, LLC.
AVERAGE SIZE, RENT & VACANCY RATE BY UNIT TYPE 1 BED/ 2 BED/ 2 BED/ 3 BED/ CATEGORY STUDIOS 1 BATH 1 BATH 2 BATH 2 BATH TOWNHOME TOTALS Average SF-By Unit Type 404 SF 720 SF 862 SF 1,042 SF 1,266 SF 1,263 SF 889 SF Average Rent-By Unit Type $723 $1,062 $1,091 $1,310 $1,551 $1,405 $1,180 Average Rent/SF-By Unit Type $1.79 $1.48 $1.27 $1.26 $1.23 $1.11 $1.33 Indicated Vacancy Rate-By Unit Type 3.52% 3.76% 3.03% 3.69% 5.50% 8.36% 3.80%
OVERALL AVERAGE RENT & VACANCY-PRIOR & CURRENT QUARTER Category 3rd Quarter 2017 4th Quarter 2017 Change Average Vacancy 2.41% 3.80% +139 Basis Points Average Rent $1,202 $1,180 -$22 or -1.83%
COMPARISON OF RENTAL RATES & VACANCY RATES TO PRIOR QUARTER AVERAGE RENT AVERAGE VACANCY UNIT TYPE 3rd Qtr. 2017 4th Qtr. 2017 Result 3rd Qtr. 2017 4th Qtr. 2017 Result Studio $737 $723 -$14 1.32% 3.52% +2.20% 1 Bedroom/1 Bath $1,071 $1,062 -$9 2.21% 3.76% +1.55% 2 Bedroom/1 Bath $1,103 $1,091 -$12 2.20% 3.03% +0.83% 2 Bedroom/2 Bath $1,346 $1,310 -$36 2.60% 3.69% +1.09% 3 Bedroom/2 Bath $1,616 $1,551 -$65 3.80% 5.50% +1.70% Townhouse $1,396 $1,405 +$9 1.89% 8.36% +6.47% TOTALS $1,202 $1,180 -$22 2.41% 3.80% +1.39%
17-156 (Market Study) 46 RENTAL AND VACANCY RATES BY SUB-MARKET AREA AVERAGE RENT AVERAGE VACANCY Area Sub-Market 3rd Qtr. 2017 4th Qtr. 2017 Result 3rd Qtr. 2017 4th Qtr. 2017 Result 1 Northwest Reno $1,298 $1,286 -$12 1.76% 2.88% +1.12% 2 Northeast Reno $1,056 $1,080 +$24 0.99% 4.18% +3.19% 3 W. Sparks/N. Valley $1,064 $1,045 -$19 2.01% 3.59% +1.58% 4 East Sparks $1,406 $1,336 -$70 4.96% 4.56% -0.40% 5 West Reno $1,081 $1,015 -$66 1.33% 0.00% -1.33% 6 Southwest Reno $1,117 $1,090 -$27 3.44% 8.15% +4.71% 7 Brinkby/Grove $855 $836 -$19 0.41% 3.39% +2.98% 8 Airport $930 $943 +$13 0.54% 1.25% +0.71% 9 Lakeridge $1,369 $1,272 -$97 3.59% 5.03% +1.44% 10 Southeast Reno $1,186 $1,194 +$8 1.85% 2.64% +0.79% 11 Downtown Urban $1,371 $1,349 -$22 2.90% 9.18% +6.28% Overall Reno-Sparks $1,202 $1,180 -$22 2.41% 3.80% +1.39%
OVERALL RENO/SPARKS RENT & VACANCY DATA-ALL UNIT TYPES
Category 4th Quarter 2017 Average Square Feet Per Unit Surveyed 889± Square Feet Average Rent For Units Surveyed $1,180 Per Month Average Rent Per Square Foot For Units Surveyed $1.33 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 3.80%
17-156 (Market Study) 47 Industrial Market In an effort to diversify the economic base of the area, community leaders have focused upon the expansion of the industrial segment of the economy. The industrial industry has experienced substantial growth over the past decade as a result of the region’s central location, good transportation, infrastructure and liberal tax laws. At the present time, over 500 major U.S. and foreign corporations have headquarters or located large facilities in the area, including Amazon.com, International Gaming Technology (IGT), Barnes and Noble, Patagonia, Sherwin Williams, Wal-Mart Distribution Center, J.C. Penney’s Catalog Distribution Center, and R.R. Donnelley, one of the nation’s largest publishers.
On September 5, 2014, Tesla announced that the Tahoe Reno Industrial Park (TRIC), located east of Sparks, had landed the coveted Gigafactory. Over $1.25 billion in State of Nevada incentives were approved for development of the project. In return, Tesla will be required to complete $5 billion in capital investments on the facility through 2028. The cost for the building and site infrastructure will be $1.1 billion. Machinery and equipment will account for the remaining $3.9 billion, including materials processing and product assembly. Once the 5.5 million square foot facility reaches full operation, it will produce enough batteries for 500,000 Tesla electric cars each year. As part of the deal, the USA Parkway extension was fast- tracked; this $43 million project extended USA Parkway from its current terminus in TRIC, to U.S. Highway 50 in Silver Springs, greatly reducing travel times between Interstate 80 and U.S. Highway 50.
As most major cities in the western portion of the United States are located within relatively close proximity and driving time to Northern Nevada, the Reno-Sparks area is a major distribution warehousing center. This development is further being enhanced by the favorable tax environment in the state of Nevada. Leases for industrial users in the Reno-Sparks market are typically based upon triple net lease terms. The CBRE Reno Industrial Market View 3rd Quarter 2017 Report indicates the following:
17-156 (Market Study) 48 COMMENTARY-CBRE RENO INDUSTRIAL MARKET VIEW 3RD QUARTER 2017
The following charts summarize the overall and submarket industrial markets, and include data related to rental rates and vacancies. The data is from the CBRE Reno Industrial Market View 3rd Quarter 2017.
17-156 (Market Study) 49 INDUSTRIAL RENTS & VACANCIES BY SUBMARKET
HISTORICAL INDUSTRIAL DATA
17-156 (Market Study) 50 Retail Market The Reno-Sparks area now offers three regional shopping centers and more than 100 neighborhood or local shopping centers. The three major regional centers are Meadowood Mall, the Summit Sierra Mall, and the Legends at Sparks Marina.
According to the Nevada Department of Taxation 2010/2011 to 2015/2016 fiscal taxable sales show an increase from year-to-date numbers for each of the past six years. The following chart summarizes taxable sales totals for Washoe County from 1997/1998 (fiscal years).
WASHOE COUNTY TAXABLE SALES HISTORY Fiscal Year Taxable Sales Percentage Change 1997/1998 $4,377,547,590 3.22% 1998/1999 $4,679,515,860 6.90% 1999/2000 $4,966,612,920 6.14% 2000/2001 $5,194,146,044 4.58% 2001/2002 $5,292,178,588 1.89% 2002/2003 $5,481,582,915 3.47% 2003/2004 $6,003,368,280 9.52% 2004/2005 $6,660,263,045 10.6% 2005/2006 $7,268,593,250 9.13% 2006/2007 $7,202,640,557 -0.91% 2007/2008 $6,823,700,706 -5.3% 2008/2009 $5,707,791,051 -16.35% 2009/2010 $5,176,981,699 -9.30% 2010/2011 $5,282,936,232 2.05% 2011/2012 $5,522,605,351 4.54% 2012/2013 $5,824,726,136 5.47% 2013/2014 $6,370,684,534 9.37% 2014/2015 $6,817,588,648 7.02% 2015/2016 $7,550,466,734 10.70% 2016/2017 $7,989,009,111 5.81% Source: Nevada Department of Taxation
Leases for retail space in the Reno-Sparks market are typically based upon triple net lease terms or modified gross lease terms. Under triple net lease terms, tenants typically pay a base rental rate, and are also responsible for paying most operating expenses associated with the property, including utilities, taxes, insurance, management, typical repairs and maintenance, and other expense items. In multi-tenant projects, these additional fees are most often billed back to tenants; these are often referred to as Common Area Maintenance (CAM) fees. The CBRE Reno Retail Market View 3rd Quarter 2017 Report indicates the following:
17-156 (Market Study) 51
COMMENTARY-CBRE RENO RETAIL MARKET VIEW 3RD QUARTER 2017
The following charts summarize the overall and submarket retail markets, and include data related to rental rates and vacancies. The data is from the CBRE Reno Retail Market View 3rd Quarter 2017.
17-156 (Market Study) 52 RETAIL RENTS & VACANCIES BY SUBMARKET
HISTORICAL RETAIL DATA
17-156 (Market Study) 53 Office Market The Reno-Sparks office market consists of a variety of product types, from older second and third generation properties, to new, high-end Class A office space. Leases for professional office uses in the Reno-Sparks market are typically based upon full service gross lease terms or modified gross lease terms. Under full service gross lease terms, owners are responsible for all operating costs associated with the building. Typically, these leases incorporate base year expense stops, with tenants responsible for any increases in operating expenses over the base year. Under modified gross lease terms, the tenant is typically responsible for utilities and janitorial service. Due to increases in utility expenses, many property owners now market properties on modified gross lease terms, with some even marketing properties on triple net lease terms, in which the tenant is responsible for all operating expenses associated with the building. The CBRE Reno Office Market View 3rd Quarter 2017 Report indicates the following:
COMMENTARY-CBRE RENO OFFICE MARKET VIEW 3RD QUARTER 2017
The following charts summarize the overall and submarket office markets, and include data related to rental rates and vacancies. The data is from the CBRE Reno Office Market View 3rd Quarter 2017.
17-156 (Market Study) 54 OFFICE RENTS & VACANCIES BY SUBMARKET
HISTORICAL OFFICE DATA
17-156 (Market Study) 55 Construction Activity Construction activity in the area was limited during the housing crisis, but has shown signs of recovery. Within the Reno-Sparks market, building permits issued began to drop in 2006, and dropped every year through 2010; beginning in 2011, building permit activity continued to increase through 2015. As the chart and graph below indicate, at the peak of the market in 2005, 22,313 total building permits were issued in Washoe County, including the City of Reno and the City of Sparks. In 2016, the latest full calendar year, 14,487 building permits, or 35% less than 2005, were issued.
BUILDING PERMITS ISSUED
(Reno, Sparks & Unincorporated Washoe County)
Transportation The Reno-Tahoe International Airport serves the Reno-Sparks area. The airport offers daily departures to over 30 North American destinations with non-stop or one-stop service. This level of service is normally found in cities with populations four to five times the size of the Reno-Sparks area. The following chart summarizes passenger statistics for the Reno-Tahoe International Airport.
17-156 (Market Study) 56 RENO-TAHOE INTERNATIONAL AIRPORT STATISTICS
The Reno-Sparks area also has adequate rail service and bus service. The area has excellent access to trucking facilities, with over 60 firms serving the Reno area. Rail service through the area is provided by Union Pacific Railroad. The rail lines pass through downtown Reno with most of the rail traffic involving freight transportation. Additionally, Amtrak provides passenger rail service to the area.
17-156 (Market Study) 57 Hospitals, Education and Public Services The Reno-Sparks area has four private general hospitals and one Veterans’ Administration hospital. While the area is considered to have good hospital facilities, the hospitals in Nevada are some of the more expensive in the country. The two largest hospitals, St. Mary’s and Renown, have both opened satellite hospitals in south Reno, and have both undergone major expansions at their main facilities.
The Washoe County School District provides public schools. The University of Nevada- Reno is situated on a 200-acre campus just north of downtown Reno. There are approximately 21,300 students currently enrolled at the University. The area is also served by the Truckee Meadows Community College, which has an enrollment of approximately 11,600 students per year.
Each of the municipalities in the Reno-Sparks area offers police and fire protection. Both the police and fire protection is highly rated. Municipal recreational facilities in the Reno-Sparks area include a number of golf courses, several indoor/outdoor swimming pools, numerous public parks and several public libraries. RTC Ride provides public transportation to the region.
Summary In summary, the Reno-Sparks area has experienced rapid population growth over the past several decades due to the excellent quality of life. Historically, the gaming industry has been the principal economic base for the area. With the legalization of gaming across the United States, the area’s principal industry is experiencing a major challenge.
In response to this challenge, the National Bowling Stadium and Downtown Events Center have been built, the Reno-Sparks Convention Center has been expanded and renovated, special events have been expanded, the City of Reno is actively supporting downtown revitalization, and a AAA professional baseball stadium was completed in April of 2009. Tesla began construction on their new Gigafactory just east of Sparks in the Tahoe Reno Industrial Park in 2014. The area has experienced success in broadening the economic base with the expansion of the hi-tech and back office industries.
17-156 (Market Study) 58 NEIGHBORHOOD MAP
17-156 (Market Study) 59 NEIGHBORHOOD DESCRIPTION The subject property is situated in the south Reno. The subject neighborhood has been identified as being situated in the eastern central portion of Reno and the west central portion of Sparks. The neighborhood is bounded on the north by Oddie Boulevard, on the east by Pyramid Way, on the south by East Second Street/Glendale Avenue and on the west by Virginia Street. The neighborhood is largely commercial in nature, but includes a variety of uses, including older single-family dwellings, multi-family residences, retail commercial and light industrial uses.
The major roadway connecting Reno-Sparks is Interstate-80 which traverses the central portion of the subject neighborhood in an east-west direction. As Interstate 80 intersects with Interstate 580 in central Reno, the subject neighborhood has good access to the Reno-Sparks area. The Interstate 80 Freeway also provides access to California to the west, and continues across the United States to the east.
The U.S. 395 Freeway, which is also known as Interstate 580, bisects the west central portion of the subject neighborhood. This limited access freeway runs in a north-south direction through the city of Reno and is completed from the Nevada state line south to Carson City to the south. The U.S. 395 Freeway is a six-lane, divided roadway. Access onto the U.S. 395 Freeway, in close proximity to the subject neighborhood, is available from Glendale Avenue, East 4th Street, Oddie Boulevard and Interstate 80.
Major roadways within the subject neighborhood include Wells Avenue, Sutro Street, Second Street, 4th Street and Lake Street. Virginia Street and Center Street are major roadways through downtown Reno located toward the western reaches of the neighborhood.
The major roadways servicing the eastern portion of the subject neighborhood include Pyramid Way, McCarran Boulevard, Prater Way, Oddie Boulevard, Rock Boulevard, Victorian Avenue, El Rancho Drive and Sullivan Lane.
Virginia Street (Business Route 395) generally forms the west boundary of the subject neighborhood. Virginia Street is the main arterial roadway bisecting the city of Reno and runs in a north-south direction. Development along South Virginia Street includes tourist-commercial uses, retail-commercial uses, the downtown financial district and the downtown casino core area. South Virginia Street is the main route through downtown Reno.
17-156 (Market Study) 60 Before the completion of the Interstate 80 Freeway, East 4th Street, also known as U.S. Highway 40, was the main east-west highway bisecting the city of Reno. As a result, East 4th Street had been developed with a number of commercial utilizations that include older bars, service stations, restaurants and motels. Additional development proximate to East 4th Street include industrial and industrial-commercial utilizations including truck terminals, storage yards, and auto and truck repair shops. In the 1970’s, the completion of the Interstate 80 Freeway re- routed through-traffic from East 4th Street in the Reno area. The loss of through-traffic on East 4th Street reduced the demand for tourist-commercial services in the area. As a result, the older motels located throughout the subject neighborhood have been converted to weekly and monthly occupancy.
Prater Way originates in east Sparks and terminates at the Victorian Avenue and 4th Street intersection near the Reno-Sparks city line. Prater Way extends in an east-west direction through the east portion of the subject neighborhood. This roadway is a four-lane, two-way, asphalt paved roadway improved with concrete curbs, gutters, and sidewalks. Prater Way provides good access from Vista Boulevard in the eastern portion of the city of Sparks to the northeasterly portion of the city of Reno.
Originating at its interchange with Interstate 80, Pyramid Way, also identified as State Route 445, is a major north-south roadway which forms the eastern boundary of the subject neighborhood. This roadway is a four-lane, two-way, asphalt paved roadway improved with concrete curbs, gutters, and sidewalks. The roadway provides a principal access into the residential communities of Sparks in the Spanish Springs Valley area. Ultimately, the roadway terminates at Pyramid Lake, 33 miles north of Sparks.
The Truckee River runs along the south portion of the neighborhood, and runs from west to east. Generally speaking, the major commercial and casino developments in the eastern downtown Reno area are located on the north side of the river, while the financial district and major office buildings are located south of the Truckee River. Near the subject properties, the Truckee River is generally improved with industrial uses, the Waste Management Transfer Station, the Riverwood Apartments, the Reno Police Station, Brodhead Memorial Park, the Reno Aces Ballpark, Harrah’s Automobile Museum, the Park Center Tower office building, vacant lots, and older residential developments.
The Union Pacific Railroad passes through the southerly portion of the subject
17-156 (Market Study) 61 neighborhood. Along with U.S. Interstate 80, the Union Pacific Railroad generally parallels the Truckee River, crossing the river at various points throughout the neighborhood. The Union Pacific Railroad is primarily utilized for freight service.
A majority of the area’s tourist commercial development, which consists of hotel-casino uses and smaller tourist commercial retail uses, are situated in the downtown Reno core west of the subject neighborhood. The majority of the better quality professional offices are located around the center of the downtown Reno financial district, which is located west of the subject neighborhood at the intersection of South Virginia Street and Liberty Street. As a result, this area does involve a major employment center for the Reno-Sparks area.
In April 2009, construction was completed on a AAA professional baseball development. This project is generally located on the northeast corner of East Second Street and Evans Avenue, although the developer has plans to also develop a large retail project on other properties in the vicinity of the baseball stadium. The stadium utilized the historic Freight House in its design and has a seating capacity for 9,000± fans. To date, the owners of the ballpark have completed several new restaurants and lounges directly adjacent to the stadium.
The Regional Transportation Commission completed construction on a new bus transfer station which is located on the southeast corner of East 4th Street and Lake Street, known as the 4th Street Station.
Industrial utilizations are found east and west of the downtown casinos, adjacent to the Union Pacific Railroad tracks and include small manufacturing and repair facilities, auto wreckers and outside storage yards. Transit warehouses and truck terminals are prominent uses in the central portions of the subject neighborhood. These facilities are typically operated by interstate trucking firms for redistribution and reloading of interstate freight.
Development in the east portion of the subject neighborhood includes a wide variety of commercial and residential utilizations. The commercial uses are confined primarily to Pyramid Way, Oddie Boulevard, Victorian Avenue and Prater Way. The majority of the remainder of the subject neighborhood involves residential uses including single-family detached homes, condominium and townhouse projects, mobile home parks and various apartment complexes.
While the primary commercial developments on Oddie Boulevard are shopping centers,
17-156 (Market Study) 62 the commercial development on Prater Way and Victorian Avenue generally include older, freestanding retail-commercial and shop buildings. Victorian Avenue is primarily improved with older commercial buildings including weekly motels, car lots, repair shops, convenience stores, taverns and a variety of retail businesses. For the most part, this portion of the neighborhood has seen little new construction and many of the businesses situated along this section of Victorian Avenue are older single-family residences which have been converted to commercial uses.
Within the eastern portion of the neighborhood, between 15th Street and Pyramid Way, Victorian Avenue is known as Victorian Square, and is improved with a hotel-casino and ancillary uses including restaurants, bars and retail shops. Development of Victorian Square is the result of the efforts of the Sparks Redevelopment Agency, and has transformed this section of Victorian Avenue into a large pedestrian walkway with public areas, decorative sidewalks, and outdoor lighting and landscaped areas. Additionally, a 14-screen movie theater, a public parking garage and a water fountain are located in the square.
Victorian Square is the primary tourist attraction in the city of Sparks and a number of special events, including a major rib cook-off, chili cook-offs, farmer’s markets, craft fairs and parades are held annually. The Nugget, the largest hotel-casino in the City of Sparks, is located on Victorian Avenue, just south of Victorian Square.
Another newer development for the Victorian Square area is the new transit center, named Centennial Plaza. This center was developed by the Regional Transportation Commission on the south side of Victorian Avenue, between 14th Street and extending west of 15th Street. This transit center has 15 covered bus bays and resembles a railroad roundhouse.
In addition to the commercial developments in the subject neighborhood, a majority of the neighborhood is improved with residential uses including detached single-family residences, duplexes, townhomes, condominiums, mobile home parks and apartments.
The majority of the single-family residential developments in the subject neighborhood have average quality detached homes ranging in size from 800± square feet to 1,800± square feet. These homes are typically 30 to 60 years old and are in fair to average condition at the present time.
In addition to the single-family residential developments in the subject neighborhood
17-156 (Market Study) 63 there are several mobile home parks. These parks include the Northgate Village, the Thunderbird Mobile Home Park, Y Rancho Mobile Home Park and the Pony Express Mobile Home Park. These mobile home parks generally are older, lesser quality units typically in fair to average condition at the present time.
For the most part, the apartment developments in the subject neighborhood primarily are two-story or three-story garden style apartment projects. The apartment complexes located throughout the neighborhood include Sandpebble Apartments, Spanish Oaks Apartments, Stonegate Apartments, Sierra Woods Apartments, Sierra Point Apartments, Lansdowne House Apartments, Courtside Garden Apartments and the Sierra View Apartments. There are also many smaller, multi-family residential developments scattered throughout the subject neighborhood. These developments typically range in size from 4 to 16 units and typically range in age between 10 and 25 plus years. Most of the smaller multi-family residential developments are average quality construction and are in fair to average condition at the present time.
All utilities are available to the subject neighborhood including electricity, natural gas, telephone service, sewer, water and cable television. Electricity and natural gas service is provided by NV Energy, with the water service provided by Truckee Meadows Water Authority. Sewer service to the subject neighborhood is provided by the City of Reno and the City of Sparks. Telephone and cable service are provided by various carriers.
There are a number of parks located within and in close proximity to the subject neighborhood. The largest, Paradise Park, is located on the southwest corner of Oddie Boulevard and El Rancho Drive. Paradise Park has a small lake and a children’s playground area. Other neighborhood parks and recreational facilities include Deer Park, Burgess Park and Oppio Park. There is a walking/bike path along the Truckee River in the subject neighborhood. This path connects to downtown Reno and continues west, and also continues past downtown Reno and terminates past Vista Boulevard in Sparks to the east.
In summary, the subject neighborhood includes a mixture of commercial, residential, multi-family and mobile home utilizations. In general, the single-family residences in the subject neighborhood typically involve older, average quality homes in fair to average condition at the present time. The multi-family residential developments range from duplexes to large apartment complexes. Commercial development is primarily confined to the areas of 4th Street Prater Way, Oddie Boulevard, Pyramid Way and Victorian Avenue.
17-156 (Market Study) 64 DEMOGRAPHIC AREA MAP-PRIMARY MARKET AREA
Primary Market Area Outlined In Green (2. 5 Mile Radius)
17-156 (Market Study) 65 DEMOGRAPHIC ANALYSIS-PRIMARY MARKET AREA Based upon the requirements of the Nevada Housing Division requirements, the subject’s Primary Market Area (PMA) has been identified as the area included in a 2.5-mile radius from the subject site. For comparison reasons, data for the subject’s 1-mile and 5-mile radius are also included and analyzed. The following analyzed demographic data, beginning with population data for the PMA.
Population Data (1 Mile, 2.5 Mile & 5 Mile Radius)
As indicated above, as of 2017, the subject 2.5-mile radius (PMA) had an estimated population of 93,458 persons; this is expected to grow to 98,043 persons by 2022, indicating an annual growth rate of 0.96%. The projected growth rate is higher than the 1-mile radius projections and slightly below the projection for the 5-mile radius neighborhood. The following summarizes population and household demographic data for the subject’s defined PMA.
Population and Household Demographics Data (PMA-2.5 Mile Radius)
17-156 (Market Study) 66 As indicated above, as of 2017, the subject’s 2.5-mile radius neighborhood has an estimated population of 93,458 persons, and a total of 38,438 households with an average household size of 2.35 persons. In the subject’s 2.5-mile radius, 10,425 occupied housing units are owner occupied, while 28,013, or 72.88%, of the total occupied housing units are renter occupied units. The data also indicates that the PMA’s median household income was $31,721 in 2017, which is expected to grow to $32,213 by 2022, indicating an annual growth rate of 0.31%.
Population By Age Demographic Data (1 Mile, 2.5 Mile & 5 Mile Radius)
The chart above summarizes the population by age for the subject’s 1, 2.5 and 5-mile radius neighborhoods. In 2017, persons 55 years of age and older accounted for 23.43% of the
17-156 (Market Study) 67 population within the subject’s 1-mile radius neighborhood, 25.52% within the subject’s 2.5-mile radius neighborhood and 27.21% within the 5-mile radius neighborhood.
Summary of Population and Household Demographics Data The charts above indicate that the subject neighborhood contains a high proportion of renters. The subject property is an infill location in Reno. The majority of the owner-occupied units are located within the suburban areas of the subject neighborhood and Reno-Sparks area.
Household Income Demographic Data (PMA-2.5 Mile Radius)
17-156 (Market Study) 68 Household Income Data-PMA Versus 2.5 Mile & 10 Mile
2017 Demographic & Income Profile 1 Mile Radius 2.5 Mile Radius 5 Mile Radius Median Household Income $27,578 $31,721 $40,724 Average Household Income $38,251 $45,213 $58,072 Per Capita Income $15,588 $19,710 $23,353 2022 Demographic & Income Profile 1 Mile Radius 2.5 Mile Radius 5 Mile Radius Median Household Income $27,931 $32,213 $41,855 Average Household Income $42,118 $49,752 $64,073 Per Capita Income $16,970 $21,485 $25,582
As indicated on the above charts, as of 2017, the average household income within the subject’s 2.5-mile radius neighborhood was $45,213, which is approximately 28.44% less than the subject’s 5-mile radius neighborhood ($58,072). Within the PMA, median household income was $31,721 in 2017, which is projected to increase to $32,213 by 2022. In comparison to the subject’s 2.5-mile radius neighborhood, average household income, median household income and per capita income are all higher than the 1-mile radius neighborhood and lower than the 5- mile radius neighborhood.
17-156 (Market Study) 69 With respect to the proposed project, renters will be eligible to lease units if they earn less than 50% of the Reno-Sparks Area Median Income (AMI). The subject units will include 14 30% AMI units, 17 40% AMI units and 13 50% AMI units. Twelve of the 30% AMI units will be set aside for formerly homeless seniors coming from shelters or long-term motel settings under the Project-Based Voucher (PBV) Program. These 30% PBV units will be rented to individuals who qualify at 30% AMI, but will also receive project-based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR).
The chart below summarizes the historical and 2017 Median Household Income as published by U.S. Department of Housing and Urban Development (HUD), which is utilized to calculate income limits for the projected units. The 2018 median household income data will not be made available from HUD until late February 2018.
AVERAGE MEDIAN HOUSEHOLD INCOME (RENO-SPARKS MSA) Year Average Median Income (AMI)-4 Person Household % Change 2010 $71,200 1.14% 2011 $70,500 -0.98% 2012 $71,400 1.28% 2013 $65,200 -8.68% 2014 $63,000 -3.37% 2015 $63,500 0.79% 2016 $67,000 5.51% 2017 $68,100 1.64%
As illustrated in the demographic data, 54.16% of households, or 20,818 households, earn less than $35,000 in the PMA. The chart below summarizes the calculations completed to determine minimum and maximum household income limits for the subject units, based upon Year 2017 data. The minimum income limit calculation is based upon the assumption that family households should pay no more than 35% of their income to rent. The maximum income limit is determined by HUD.
17-156 (Market Study) 70 Minimum & Maximum Income Limit Calculations 1 Bed/1 Bath 2 Bed/1 Bath % AMI Calculation 30% 40% 50% 30% 40% 50% Persons Per Room 1.5 1.5 1.5 1.5 1.5 1.5 Total Persons 1.5 1.5 1.5 3 3 3 Gross Rent-Monthly $383 $511 $638 $459 $613 $766 Gross Rent-Annual $4,596 $6,132 $7,656 $5,508 $7,356 $9,192 ÷ Percentage of Income For Rent 35% 35% 35% 35% 35% 35% Minimum Income Level $13,131 $17,520 $21,874 $15,737 $21,017 $26,263 Maximum Income Level $15,330 $20,440 $25,550 $18,390 $24,520 $30,650
Households earning between $13,131 and $30,650 will be income-eligible for LIHTC units in the project. Within the PMA, 32.63% of households have incomes of between $15,000 and $34,999. In this case, the LIHTC income eligible bank overlaps with more than one census income range. Therefore, the prorated share of more than one census range will be calculated to determine households that are income-eligible within the demand analysis.
17-156 (Market Study) 71 ANALYSIS OF HOUSING DEMAND Within the LIHTC program, the rental rates for various unit types are fixed and not dependent on household income. The maximum LIHTC rents published by the Nevada Housing Division are based upon 30% of the estimated household income for an imputed household size. The imputed household size is an estimate of the average number of people that would belong to a household that would rent a given type of unit. There is no regulatory requirement that a household have a minimum income in relationship to the rental rate or that the number of persons in a household be restricted to a maximum number for a given unit size. As a result, the potential renters of a one bedroom/one bathroom unit could range from one person to as many as three or more persons.
Affordable housing case law will not allow the landlord, especially a landlord whose units have any subsidy from the government, to dictate how a family lives, in terms of the number of persons allowed in a housing unit, other than for well-defined health safety and welfare objectives. The Nevada Housing Division publishes LIHTC “guidelines” for the number of persons allowed to live in a given unit size, and developers may choose to incorporate similar guidelines into the LIHTC application, but these guidelines are not absolute maximums on the number of persons allowed to live in a given unit type. As a result of this undefined maximum number of persons, estimating the maximum household income range for a given unit type at a given level of income restriction requires subjective judgment.
The Reno Housing Authority indicated that HUD guidelines allow living rooms that meet Housing Quality Standards to be utilized as a bedroom for one person; however, for the purposes of this analysis, we do not assume that the living room will be utilized as a bedroom. The Nevada Housing Division publishes “guidelines” of two persons per actual bedroom. Within the LIHTC program, a maximum estimate of 1.5 persons per bedroom is mandated.
A minimum household income is not set within the LIHTC regulations; however it is our understanding that the developer can establish guidelines within the LIHTC application package. Low to moderate income households often have rents that represent a high proportion of household income. As will be discussed in a subsequent section of this report, the subject’s LIHTC rents represent a value within the local market.
A program designed to increase or improve housing for the most rent-burdened households would logically set a relatively high rent to income ratio as a minimum income
17-156 (Market Study) 72 standard. On the other hand, allowing households for which the LIHTC rents represent a significant rent burden may result in increased turnover, operations costs and conflict with programmatic goals of creating a stable family-oriented apartment community.
The preceding sections of this report indicate that within the subject 2.5-mile radius neighborhood, there is a strong demand for rental housing, and that a large portion of the population resides in renter occupied units. Given the subject neighborhood’s large percentage of renters, it is anticipated that the proposed project will experience strong demand. In addition, strong consideration is given to the subject’s location, proposed unit sizes, amenities, and new condition.
In addition, the subject will be restricted to persons aged 55 and over, and the subject’s PMA and 5-mile radius neighborhood indicates that the median household incomes for persons over this age threshold are higher than the 1-mile radius neighborhood. As an age and rent restricted project, the subject will likely generate significant interest from these households.
Finally, the median income within the 1-mile, 2.5-mile and 5-mile radius neighborhoods is significantly lower than the greater Reno-Sparks area. As a result, it is anticipated that the subject’s proposed units will meet with good market acceptance based upon its income restrictions.
The subject project is located in a central portion of Reno, and is located in close proximity to commercial uses, medical facilities, stores, churches, community services and public transportation. The surrounding neighborhood is residential in character with a mix of single-family and multi-family developments, with commercial uses located in close proximity. Shopping is close to the site, and Wells Avenue provides easy access to the I-580 Freeway and surrounding roadways.
The proposed project will have an ideal location with many amenities in close proximity to the proposed project site, including the main offices of Washoe County Senior Services (WCSS). The main offices of Washoe County Senior Services (WCSS) is 3 blocks south of the site at the County Government Center on the corner of Sutro and 9th Street. WCSS assists individuals 60 and over in the community with maintaining independence. The 9th Street Senior Center is a hub of activity, offering recreation, meals, adult day care, and access to resources, such as taxi vouchers, energy assistance, surplus food, tax assistance, and legal
17-156 (Market Study) 73 aid. It offers the following supports out of its 9th Street Center and in the community:
• Case Management: Assessment of needs, planning, facilitation and advocacy for options and services to meet the individual’s needs (example: assist individuals in obtaining or retaining benefits; identify available services/providers). • Homemaker Services: Light Housekeeping to eligible individuals 60 and over (cost share may apply). • Representative Payee: Assists individuals 60+ with managing Social Security benefits. Fee for service may apply. • Meals on Wheels: Home delivery meal program for individuals 60 and over that are homebound due to a physical or mental health condition/disability which prevents them from participating in WCSS; and, • Congregate meal program at the 9th Street Center.
The Center offers an adult day health (Daybreak) program, which provides care and socialization in a safe environment for the frail elderly. The Daybreak Program community health aides and nurses provide health monitoring, a noon meal, medication management and therapeutic activities including assistance with activities of daily living in English and Spanish. th Washoe County Senior Law Project is also located at the 9 Street Center, which provides free legal services to senior residents in the areas of housing, tax issues, guardianship petitions and public entitlements. And, there is also a branch of the Washoe County Public Library at the Center.
The Evelyn Mount Northeast Community Center is located 0.9± miles east of the site. The center contains a year-round pool (with water fitness and swimming classes), fitness center and gymnasium. The Taylor Memorial Park is adjacent to the Community Center, with basketball and tennis courts, picnic areas, and multiple walking paths.
The nearest grocery store, Valley Market, is located approximately 0.8± miles away from the site. Sak’N Save Food Store is located approximately 1.1± miles away from the site, and, in the same shopping center, there are multiple restaurants such as El Paisano, The Wok and Subway. The Silverada Mall Shopping center is also located approximately 1.1± miles east of the site. The shopping center contains a Les Schwab Tire Center, AutoZone, McDonald’s, Dollar Tree, Bank of America Financial Center, Manila Hong Kong Store & Kitchen, Savers, A1 Indian Grocery Store and CVS Pharmacy.
17-156 (Market Study) 74 Additionally, there are several medical facilities located near the site. West Hills Hospital and Walk-In Emotional Support are located approximately 0.3± miles south of the site. Saint Mary’s Regional Medical Center is located approximately 1.3± miles southwest of the site. The Renown Regional Medical Center is located approximately 1.2± miles south of the site. The medical center is the only certified level 2 trauma center between Sacramento and Salt Lake City. Within the medical center, there is the Institute for Robotic Surgery, Institute for Heart & Vascular Health, Institute for Neuroscience, Institute for Cancer, and it offers many services from specialized practitioners.
The site is served by RTC bus Routes 5 and 15. Route 5, which operates every half hour Monday through Friday and every hour on the weekends and holidays, runs from the 4th Street Station to the Sun Valley Shopping Center at the intersection of 5th Avenue and Sun Valley Boulevard. Route 15 operates every half hour Monday through Friday and every hour on the weekends and holidays, runs from the 4th Street Station to Truckee Meadows Community College.
The subject facility will be new, and provide a higher level of amenities than is typical within the neighborhood. Additionally, the facility’s location is in close proximity to numerous amenities that would be desirable to prospective tenants. The subject’s below market rents, newer age, amenities, and location should result in extremely strong demand.
17-156 (Market Study) 75 DEMAND ESTIMATES FOR THE PRIMARY MARKET AREA In order to estimate the specific demand for the subject’s proposed age restricted, affordable units, an analysis of existing total demand is necessary. Existing demand measures the demand for the subject units based upon existing units within the submarket.
Income Eligible Households The first step in the demand analysis is to determine the number of age and income- eligible tenants for the subject within the Primary Market Area. The chart below summarizes the calculations completed to determine minimum and maximum household income limits for the subject units, based upon Year 2017 data. The minimum income limit calculation is based upon the assumption that family households should pay no more than 35% of their income to rent. The maximum income limit is determined by HUD.
Minimum & Maximum Income Limit Calculations 1 Bed/1 Bath 2 Bed/1 Bath % AMI Calculation 30% 40% 50% 30% 40% 50% Persons Per Room 1.5 1.5 1.5 1.5 1.5 1.5 Total Persons 1.5 1.5 1.5 3 3 3 Gross Rent-Monthly $383 $511 $638 $459 $613 $766 Gross Rent-Annual $4,596 $6,132 $7,656 $5,508 $7,356 $9,192 ÷ Percentage of Income For Rent 35% 35% 35% 35% 35% 35% Minimum Income Level $13,131 $17,520 $21,874 $15,737 $21,017 $26,263 Maximum Income Level $15,330 $20,440 $25,550 $18,390 $24,520 $30,650
Households earning between $13,131 and $30,650 will be income-eligible for LIHTC units. Within the PMA, 36.04% of 55+ households have incomes of between $15,000 and $34,999. In this case, the LIHTC income eligible bank overlaps with more than one census income range. Therefore, the prorated share of more than one census range will be calculated to determine households that are income-eligible within the demand analysis.
As the chart below indicates, approximately 28,013 of the 38,438 occupied households (72.88%) within the PMA are renter households.
17-156 (Market Study) 76 Housing Units By Occupancy Status & Tenure (PMA-2.5 Mile Radius)
The chart below summarizes income data for 55+ households in the PMA, for comparison purposes, below that, the 1 and 5-mile radius neighborhoods have also been included. Within the PMA, 61.01% of 55+ households have incomes below $34,999. In this case, the LIHTC income eligible bank overlaps with more than one census income range.
Age 55+ Household Income Data (PMA-2.5 Mile Radius)
17-156 (Market Study) 77 Age 55+ Household Income Data (1 & 5-Mile Radius)
17-156 (Market Study) 78 The following summarizes the total number of rental households which are age and income eligible within the PMA. Due to the income qualifications overlapping, a prorated share of the census ranges has been calculated.
Total Income Eligible Households (PMA-2.5 Mile Radius) Income # of Renter 30% AMI 40% AMI 50% AMI ALL UNITS Range Households Cohort Overlap % in Cohort # in Cohort Cohort Overlap % in Cohort # in Cohort Cohort Overlap % in Cohort # in Cohort Cohort Overlap % in Cohort # in Cohort $0 $14,999 2,885 1,868 18.68% 539 0 0.00% 0 0 0.00% 0 1,868 18.68% 539 $15,000 $24,999 2,449 3,390 33.90% 830 7,000 70.00% 1,714 3,125 31.25% 765 9,999 99.99% 2,449 $25,000 $34,999 1,717 0 0.00% 0 0 0.00% 0 5,650 56.50% 970 5,650 56.50% 970 $35,000 $49,999 1,635 0 0.00% 0 0 0.00% 0 0 0.00% 0 0 0.00% 0 $50,000 $74,999 1,385 $75,000 $99,999 632 $100,000 $149,999 550 $150,000 $199,999 168 $200,000 + 136 Totals 11,558 11.84% 1,369 14.83% 1,714 15.01% 1,735 34.24% 3,958
According to the chart above, as of 2017, there are approximately 3,958 age and income eligible renter households within the PMA. The subject would need to capture 44 of the 3,958 age and income-eligible renter households, or 1.11% to be fully occupied.
17-156 (Market Study) 79 CAPTURE RATE & PENETRATION RATE ANALYSIS-PRIMARY MARKET AREA The Capture Rate is the percentage of age, size and income qualified renter households in the Primary Market Area that the individual property must capture to achieve stabilized occupancy. It is calculated by dividing the number of units proposed by the number of net eligible households.
The Penetration Rate is the percentage of age, size and income qualified renter households in the Primary Market Area that all existing and proposed properties which are competitively priced to the subject that must be captured to achieve the Stabilized Level of occupancy.
Capture Rate Analysis-By Unit Type In order to determine demand for the subject’s proposed unit mix, we have analyzed the demand capture rates expected at the subject by each unit type. This analysis illustrates demand for the 30%, 40% and 50% AMI levels. The distribution of households by unit type is dependent on the following assumptions.
Household Distribution % of Units # Persons Unit Type 80% 1 1 Bed 20% 1 2 Bed 20% 2 1 Bed 80% 2 2 Bed 60% 3 2 Bed 20% 4 2 Bed
The above chart indicates the estimated percentage of household size which will occupy a certain unit type. The National Council of Housing Market Analysts publishes occupancy guides, which indicate that one bedroom units have both one and two persons, and two bedroom units have between two and four persons.
The following pages summarize calculations to determine capture rates by unit type.
17-156 (Market Study) 80 Capture Rate Analysis-30% AMI
AMI 30%
Renter Household Distribution Persons Renter Household Size Distribution Total # of Renter Households 1 39.4% 4,554 2 28.2% 3,259 3 12.7% 1,468 4 9.4% 1,086 5+ 10.3% 1,190 TOTAL 100.0% 11,558
Income-Qualified Renter Demand Persons Total # Renter Households % Income-Qualified Renter Households # Qualified Renter Households 1 4,554 11.8% 539 2 3,259 11.8% 386 3 1,468 11.8% 174 4 1,086 11.8% 129 5+ 1,190 11.8% 141 TOTAL 11,558 1,369
Projected Renter Household Demand by Unit Type Unit Type # of Qualified Renter Households 1 Bedroom 509 2 Bedroom 547 TOTAL 1,055
Capture Rate Analysis Unit Type Subject Unit Mix Capture Rate 1 Bed/1 Bath 33 6.49% 2 Bed/1 Bath 11 2.01% TOTAL 44 4.17%
Capture Rate Analysis Adjusted For Leakage (15%) Unit Type Subject Unit Mix Capture Rate 1 Bed/1 Bath 33 5.51% 2 Bed/1 Bath 11 1.71% TOTAL 44 3.54%
The indicated capture rates for the 30% AMI units for the one and two-bedroom units proposed for the subject project are extremely low, indicating a very high need for these unit types within the subject’s PMA.
17-156 (Market Study) 81 Capture Rate Analysis-40% AMI
AMI 40%
Renter Household Distribution Persons Renter Household Size Distribution Total # of Renter Households 1 39.4% 4,554 2 28.2% 3,259 3 12.7% 1,468 4 9.4% 1,086 5+ 10.3% 1,190 TOTAL 100.0% 11,558
Income-Qualified Renter Demand Persons Total # Renter Households % Income-Qualified Renter Households # Qualified Renter Households 1 4,554 14.8% 675 2 3,259 14.8% 483 3 1,468 14.8% 218 4 1,086 14.8% 161 5+ 1,190 14.8% 177 TOTAL 11,558 1,714
Projected Renter Household Demand by Unit Type Unit Type # of Qualified Renter Households 1 Bedroom 637 2 Bedroom 685 TOTAL 1,322
Capture Rate Analysis Unit Type Subject Unit Mix Capture Rate 1 Bed/1 Bath 33 5.18% 2 Bed/1 Bath 11 1.61% TOTAL 44 3.33%
Capture Rate Analysis Adjusted For Leakage (15%) Unit Type Subject Unit Mix Capture Rate 1 Bed/1 Bath 33 4.40% 2 Bed/1 Bath 11 1.37% TOTAL 44 2.83%
The indicated capture rates for the 40% AMI units for the one and two-bedroom units proposed for the subject project are extremely low, indicating a very high need for these unit types within the subject’s PMA.
17-156 (Market Study) 82 Capture Rate Analysis-50% AMI
AMI 50%
Renter Household Distribution Persons Renter Household Size Distribution Total # of Renter Households 1 39.4% 4,554 2 28.2% 3,259 3 12.7% 1,468 4 9.4% 1,086 5+ 10.3% 1,190 TOTAL 100.0% 11,558
Income-Qualified Renter Demand Persons Total # Renter Households % Income-Qualified Renter Households # Qualified Renter Households 1 4,554 15.0% 684 2 3,259 15.0% 489 3 1,468 15.0% 220 4 1,086 15.0% 163 5+ 1,190 15.0% 179 TOTAL 11,558 1,735
Projected Renter Household Demand by Unit Type Unit Type # of Qualified Renter Households 1 Bedroom 645 2 Bedroom 693 TOTAL 1,338
Capture Rate Analysis Unit Type Subject Unit Mix Capture Rate 1 Bed/1 Bath 33 5.12% 2 Bed/1 Bath 11 1.59% TOTAL 44 3.29%
Capture Rate Analysis Adjusted For Leakage (15%) Unit Type Subject Unit Mix Capture Rate 1 Bed/1 Bath 33 4.35% 2 Bed/1 Bath 11 1.35% TOTAL 44 2.80%
The indicated capture rates for the 50% AMI units for the one and two-bedroom units proposed for the subject project are extremely low, indicating a very high need for these unit types within the subject’s PMA.
17-156 (Market Study) 83 Capture Rate Analysis-Annual Capture Rate Analysis The Annual Capture Rate Analysis calculation derives an estimated market penetration rate based on annual demand. This is an indication of the percentage of net demand penetration that the subject must attract in order to reach stabilized occupancy. This measure analyzes the available household demand searching for apartments in the market area and deducts competition currently trying to absorb units in order to determine net demand available to the subject. The annual demand for rental housing depends upon the following factors:
• Existing households that live in the area but move to a new home; • Population changes as a result of new households moving in or out of the area.
The first step is to take the number of age and income qualified renter households in the PMA, which was previously determined to be 3,958 households. This is then multiplied by the percentage of rent-overburdened households; a rent overburdened household is considered any household which pays over 35% of gross income towards rent. In order to determine the percentage of overburdened households, we have researched Census and area data, which is summarized below:
Overburdened Households-Washoe County
17-156 (Market Study) 84 Overburdened Households-American Community Survey 2012-2016 American Community Survey 5-Year Estimates Subject Nevada Reno, NV Metro Area
GROSS RENT AS A PERCENTAGE OF HOUSEHOLD INCOME Percent Margin Percent Margin Renter-Occupied Housing Units Estimate Margin of Error Percent Estimate Margin of Error Percent of Error of Error Total 465,914 +/-4,091 465,914 (X) 73,232 +/-1,393 73,232 (X) Less than 10.0 percent 13,800 +/-829 3.0% +/-0.2% 2,134 +/-372 2.9% +/-0.5% 10.0 to 14.9 percent 37,207 +/-1,386 8.0% +/-0.3% 6,021 +/-590 8.2% +/-0.8% 15.0 to 19.9 percent 58,691 +/-1,825 12.6% +/-0.4% 9,819 +/-706 13.4% +/-1.0% 20.0 to 24.9 percent 6,017 +/-1,896 1.3% +/-0.4% 9,479 +/-681 12.9% +/-0.9% 25.0 to 29.9 percent 52,185 +/-1,471 11.2% +/-0.3% 8,122 +/-632 11.1% +/-0.9% 30.0 to 34.9 percent 39,111 +/-1,176 8.4% +/-0.3% 6,356 +/-552 8.7% +/-0.8% 35.0 to 39.9 percent 31,113 +/-1,121 6.7% +/-0.2% 4,889 +/-471 6.7% +/-0.6% 40.0 to 49.9 percent 43,642 +/-1,404 9.4% +/-0.3% 6,534 +/-680 8.9% +/-0.9% 50.0 percent or more 105,419 +/-2,153 22.6% +/-0.5% 16,645 +/-839 22.7% +/-1.1%
Not computed 24,568 +/-1,081 5.3% +/-0.2% 3,233 +/-398 4.4% +/-0.5%
Due to limited data by the U.S. Census Bureau, we were only provided statistics pertaining to all of Washoe County for 2012, and a sample of Overburdened Households between 2012 and 2016 (estimated) for the State of Nevada. According to the charts above, approximately 40% of all the households in Washoe County pay more than 35% of their gross annual income towards rent. Within the Reno metro area, it is estimated that approximately 38% of households pay more than 35% of their gross income towards rent. Based upon the above data, we have projected that approximately 40% of households in the PMA have rent at or above 35% of gross income, and are therefore overburdened. This 40% is multiplied by the number of income qualified renter households (3,958) to arrive at the existing age and income qualified renter household turnover amount.
Next, an analysis of the projected renter household growth is calculated. The projected increase in the number of renter households in the PMA, on an annual basis, is then multiplied by the percentage of income qualified households in the PMA to arrive at the new rental income qualified households.
Finally, the subject’s projected units are analyzed in addition to total demand within the PMA. Total demand is adjusted by the projected turnover factor to arrive at total demand in the PMA. The subject’s required capture rate equals the number of subject units required to be absorbed to reach stabilized occupancy (42 units), divided by the total demand. The following summarizes the Annual Demand analysis.
17-156 (Market Study) 85 Annual Demand Analysis Existing Demand (2017) Number of Age & Income Qualified Rental Households 3,958 % of Rent-Overburdened Households 40% Existing Age & Income Qualified Renter Household Turnover 1,583 New Income-Qualified Demand (Stated Annually) Number of Rental Households-2017 11,558 Number of Rental Households-2022 12,635 Increase in Renter Households (2017-2022) 1,077 Increase in Renter Households Per Annum 215 Percentage of Age & Income Qualified Renter Households 34.24% New Rental Age & Income Qualified Households 74 Capture Rate Analysis Number of Units-Subject Proposed Project 44 Occupied Units at Stabilization (95%) 42 Units Pre-Leased 0 Total Demand (Existing & New)-Excluding Turnover 1,657 Divided By Turnover Factor 0.85 Total Demand Within PMA 1,949 Less Existing LIHTC Projects in Absorption (Vintage at Virginia & Alpine Haven) 270 Total Demand After Competition (Turnover & Growth) 1,679 Demand Yield Capture Rate 2.62%
The chart above includes 40 units in the PMA which are in absorption and additional 230 senior units in South Reno. Although not technically completed, Vintage at Virginia and Alpine Haven are both under construction, and therefore have been included.
The subject’s yielded capture rate is approximately 2.62% of available demand on an annual basis. This indicates that there is very high demand within the PMA. In addition to the above, consideration is given to other factors, including the submarket vacancy rate for market rate and subsidized apartment projects, waiting lists for comparable projects, and new construction and planned development of competitive projects in the area. The following summarizes findings of this additional analysis:
• As is indicated in the competitive assessment of comparable projects following this section, vacancy rates in the PMA are extremely low, and the overall vacancy rate for the entire Reno-Sparks market is below 3%. Demand for new units is currently outpacing new construction. Although several new market rate projects are currently under construction, the number of units being developed will likely have limited impact on low vacancies, due to increased demand from positive economic growth 17-156 (Market Study) 86 spurred by a general turnaround in the economy, as well as from planned new developments like the Tesla Gigafactory.
• Two new affordable senior projects are currently under construction in Reno. The first project, Vintage at Virginia, is located along Old Virginia Road in south Reno, and will add 230-units in 2018 and will be for 60% and below AMI residents. The second project, Alpine Haven, is located along Oddie Boulevard in west Sparks, and will add 40-units in 2018 and will be for 40% and below AMI residents. Neither project will materially impact demand at the subject, due to their locations, age restrictions and extremely high demand for affordable units in the Reno-Sparks area.
• Most managers interviewed in the affordable and subsidized apartment arena within Reno indicated waiting lists or very short turnarounds for new tenants. Vacancy rates remain extremely low to non-existent in all of the projects surveyed.
17-156 (Market Study) 87 COMPETITIVE ASSESSMENT OF COMPARABLE PROJECTS The next step in this report is to analyze competitive projects within the subject’s Primary Market Area (PMA), as well as projects considered comparable within the region. The subject’s PMA encompasses a large portion of central and south Reno, and includes a wide variety of market rate and rent restricted apartment projects.
Comparable properties were analyzed on the basis of location, physical characteristics, and based upon an analysis of both market rate and rent restricted projects. Johnson Perkins Griffin, LLC completes a quarterly survey of market rate apartment projects within the Reno- Sparks area; this survey has been incorporated into the assessment of comparable projects.
The chart on the following page summarizes subsidized senior apartment projects within the Reno-Sparks area and several subsidized family projects within the subject’s PMA; this is followed by a map and photographs of the subsidized projects, and a description and analysis of the subsidized projects.
17-156 (Market Study) 88 COMPARABLE RENT-RESTRICTED APARTMENT RENTAL CHART Complex Name Age Income Rental Address Quality Qualification Distribution of Units Monthly Unit Sizes Rent Per # Vacancy Number Submarket, City, State Condition (% of AMI) Total Units Rent (Square Feet) Square Foot Vacant Rate SAR-1 Sierra Crest Senior Apartments 2005 30% HF 3 1 Bed/1 Bath $349 655 $0.53 0 0.00% 795 Prater Way Good 45% 31 1 Bed/1 Bath $550 655 $0.84 0 0.00% Central Sparks Good 50% 11 1 Bed/1 Bath $617 655 $0.94 0 0.00% Sparks, NV 45% HF 4 2 Bed/1 Bath $658 655 $1.00 0 0.00% 775-353-2500 50% HF 4 2 Bed/1 Bath $738 750 $0.98 0 0.00% 45% 19 2 Bed/1 Bath $658 750 $0.88 0 0.00% 72 Total Units $597 Avg. 685 Avg. $0.87 Avg. 0 0.00%
SAR-2 Grace Senior Apartments 2003 30% HF 3 1 Bed/1 Bath $349 614 $0.57 0 0.00% 1260 Commerce Street Average 45% HF 8 1 Bed/1 Bath $550 614 $0.90 0 0.00% Central Sparks Average 45% 26 1 Bed/1 Bath $550 614 $0.90 0 0.00% Sparks, NV 45% 18 2 Bed/1 Bath $658 736 $0.89 0 0.00% 775-284-5777 55 Total Units $574 Avg. 654 Avg. $0.88 Avg. 0 0.00%
SAR-3 Carriage Stone Apartments 2006 30% HF/TC 3 1 Bed/1 Bath $349 600 $0.58 0 0.00% 695 South Center Street Good 45% 39 1 Bed/1 Bath $550 600 $0.92 0 0.00% Midtown Reno Good 50% 17 1 Bed/1 Bath $617 600 $1.03 0 0.00% Reno, NV 45% HF/TC 11 2 Bed/1 Bath $658 720 $0.91 0 0.00% 775-333-3310 45% 7 2 Bed/1 Bath $658 720 $0.91 0 0.00% 50% 7 2 Bed/1 Bath $738 720 $1.03 0 0.00% 84 Total Units $595 Avg. 636 Avg. $0.94 Avg. 0 0.00%
SAR-4 The Willows at Wells 2008 30% 3 1 Bed/1 Bath $349 620 $0.56 0 0.00% 201 South Wells Avenue Good 45% 15 1 Bed/1 Bath $550 620 $0.89 0 0.00% Central Reno Good 50% 9 1 Bed/1 Bath $617 620 $1.00 0 0.00% Reno, NV 45% 5 2 Bed/1 Bath $658 801 $0.82 0 0.00% 775-329-4248 50% 7 2 Bed/1 Bath $738 801 $0.92 0 0.00% 39 Total Units $598 Avg. 676 Avg. $0.88 Avg. 0 0.00%
SAR-5 City Hall Senior 2009 30% HF 3 1 Bed/1 Bath $349 655 $0.53 0 0.00% 615 5th Street Good 45% 3 1 Bed/1 Bath $550 655 $0.84 0 0.00% Central Sparks Good 50% 21 1 Bed/1 Bath $617 655 $0.94 0 0.00% Sparks, NV 50% HF 3 1 Bed/1 Bath $617 655 $0.94 0 0.00% 775-353-2500 45% 3 2 Bed/1 Bath $658 750 $0.88 0 0.00% 50% 9 2 Bed/1 Bath $738 750 $0.98 0 0.00% 42 Total Units $622 Avg. 682 Avg. $0.91 Avg. 0 0.00%
SAR-6 River Place Senior 2011 30% HF 3 1 Bed/1 Bath $349 655 $0.53 0 0.00% 895 Kuenzli Street Good 45% 8 1 Bed/1 Bath $550 655 $0.84 0 0.00% East-Central Reno Good 45% HF 5 1 Bed/1 Bath $550 655 $0.84 0 0.00% Reno, NV 50% 31 1 Bed/1 Bath $617 655 $0.94 0 0.00% 775-284-2090 45% 2 2 Bed/1 Bath $658 750 $0.88 0 0.00% 45% HF 3 2 Bed/1 Bath $658 750 $0.88 0 0.00% 50% 3 2 Bed/1 Bath $738 750 $0.98 0 0.00% 55 Total Units $597 Avg. 669 Avg. $0.89 Avg. 0 0.00%
SAR-7 CitiVista Apartments 2001 30% 2 Studio $357 505 $0.71 0 0.00% 650 Record Street Average 52.50% 9 1 Bed/1 Bath $714 537 $1.33 0 0.00% Central Reno Good 60% 96 1 Bed/1 Bath $804 573 $1.40 0 0.00% Reno, NV 60% 13 2 Bed/1 Bath $964 700 $1.38 0 0.00% 775-324-2211 60% 16 2 Bed/1 Bath $964 718 $1.34 0 0.00% 60% 15 2 Bed/1 Bath $964 745 $1.29 5 33.33% 60% 1 2 Bed/1 Bath $964 752 $1.28 0 0.00% 152 Total Units $840 Avg. 614 Avg. $1.37 Avg. 5 3.29%
SAR-8 Juniper Village 2014 30% 3 1 Bed/1 Bath $326 690 $0.47 0 0.00% 525 Morrill Avenue Good 40% Special Needs 9 1 Bed/1 Bath $298 690 $0.43 0 0.00% Central Reno Good 40% 4 1 Bed/1 Bath $455 690 $0.66 0 0.00% Reno, NV 40% Special Needs 5 2 Bed/1 Bath $380 885 $0.43 0 0.00% 775-337-9155 X112 40% 23 2 Bed/1 Bath $545 885 $0.62 0 0.00% 44 Total Units $453 Avg. 814 Avg. $0.56 Avg. 0 0.00%
SAR-9 The Plaza at 4th Street 2002 45% HF 11 1 Bed/1 Bath $550 640 $0.86 0 0.00% 450 North Wells Avenue Average 45% 9 1 Bed/1 Bath $550 640 $0.86 0 0.00% Central Reno Average 30% 4 1 Bed/1 Bath $417 608 $0.69 0 0.00% Reno, NV 45% HF 19 2 Bed/1 Bath $658 928 $0.71 0 0.00% 775-333-0765 45% 7 2 Bed/2 Bath $658 952 $0.69 0 0.00% 50 Total Units $596 Avg. 791 Avg. $0.75 Avg. 0 0.00%
17-156 (Market Study) 89 COMPARABLE RENT-RESTRICTED APARTMENT RENTAL MAP
17-156 (Market Study) 90 COMPARABLE RENT-RESTRICTED APARTMENT PHOTOGRAPHS
SAR-1 Sierra Crest Senior Apartments
SAR-2 Grace Senior Apartments
17-156 (Market Study) 91 COMPARABLE RENT-RESTRICTED APARTMENT PHOTOGRAPHS
SAR-3 Carriage Stone Apartments
SAR-4 The Willow at Wells Senior Apartments
17-156 (Market Study) 92 COMPARABLE RENT-RESTRICTED APARTMENT PHOTOGRAPHS
SAR-5 City Hall Senior Apartments
SAR-6 River Place Senior Apartments
17-156 (Market Study) 93 COMPARABLE RENT-RESTRICTED APARTMENT PHOTOGRAPHS
SAR-7 CitiVista Apartments
SAR-8 Juniper Village
17-156 (Market Study) 94 COMPARABLE RENT-RESTRICTED APARTMENT PHOTOGRAPHS
SAR-9 The Plaza at 4th Street
17-156 (Market Study) 95 DISCUSSION OF COMPETITIVE SUBSIDIZED APARTMENT PROJECTS The chart below illustrates the amenities within the subject property and the comparable subsidized apartment projects. As the subject and majority of comparables are age restricted, low income projects, they do not have certain amenities that are generally associated with market rate garden style apartment projects such as a swimming pool, spa, tennis court and playground areas.
Comparable Rent-Restricted Apartment Project Amenities Amenities Subject SAR-1 SAR-2 SAR-3 SAR-4 SAR-5 SAR-6 SAR-7 SAR-8* SAR-9* Affordable Housing Program LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC LIHTC Dining Room Yes No Yes No No No No No No No Library Yes Yes Yes No Yes No Yes No Yes No Lounge/Community Room Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Business Center Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Game Room/Recreation Room Yes Yes Yes Yes No No Yes Yes No Yes Fitness Center No Yes Yes Yes Yes Yes Yes Yes No No Patio/Balcony Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes On-Site Management Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes * As SAR-8 and SAR-9 are not age restricted properties, both complexes include a playground and barbeque area.
Eight of the comparable projects were fully leased, with waiting lists, at the time of our survey. CitiVista had five available units, indicating a vacancy rate of 3.29%. Additionally, respondents indicated that, where applicable, as new units became available, maximum rents based upon HUD 2017 guidelines were being utilized.
Rental SAR-1 is the Sierra Crest Senior Apartments located at 795 Prater Way in east Sparks. This project is situated on the southeast corner of Prater Way and Pyramid Highway within the subject neighborhood. This project is a 72-unit senior affordable housing complex that was constructed in 2005, and is leased based upon 30%, 45% and 50% of Average Median Income (AMI). This project is also age restricted for persons aged 55 and older. This complex features 34 one bedroom/one bathroom units and 38 two bedroom/one bathroom units. The project consists of one, three-story building and asphalt paved parking area. Amenities include a computer room, fitness center, library, community center and billiards room. As of the date of the survey of this property, there was zero units available, indicating an overall vacancy rate of 0.00%.
Rental SAR-2 is the Grace Senior Apartments located at 1260 Commerce Street in southwest Sparks. This project is a 55-unit senior affordable housing complex that was constructed in 2003, and is leased based upon 30% and 45% of Average Median Income (AMI). This project is also age restricted for persons aged 55 and older. This complex features thirty-
17-156 (Market Study) 96 seven one bedroom/one bathroom units and eighteen two bedroom/one bathroom units. The project consists of one, three-story building and asphalt paved parking area. Amenities include a community center, business center, dining room, activity room, exercise room and library. As of the date of the survey of this property, there was zero units available, indicating an overall vacancy rate of 0.00%.
Rental SAR-3 is the Carriage Stone Senior Apartments located at 670 South Virginia Street in north-central Reno. This 84-unit complex was built in 2006 and is leased based upon 30%, 45% and 50% of Average Median Income (AMI). This project is age restricted for persons aged 55 and older. This three story project contains one building and features 59 one bedroom/one bathroom units and 25 two bedroom/one bathroom units. The project amenities include two elevators, exercise room, game room, meeting room, computer lab, and each unit has a washer/dryer and a high energy efficient heating/cooling system. As of the date of the survey of this property, there were zero units available, indicating an overall vacancy rate of 0.00%.
Rental SAR-4 is the Willows at Wells Senior Apartments located at 201 South Wells Avenue in north-central Reno. This 39-unit complex was built in 2007 and is restricted to seniors, 55 years of age or older, with income restrictions of 30%, 45% and 50% of Average Median Income (AMI). This three story project contains one building and features 27 one bedroom/one bathroom apartments and 12 two bedroom/one bathroom apartments. The project amenities include an elevator, exercise room, community meeting room, computer room, library and picnic area. In addition, each unit has a washer/dryer and a patio or balcony. All units in this complex are handicap accessible. As of the date of the survey of this property, there were zero units available, indicating an overall vacancy rate of 0.00%.
Rental SAR-5 is the City Hall Senior Apartments located at 615 5th Street in east Sparks within the subject neighborhood. This 42-unit complex was built in 2009 and is restricted to seniors, 55 years of age or older, with income restrictions of 30%, 45% and 50% of Average Median Income (AMI). This three story project contains one building and features 30 one bedroom/one bathroom apartments and 12 two bedroom/one bathroom apartments. The project amenities include a business center, wellness room, fitness center, community room and horseshoe pit. In addition, each unit has a washer/dryer and a patio or balcony. All units in this complex are handicap accessible. As of the date of the survey of this property, there was zero units available, indicating an overall vacancy rate of 0.00%.
17-156 (Market Study) 97 Rental SAR-6 is the River Place Senior Apartments located at 895 Kuenzli Street in north-central Reno. This 55-unit complex was built in 2011 and is restricted to seniors, 55 years of age or older, with income restrictions of 30%, 45% and 50% of Average Median Income (AMI). This three story project contains one building and features 45 one bedroom/one bathroom units and 10 two bedroom/one bathroom units. The project amenities include elevators, community room, exercise room, business center, wellness room, library, game room and outdoor patio with tables and grills. In addition, each unit has a washer/dryer, patio or balcony and a high energy efficient heating/cooling system. As of the date of the survey of this property, there were zero units available, indicating an overall vacancy rate of 0.00%.
Rental SAR-7 is the CitiVista Apartments located at 650 Record Street in north-central Reno. This project is a 152-unit senior affordable housing complex that was constructed in 2001, and is leased based upon 30% and 52.5% to 60% of Average Median Income (AMI). This project is age restricted for persons aged 55 and older. This project contains four, four-story buildings which are connected via interior hallways. It is also noted that parking is provided via a parking garage located underneath the building. This complex features 105 one bedroom/one bathroom units and 45 two bedroom/one bathroom units. In addition, this complex contains two junior one bedroom/one bathroom units. Amenities include an entertainment room, multipurpose room, laundry rooms, social room, lounge, and a beauty shop. As of the date of the survey of this property, there were 5 units available, indicating an overall vacancy rate of 3.29%.
Rental SAR-8 is the Juniper Village Apartments located at 525 Morrill Avenue in central Reno, just north of SAR-9. This 44-unit complex was built in 2015 and is not age restricted. This three-story project contains 1 building, with 16 one bedroom/one bathroom units and 28 two bedroom/one bath units. The maximum tenant income for three of the one bedroom apartments is 30% of the AMI, with the rest of the units having income restrictions of 40% of the AMI, of which, nine one bedroom units and five two bedroom units are reserved for special needs tenants. The project amenities include a library, community room, business center, playground and barbeque area. The units have full size appliances, dishwashers, garbage disposals, average quality kitchen cabinets and air conditioning. As of the date of the survey of this property, there were zero units available, indicating an overall vacancy rate of 0.00%.
Rental SAR-9 is The Plaza at 4th Street Apartments located at 450 North Wells Avenue in central Reno, just south of SAR-8. This 50-unit complex was built in 2002 and is not age restricted. This project contains on two-story building with retail on the ground floor and two
17-156 (Market Study) 98 three-story buildings. There are 24 one bedroom/one bathroom units and 26 two bedroom/one bath units. The maximum tenant income for four of the one bedroom apartments is 30% of the AMI, with the rest of the units having income restrictions of 45% of the AMI. The 45% Tax Credit set aside units can be rented to individuals who qualify at 50% of the AMI. The project amenities include a recreation room, community room, business center, playground and barbeque area. The units have full size appliances, dishwashers, garbage disposals, average quality kitchen cabinets and air conditioning. As of the date of the survey of this property, there were zero units available, indicating an overall vacancy rate of 0.00%.
17-156 (Market Study) 99 AVERAGE MEDIAN INCOME & MAXIMUM ALLOWABLE RENTAL DATA The following chart summarizes the historical Average Median Income for the Reno- Sparks area, HUD Fair Market Rents and LIHTC income limits and maximum allowable rents in Reno for 2017 for 30%, 40% and 50% AMI for 1 bedroom and 2 bedroom units.
AVERAGE MEDIAN HOUSEHOLD INCOME (RENO-SPARKS MSA) Year Average Median Income (AMI)-4 Person Household % Change 2010 $71,200 1.14% 2011 $70,500 -0.98% 2012 $71,400 1.28% 2013 $65,200 -8.68% 2014 $63,000 -3.37% 2015 $63,500 0.79% 2016 $67,000 5.51% 2017 $68,100 1.64%
HUD FAIR MARKET RENTS BY UNIT TYPE Unit Type 2014 2015 2016 2017 Efficiency $549 $551 $574 $584 One Bedroom $697 $699 $711 $706 Two Bedroom $921 $924 $931 $920 Three Bedroom $1,357 $1,362 $1,357 $1,339 Four Bedroom $1,631 $1,637 $1,625 $1,621
LIHTC RENT AND INCOME LIMITS
17-156 (Market Study) 100 SUMMARY OF LIHTC MAXIMUM RENTS (2017)-WITH UTILITY ALLOWANCE 2017 LIHTC Max Utility 2017 LIHTC Unit Type Unit Size AMI % Gross Rent* Allowance Max Net Rent* 1 Bed/1 Bath 625± SF 30% PBV $383 $56 $327** 1 Bed/1 Bath 625± SF 40% $511 $56 $455 1 Bed/1 Bath 625± SF 50% $638 $56 $582 2 Bed/1 Bath 780± SF 30% $459 $72 $387 2 Bed/1 Bath 780± SF 40% $613 $72 $541 2 Bed/1 Bath 780± SF 50% $766 $72 $694 * The Subject’s Projected Rents Were Based Upon 2017 LIHTC Maximum Rents ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
As will be shown in the market rent analysis, the subject’s projected market rents, as of a current date, exclusive of any rent restrictions, are above the maximum LIHTC rental rates set forth above. Therefore, the subject project should be able to charge the LIHTC maximum rates. It is noted that the subject units include a $56 Utility Allowance for the one bedroom units and a $72 Utility Allowance for the two bedroom units.
17-156 (Market Study) 101 COMPARABLE MARKET RATE APARTMENT RENTAL CHART Complex Name Age Unit Sizes Rent Per Rental Address Quality Distribution of Units Monthly (Square Square # Vacancy Number Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate MAR-1 Belle Haven 1965 6 Studio $600 250 $2.40 0 0.00% 555 Sullivan Lane Average 48 1 Bed/1 Bath $750 625 $1.20 0 0.00% Southwest Sparks Average 36 2 Bed/1 Bath $863 825 $1.05 0 0.00% Sparks, NV 90 Total Units $785 680 Avg. $1.15 0 0.00%
MAR-2 Stonegate Apartments 1979 64 Studio $625 540 $0.98 1 0.00% 445 Sullivan Lane Average 80 1 Bed/1 Bath $775 675 $0.87 1 0.00% Southwest Sparks Average 32 2 Bed/1 Bath $992 900 $0.84 3 0.00% Sparks, NV 176 Total Units $760 667 Avg. $1.14 5 2.84%
MAR-3 Green Pines 1986 88 1 Bed/1 Bath $830 708 $1.17 0 0.00% 2040 Carville Drive Average 24 2 Bed/1 Bath $930 955 $0.97 0 0.00% Northeast Reno Average 4 3 Bed/2 Bath $1,275 1,376 $0.93 0 0.00% Reno, NV 116 Total Units $866 782 Avg. $1.11 0 0.00%
MAR-4 Northtowne Summit 1997 108 1 Bed/1Bath $1,002 787 $1.27 11 10.19% 2777 Northtowne Lane Average 12 2 Bed/1Bath $1,145 951 $1.20 2 16.67% Northeast Reno Average 100 2 Bed/2 Bath $1,301 1,107 $1.18 9 9.00% Reno, NV 220 Total Units $1,146 941 Avg. $1.22 22 10.00%
MAR-5 Riverwood Apartments 1980 78 Studio $775 448 $1.73 2 2.56% 805 Kuenzli Street Average 63 1 Bed/1 Bath $865 674 $1.28 3 4.76% Northeast Reno Average 78 1 Bed/1 Bath $909 794 $1.14 2 2.56% Reno, NV 121 2 Bed/1 Bath $1,050 816 $1.29 4 3.31% 340 Total Units $920 700 Avg. $1.31 11 3.24%
MAR-6 El Chaparral 1986 60 1 Bed/1 Bath $725 650 $1.12 0 0.00% 2153 Sutro Street Average 20 2 Bed/1 Bath $875 817 $1.07 0 0.00% Northeast Reno Average Reno, NV 80 Total Units $763 692 Avg. $1.10 0 0.00%
MAR-7 Kirman Garden 1977 72 1 Bed/1 Bath $775 600 $1.29 0 0.00% 444 Kirman Avenue Average 12 2 Bed/1 Bath $875 1000 $0.88 0 0.00% Airport Average Reno, NV 84 Total Units $789 657 Avg. $1.20 0 0.00%
17-156 (Market Study) 102 COMPARABLE MARKET RATE APARTMENT RENTAL MAP
17-156 (Market Study) 103 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION RENTAL MAR-1
Complex Name Age Unit Sizes Rent Per Address Quality Distribution of Units Monthly (Square Square # Vacancy Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate Belle Haven 1965 6 Studio $600 250 $2.40 0 0.00% 555 Sullivan Lane Average 48 1 Bed/1 Bath $750 625 $1.20 0 0.00% Southwest Sparks Average 36 2 Bed/1 Bath $863 825 $1.05 0 0.00% Sparks, NV 90 Total Units $785 680 Avg. $1.15 0 0.00%
Amenities In-Unit Amenities Project Amenities Air Conditioning Clubhouse Ceiling Fans X Business Center Cable Included Theater/Media Fireplace Covered Parking Security Alarm Pool/Spa X Full Sized Appliances X Gated Entry Microwave Fitness Center Washer/Dryer Sports Court Other Playground/Tot Lot Comments: Barbeque Area Internet Patios/Balconies On-Site Laundry Facility X
17-156 (Market Study) 104 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION RENTAL MAR-2
Complex Name Age Unit Sizes Rent Per Address Quality Distribution of Units Monthly (Square Square # Vacancy Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate Stonegate Apartments 1979 64 Studio $625 540 $0.98 1 0.00% 445 Sullivan Lane Average 80 1 Bed/1 Bath $775 675 $0.87 1 0.00% Southwest Sparks Average 32 2 Bed/1 Bath $992 900 $0.84 3 0.00% Sparks, NV 176 Total Units $760 667 Avg. $1.14 5 2.84%
Amenities In-Unit Amenities Project Amenities Air Conditioning X Clubhouse X Ceiling Fans Business Center Cable Included Theater/Media Fireplace In Some Units Covered Parking X Security Alarm X Pool/Spa X Full Sized Appliances X Gated Entry X Microwave Fitness Center X Washer/Dryer Sports Court Other Stainless Steel Appliances Playground/Tot Lot Comments: 24-Hour Maintenance, Triple Pane Windows Internet X and Indoor Mail Room Patios/Balconies X On-Site Laundry Facility X
17-156 (Market Study) 105 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION RENTAL MAR-3
Complex Name Age Unit Sizes Rent Per Address Quality Distribution of Units Monthly (Square Square # Vacancy Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate Green Pines 1986 88 1 Bed/1 Bath $830 708 $1.17 0 0.00% 2040 Carville Drive Average 24 2 Bed/1 Bath $930 955 $0.97 0 0.00% Northeast Reno Average 4 3 Bed/2 Bath $1,275 1,376 $0.93 0 0.00% Reno, NV 116 Total Units $866 782 Avg. $1.11 0 0.00%
Amenities In-Unit Amenities Project Amenities Air Conditioning X Clubhouse X Ceiling Fans X Business Center Cable Included Theater/Media Fireplace In Some Units Covered Parking Security Alarm Pool/Spa X Full Sized Appliances X Gated Entry Microwave Fitness Center X Washer/Dryer Sports Court Other Playground/Tot Lot X Comments: Large Master Suites, Walk-in Closets, Ceramic Internet X Tiles in Kitchen & Baths Patios/Balconies X On-Site Laundry Facility X
17-156 (Market Study) 106 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION RENTAL MAR-4
Complex Name Age Unit Sizes Rent Per Address Quality Distribution of Units Monthly (Square Square # Vacancy Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate Northtowne Summit 1997 108 1 Bed/1Bath $1,002 787 $1.27 11 10.19% 2777 Northtowne Lane Average 12 2 Bed/1Bath $1,145 951 $1.20 2 16.67% Northeast Reno Average 100 2 Bed/2 Bath $1,301 1,107 $1.18 9 9.00% Reno, NV 220 Total Units $1,146 941 Avg. $1.22 22 10.00%
Amenities In-Unit Amenities Project Amenities Air Conditioning X Clubhouse X Ceiling Fans X Business Center X Cable Included Theater/Media Fireplace Upstairs Units Covered Parking X Security Alarm In Some Units Pool/Spa X Full Sized Appliances X Gated Entry X Microwave X Fitness Center X Washer/Dryer In Some Units Sports Court Other Playground/Tot Lot Comments: Washers & Dryers in Select Units, On-Site Internet X Management, On-Site Maintenance, Garages Available and Patios/Balconies X Controlled Access On-Site Laundry Facility X
17-156 (Market Study) 107 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION RENTAL MAR-5
Complex Name Age Unit Sizes Rent Per Address Quality Distribution of Units Monthly (Square Square # Vacancy Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate Riverwood Apartments 1980 78 Studio $775 448 $1.73 2 2.56% 805 Kuenzli Street Average 63 1 Bed/1 Bath $865 674 $1.28 3 4.76% Northeast Reno Average 78 1 Bed/1 Bath $909 794 $1.14 2 2.56% Reno, NV 121 2 Bed/1 Bath $1,050 816 $1.29 4 3.31% 340 Total Units $920 700 Avg. $1.31 11 3.24%
Amenities In-Unit Amenities Project Amenities Air Conditioning X Clubhouse X Ceiling Fans X Business Center X Cable Included Theater/Media Fireplace Covered Parking X Security Alarm Pool/Spa X Full Sized Appliances X Gated Entry X Microwave Fitness Center X Washer/Dryer Sports Court Other Playground/Tot Lot X Comments: River Path and Dry Sauna Internet X Patios/Balconies X On-Site Laundry Facility X
17-156 (Market Study) 108 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION RENTAL MAR-6
Complex Name Age Unit Sizes Rent Per Address Quality Distribution of Units Monthly (Square Square # Vacancy Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate El Chaparral 1986 60 1 Bed/1 Bath $725 650 $1.12 0 0.00% 2153 Sutro Street Average 20 2 Bed/1 Bath $875 817 $1.07 0 0.00% Northeast Reno Average Reno, NV 80 Total Units $763 692 Avg. $1.10 0 0.00%
Amenities In-Unit Amenities Project Amenities Air Conditioning X Clubhouse Ceiling Fans X Business Center Cable Included Theater/Media Fireplace Covered Parking X Security Alarm Pool/Spa Full Sized Appliances X Gated Entry Microwave Fitness Center Washer/Dryer Sports Court Other Playground/Tot Lot Comments: Maid Service Available Internet X Patios/Balconies On-Site Laundry Facility X
17-156 (Market Study) 109 COMPARABLE APARTMENT RENTAL PHOTO AND DISCUSSION RENTAL MAR-7
Complex Name Age Unit Sizes Rent Per Address Quality Distribution of Units Monthly (Square Square # Vacancy Submarket, City, State Condition Total Units Rent Feet) Foot Vacant Rate Kirman Garden 1977 72 1 Bed/1 Bath $775 600 $1.29 0 0.00% 444 Kirman Avenue Average 12 2 Bed/1 Bath $875 1000 $0.88 0 0.00% Airport Average Reno, NV 84 Total Units $789 657 Avg. $1.20 0 0.00%
Amenities In-Unit Amenities Project Amenities Air Conditioning X Clubhouse X Ceiling Fans Business Center Cable Included Theater/Media Fireplace Some Units Covered Parking Security Alarm Pool/Spa X Full Sized Appliances X Gated Entry X Microwave X Fitness Center Washer/Dryer Sports Court Other Playground/Tot Lot Comments: On-Site Maintenance and Controlled Access Internet X Patios/Balconies X On-Site Laundry Facility X
17-156 (Market Study) 110 MARKET RENT ANALYSIS AND CONCLUSION When projecting an appropriate market rental rate for the subject’s proposed units assuming the project is a market rate apartment project, we have considered the subject’s proposed quality, location, floor plans and recreational amenities. The chart below summarizes the subject’s proposed unit mix.
Proposed Property Summary Project Name Sutro Street Apartments Project Address 1225 Hillboro Avenue, Reno, Washoe County, Nevada Project Type Proposed 44-Unit Affordable Senior Housing Apartment Complex Current Status 4 Vacant Parcels & 1 Improved Parcel Totaling 1.680± Acres Census Tract 18.01, Washoe County Proposed Development Year 2019 Proposed Number of Buildings 1 Building Proposed Number of Stories 2 Stories Proposed Number of Units 44 Units Proposed Density per Acre 26.19 Units/Acre Proposed Unit Mix 33-One Bed/One Bath; 11-Two Bed/One Bath Proposed Total Living Area 29,205± Square Feet Multi-Purpose Room with Kitchen/Library & Lounge/Computer Common Area Amenities Lab/Game Room/Barbeque & Picnic Area/Horseshoe Pit/Raised Gardening Beds Proposed Parking 27 Surface Spaces (2 ADA Accessible Spaces Included) Proposed Parking Density per Unit 0.61 Spaces/Unit
PROPOSED UNIT MIX-DETAILED Percent of Number of Unit Type Square Footage Area Median Income Units 1 Bed/1 Bath 625± SF 30%-PBV* 12 625± SF 40% 11 625± SF 50% 10 2 Bed/1 Bath 780± SF 30% 2 780± SF 40% 6 780± SF 50% 3 Totals/Averages 664± SF Average Unit Size --- 44 Total Units * Twelve units will be set aside for formerly homeless seniors coming from shelters or long-term motel settings under the Project-Based Voucher (PBV) Program. These 30% PBV units will be rented to individuals who qualify at 30% AMI, but will also receive project-based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR).
17-156 (Market Study) 111 In completing our market rental analysis, we have considered the total rental rates offered by the comparable properties as well as the rent per square foot computed on a monthly basis. A subjective comparison based upon the quality, condition and amenities has also been completed.
One Bedroom Units To establish an indication of an appropriate market rental rate for the subject’s one bedroom/one bathroom apartment units, the comparable rentals were analyzed. In this analysis, we will estimate the base market rent of the subject’s one bedroom units. Set out following is a summary of the one bedroom apartment rentals utilized in this analysis, as well as a summary of the subject’s proposed one bedroom units.
One Bedroom Rental Summary Chart Rental Number Property 1 Bed/1 Bath Units Rent Unit Size Rent Per SF Utilities Included MAR-1 Belle Haven 48 1 Bed/1 Bath $750 625 $1.20 W, S, T MAR-2 Stonegate Apartments 80 1 Bed/1 Bath $775 675 $0.87 W, S, T MAR-3 Green Pines 88 1 Bed/1 Bath $830 708 $1.17 None MAR-4 Northtowne Summit 108 1 Bed/1Bath $1,002 787 $1.27 W, S, T MAR-5 Riverwood Apartments 63 1 Bed/1 Bath $865 674 $1.28 None 78 1 Bed/1 Bath $909 794 $1.14 MAR-6 El Chaparral 60 1 Bed/1 Bath $725 650 $1.12 W, S, T MAR-7 Kirman Garden 72 1 Bed/1 Bath $775 600 $1.29 W, S, T Subject Sutro Street Apartments 33 1 Bed/1 Bath --- 625 --- W, S, T * W=Water, S=Sewer, T=Trash
The subject apartment complex will offer a total of 33 units with one bedroom and one bathroom, all of which will contain approximately 625± square feet. The comparable rental data illustrates rental rates ranging from $725 per month to $1,002 per month. The comparable rentals indicate rental rates ranging between $0.87 per square foot and $1.29 per square foot. In assessing an appropriate rent for the subject’s one bedroom units, consideration is given to the indicated rental rates of the comparable rental data. A majority of the comparable apartment rents include water, sewer and trash. However, Green Pines and Riverwood Apartments do not include any utilities.
In addition to the comparable apartment projects, consideration is given to the Apartment Survey 4th Quarter 2017, which is a quarterly survey conducted by Johnson Perkins Griffin, LLC. The chart below summarizes the average rental rate and vacancy rate for one bedroom units in the Reno-Sparks area as of this survey.
17-156 (Market Study) 112 OVERALL RENO/SPARKS RENT & VACANCY DATA-1 BED/1 BATH UNITS
Category 4th Quarter 2017 Average Square Feet Per Unit Surveyed 720± Square Feet Average Rent For Units Surveyed $1,062 Per Month Average Rent Per Square Foot For Units Surveyed $1.48 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 3.76%
The subject’s units, on average, are smaller than the surveyed units. Consideration is given to the fact that the subject will be new and in good condition at time of completion. Based upon an analysis of the comparable apartment projects, it is our opinion that the current market rent for the subject’s 625± square foot one bedroom units, including water, sewer and trash, is $775 per month as of a current date of analysis.
Projected Economic Rents As Of January 17, 2018-One Bedroom/One Bath Units 33-1 Bed/1 Bath Units (625± SF) $775/Month $1.24/SF/Month
Based on the 2017 data, the current maximum allowable rents for the property’s one bedroom/one bathroom units as a LIHTC project are between $383 per month (30% of AMI) and $638 per month (50% of AMI), exclusive of Utility Allowance. With the indicated Utility Allowance of $56 per month, the range is between $327 and $582 per month. The lower LIHTC rents should result in a high demand for the one bedroom units. The following compares the subject’s maximum gross allowable rental rates in comparison to the market rent rate conclusion. 17-156 (Market Study) 113 LIHTC Rent Limits For Reno-Sparks Area One Bedroom Units 2017 LIHTC Net Max Rent As Unit Market Rent Utility 2017 LIHTC Unit Size AMI % Max Gross % of Market Type Conclusion Allowance Max Net Rent* Rent* Rent 1/1 625 SF 30% PBV $775 $383 $56 $327** 42.19% 1/1 625 SF 40% $775 $511 $56 $455 58.71% 1/1 625 SF 50% $775 $638 $56 $582 75.10% * The Subject’s Projected Rents Were Based Upon 2017 LIHTC Maximum Rents ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
Two Bedroom Units To establish an indication of an appropriate market rental rate for the subject’s two bedroom/one bathroom apartment units the comparable rentals were analyzed. In this analysis, we will estimate the base market rent of the subject’s two bedroom units. Set out following is a summary of the two bedroom apartment rentals utilized in this analysis, as well as a summary of the subject’s proposed two bedroom units.
Two Bedroom Rental Summary Chart Rental Number Property 2 Bed/1 Bath Units Rent Unit Size Rent Per SF Utilities Included MAR-1 Belle Haven 36 2 Bed/1 Bath $863 825 $1.05 W, S, T MAR-2 Stonegate Apartments 32 2 Bed/1 Bath $992 900 $0.84 W, S, T MAR-3 Green Pines 24 2 Bed/1 Bath $930 955 $0.97 None MAR-4 Northtowne Summit 12 2 Bed/1Bath $1,145 951 $1.20 W, S, T 100 2 Bed/2 Bath $1,301 1,107 $1.18 MAR-5 Riverwood Apartments 121 2 Bed/1 Bath $1,050 816 $1.29 None MAR-6 El Chaparral 20 2 Bed/1 Bath $875 817 $1.07 W, S, T MAR-7 Kirman Garden 12 2 Bed/1 Bath $875 1000 $0.88 W, S, T Subject Sutro Street Apartments 11 2 Bed/1 Bath --- 780 --- W, S, T * W=Water, S=Sewer, T=Trash
The subject apartment complex will offer a total of 11 units with two bedrooms and one bathroom, all of which will contain approximately 780± square feet. The comparable rental data illustrates rental rates ranging from $863 per month to $1,301 per month. The comparable rentals indicate rental rates ranging between $0.84 per square foot and $1.29 per square foot. In assessing an appropriate rent for the subject’s two bedroom units, consideration is given to the indicated rental rates of the comparable rental data. A majority of the comparable apartment rents include water, sewer and trash. However, Green Pines and Riverwood Apartments do not include any utilities.
17-156 (Market Study) 114 In addition to the comparable apartment projects, consideration is given to the Apartment Survey 4th Quarter 2017, which is a quarterly survey conducted by Johnson Perkins Griffin, LLC. The chart below summarizes the average rental rate and vacancy rate for two bedroom units in the Reno-Sparks area as of this survey.
OVERALL RENO/SPARKS RENT & VACANCY DATA-2 BED/1 BATH UNITS
Category 4th Quarter 2017 Average Square Feet Per Unit Surveyed 862± Square Feet Average Rent For Units Surveyed $1,091 Per Month Average Rent Per Square Foot For Units Surveyed $1.27 Per Square Foot Average Overall Vacancy Rate For Units Surveyed 3.03%
The subject’s units, on average, are smaller than the surveyed units. It should be noted that many of the newer communities in the Reno-Sparks area do not build two bedroom/one bathroom units. The majority of the two bedroom/one bathroom units included in the Johnson Perkins Griffin, LLC survey are found in older communities. Consideration is given to the fact that the subject will be new and in good condition at time of completion.
17-156 (Market Study) 115 Based upon an analysis of the comparable apartment projects, it is our opinion that the current market rent for the subject two bedroom units, including water, sewer and trash, is $875 per month as of a current date of analysis.
Projected Economic Rents As Of January 17, 2018- Two Bedroom/One Bathroom Units 11-2 Bed/1 Bath Units (780± SF) $875/Month $1.12/SF/Month
Based on the 2017 data, the current maximum allowable rents for the property’s two bedroom/one bathroom units as a LIHTC project are between $459 per month (30% of AMI) and $766 per month (50% of AMI), exclusive of Utility Allowance. With the indicated Utility Allowance of $72 per month, the range is between $387 and $694 per month. The lower LIHTC rents should result in a high demand for the two bedroom units. The following compares the subject’s maximum gross allowable rental rates in comparison to the market rent rate conclusion.
LIHTC Rent Limits For Reno-Sparks Area Two Bedroom Units Unit Unit AMI Market Rent 2017 LIHTC Max Utility 2017 LIHTC Net Max Rent As Type Size % Conclusion Gross Rent* Allowance Max Net Rent* % of Market Rent 2/1 780 SF 30% $875 $459 $72 $387 44.23% 2/1 780 SF 40% $875 $613 $72 $541 61.83% 2/1 780 SF 50% $875 $766 $72 $694 79.31% * The Subject’s Projected Rents Were Based Upon 2017 LIHTC Maximum Rents
17-156 (Market Study) 116 RENTAL ANALYSIS SUMMARY The subject’s maximum LIHTC rents fall within the range of the comparable affordable rental data. It is noted that the subject’s projected rents include water, sewer and trash. As these rents are set by federal and local guidelines, we will utilize the actual maximum rents. It is noted that these rents are adjusted annually. However, these rental rates, unlike market rental rates, are tied directly to the Area Median Income (AMI) for the local market. According to Novogradac & Company LLP, Certified Public Accountants, the LIHTC rent limits with the projected utility allowance reduction for the subject property for 2017, the published 2017 HUD Market Rents and our market rent conclusions are as follows:
Summary Of LIHTC Maximum Rents-With Utility Allowance 2017 LIHTC 2017 LIHTC Unit Market Rent 2017 HUD Fair Utility Unit Size AMI % Max Gross Max Net Type Conclusion Market Rent Allowance Rent* Rent* 1/1 625 SF 30% PBV $775 $706 $383 $56 $327** 1/1 625 SF 40% $775 $706 $511 $56 $455 1/1 625 SF 50% $775 $706 $638 $56 $582 2/1 780 SF 30% $875 $920 $459 $72 $387 2/1 780 SF 40% $875 $920 $613 $72 $541 2/1 780 SF 50% $875 $920 $766 $72 $694 * The Subject’s Projected Rents Were Based Upon 2017 LIHTC Maximum Rents ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
The market and adjusted LIHTC rents set forth in the above chart have comparable utility arrangements. The subject’s one bedroom and two bedroom market rents exceed the maximum allowable LIHTC rents, indicating a value to the consumer for one bedroom and two bedroom units at a LIHTC rent within the subject’s proposed project. As the subject’s market rent range for each unit type exceeds the LIHTC rental rates, it is assumed that the developer will charge the maximum allowable LIHTC rental rates for each of the subject units at the given level of income restriction.
The chart below summarizes the subject’s potential gross rental income, as of the effective date of this analysis, and based upon 2017 maximum LIHTC rents after adjustment for the project’s utility allowance. All projected rents below are based off of the LIHTC Rent Limits with the developer’s stated Utility Allowance Reduction for 2017; the subject’s utility allowance was set forth by HUD for energy efficient units.
17-156 (Market Study) 117 POTENTIAL GROSS ANNUAL RENTAL INCOME (Based On Projected Unit Mix & Max Allowable LIHTC Rents/Utility Allowances-2017) Monthly Annual Unit Type % AMI # of Units Monthly Rent Square Feet Rent/SF Income Income 1 Bed/1 Bath 30% PBV* 12 $721 625 $1.15 $8,652 $103,824 1 Bed/1 Bath 40% 11 $455 625 $0.73 $5,005 $60,060 1 Bed/1 Bath 50% 10 $582 625 $0.93 $5,820 $69,840 2 Beds/1 Bath 30% 2 $387 780 $0.50 $774 $9,288 2 Beds/1 Bath 40% 6 $541 780 $0.69 $3,246 $38,952 2 Beds/1 Bath 50% 3 $694 780 $0.89 $2,082 $24,984 Totals --- 44 $25,579 29,205 --- $25,579 $306,948 Averages ------$581 664 $0.88 --- Total Potential Gross Annual Rental Income $306,948 * The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
17-156 (Market Study) 118 VACANCY AND CREDIT LOSS AND TENANT CONCESSION ANALYSIS In analyzing the income of the apartment complex, it is not reasonable to expect the subject to generate 100% of its gross income potential over a typical holding period. Therefore, an allowance must be made for future vacancy and credit losses, as well as any concessions which may be needed to attract tenants.
Vacancy & Credit Loss Analysis In order to estimate an appropriate vacancy and credit loss percentage applicable to the proposed project, we have analyzed the vacancy rates of competing properties. Johnson Perkins Griffin, LLC conducts a quarterly apartment survey for the Reno-Sparks service area.
The most current apartment survey (4th Quarter 2017) shows the vacancy rate histories for individual markets, as well as the overall Reno-Sparks area apartment market. The following chart summarizes the historical vacancy rates for apartments surveyed in the overall Reno-Sparks market, by unit type, between the 1st Quarter of 2013 and the 4th Quarter of 2017.
Historical Reno-Sparks Apartment Vacancy Data Quarter/ 1/1 2/1 All Unit Types Year Vacancy % Vacancy % Vacancy % Q1-2013 3.81% 5.75% 5.11% Q2-2013 3.50% 5.54% 4.65% Q3-2013 3.18% 4.96% 4.05% Q4-2013 3.81% 4.05% 4.12% 2013 3.58% 5.08% 4.48% Q1-2014 4.03% 3.28% 3.83% Q2-2014 2.51% 2.33% 2.41% Q3-2014 2.16% 2.58% 2.13% Q4-2014 3.14% 3.90% 3.31% 2014 2.96% 3.02% 2.92% Q1-2015 2.55% 3.11% 2.97% Q2-2015 2.19% 1.88% 2.27% Q3-2015 2.35% 2.29% 2.67% Q4-2015 2.85% 2.83% 2.90% 2015 2.49% 2.53% 2.70% Q1-2016 2.32% 1.96% 2.30% Q2-2016 1.84% 1.56% 1.98% Q3-2016 2.00% 1.41% 2.24% Q4-2016 2.95% 2.75% 2.93% 2016 2.28% 1.92% 2.36% Q1-2017 2.42% 1.32% 2.23% Q2-2017 1.28% 0.95% 1.17% Q3-2017 2.21% 2.20% 2.41% Q4-2017 3.76% 3.03% 3.80% 2017 2.42% 1.88% 2.40% AVERAGE 2.74% 2.88% 2.97% MEDIAN 2.53% 2.67% 2.79% LOW 1.28% 0.95% 1.17% HIGH 4.03% 5.75% 5.11%
17-156 (Market Study) 119 Consideration is also given to the subsidized and market rate apartment complexes analyzed in the prior section of this report. The chart below summarizes the vacancy rates of the comparable apartment complex rentals utilized in this market study report.
Comparable Rent-Restricted Apartment Rental Vacancy Rates Rental Number Complex Name Vacancy Rate (January 2018) SAR-1 Sierra Crest Senior Apartments 0.00% SAR-2 Grace Senior Apartments 0.00% SAR-3 Carriage Stone Apartments 0.00% SAR-4 The Willows at Wells 0.00% SAR-5 City Hall Senior 0.00% SAR-6 River Place Senior 0.00% SAR-7 CitiVista Apartments 3.29% SAR-8 Juniper Village 0.00% SAR-9 The Plaza at 4th Street 0.00%
Comparable Market Rate Apartment Rental Vacancy Rates Rental Number Complex Name Vacancy Rate (January 2018) MAR-1 Belle Haven 0.00% MAR-2 Stonegate Apartments 2.84% MAR-3 Green Pines 0.00% MAR-4 Northtowne Summit 10.00% MAR-5 Riverwood Apartments 3.24% MAR-6 El Chaparral 0.00% MAR-7 Kirman Garden 0.00%
With strong consideration given to the vacancy rates indicated by the comparable data as well as the apartment survey, we have projected a stabilized vacancy and credit loss allowance of 5.00% of the projected gross annual rental income.
Tenant Concession Analysis During the 4th Quarter of 2017, 4.65% of the apartment projects in our Survey offered rent concessions in the Reno-Sparks market, which was the same as the 3rd Quarter of 2017. Concessions range from discounted deposits to one month free rent with a six or twelve-month lease. The most commonly found rent concessions consist of:
• One month free rent • Discounted deposit • Reduced Rent with 6 or 12 month lease
17-156 (Market Study) 120 The chart below summarizes the percentage of projects which have offered concessions, and the overall vacancy rate, between 2013 and a current date for the Reno-Sparks market.
Regional Concession History Month/ % Offering Overall Year Concessions Vacancy % Q1-2013 57.14% 5.11% Q2-2013 48.05% 4.65% Q3-2013 37.18% 4.05% Q4-2013 44.87% 4.12% Q1-2014 37.18% 3.83% Q2-2014 32.89% 2.41% Q3-2014 24.36% 2.13% Q4-2014 35.06% 3.31% Q1-2015 35.90% 2.97% Q2-2015 16.67% 2.27% Q3-2015 20.25% 2.67% Q4-2015 14.81% 2.90% Q1-2016 12.35% 2.30% Q2-2016 6.17% 1.98% Q3-2016 4.82% 2.24% Q4-2016 10.84% 2.93% Q1-2017 7.14% 2.23% Q2-2017 2.35% 1.17% Q3-2017 4.65% 2.41% Q4-2017 4.65% 3.80%
As the projected LIHTC rents within the project are lower than market rents, and as the comparable projects have very low vacancy rates and in some cases waiting lists, no tenant concessions are projected for the subject units.
Projected Vacancy & Credit Loss & Concessions Projected Stabilized Vacancy & Credit Loss Percentage 5.00% of Potential Gross Annual Income Projected Tenant Concessions Percentage 0.00% of Potential Gross Annual Income
17-156 (Market Study) 121 OTHER INCOME ANALYSIS In addition to apartment rental income, the subject project will have the potential to generate miscellaneous income from other sources. Historically, apartment projects receive miscellaneous income from forfeited deposits, late charges, cleaning fees, application fees, and other miscellaneous sources.
To establish an appropriate allowance for other income, we interviewed several apartment managers and owners, and reviewed the other income revenue of several apartment complexes. Other Income for four comparable LIHTC projects is set forth below.
Comparable LIHTC Projects Other Income PROJECT Confidential-Sparks Confidential-Reno Confidential-Reno Confidential-Reno Confidential-Reno Calendar Year 2013 2013 2014 2015 2016 Units 72 Units 84 Units 42 Units 50 Units 50 Units Total/Per Unit Total Per Unit Total Per Unit Total Per Unit Total Per Unit Total Per Unit OTHER INCOME $4,726 $66 $4,073 $48 $3,921 $93 $6,575 $132 $13,958 $279
Based upon a review of other income generated by similar apartment projects, other income allowance for the subject has been projected at $50 per unit per year. Other Income will be added to Effective Gross Annual Income, as the Other Income projection was based upon Actual Other Income realized by comparable projects after consideration of vacancy and credit losses.
Projected Other Income Projected Other Income Per Unit $50 Per Unit ($2,200 Per Year)
17-156 (Market Study) 122 TURNOVER ANALYSIS Older complexes in central locations typically rent to households with low to moderate incomes in the Reno-Sparks market. It is our experience that turnover rates of older Reno- Sparks market rent comparables are relatively high, with typical rates in excess of one third of the total tenancy having moved within the most recent year. This indicates that most renters in this income bracket in market rent apartment complexes move approximately every three years.
We have interviewed property managers at several of the comparable rent-restricted apartment complexes. The estimated turnover rates indicated by the managers interviewed are set forth below.
Comparable Turnover Rates Project Estimated Turnover Percentage Grace Senior Apartments 5-10% Carriage Stone Senior Apartments 15% Sierra Crest Senior Apartments 10% The Willows at Wells 15% Plaza at 4th Street 15%
Given the subject’s proposed rental rates, unit sizes, amenities, quality, age, condition, location and other physical and economic factors, the subject is anticipated to experience an annual turnover rate of approximately 15%. The indicated turnover rate is taken into account in estimating the operating expenses of the subject property.
Projected Turnover Rate Projected Annual Turnover Rate 15%
17-156 (Market Study) 123 OPERATING EXPENSE ANALYSIS The next step in the market analysis is to project the operating expenses that would be incurred by the subject project in generating the effective gross income. In order to generate the effective gross income, the subject complex will incur expenses including insurance, advertising, common area utility costs, repairs and maintenance, salaries and payroll, off site-management fees and general and administrative expenses. The subject will not be subject to real estate taxes.
In order to estimate operating expenses for the subject property, we have reviewed the developer’s proforma operating statement, which assumes the subject is operated as a subsidized project. The chart below summarizes the proforma expenses provided to us by the developer.
Subject Proforma Expenses Provided By Developer Projected Operating Expenses Per Unit Total Marketing $57 $2,500 Office Supplies/Admin $80 $3,500 Legal $23 $1,000 Audit $205 $9,000 Telephone $109 $4,800 NHD Fees $44 $1,936 Manager Salary $625 $27,500 Maintenance/Misc. Salaries $659 $29,000 Payroll Tax & Employee Benefits $290 $12,750 Utilities $739 $32,500 Pest Control $27 $1,200 Trash/Grounds/Parking Maintenance $182 $8,000 Repairs Materials $227 $10,000 Turnover Cost $45 $2,000 Misc. Operating & Maintenance Expenses $80 $3,500 Taxes & Insurance $606 $26,675 Property Management Fee $461 $20,282 Total Operating Expenses $4,458 $196,143
The subject ownership’s projected expenses equate to $4,458 per unit per year. To establish the projected stabilized operating expenses for the subject property, we have analyzed the proforma operating expenses as set forth above. In addition, we have analyzed the per unit expenses for a number of LIHTC (Section 42) apartment complexes as reported in 2014, 2015 and 2016. The following chart sets forth a summary of this data.
17-156 (Market Study) 124 Comparable LIHTC Apartment Project Expenses
PROJECT Confidential-Reno Confidential-Reno Confidential-Reno Confidential-Reno Confidential-Reno Confidential-Reno Confidential-Reno Calendar Year 2014 2014 2014 2015 2015 2016 2016 Uni ts 55 Units 39 Units 84 Units 42 Units 48 Units 42 Units 48 Units Total/Per Unit Total Per Unit Total Per Unit Total Per Unit Total Per Unit Total Per Unit Total Per Unit Total Per Unit EXP ENS ES Advertisting ($5,202) ($95) ($3,374) ($87) ($5,114) ($61) ($5,768) ($148) ($6,164) ($73) ($4,085) ($105) ($3,619) ($43) Automotive ($459) ($8) $0 $0 $0 $0 $0 $0 $0 $0 ($51) ($1) ($19) ($0) Bad Debts ($732) ($13) ($821) ($21) ($3,336) ($40) ($171) ($4) $0 $0 $0 $0 $0 $0 Business Promotion ($1,100) ($20) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Continuing Education ($120) ($2) ($106) ($3) ($140) ($2) ($228) ($6) ($257) ($3) ($56) ($1) ($604) ($7) Equipment Rental ($311) ($6) ($641) ($16) ($828) ($10) ($683) ($18) ($13) ($0) ($683) ($18) ($19) ($0) Employee Benefits ($10,126) ($184) ($1,868) ($48) ($4,158) ($49) ($5,270) ($135) ($5,974) ($71) ($5,045) ($129) ($5,704) ($68) Insurance ($7,926) ($144) ($7,214) ($185) ($15,035) ($179) ($7,787) ($200) ($12,565) ($150) ($6,036) ($155) ($9,199) ($110) Management Fees ($23,202) ($422) ($15,941) ($409) ($34,919) ($416) ($20,492) ($525) ($23,289) ($277) ($20,346) ($522) ($22,750) ($271) Legal & Accounting ($9,474) ($172) ($7,985) ($205) ($10,426) ($124) ($8,324) ($213) ($8,878) ($106) ($8,846) ($227) ($9,475) ($113) Office ($3,110) ($57) ($2,189) ($56) ($3,865) ($46) ($2,917) ($75) ($3,667) ($44) ($3,975) ($102) ($4,444) ($53) Repairs & Maintenance ($17,053) ($310) ($11,682) ($300) ($25,173) ($300) ($14,719) ($377) ($7,977) ($95) ($18,034) ($462) ($18,453) ($220) Replacements ($1,577) ($29) ($4,571) ($117) ($13,832) ($165) ($18,032) ($462) ($19,818) ($236) ($11,151) ($286) ($9,939) ($118) Salaries-Maintenance ($30,830) ($561) ($13,688) ($351) ($34,046) ($405) ($25,924) ($665) ($29,678) ($353) ($26,462) ($679) ($30,034) ($358) Salaries-Other $0 $0 $0 $0 ($988) ($12) $0 $0 $0 $0 $0 $0 $0 $0 Salaries-Manager ($29,742) ($541) ($16,668) ($427) ($34,523) ($411) ($25,824) ($662) ($28,331) ($337) ($26,019) ($667) ($29,733) ($354) Resident Services ($1,275) ($23) ($1,293) ($33) ($2,768) ($33) ($33) ($1) $0 $0 ($464) ($12) $0 $0 Payroll Taxes ($9,750) ($177) ($4,853) ($124) ($11,750) ($140) ($8,635) ($221) ($9,296) ($111) ($8,734) ($224) ($9,458) ($113) Maintenance Supplies ($6,550) ($119) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Operating Supplies $0 $0 ($3,909) ($100) ($7,522) ($90) ($7,151) ($183) ($9,838) ($117) ($8,641) ($222) ($12,917) ($154) Security $0 $0 ($1,600) ($41) ($3,199) ($38) $0 $0 $0 $0 $0 $0 $0 $0 Taxes & Licenses ($3,610) ($66) ($2,669) ($68) ($4,852) ($58) ($2,811) ($72) ($3,118) ($37) ($2,988) ($77) ($3,085) ($37) Telephone ($7,536) ($137) ($4,818) ($124) ($4,761) ($57) ($6,158) ($158) ($3,508) ($42) ($6,218) ($159) ($4,247) ($51) Utilities ($43,414) ($789) ($28,896) ($741) ($61,508) ($732) ($37,473) ($961) ($45,734) ($544) ($36,768) ($943) ($47,189) ($562) Other Fees $0 $0 ($2,388) ($61) ($3,800) ($45) $0 $0 $0 $0 $0 $0 $0 $0 Asset Management Fee ($11,723) ($213) $0 $0 $0 $0 ($9,825) ($252) $0 $0 ($7,045) ($181) $0 $0 Incentive Management Fee $0 $0 ($41,888) ($1,074) $0 $0 ($10,000) ($256) $0 $0 ($30,000) ($769) $0 $0 TOTAL EXP ENS ES ($224,823) ($4,088) ($179,062) ($4,591) ($286,543) ($3,411) ($218,226) ($5,196) ($218,105) ($4,544) ($231,648) ($5,515) ($220,889) ($4,602) Expense % -57.64% -66.38% -48.97% -64.10% -52.00% -68.60% -54.19%
The LIHTC projects indicate expenses per unit ranging between $3,411 and $5,515. In discussions with a number of apartment project owners, brokers, and management companies experienced in LIHTC projects, it was indicated that operating expenses between $4,000 per unit and $4,500 per unit would be considered fairly typical for a project like the proposed subject project.
In order to project expenses for the subject property, we have relied upon the subject’s proforma expenses, as well as analyzed the apartment expenses of other apartment complexes, which are summarized above. In projecting appropriate operating expenses for the subject, it is recognized that the subject complex will be new. Additionally, affordable projects typically have much higher management and compliance fees.
As the subject property does involve a LIHTC project in which Home Funds are assumed to be included, it will not be required to pay real estate taxes. As a result, and for the purposes of this analysis, the subject’s operating expenses are projected to be approximately $4,500 per unit.
17-156 (Market Study) 125 In our projections, we have included a $250 per unit reserve for replacement, in order to account for any unexpected maintenance issues.
Projected Expenses Projected Annual Expenses (Includes $250/Unit Reserve) $4,500 Per Unit ($198,000 Total)
17-156 (Market Study) 126 INCOME & EXPENSE SUMMARY & CONCLUSION (Based On Projected Unit Mix & Max Allowable LIHTC Rents/Utility Allowances) Square Monthly Annual Unit Type % AMI # of Units Monthly Rent Rent/SF Feet Income Income 1 Bed/1 Bath 30% PBV* 12 $721 625 $1.15 $8,652 $103,824 1 Bed/1 Bath 40% 11 $455 625 $0.73 $5,005 $60,060 1 Bed/1 Bath 50% 10 $582 625 $0.93 $5,820 $69,840 2 Beds/1 Bath 30% 2 $387 780 $0.50 $774 $9,288 2 Beds/1 Bath 40% 6 $541 780 $0.69 $3,246 $38,952 2 Beds/1 Bath 50% 3 $694 780 $0.89 $2,082 $24,984 Totals --- 44 $25,579 29,205 --- $25,579 $306,948 Averages ------$581 664 $0.88 --- Total Potential Gross Annual Rental Income $306,948 Per Unit Per SF % Of PGI Less Stabilized Vacancy & Credit Loss ($349) ($0.01) 5.00% ($15,347) Less Tenant Concessions $0 $0.00 0.00% $0 Per Unit Per SF % Of PGI Projected Effective Gross Annual Rental Income $6,627 $0.23 95.00% $291,601 Per Unit Per SF % of PGI Add Other Income $50 $0.00 0.0163% $2,200 Per Unit Per SF % Of PGI Total Projected Effective Gross Annual Income $6,677 $0.23 95.72% $293,801 Per Unit Per SF % of EGI Total Projected Operating Expenses (Includes Reserve) $4,500 $0.15 -64.51% ($198,000) Per Unit Per SF % of EGI Projected Net Operating Income $2,177 $0.07 31.21% $95,801 ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
17-156 (Market Study) 127 ABSORPTION ANALYSIS AND DATE OF STABILIZATION In this section of the market study report, we will address the expected absorption rate of the subject’s proposed apartment units. The chart below summarizes the absorption rates of several market apartment projects in the Reno-Sparks area between 2000 and the 4th Quarter 2017.
Market Rate Apartment Project Historical Absorption Rates Lease up Dates Absorption Project Name # of Units Start Stabilized Per Month Sharlands Terrace 304 Mar-00 Jan-02 13.22 Canyon Hills Phase I 256 Jun-01 Jul-02 18.29 The Village at Wildcreek 240 Jul-01 Sep-02 16.00 Aviana at Tuscany 311 Jul-01 Apr-03 14.14 Silver Creek 376 Jan-01 Aug-03 11.75 Villas at D’Andrea 256 Apr-02 Dec-03 12.19 Marina Village 240 Oct-04 Oct-06 10.00 Horizons at South Meadows 344 Nov-05 Jan-07 22.93 Caviata at Kiley Ranch 184 Jun-07 Oct-09 6.10 Waterstone at Kiley Ranch 203 Jul-07 Oct-09 7.00 The View Apartments 308 Apr-09 Jan-11 13.33 The Trails at Pioneer Meadows 300 Aug-09 Jul-11 11.78 The Alexander at South Virginia 350 Aug-09 Jul-11 13.87 The Village at Arrowcreek 208 Oct-13 Feb-15 11.56 The Bungalows at Sky Vista-Phase I 338 Mar-14 Nov-15 16.10 The Villas at Keystone Canyon 288 Sep-14 Nov-15 19.20 Edge Water at Virginia Lake 284 May-15 Sep-16 16.71 Square One 100 Jun-16 Feb-17 11.11 3rd Street Flats 94 Dec-16 Jun-17 13.43 Fountainhouse 220 May-16 Aug-17 13.75
The absorption rates above range between 6.10 units per month and 22.93 units per month. Additionally, consideration is given to absorption rates of affordable housing projects similar to the subject. In interviews with managers of affordable housing projects, it was indicated that they regularly have waiting lists of prospective tenants.
The chart below summarizes the absorption rates of several subsidized projects which were constructed in the local market between 1998 and 2017.
17-156 (Market Study) 128 Affordable Apartment Project Historical Absorption Rates Project Name Year Opened Total Units Absorption Rate (Per Month) Vintage Hills 1998 202 16 Units/Month CitiVista 2001 152 14 Units/Month The Plaza at Fourth Street 2002 50 25 Units/Month Cottonwood Village 2003 44 19 Units/Month Grace Senior 2004 55 28 Units/Month Sierra Crest Senior 2005 72 24 Units/Month Carriage Stone Senior 2006 59 17 Units/Month The Willow at Wells Senior 2007 39 21 Units/Month Aspen Terrace 2009 42 9 Units/Month Autumn Village 2011 43 7 Units/Month River Place Senior 2011 55 14 Units/Month Arbor Cove At Virginia Lake 2013 66 22 Units/Month Aspen Village 2013 44 15 Units/Month Juniper Village 2015 44 15 Units/Month Lincoln Way Senior 2016 45 15 Units/Month Hillside Meadows 2017 44 44 Units/Month
The affordable projects indicate absorption rates of between 7 units per month and 44 units per month; based upon the subject’s 44 total units, this would indicate an absorption expectancy of between 6.29 months and 1 month. The projects that opened in 2009 and 2011 did show lower absorption, as the local apartment market during this period was extremely soft. Juniper Village, which opened in 2015, indicated an absorption rate of 15 units per month. Lincoln Way Senior, which opened in 2016, indicated an absorption rate of 15 units per month. Hillside Meadows, which opened in 2017, indicated an absorption rate of 44 units per month.
As of the most recent apartment survey (4th Quarter 2017) conducted by Johnson Perkins Griffin, LLC the overall vacancy rate in the Reno-Sparks market was only at 3.80%, indicating high demand for units in the entire market.
Based upon the construction schedules of other new affordable projects and the subject project, and with consideration given to the absorption rates of affordable housing projects and market rate apartment projects in the Reno-Sparks area, it is our opinion that the subject should be able to fully absorb units to stabilized occupancy within the project within 16 months.
Projected Absorption Absorption Time Absorption-Units Per Month Projected Absorption 3 Months 15 Units Per Month
17-156 (Market Study) 129 ANALYSIS OF ECONOMIC SENSITIVITY TO CLOSURE OF MAJOR EMPLOYER The subject project is located within close proximity to shopping, medical facilities, churches, community services and mass-transit, and has good accessibility to other parts of the region. The site is situated between a number of services and amenities and is located directly north of the RTC bus Routes 5 and 15, which operate every half hour Monday through Friday and every hour on the weekends and holidays. The routes run between the downtown Reno 4th Street Station and the Sun Valley area.
The subject facility will be new, and provide a similar level of amenities to what is typical within the neighborhood. Additionally, the facility’s location in close proximity to numerous amenities would be desirable to prospective tenants. The subject’s below market rents, newer age, amenities, and location should result in extremely strong demand.
In summary, affordable housing in the subject submarket, as well as the entire Reno- Sparks area, seems to be very much in demand. Consideration is given to the rapid absorption rates of competitive age restricted, affordable housing projects in the Reno-Sparks area. Additionally, the subject’s one bedroom and two bedroom units at the proposed LIHTC rental rates represent a value to the tenant in comparison with market rate apartments. As a result, these units are anticipated to experience very strong demand and low vacancy rates.
The indications are that overall vacancy rates will remain stable in the near term. The potential effect of the closure of a major employer on the subject, as a LIHTC complex, is anticipated to be minimal.
Sensitivity to Closure of Major Employer Sensitivity to Closure of Major Employer Very Minimal
17-156 (Market Study) 130 SUMMARY OF NEED FOR AFFORDABLE HOUSING To summarize, the proposed subject project is anticipated to be similar in quality and architectural design to a number of affordable housing projects which have been constructed in the Reno-Sparks area over the past several years. These projects include CitiVista, CitiCenter, Courtyard Center, The Plaza at Fourth Street, Grace Senior Apartments, Sierra Crest Senior Apartments, Silver Sage Senior Residence, Carriage Stone, The Willows at Wells Senior Apartments, Aspen Terrace, Aspen Village, Arbor Cove at Virginia Lake, Juniper Village, Hillside Meadows and Lincoln Way Senior Apartments (under construction).
The proposed project will consist of one and two bedroom independent living units in a two-story building with interior hallways, served by an elevator. The Sutro Street Apartments is designed in a “U” configuration, with a south-facing courtyard adjacent to the multi-purpose room. The common areas will include a multi-purpose room with warming kitchen, library and lounge, computer lab, game room, and offices for management and supportive service staff, and secure and landscaped grounds, courtyards, and porches. Outdoor areas will include resident and visitor parking, a barbeque and picnic area, horseshoe pit and raised beds for resident gardening.
Consideration is given to the rapid absorption rates of competitive affordable housing projects in the Reno-Sparks area. Additionally, the subject’s one bedroom and two bedroom units at the proposed LIHTC rental rates represent a value to the tenant in comparison with market rate apartments. As a result, these units are anticipated to experience very strong demand and low vacancy rates. Units below the 50% AMI threshold represent a value to the tenant. The subject’s proposed project will contain units all under the 50% AMI threshold. Based upon our analysis, it is our opinion that the need for the proposed age restricted, affordable housing project in the subject submarket is very high.
Need for Age-Restricted/Affordable Housing Need for Age-Restricted/Affordable Housing in Submarket Very High
17-156 (Market Study) 131 SUMMARY OF CONCLUSION OF THE MARKET STUDY DATES OF ANALYSIS Date Description Date Date of Inspection January 17, 2018 Effective Date of Analysis January 17, 2018 Completion Date of Market Study February 5, 2017
PROPOSED UNIT MIX-DETAILED Percent of Number of Unit Type Square Footage Area Median Income Units 1 Bed/1 Bath 625± SF 30%-PBV* 12 625± SF 40% 11 625± SF 50% 10 2 Bed/1 Bath 780± SF 30% 2 780± SF 40% 6 780± SF 50% 3 Totals/Averages 664± SF Average Unit Size --- 44 Total Units * Twelve units will be set aside for formerly homeless seniors coming from shelters or long-term motel settings under the Project-Based Voucher (PBV) Program. These 30% PBV units will be rented to individuals who qualify at 30% AMI, but will also receive project-based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR).
MARKET STUDY GENERAL FINDINGS (SUTRO STREET APARTMENTS) Indicated Need for Affordable Housing at Subject Location Very High Demand Projected Absorption Period 3 Months Projected Expenses Per Unit $4,500 Projected Rents-At or Below Maximum Allowable At Allowable Projected Rents-At, Below or Above Market Rents Below Market Projected Turnover Rate-Annually 15% Demand Yield Capture Rate-PMA 2.62%
17-156 (Market Study) 132 MARKET RENT VERSUS RESTRICTED RENTS (SUTRO STREET APARTMENTS) 2017 Net Max Net Max 2017 HUD 2017 Market LIHTC Rent As Rent As Unit Fair Utility LIHTC Unit Size AMI % Rent Max % of % of Type Market Allowance Max Net Conclusion Gross Market HUD Rent Rent* Rent* Rent FMR 1/1 625 SF 30% PBV $775 $706 $383 $56 $327** 42.19% 46.32% 1/1 625 SF 40% $775 $706 $511 $56 $455 58.71% 64.45% 1/1 625 SF 50% $775 $706 $638 $56 $582 75.10% 82.44% 2/1 780 SF 30% $875 $920 $459 $72 $387 44.23% 42.07% 2/1 780 SF 40% $875 $920 $613 $72 $541 61.83% 58.80% 2/1 780 SF 50% $875 $920 $766 $72 $694 79.31% 75.43% * The Subject’s Projected Rents Were Based Upon 2017 LIHTC Maximum Rents ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
INCOME & EXPENSE SUMMARY & CONCLUSION (Based On Projected Unit Mix & Max Allowable LIHTC Rents/Utility Allowances) Square Monthly Annual Unit Type % AMI # of Units Monthly Rent Rent/SF Feet Income Income 1 Bed/1 Bath 30% PBV* 12 $721 625 $1.15 $8,652 $103,824 1 Bed/1 Bath 40% 11 $455 625 $0.73 $5,005 $60,060 1 Bed/1 Bath 50% 10 $582 625 $0.93 $5,820 $69,840 2 Beds/1 Bath 30% 2 $387 780 $0.50 $774 $9,288 2 Beds/1 Bath 40% 6 $541 780 $0.69 $3,246 $38,952 2 Beds/1 Bath 50% 3 $694 780 $0.89 $2,082 $24,984 Totals --- 44 $25,579 29,205 --- $25,579 $306,948 Averages ------$581 664 $0.88 --- Total Potential Gross Annual Rental Income $306,948 Per Unit Per SF % Of PGI Less Stabilized Vacancy & Credit Loss ($349) ($0.01) 5.00% ($15,347) Less Tenant Concessions $0 $0.00 0.00% $0 Per Unit Per SF % Of PGI Projected Effective Gross Annual Rental Income $6,627 $0.23 95.00% $291,601 Per Unit Per SF % of PGI Add Other Income $50 $0.00 0.0163% $2,200 Per Unit Per SF % Of PGI Total Projected Effective Gross Annual Income $6,677 $0.23 95.72% $293,801 Per Unit Per SF % of EGI Total Projected Operating Expenses (Includes Reserve) $4,500 $0.15 -64.51% ($198,000) Per Unit Per SF % of EGI Projected Net Operating Income $2,177 $0.07 31.21% $95,801 ** The 2017 LIHTC Max Net Rent for the 30% AMI one bedroom/one bathroom units is $327; however, as these units will be set aside under the Project-Based Voucher (PBV) Program, they will also receive project based rental assistance through the Reno Housing Authority (RHA). Those who qualify for the PBV Program will spend 30% of their income on their housing and RHA will pay the balance at up to 110% of Fair Market Rent (FMR); therefore, the actual rent, under the 2017 HUD Fair Market Rents, will be $776 per month, which after adjusting for the monthly $56 Utility Allowance, equates to $721 per month.
17-156 (Market Study) 133
ADDENDA
ADDENDA
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 1 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
Second Amended
First American Title Insurance Company
5310 Kietzke Lane, Suite 100 Reno, NV 89511-2043
September 28, 2017
The Law Offices of Charles R. Zeh, Esq. 575 Forest Street, Suite 200 Reno, NV 89509-1689
Phone: (775)323-5700
Title Officer: Vickie A Taylor Phone: (775)823-6200
Order Number: 121-2524155
Escrow Officer: Lori Callison Phone: (775)823-6200
Property: 1202 and 1225 Hillboro Ave, Reno, NV
Attached please find the following item(s):
Commitment
Thank You for your confidence and support. We at First American Title Insurance Company maintain the fundamental principle: Customer First!
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 2 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
First American Title Insurance Company
INFORMATION
The Title Insurance Commitment is a legal contract between you and the company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title, subject to the limitations shown in the policy.
The Company will give you a sample of the Policy form, if you ask.
The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy.
The Commitment is subject to its Requirements, Exceptions and Conditions.
This information is not part of the title insurance commitment.
TABLE OF CONTENTS
Page
Agreement to Issue Policy 3
Schedule A
1. Commitment Date 4 2. Policies to be Issued, Amounts and Proposed Insured 4 3. Interest in the Land and Owner 4 4. Description of the Land 4
Schedule B-1 - Requirements
Schedule B-2 - Exceptions
Conditions
YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, please contact the issuing office.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 3 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
COMMITMENT FOR TITLE INSURANCE
Issued by
First American Title Insurance Company
Agreement to Issue Policy
We agree to issue a policy to you according to the terms of this Commitment.
When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A.
If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy.
Our obligation under this Commitment is limited by the following:
The Provisions in Schedule A.
The Requirements in Schedule B-1.
The Exceptions in Schedule B-2.
The Conditions.
This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B.
By:
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 4 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
Vickie A. Taylor Authorized Signatory
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 5 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
SCHEDULE A
1. Commitment Date: September 19, 2017 at 7:30 A.M.
2. Policy or Policies to be issued: Amount
a. ALTA Owner's Policy $449,000.00
Proposed Insured: Housing Authority of the City of Reno
3. (A) The estate or interest in the land described in this Commitment is:
Fee as to Parcels I and II and Easement as to Parcel IIA
(B) Title to said estate or interest at the date hereof is vested in:
Greater Harvest Church of God in Christ as to Parcel I and Greater Harvest Church of God in Christ, a Nevada non-profit corporation as to Parcel II
SUBJECT TO PROCEEDINGS PENDING IN THE UNITED STATES BANKRUPTCY COURT DISTRICT OF NEVADA, ENTITLED IN RE: GREATER HARVEST CHURCH OF GOD IN CHRIST DEBTOR, CASE NO. 17- 14312-BTB, WHEREIN A PETITION FOR RELIEF WAS FILED ON JULY 07, 2017 as to Parcel I
4. The land referred to in this Commitment is situated in the County of Washoe, State of Nevada, and is described as follows:
PARCEL I:
A PARCEL OF LAND LYING WITHIN THE SOUTHWEST ¼ OF NORTHEAST ¼ OF SECTION 1, TOWNSHIP 19 NORTH, RANGE 19 EAST, M.D.B.&M., AND FURTHER DESCRIBED AS FOLLOWS:
COMMENCING AT A POINT DESCRIBED AS A HALF INCH ROUND IRON PIPE SET IN CONCRETE AND ACCEPTED AS THE CENTER OF SAID SECTION 1; THENCE NORTH 0°14’40” WEST, A DISTANCE OF 135 FEET ALONG THE NORTH-SOUTH CENTER LINE OF SAID SECTION TO THE TRUE POINT OF BEGINNING, BEING AN IRON PIPE SUNK IN THE GROUND AND MARKED BY A BRASS TAG INSCRIBED R.E. 345; THENCE NORTH 89°45’20” EAST, ASSUMED PARALLEL TO EAST-WEST QUARTER SECTION LINE, A DISTANCE OF 170 FEET; THENCE NORTH 0°14’40” WEST, A DISTANCE OF 60 FEET TO AN IRON PIPE SUNK IN THE GROUND AND MARKED BY A BRASS TAG INSCRIBED R.E. 345; THENCE SOUTH 89°45’20” WEST, A DISTANCE OF 170 FEET TO AN IRON PIPE SUNK IN THE GROUND AND MARKED BY A BRASS TAG INSCRIBED R.E. 345; THENCE SOUTH 0°14’40” EAST, A DISTANCE OF 60 FEET TO THE TRUE POINT OF BEGINNING.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 6 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
EXCEPTING THEREFROM THE WESTERLY 15 FEET OF SAID LAND AS DESCRIBED IN DEED TO THE CITY OF RENO, A MUNICIPAL CORPORATION OF THE STATE OF NEVADA, RECORDED APRIL 29, 1975, IN BOOK 887, PAGE 801, AS DOCUMENT NO. 362610, OFFICIAL RECORDS, WASHOE COUNTY, NEVADA.
NOTE: THE ABOVE METES AND BOUNDS DESCRIPTION APPEARED PREVIOUSLY IN THAT CERTAIN DOCUMENT RECORDED SEPTEMBER 09, 2010, AS INSTRUMENT NO. 3920172, OF OFFICIAL RECORDS.
PARCEL II:
COMMENCING AT A POINT ON THE WEST LINE OF THE SOUTHWEST ¼ OF THE NORTHEAST ¼ OF SECTION 1, TOWNSHIP 19 NORTH, RANGE 19 EAST, M.D.B.&M., DISTANCE THEREON 280 FEET NORTH OF THE SOUTHWEST CORNER OF THE SOUTHWEST ¼ OF THE NORTHEAST ¼ OF SAID SECTION 1; SAID POINT BEING THE SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED MAY 8, 1936, BY ALFRED H. TILLIS AND MELBA TILLIS, HIS WIFE, TO CARL LEWIS AND ANN LEWIS, HIS WIFE, BY DEED RECORDED IN BOOK 106 OF DEEDS, PAGE 134, RECORDS OF WASHOE COUNTY, NEVADA; THENCE EAST ALONG THE SOUTH LINE OF SAID PARCEL OF LAND CONVEYED TO SAID CARL LEWIS AND ANN LEWIS, 124-1/2 FEET; THENCE NORTH 20 FEET; THENCE EAST ALONG THE SOUTH LINE OF SAID PARCEL OF LAND CONVEYED TO SAID CARL LEWIS AND ANN LEWIS, 124-1/2 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL OF LAND CONVEYED AS AFORESAID; THENCE SOUTH AND PARALLEL WITH THE WEST LINE OF SAID 40 ACRE TRACT A DISTANCE OF 105 FEET; THENCE WESTERLY AND PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT A DISTANCE OF 249 FEET TO A POINT ON THE WEST LINE OF SAID 40 ACRE TRACT; THENCE NORTHERLY ALONG THE WEST LINE OF SAID 40 ACRE TRACT 85 FEET TO THE POINT OF BEGINNING.
EXCEPTING THEREFROM THAT CERTAIN DEED FROM JOSEPH L. PALANY AND SADIE PALANY, HIS WIFE TO THE CITY OF RENO, A MUNICIPAL CORPORATION IN BOOK 893, PAGE 450, AS DOCUMENT NO. 365556, OFFICIAL RECORDS, DATED MAY 9, 1975, RECORDED MAY 28, 1975.
PARCEL IIA:
A NON-EXCLUSIVE RIGHT OF WAY FOR ROAD PURPOSES ACROSS THE FOLLOWING DESCRIBED REAL PROPERTY:
BEGINNING AT A POINT 195 FEET NORTH OF THE SOUTHWEST CORNER OF THE NORTHEAST ¼ OF SAID SECTION 1; THENCE NORTH, ALONG THE WESTERLY LINE OF SAID NORTHEAST ¼, 15 FEET; THENCE EASTERLY AND PARALLEL WITH THE SOUTHERLY LINE OF SAID NORTHEAST ¼, 740 FEET; THENCE AT A RIGHT ANGLE SOUTH, 15 FEET; THENCE AT A RIGHT ANGLE WESTERLY, A DISTANCE OF 740 FEET TO THE POINT OF BEGINNING.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 7 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
EXCEPTING THEREFROM ANY PORTION OF SAID LAND LYING WITHIN PARCEL II.
NOTE: THE ABOVE METES AND BOUNDS DESCRIPTION APPEARED PREVIOUSLY IN THAT CERTAIN DOCUMENT RECORDED February 13, 2006 AS INSTRUMENT NO. 3347828, OF OFFICIAL RECORDS.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 8 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
SCHEDULE B
SECTION ONE
REQUIREMENTS
The following requirements must be met:
(A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured.
(B) Pay us the premiums, fees and charges for the policy.
(C) Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded.
(D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions.
(E) Releases(s) or Reconveyance(s) of Item(s): 15 and 22
(F) Other: None
(G) You must give us the following information: 1. Any off record leases, surveys, etc. 2. Statement(s) of Identity, all parties. 3. Other: None
The following additional requirements, as indicated by "X", must be met:
[X] (H) Provide information regarding any off-record matters, which may include, but are not limited to: leases, recent works of improvement, or commitment statements in effect under the Environmental Responsibility Acceptance Act, Civil Code Section 850, et seq.
The Company's Owner's Affidavit form (attached hereto) must be completed and submitted prior to close in order to satisfy this requirement. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary.
[X] (I) An ALTA/NSPSsurvey of recent date, which complies with the current minimum standard detail requirements for ALTA/NSPSland title surveys, must be submitted to the Company for review. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 9 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
[] (J) The following LLC documentation is required from .
[] (K) The following partnership documentation is required from :
[X] (L) The following documentation is required from Greater Harvest Church of God in Christ, a Nevada non-profit corporation:
• Prior to the close of escrow or the issuance of any policy of title insurance, we will require that a copy of the Corporate Resolutions for Greater Harvest Church of God in Christ, a Nevada non-profit corporation be submitted to the Company for examination.
• Evidence of proper filing and good standing in the State of Nevada of Greater Harvest Church of God in Christ, a Nevada non-profit corporation .
[] (M) Based upon the Company's review of that certain partnership/operating agreement dated for the proposed insured herein, the following requirements must be met:
Any further amendments to said agreement must be submitted to the Company, together with an affidavit from one of the general partners or members stating that it is a true copy, that said partnership or limited liability company is in full force and effect, and that there have been no further amendments to the agreement. This Commitment will then be subject to such further requirements as may be deemed necessary.
[] (N) A copy of the complete lease, as referenced in Schedule A, #3 herein, together with any amendments and/or assignments thereto, must be submitted to the Company for review, along with an affidavit executed by the present lessee stating that it is a true copy, that the lease is in full force and effect, and that there have been no further amendments to the lease. This Commitment will then be subject to such further requirements as may be deemed necessary.
[X] (O) Approval from the Company's Underwriting Department must be obtained for issuance of the policy contemplated herein and any endorsements requested thereunder. This Commitment will then be subject to such further requirements as may be required to obtain such approval.
[X] (P) Potential additional requirements, if ALTA Extended coverage is contemplated hereunder, and work on the land has commenced prior to close, some or all of the following requirements, and any other requirements which may be deemed necessary, may need to be met:
[] (Q) The Company's "Mechanic's Lien Risk Addendum" form must be completed by a Company employee, based upon information furnished by the appropriate parties involved.
[] (R) The Company's "Indemnity Agreement I" must be executed by the appropriate parties.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 10 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
[] (S) Financial statements from the appropriate parties must be submitted to the Company for review.
[] (T) A copy of the construction contract must be submitted to the Company for review.
[] (U) An inspection of the land must be performed by the Company for verification of the phase of construction.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 11 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
SCHEDULE B
SECTION TWO
EXCEPTIONS
Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.
2. Any facts, rights, interests, or claims that are not shown by the public records but that could be ascertained by an inspection of the land or that may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.
5. Unpatented mining claims, (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof, (c) water rights or, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
6. Any lien or right to a lien for services, labor or material not shown by the public records.
Exceptions 1-6 will be omitted on extended coverage policies
7. Water rights, claims or title to water, whether or not shown by the public records.
8. Any taxes that may be due, but not assessed, for new construction which can be assessed on the unsecured property rolls, in the Office of the Washoe County Assessor, per Nevada Revised Statute 361.260.
9. Any taxes that may be due as provided under NRS 361.4725.
10. Any unpaid sewer service charges plus interest and penalties, which would create a lien and attach to said real property, pursuant to Chapter 7.20 of the Reno Municipal Code. Specific amounts may be obtained by calling (775)334-2095.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 12 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
11. Any unpaid charges due the Washoe County Sewer & Water District. Specific amounts may be obtained by calling the Washoe County Water Resources, Utility Services Division at P.O. Box 11130, Reno, NV 89520, (775)954-4601.
The following affects parcel(s) I.
12. Those taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected by the County Treasurer.
APN 008-490-20
Amount: Status: 1st installment $445.27 DELINQUENT 2nd installment $0.00 3rd installment $0.00 4th installment $0.00
Total $445.27
Note: Said taxes become a lien on July 1, 2017, each installment will become due and payable on the following dates: 1st installment is due on the 3rd Monday of August, 2017. 2nd installment is due on the 1st Monday of October, 2017. 3rd installment is due on the 1st Monday of January, 2018. 4th installment is due on the 1st Monday of March, 2018.
Each installment will become delinquent ten (10) days after due.
13. Reservations, exceptions and provisions, as contained in Patent conveying the land.
14. An easement as granted to Sierra Pacific Power Company and Bell Telephone Company of Nevada, to construct, operate and maintain electric power and communication lines and incidental purposes, by instrument recorded December 17, 1949 in Book 245, Page 448, as Document No. 179702, Deed Records.
15. A Deed of Trust to secure an original indebtedness of $150,000.00, and any other amounts or obligations secured thereby, recorded September 09, 2010 as Instrument No. 3920173.
Dated: April 20, 2010 Trustor: Greater Harvest Church of God in Christ Trustee: Property Guarantee Company, Inc., a California corporation Beneficiary: Fidelity Coastal Funding Company, Inc., a California corporation
• The beneficial interest under the Deed of Trust was assigned to Nelson Shrager, an unmarried man by Assignment recorded September 09, 2010 as Instrument No. 3920174 of Official Records.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 13 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
• The beneficial interest under the Deed of Trust was assigned to Charles H. Hershson and Hella A. Hershson, Trustees of the Charles H. Hershson and Hella A. Hershson Trust of June 5, 1998 by Assignment recorded September 09, 2010 as Instrument No. 3920175 of Official Records.
• A document recorded March 28, 2017 as Instrument No. 4690556 of Official Records provides that PLM Lender Services, Inc., a California corporation was substituted as trustee under the Deed of Trust.
• A Notice of Default recorded March 28, 2017 as Instrument No. 4690557 of Official Records.
A Notice of Trustee's Sale recorded June 30, 2017 as Instrument No. 4719498 of Official Records.
16. Intentionally deleted.
The following affects parcel(s) II.
17. Those taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected by the County Treasurer.
APN 008-490-21
Amount: Status: 1st installment $10.00 DELINQUENT 2nd installment $0.00 3rd installment $0.00 4th installment $0.00
Total $10.00
Note: Said taxes become a lien on July 1, 2017, each installment will become due and payable on the following dates: 1st installment is due on the 3rd Monday of August, 2017. 2nd installment is due on the 1st Monday of October, 2017. 3rd installment is due on the 1st Monday of January, 2018. 4th installment is due on the 1st Monday of March, 2018.
Each installment will become delinquent ten (10) days after due.
18. Reservations, exceptions and provisions, as contained in Patent conveying the land.
19. An Easement for sewer pipelines and incidental purposes, recorded April 1, 1963 in Book No. 677, Page 217 of Deed Records as Instrument No. 381166.
20. A Record of Survey filed in File 1800 of Surveys Map recorded November 20, 1985 as Instrument No. 1035393 of Official Records.
21. The terms and provisions contained in the document entitled Private Drive Maintenance Agreement recorded December 20, 1985 in Book No. 2268, Page 570 as Instrument No. 1041561 of Official Records.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 14 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
22. A Deed of Trust to secure an original indebtedness of $25,000.00, and any other amounts or obligations secured thereby, recorded February 13, 2006 as Instrument No. 3347828.
Dated: February 1, 2006 Trustor: Greater Harvest COGIC, a Nevada non-profit corporation Trustee: Mc KEEHAN ESCROW COMPANY, a California corporation Beneficiary: BERNARD M. GREENBERG, Trustee of the GREENBERG FAMILY TRUST dated 12-14-00
The following affects all parcel(s) .
23. Any facts, rights, interests or claims which would be disclosed by a correct ALTA/NSPS Survey.
24. Rights of parties in possession of the land by reason of unrecorded leases and all parties claiming by, through or under said lessees or tenants, if any, that would be disclosed from an inquiry of the parties, or by an inspection of the land.
25. Proceedings pending in the United States Bankruptcy Court District of Nevada , entitled in Re: Greater Harvest Church of God in Christ, a Nevada non-profit corporation, debtor, Case No. 17- 14312-btb, wherein a petition for relief was filed on July 07, 2017.
(Affects Parcel II)
INFORMATIONAL NOTES
NOTE to proposed insured lender only: No Private transfer fee covenant, as defined in Federal Housing Finance Agency Final Rule 12 CFR Part 1228, that was created and first appears in the Public Records on or after February 8, 2011, encumbers the Title except as follows: None
The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached.
First American Title Insurance Company
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 15 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
CONDITIONS
1. DEFINITIONS (a)"Mortgage" means mortgage, deed of trust or other security instrument. (b)"Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located.
2. LATER DEFECTS The Exceptions in Schedule B - Section Two may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section One are met. We shall have no liability to you because of this amendment.
3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing.
4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to:
comply with the Requirements shown in Schedule B - Section One or eliminate with our written consent any Exceptions shown in Schedule B - Section Two.
We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you.
5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms.
First American Title Insurance Company
First American Title Insurance Company 5310 Kietzke Lane, Suite 100 Reno, NV 89511-2043 (775)823-6200
INCOMING DOMESTIC WIRE INSTRUCTIONS
Beware of cyber-crime! If you receive an e-mail or any other communication that appears to be generated from a First American Title Insurance Company employee that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust.
** Our Wire Instructions Do Not Change. **
Funds from other than buyer or seller: Other than funds from a designated lender, real estate agent or broker, or the attorney of record, we will only accept incoming wires that are from the buyer or seller on a transaction. Other third party deposits not accompanied by appropriate instructions will be returned to the remitter.
Funds from a U.S. Bank: Funds should be wired from a bank within the United States. Notify our office at (775)823-6200 when you have transmitted your wire.
Funds from a non-U.S. Bank: If your funds are being wired from a non-U.S. bank, additional charges may apply. Contact our office for Incoming International Wiring Instructions.
ACH Transfers are NOT wire transfers: An ACH transfer is not immediately available funds and requires additional time for clearance. An ACH transfer cannot be accepted for an imminent closing. Acceptance of ACH transfers are subject to state law. Contact our office at (775)823-6200 prior to sending funds by ACH transfer.
Contact our office at (775)823-6200 when funds are sent.
PAYABLE TO: First American Title Insurance Company BANK: First American Trust, FSB ADDRESS Attn: Banking Services M/S #4 5 First American Way, Santa Ana, CA 92707 ACCOUNT NO.: 3012490000 ROUTING NUMBER 122241255
PLEASE REFERENCE THE FOLLOWING: PROPERTY: 1202 and 1225 Hillboro Ave, Reno, NV 89512 FILE NUMBER: 121-2524155
FIRST AMERICAN TRUST, FSB CONTACT INFO: Banking Services (877)600-9473
WIRES MAY BE RETURNED IF THE FILE NUMBER AND PROPERTY REFERENCE ARE NOT INCLUDED
Form No. 1068-2 Commitment No. 121-2524155 ALTA Plain Language Commitment Page Number: 17 Property Address: 1202 and 1225 Hillboro Ave Reno, NV
Privacy Policy
We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information.
Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values, a copy of which can be found on our website at www.firstam.com.
Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements.
Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you.
Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
First American Title Insurance Company 5310 Kietzke Lane, Suite 100 Reno, NV 89511-2043 Phn - (775)823-6200 Fax - 1-(866)481-1202
Reference : Address: 1400 Sutro Street, Reno, NV 89512 Our Order No : 121-2531187 Escrow Officer: Lori Callison [email protected]
COMMITMENT FOR TITLE INSURANCE 11/08/2017
First American Title Insurance Company
INFORMATION
The Title Insurance Commitment is a legal contract between you and the company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title, subject to the limitations shown in the policy.
The Company will give you a sample of the Policy form, if you ask.
The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy.
The Commitment is subject to its Requirements, Exceptions and Conditions.
This information is not part of the title insurance commitment.
TABLE OF CONTENTS
Page
Agreement to Issue Policy 3
Schedule A 1. Commitment Date 4 2. Policies to be Issued, Amount and Proposed Insured 4 3. Interest in the Land and Owner 4 4. Description of the Land 4
Schedule B-1 - Requirements
Schedule B - 2 - Exceptions
Conditions
YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, please contact the issuing office.
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 2 Property Address: 1400 Sutro Street Reno, NV
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
First American Title Insurance Company
Agreement to Issue Policy
We agree to issue a policy to you according to the terms of this Commitment.
When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A.
If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy.
Our obligation under this Commitment is limited by the following:
The Provisions in Schedule A.
The Requirements in Schedule B-1.
The Exceptions in Schedule B-2.
The Conditions.
This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B.
By: Cristina Jackson Authorized Signatory
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 3 Property Address: 1400 Sutro Street Reno, NV
SCHEDULE A
1. Commitment Date: 10/31/2017 at 7:30 A.M.
2. Policy or Policies to be issued: Amount
• CLTA $ 100,000.00
Proposed Insured:
To Be Determined
• ALTA Lenders Policy $ To Be Determined
Proposed Insured:
To Be Determined
3. (A) The estate or interest in the land described in this Commitment is:
Fee
(B) Title to said estate or interest at the date hereof is vested in:
Housing Authority of the City of Reno
4. The land referred to in this Commitment is situated in the County of Washoe, State of Nevada, and is described as follows:
See Exhibit "A" attached hereto and by reference made a part hereof.
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 4 Property Address: 1400 Sutro Street Reno, NV
SCHEDULE B
SECTION ONE
REQUIREMENTS
The following requirements must be met:
(A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured.
(B) Pay us the premiums, fees and charges for the policy.
(C) Documents satisfactory to us creating the interest in the land and/or mortgage to be insured must be signed, delivered and recorded.
(D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions.
(E) Release(s) or Reconveyance(s) of Item(s): N/A
(F) Other:
SCHEDULE B
SECTION TWO
EXCEPTIONS
Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. Printed exceptions and exclusions from coverage are contained in the policy or policies to be issued. Copies of the policy forms should be read. They are available from the office which issued this Commitment.
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.
2. Any facts, rights, interests, or claims that are not shown by the public records but that could be ascertained by an inspection of the land or that may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 5 Property Address: 1400 Sutro Street Reno, NV
5. Unpatented mining claims, (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof, (c) water rights or, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
6. Any lien or right to a lien for services, labor or material not shown by the public records.
Exceptions 1-6 will be omitted on extended coverage policies
7. Water rights, claims or title to water, whether or not shown by the public records.
8. Any taxes that may be due, but not assessed, for new construction which can be assessed on the unsecured property rolls, in the office of the County Assessor, per Nevada Revised Statute 361.260.
9. Any unpaid sewer service charges plus interest and penalties, which would create a lien and attach to said real property, pursuant to Chapter 7.20 of the Reno Municipal Code. Specific amounts may be obtained by calling (775)334-2095.
10. Any unpaid charges due the Washoe County Sewer & Water District. Specific amounts may be obtained by calling the Washoe County Water Resources, Utility Services Division at P.O. Box 11130, Reno, NV 89520, (775)954-4601.
11. An Easement for sanitary sewer line and incidental purposes, recorded April 1, 1963 in Book No. 677,
page 219 as Instrument No. 381167 of Deed Records. Affects: a portion of said land
NOTE: Taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected therewith. APN 008-490-22 Total tax: $10.00 (Paid)
NOTE: According to the public records, there have been no Deeds conveying the land described herein within a period of 24 months prior to the date of this Report, except as follows: None
NOTE: Short term rate not applicable.
NOTE: We find no open deeds of trust. Escrow please confirm before closing.
NOTE to proposed insured lender only: No Private transfer fee covenant, as defined in Federal Housing Finance Agency Final Rule 12 CFR Part 1228, that was created and first appears in the Public Records on or after February 8, 2011, encumbers the Title except as follows: None
The map attached, if any, may or may not be a survey of the land depicted hereon. First American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached.
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 6 Property Address: 1400 Sutro Street Reno, NV
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 7 Property Address: 1400 Sutro Street Reno, NV
CONDITIONS
1. DEFINITIONS (a)"Mortgage" means mortgage, deed of trust or other security instrument. (b)"Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located.
2. LATER DEFECTS The Exceptions in Schedule B - Section Two may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section One are met. We shall have no liability to you because of this amendment.
3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing.
4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to:
comply with the Requirements shown in Schedule B - Section One or eliminate with our written consent any Exceptions shown in Schedule B - Section Two.
We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you.
5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms.
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 8 Property Address: 1400 Sutro Street Reno, NV
INFORMATION SHEET
Current owner: Housing Authority City of Reno
Property reference: 1400 Sutro Street, Reno, NV
Legal description:
See attached Exhibit A
Assessor's Parcel Number: 008-490-22
Those taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected by the county treasurer.
APN (1000) 008-490-22
1st installment $ 2.50 PAID 2nd installment $ 2.50 PAID 3rd installment $ 2.50 PAID 4th installment $ 2.50 PAID
Total $ 10.00
RECORDED DOCUMENTS: Pursuant to NRS 247.110; The local county recorder shall charge and collect, in addition to any fee that a county recorder is otherwise authorized to charge and collect, an additional fee of $25 for recording any document that does not meet the standards set forth therein.
Form No. 1068-2 Commitment No. 121-2531187 ALTA Plain Language Commitment Page Number: 9 Property Address: 1400 Sutro Street Reno, NV
INCOMING DOMESTIC WIRE INSTRUCTIONS
Beware of cyber-crime! If you receive an e-mail or any other communication that appears to be generated from a First American Title Insurance Company employee that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust.
** Our Wire Instructions Do Not Change. **
Funds from other than buyer or seller: Other than funds from a designated lender, real estate agent or broker, or the attorney of record, we will only accept incoming wires that are from the buyer or seller on a transaction. Other third party deposits not accompanied by appropriate instructions will be returned to the remitter.
Funds from a U.S. Bank: Funds should be wired from a bank within the United States. Notify our office at (775)823-6200 when you have transmitted your wire.
Funds from a non-U.S. Bank: If your funds are being wired from a non-U.S. bank, additional charges may apply. Contact our office for Incoming International Wiring Instructions.
ACH Transfers are NOT wire transfers: An ACH transfer is not immediately available funds and requires additional time for clearance. An ACH transfer cannot be accepted for an imminent closing. Acceptance of ACH transfers are subject to state law. Contact our office at (775)823-6200 prior to sending funds by ACH transfer.
Contact our office at (775)823-6200 when funds are sent.
PAYABLE TO: First American Title Insurance Company BANK: First American Trust, FSB ADDRESS Attn: Banking Services M/S #4 5 First American Way, Santa Ana, CA 92707 ACCOUNT NO.: 3012490000 ROUTING NUMBER 122241255
PLEASE REFERENCE THE FOLLOWING: PROPERTY: 1400 Sutro Street, Reno, NV 89512 FILE NUMBER: 121-2531187
WIRES MAY BE RETURNED IF THE FILE NUMBER AND PROPERTY REFERENCE ARE NOT INCLUDED
Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information.
Applicability This Privacy Policy governs our use of the information that you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values.
Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; Information about your transactions with us, our affiliated companies, or others; and Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements.
Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you.
Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates’ Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need information from you, such as your name and email address. When information is needed, we will use our best efforts to let you know at the time of collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above.
Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites.
Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes. A cookie is an element of data that a Web site can send to your browser, which may then store the cookie on your hard drive. FirstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and productive Web site experience. ------Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain.
Form 50-PRIVACY (9/1/10) Page 1 of 1 Privacy Information (2001-2010 First American Financial Corporation)
EXHIBIT "A"
The land referred to in this Commitment is situated in the County of Washoe, State of Nevada and is described as follows:
COMMENCING AT A POINT ON THE WEST LINE OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 1, TOWNSHIP 19 NORTH, RANGE 19 EAST, M.D.B.&M., DISTANT THEREON 370 FEET NORTH OF THE SOUTHWEST CORNER OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SAID SECTION 1; THENCE RUNNING EASTERLY PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT A DISTANCE OF 249 FEET; THENCE RUNNING SOUTHERLY AND PARALLEL WITH THE WEST LINE OF SAID 40 ACRE TRACT A DISTANCE OF 70 FEET; THENCE RUNNING WESTERLY AND PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT A DISTANCE OF 124 1/2 FEET; THENCE RUNNING SOUTHERLY AND PARALLEL WITH THE WEST LINE OF SAID 40 ACRE TRACT A DISTANCE OF 20 FEET; THENCE RUNNING WESTERLY AND PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT A DISTANCE OF 124 1/2 FEET TO A POINT ON THE WEST LINE OF SAID 40 ACRE TRACT; THENCE RUNNING NORTHERLY ALONG SAID WEST LINE OF SAID 40 ACRE TRACT A DISTANCE OF 90 FEET TO THE POINT OF BEGINNING; SAID LAND BEING A PORTION OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 1, TOWNSHIP 19 NORTH, RANG E19 EAST, M.D.B.&M.
EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF RENO BY DEED RECORDED MARCH 26, 1976 IN BOOK 961, PAGE 263 AS DOCUMENT NO. 401694 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCE AT THE CENTER OF SECTION 1, TOWNSHIP; 19 NORTH, RANGE 19 EAST, M.D.B.&M., WASHOE COUNTY, NEVADA, THENCE NORTH 0°13'00"WEST, 370.00 FEET ALONG THE CENTERLINE OF SAID SECTION TO THE POINT OF BEGINNING; THENCE NORTH 88°52'30" EAST, 15.00 FEET TO A POINT ON THE PROPOSED NEW EASTERLY LINE OF SUTRO STREET; THENCE SOUTH 0°13'00" EAST, 90.00 FEET ALONG SAID LINE; THENCE SOUTH 88°52'30" WEST, 15.00 FEET TO A POINT ON THE CENTERLINE OF SECTION 1; THENCE NORTH 0°13'00" WEST, 90.00 FEET ALONG SAID LINE TO THE POINT OF BEGINNING.
NOTE: (NRS 111.312): THE ABOVE METES AND BOUNDS DESCRIPTION APPEARED PREVIOUSLY IN THAT CERTAIN DEED RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF WASHOE COUNTY, NEVADA ON JUNE 04, 2003 AS DOCUMENT NO. 2866267 OF OFFICIAL RECORDS.
First American Title Insurance Company 5310 Kietzke Lane, Suite 100 Reno, NV 89511-2043 Phn - (775)823-6200 Fax - 1-(866)481-1202
Reference : Address: 1245 Hillboro Avenue, Reno, NV 89512 Our Order No : 121-2531190 Escrow Officer: Lori Callison [email protected]
COMMITMENT FOR TITLE INSURANCE 11/08/2017
First American Title Insurance Company
INFORMATION
The Title Insurance Commitment is a legal contract between you and the company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title, subject to the limitations shown in the policy.
The Company will give you a sample of the Policy form, if you ask.
The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy.
The Commitment is subject to its Requirements, Exceptions and Conditions.
This information is not part of the title insurance commitment.
TABLE OF CONTENTS
Page
Agreement to Issue Policy 3
Schedule A 1. Commitment Date 4 2. Policies to be Issued, Amount and Proposed Insured 4 3. Interest in the Land and Owner 4 4. Description of the Land 4
Schedule B-1 - Requirements
Schedule B - 2 - Exceptions
Conditions
YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, please contact the issuing office.
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 2 Property Address: 1245 Hillboro Avenue Reno, NV
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
First American Title Insurance Company
Agreement to Issue Policy
We agree to issue a policy to you according to the terms of this Commitment.
When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A.
If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy.
Our obligation under this Commitment is limited by the following:
The Provisions in Schedule A.
The Requirements in Schedule B-1.
The Exceptions in Schedule B-2.
The Conditions.
This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B.
By: Cristina Jackson Authorized Signatory
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 3 Property Address: 1245 Hillboro Avenue Reno, NV
SCHEDULE A
1. Commitment Date: 10/31/2017 at 7:30 A.M.
2. Policy or Policies to be issued: Amount
• CLTA Owners Policy $ 100,000.00
Proposed Insured:
To Be Determined
• ALTA Lenders Policy $ To Be Determined
Proposed Insured:
To Be Determined
3. (A) The estate or interest in the land described in this Commitment is:
Fee as to Parcel 1 and Easement as to Parcel 2
(B) Title to said estate or interest at the date hereof is vested in:
Housing Authority of the City of Reno
4. The land referred to in this Commitment is situated in the County of Washoe, State of Nevada, and is described as follows:
See Exhibit "A" attached hereto and by reference made a part hereof.
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 4 Property Address: 1245 Hillboro Avenue Reno, NV
SCHEDULE B
SECTION ONE
REQUIREMENTS
The following requirements must be met:
(A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured.
(B) Pay us the premiums, fees and charges for the policy.
(C) Documents satisfactory to us creating the interest in the land and/or mortgage to be insured must be signed, delivered and recorded.
(D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions.
(E) Release(s) or Reconveyance(s) of Item(s): N/A
(F) Other:
SCHEDULE B
SECTION TWO
EXCEPTIONS
Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. Printed exceptions and exclusions from coverage are contained in the policy or policies to be issued. Copies of the policy forms should be read. They are available from the office which issued this Commitment.
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.
2. Any facts, rights, interests, or claims that are not shown by the public records but that could be ascertained by an inspection of the land or that may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 5 Property Address: 1245 Hillboro Avenue Reno, NV
5. Unpatented mining claims, (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof, (c) water rights or, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
6. Any lien or right to a lien for services, labor or material not shown by the public records.
Exceptions 1-6 will be omitted on extended coverage policies
7. Water rights, claims or title to water, whether or not shown by the public records.
8. Any taxes that may be due, but not assessed, for new construction which can be assessed on the unsecured property rolls, in the office of the County Assessor, per Nevada Revised Statute 361.260.
9. Those taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected by the County Treasurer.
APN 008-490-23 1st installment $ 10.00 PAID
Total $ 10.00
NOTE: Said taxes become a lien on July 1, 2017, each installment will become due and payable on the following dates: 1st installment is due on the 3rd Monday of August, 2017.
Each installment will become delinquent ten (10) days after due.
10. Any unpaid sewer service charges plus interest and penalties, which would create a lien and attach to said real property, pursuant to Chapter 7.20 of the Reno Municipal Code. Specific amounts may be obtained by calling (775)334-2095.
11. Any unpaid charges due the Washoe County Sewer & Water District. Specific amounts may be obtained by calling the Washoe County Water Resources, Utility Services Division at P.O. Box 11130, Reno, NV 89520, (775)954-4601.
12. An Easement for sewer pipelines and incidental purposes, recorded April 28, 1954, in Book No. 348, Page 137 as Instrument No. 227569 of Deeds Records.
Granted to: City of Reno, Nevada, a municipal corporation Affects: A portion of said land
13. An Easement for sewer pipelines and incidental purposes, recorded April 01, 1963, in Book No. 677, Page 217 as Instrument No. 381166 of Deeds Records.
Granted to: City of Reno, Nevada, a municipal corporation Affects: A portion of said land
14. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records.
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 6 Property Address: 1245 Hillboro Avenue Reno, NV
15. Existing rights in use in favor of the public or third parties for highways, roads, railroads, pipelines, telephone, telegraph and electrical transmission lines, canals, laterals and drains.
NOTE: According to the public records, there have been no Deeds conveying the land described herein within a period of 24 months prior to the date of this Report, except as follows: None
NOTE: Short term rate not applicable.
NOTE: We find no open deeds of trust. Escrow please confirm before closing.
NOTE to proposed insured lender only: No Private transfer fee covenant, as defined in Federal Housing Finance Agency Final Rule 12 CFR Part 1228, that was created and first appears in the Public Records on or after February 8, 2011, encumbers the Title except as follows: None
The map attached, if any, may or may not be a survey of the land depicted hereon. First American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached.
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 7 Property Address: 1245 Hillboro Avenue Reno, NV
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 8 Property Address: 1245 Hillboro Avenue Reno, NV
CONDITIONS
1. DEFINITIONS (a)"Mortgage" means mortgage, deed of trust or other security instrument. (b)"Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located.
2. LATER DEFECTS The Exceptions in Schedule B - Section Two may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section One are met. We shall have no liability to you because of this amendment.
3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing.
4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to:
comply with the Requirements shown in Schedule B - Section One or eliminate with our written consent any Exceptions shown in Schedule B - Section Two.
We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you.
5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms.
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 9 Property Address: 1245 Hillboro Avenue Reno, NV
INFORMATION SHEET
Current owner: Housing Authority of the City of Reno
Property reference: 1245 Hillboro Avenue, Reno, NV
Legal description:
See attached Exhibit A
Assessor's Parcel Number: 008-490-23
Those taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected by the county treasurer.
APN (1000) 008-490-23
1st installment $ 10.00 PAID 2nd installment $ 0.00 3rd installment $ 0.00 4th installment $ 0.00
Total $ 10.00
RECORDED DOCUMENTS: Pursuant to NRS 247.110; The local county recorder shall charge and collect, in addition to any fee that a county recorder is otherwise authorized to charge and collect, an additional fee of $25 for recording any document that does not meet the standards set forth therein.
Form No. 1068-2 Commitment No. 121-2531190 ALTA Plain Language Commitment Page Number: 10 Property Address: 1245 Hillboro Avenue Reno, NV
INCOMING DOMESTIC WIRE INSTRUCTIONS
Beware of cyber-crime! If you receive an e-mail or any other communication that appears to be generated from a First American Title Insurance Company employee that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust.
** Our Wire Instructions Do Not Change. **
Funds from other than buyer or seller: Other than funds from a designated lender, real estate agent or broker, or the attorney of record, we will only accept incoming wires that are from the buyer or seller on a transaction. Other third party deposits not accompanied by appropriate instructions will be returned to the remitter.
Funds from a U.S. Bank: Funds should be wired from a bank within the United States. Notify our office at (775)823-6200 when you have transmitted your wire.
Funds from a non-U.S. Bank: If your funds are being wired from a non-U.S. bank, additional charges may apply. Contact our office for Incoming International Wiring Instructions.
ACH Transfers are NOT wire transfers: An ACH transfer is not immediately available funds and requires additional time for clearance. An ACH transfer cannot be accepted for an imminent closing. Acceptance of ACH transfers are subject to state law. Contact our office at (775)823-6200 prior to sending funds by ACH transfer.
Contact our office at (775)823-6200 when funds are sent.
PAYABLE TO: First American Title Insurance Company BANK: First American Trust, FSB ADDRESS Attn: Banking Services M/S #4 5 First American Way, Santa Ana, CA 92707 ACCOUNT NO.: 3012490000 ROUTING NUMBER 122241255
PLEASE REFERENCE THE FOLLOWING: PROPERTY: 1245 Hillboro Avenue, Reno, NV 89512 FILE NUMBER: 121-2531190
WIRES MAY BE RETURNED IF THE FILE NUMBER AND PROPERTY REFERENCE ARE NOT INCLUDED
Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information.
Applicability This Privacy Policy governs our use of the information that you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values.
Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; Information about your transactions with us, our affiliated companies, or others; and Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements.
Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you.
Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates’ Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need information from you, such as your name and email address. When information is needed, we will use our best efforts to let you know at the time of collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above.
Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites.
Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes. A cookie is an element of data that a Web site can send to your browser, which may then store the cookie on your hard drive. FirstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and productive Web site experience. ------Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain.
Form 50-PRIVACY (9/1/10) Page 1 of 1 Privacy Information (2001-2010 First American Financial Corporation)
EXHIBIT "A"
The land referred to in this Commitment is situated in the County of Washoe, State of Nevada and is described as follows:
PARCEL 1:
A PORTION OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 1, TOWNSHIP 19 NORTH, RANGE 19 EAST, M.D.B.&M., AS MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT A POINT ON THE WEST LINE OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 1, TOWNSHIP 19 NORTH, RANGE 19 EAST, M.D.B.&M., DISTANT THEREON 370 FEET NORTH OF THE SOUTHWEST CORNER OF SAID 40 ACRE TRACT; RUNNING THENCE EASTERLY AND PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT A DISTANCE OF 249 FEET TO THE POINT OF BEGINNING FOR THE DESCRIPTION OF THIS PARCEL OF LAND; RUNNING THENCE EASTERLY AND PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT A DISTANCE OF 60 FEET; THENCE SOUTHERLY AND PARALLEL WITH THE WEST LINE OF SAID 40 ACRE TRACT, A DISTANCE OF 175 FEET; THENCE WESTERLY AND PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT 60 FEET; THENCE NORTHERLY PARALLEL WITH THE WEST LINE OF SAID 40 ACRE TRACT, 175 FEET TO THE PLACE OF BEGINNING; BEING THE WEST 60 FEET OF THE PARCEL OF LAND CONVEYED BY THERESA NELSON (FORMERLY THERESA HOWARD) TO EGBERT PORTER ROSS AND ALICE ROSS, HIS WIFE, BY DEED RECORDED IN BOOK 103 OF DEEDS, PAGE 95, RECORDS OF WASHOE COUNTY, NEVADA.
PARCEL 2:
A NON-EXCLUSIVE RIGHT OF WAY FOR ROAD PURPOSES ACROSS THE FOLLOWING DESCRIBED REAL PROPERTY:
BEGINNING AT A POINT 195 FEET NORTH OF THE SOUTHWEST CORNER OF THE NORTHEAST 1/4 OF SAID SECTION 1; THENCE NORTH, ALONG THE WESTERLY LINE OF SAID NORTHEAST 1/4 15 FEET; THENCE EASTERLY AND PARALLEL WITH THE SOUTHERLY LINE OF SAID NORTHEAST 1/4, 740 FEET; THENCE AT A RIGHT ANGLE SOUTH, 15 FEET, THENCE AT A RIGHT ANGLE WESTERLY A DISTANCE OF 740 FEET TO THE POINT OF BEGINNING.
EXCEPTING THEREFROM ANY PORTION OF SAID LAND LYING WITHIN PARCEL 1.
THE ABOVE METES AND BOUNDS DESCRIPTION APPEARED PREVIOUSLY IN THAT CERTAIN DOCUMENT RECORDED NOVEMBER 24, 2003 AS DOCUMENT NO. 2958455 OF OFFICIAL RECORDS.
First American Title Insurance Company 5310 Kietzke Lane, Suite 100 Reno, NV 89511-2043 Phn - (775)823-6200 Fax - 1-(866)481-1202
Reference : Address: 1265 Hillboro Avenue, Reno, NV 89512 Our Order No : 121-2531192 Escrow Officer: Lori Callison [email protected]
COMMITMENT FOR TITLE INSURANCE 11/08/2017
First American Title Insurance Company
INFORMATION
The Title Insurance Commitment is a legal contract between you and the company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title, subject to the limitations shown in the policy.
The Company will give you a sample of the Policy form, if you ask.
The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy.
The Commitment is subject to its Requirements, Exceptions and Conditions.
This information is not part of the title insurance commitment.
TABLE OF CONTENTS
Page
Agreement to Issue Policy 3
Schedule A 1. Commitment Date 4 2. Policies to be Issued, Amount and Proposed Insured 4 3. Interest in the Land and Owner 4 4. Description of the Land 4
Schedule B-1 - Requirements
Schedule B - 2 - Exceptions
Conditions
YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, please contact the issuing office.
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 2 Property Address: 1265 Hillboro Avenue Reno, NV
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
First American Title Insurance Company
Agreement to Issue Policy
We agree to issue a policy to you according to the terms of this Commitment.
When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A.
If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy.
Our obligation under this Commitment is limited by the following:
The Provisions in Schedule A.
The Requirements in Schedule B-1.
The Exceptions in Schedule B-2.
The Conditions.
This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B.
By: Cristina Jackson Authorized Signatory
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 3 Property Address: 1265 Hillboro Avenue Reno, NV
SCHEDULE A
1. Commitment Date: 10/31/2017 at 7:30 A.M.
2. Policy or Policies to be issued: Amount
• CLTA $ 100,000.00
Proposed Insured:
To Be Determined
• ALTA Lenders Policy $ To Be Determined
Proposed Insured:
To Be Determined
3. (A) The estate or interest in the land described in this Commitment is:
Fee
(B) Title to said estate or interest at the date hereof is vested in:
Housing Authority of the City of Reno, a Public Housing Agency
4. The land referred to in this Commitment is situated in the County of Washoe, State of Nevada, and is described as follows:
See Exhibit "A" attached hereto and by reference made a part hereof.
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 4 Property Address: 1265 Hillboro Avenue Reno, NV
SCHEDULE B
SECTION ONE
REQUIREMENTS
The following requirements must be met:
(A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured.
(B) Pay us the premiums, fees and charges for the policy.
(C) Documents satisfactory to us creating the interest in the land and/or mortgage to be insured must be signed, delivered and recorded.
(D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions.
(E) Release(s) or Reconveyance(s) of Item(s): N/A
(F) Other:
SCHEDULE B
SECTION TWO
EXCEPTIONS
Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. Printed exceptions and exclusions from coverage are contained in the policy or policies to be issued. Copies of the policy forms should be read. They are available from the office which issued this Commitment.
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.
2. Any facts, rights, interests, or claims that are not shown by the public records but that could be ascertained by an inspection of the land or that may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 5 Property Address: 1265 Hillboro Avenue Reno, NV
5. Unpatented mining claims, (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof, (c) water rights or, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
6. Any lien or right to a lien for services, labor or material not shown by the public records.
Exceptions 1-6 will be omitted on extended coverage policies
7. Water rights, claims or title to water, whether or not shown by the public records.
8. Any taxes that may be due, but not assessed, for new construction which can be assessed on the unsecured property rolls, in the office of the County Assessor, per Nevada Revised Statute 361.260.
9. Any unpaid sewer service charges plus interest and penalties, which would create a lien and attach to said real property, pursuant to Chapter 7.20 of the Reno Municipal Code. Specific amounts may be obtained by calling (775)334-2095.
10. Any unpaid charges due the Washoe County Sewer & Water District. Specific amounts may be obtained by calling the Washoe County Water Resources, Utility Services Division at P.O. Box 11130, Reno, NV 89520, (775)954-4601.
11. An Easement for sanitary sewer line and incidental purposes, recorded April 28, 1954 in Book
No. 348, page 137 as Instrument No. 227569 of Official Records. Affects: a portion of said land
12. A document entitled "PRIVATE DRIVE MAINTENANCE AGREEMENT", recorded December 20, 1985, in Book 2268, page 570 as Instrument No. 1041561 of Official Records.
NOTE: Taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected therewith. APN 008-490-24 Total tax: $10.00 (Paid)
NOTE: According to the public records, there have been no Deeds conveying the land described herein within a period of 24 months prior to the date of this Report, except as follows: None
NOTE: Short term rate not applicable.
NOTE: We find no open deeds of trust. Escrow please confirm before closing.
NOTE to proposed insured lender only: No Private transfer fee covenant, as defined in Federal Housing Finance Agency Final Rule 12 CFR Part 1228, that was created and first appears in the Public Records on or after February 8, 2011, encumbers the Title except as follows: None
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 6 Property Address: 1265 Hillboro Avenue Reno, NV
The map attached, if any, may or may not be a survey of the land depicted hereon. First American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached.
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 7 Property Address: 1265 Hillboro Avenue Reno, NV
CONDITIONS
1. DEFINITIONS (a)"Mortgage" means mortgage, deed of trust or other security instrument. (b)"Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located.
2. LATER DEFECTS The Exceptions in Schedule B - Section Two may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section One are met. We shall have no liability to you because of this amendment.
3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing.
4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to:
comply with the Requirements shown in Schedule B - Section One or eliminate with our written consent any Exceptions shown in Schedule B - Section Two.
We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you.
5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms.
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 8 Property Address: 1265 Hillboro Avenue Reno, NV
INFORMATION SHEET
Current owner: Housing Authority of the City of Reno, a Public Housing Agency
Property reference: 1265 Hillboro Avenue, Reno, NV
Legal description:
See attached Exhibit A
Assessor's Parcel Number: 008-490-24
Those taxes for the fiscal year July 1, 2017 through June 30, 2018, including any secured personal property taxes collected by the county treasurer.
APN (1000) 008-490-24
1st installment $ 2.50 PAID 2nd installment $ 2.50 PAID 3rd installment $ 2.50 PAID 4th installment $ 2.50 PAID
Total $ 10.00
RECORDED DOCUMENTS: Pursuant to NRS 247.110; The local county recorder shall charge and collect, in addition to any fee that a county recorder is otherwise authorized to charge and collect, an additional fee of $25 for recording any document that does not meet the standards set forth therein.
Form No. 1068-2 Commitment No. 121-2531192 ALTA Plain Language Commitment Page Number: 9 Property Address: 1265 Hillboro Avenue Reno, NV
INCOMING DOMESTIC WIRE INSTRUCTIONS
Beware of cyber-crime! If you receive an e-mail or any other communication that appears to be generated from a First American Title Insurance Company employee that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust.
** Our Wire Instructions Do Not Change. **
Funds from other than buyer or seller: Other than funds from a designated lender, real estate agent or broker, or the attorney of record, we will only accept incoming wires that are from the buyer or seller on a transaction. Other third party deposits not accompanied by appropriate instructions will be returned to the remitter.
Funds from a U.S. Bank: Funds should be wired from a bank within the United States. Notify our office at (775)823-6200 when you have transmitted your wire.
Funds from a non-U.S. Bank: If your funds are being wired from a non-U.S. bank, additional charges may apply. Contact our office for Incoming International Wiring Instructions.
ACH Transfers are NOT wire transfers: An ACH transfer is not immediately available funds and requires additional time for clearance. An ACH transfer cannot be accepted for an imminent closing. Acceptance of ACH transfers are subject to state law. Contact our office at (775)823-6200 prior to sending funds by ACH transfer.
Contact our office at (775)823-6200 when funds are sent.
PAYABLE TO: First American Title Insurance Company BANK: First American Trust, FSB ADDRESS Attn: Banking Services M/S #4 5 First American Way, Santa Ana, CA 92707 ACCOUNT NO.: 3012490000 ROUTING NUMBER 122241255
PLEASE REFERENCE THE FOLLOWING: PROPERTY: 1265 Hillboro Avenue, Reno, NV 89512 FILE NUMBER: 121-2531192
WIRES MAY BE RETURNED IF THE FILE NUMBER AND PROPERTY REFERENCE ARE NOT INCLUDED
Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information.
Applicability This Privacy Policy governs our use of the information that you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values.
Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; Information about your transactions with us, our affiliated companies, or others; and Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements.
Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you.
Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates’ Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need information from you, such as your name and email address. When information is needed, we will use our best efforts to let you know at the time of collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above.
Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites.
Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes. A cookie is an element of data that a Web site can send to your browser, which may then store the cookie on your hard drive. FirstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are here and to provide you with a more meaningful and productive Web site experience. ------Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain.
Form 50-PRIVACY (9/1/10) Page 1 of 1 Privacy Information (2001-2010 First American Financial Corporation)
EXHIBIT "A"
The land referred to in this Commitment is situated in the County of Washoe, State of Nevada and is described as follows:
COMMENCING AT A POINT ON THE WEST LINE OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 1, TOWNSHIP 19, NORTH, RANGE 19 EAST, M.D.B.&M. DISTANT THEREON 370 FEET NORTH OF THE SOUTHWEST CORNER OF SAID 40 ACRE TRACT; THENCE EASTERLY, PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT, A DISTANCE OF 309 FEET TO THE TRUE POINT OF BEGINNING FOR THE DESCRIPTION OF THIS PARCEL OF LAND; THENCE EASTERLY PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT, A DISTANCE OF 71 FEET; THENCE SOUTHERLY, PARALLEL WITH THE WEST LINE OF SAID 40 ACRE TRACT, A DISTANCE OF 175 FEET; THENCE WESTERLY, PARALLEL WITH THE SOUTH LINE OF SAID 40 ACRE TRACT, A DISTANCE OF 71 FEET; THENCE NORTHERLY, PARALLEL WITH THE WEST LINE OF SAID 40 ACRE TRACT, A DISTANCE OF 175 FEET TO THE POINT OF BEGINNING.
THE ABOVE METES AND BOUNDS DESCRIPTION APPEARED PREVIOUSLY IN THAT CERTAIN DOCUMENT RECORDED NOVEMBER 14, 2002 AS DOCUMENT NO. 2762535 OF OFFICIAL RECORDS.
Sutro Street Apartments Reno, NV
T A B L E O F C O N T E N T S
44-Unit Affordable Senior Supportive Housing Development Prevailing Wage Construction Preliminary Projections
Development Budget 1 Development Budget Notes 2 Operating Income Assumptions 3 Operating Expenses Assumptions 4 Operating Statement 5 Lease-Up/Reserve Requirements 6 Tax Credit Analysis 7 Depreciation Analysis 8 Investor Annual Benefits 9 Taxable Benefits 10 Debt Analysis - First Mortgage Debt 11 Construction Cash Flow 12-14
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Development Budget Reno, NV Page 1
Sources Uses Amount Rate Amort Idaho Nevada CDFI 825,000 6.00% 30 Acquisition Land - 100,000 WCHC HOME Funds 1,250,000 3.00% 30 Demolition 100,000 FHLBSF AHP - 3.00% 30 MM Loan - 3.00% 30 Hard Costs Hard Cost--Off-Site Sitework 75,000 6,987,681 Limited Partner Equity 7,750,031 N/A 0.93 Hard Costs--On-Site Sitework 550,000 Def. Dev. Fee 75,517 3.00% 15 Hard Costs-Building 5,242,600 General Requirements 352,056 Total Sources 9,900,548 Contractor Overhead 117,352 Contractor Profit 234,117 Total Uses 9,900,548 FF&E 88,000 Hard Cost Contingency 328,556 Check - Soft Costs Architectural & Engineering 312,128 1,776,867 Environmental/Geotech/Survey 45,000 Building Permit - Untrended NOI 82,601 Payment/Performance Bond - Untrended DCR 1.392 Planning Appl. and Impact Fees 572,000 Year 15 DSC 1.170 Testing and Inspection 25,000 Dev. Fee Def. 8.3% RE Taxes during construct. - Paid Fee 839,483 Insurance during construct. 60,000 Market Study/Appraisal 17,000 Title & Recording 25,000 Developer Legal 75,000 Marketing/Lease-Up 50,000 Accounting & Audit 35,000 Permanent Loan Fees 20,313 Construction Loan Fees 91,266 Construction Loan Interest 210,944 Development Consultant 65,500 NHD Fee 88,103 Misc. Soft Costs 84,613
Fees/Reserves Operating Reserve 121,000 1,036,000 Replacement Reserve - Developer Fee 915,000
Total 9,900,548
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Development Budget - Uses Notes Reno, NV Page 2 44 units Uses Notes
Acquisition Land 0 $0.000 per SF 73,181 SF parcel Demolition 100,000 estimate
Hard Costs Hard Cost--Off-Site Sitework 75,000 estimate Hard Costs--On-Site Sitework 550,000 estimate Hard Costs-Building 5,242,600 $150.00 per GSF (incl. site, GC, ovhd profit) 29,205 residential NSF General Requirements 352,056 6.00% of hard cost 50.0% Grossing Factor Contractor Overhead 117,352 2.00% of hard cost 43,808 Total GSF Contractor Profit 234,117 3.99% of hard cost (n/i patios and ext storage) FF&E 88,000 2,000 per unit Hard Cost Contingency 328,556 5.00% of hard cost 6,571,125 149,344 per unit total (n/I FF&E & $150.00 per GSF Contin.) Soft Costs Architectural & Engineering 312,128 4.75% of hard cost (estimate) Environmental/Geotech/Survey 45,000 Estimate Building Permit 0 in impact fees Payment/Performance Bond 0 In hard cost budget Planning Appl. and Impact Fees 572,000 $13,000 per unit Testing and Inspection 25,000 Estimate RE Taxes during construct. 0 Estimate Insurance during construct. 60,000 Estimate Market Study/Appraisal 17,000 Estimate Title & Recording 25,000 Estimate Developer Legal 75,000 Estimate Marketing/Lease-Up 50,000 Estimate Accounting & Audit 35,000 Estimate Permanent Loan Fees 20,313 1.25% of perm. loan fee + $10k Legal and 3rd-Party costs Construction Loan Fees 91,266 0.85% of construction loan fee + $36,850 91,266 Construction Loan Interest 210,944 4.50% estimate 210,944 Development Consultant 65,500 NHD Fee 88,103 $3,000 appl. fee + 9.5% of credit res. fee + $3,000 carryover fee + energy audit fee Misc. Soft Costs 84,613 5.00% of soft costs
Fees/Reserves Operating Reserve 121,000 6 mos. of oper. costs + debt ser. + replace. res. 133,249 Replacement Reserve 0 Developer Fee 915,000 10.99% of boosted eligible basis less boosted fees less consultant 917,805 1,173,546 Total 9,900,548
225,012 per unit
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Operating Income Assumptions Reno, NV Page 3 Adj. Rent Allowable Less Allowable Level LIHTC Utility Monthly Actual Monthly Yearly Unit Mix % AMI * Units % Units Res. SF Rent Allowance ** Rent Rent Revenues Revenues
1 Bedroom <30% AMI PBV 12 27.3% 625 $383 $56 $327 $721 $8,652 $103,824 <40% AMI 11 25.0% 625 $511 $56 $455 $455 $5,005 $60,060 <45% AMI 0 0.0% 625 $573 $56 $517 $517 $0 $0 <50% AMI 10 22.7% 625 $638 $56 $582 $582 $5,820 $69,840 2 Bedroom <30% AMI 2 4.5% 780 $459 $72 $387 $387 $774 $9,288 <40% AMI 6 13.6% 780 $613 $72 $541 $541 $3,246 $38,952 <45% AMI 0 0.0% 780 $689 $72 $617 $617 $0 $0 <50% AMI 3 6.8% 780 $766 $72 $694 $694 $2,082 $24,984 Total 44 100% 29,205 25,579 306,948 Avg. Per Unit 664 Laundry @ 0.00% $0 * All units income restricted < 50% AMI (20/50 Set-Aside) Other Income @ 1.50% $4,604 ** Tenant-paid gas and electricity (Reno Housing Authority Energy Efficient Systems Section 8 Allowance--eff. for move-ins 11/1/14) Total Income $311,552
HUD 2017 Fair Market Rents (FMR) (Reno-Sparks, NV MSA) 0 bedroom 1 bedroom 2 bedroom 3 bedroom 4 bedroom 100% 584 706 920 1,339 1,621 110% 642 777 1,012 1,473 1,783
HUD 2017 Income Limits (Reno-Sparks, NV MSA) 1 person 1.5 persons 2 persons 3 persons 4 persons 4.5 persons 5 persons 30% AMI 14,310 15,330 16,350 18,390 20,430 21,255 22,080 40% AMI 19,080 20,440 21,800 24,520 27,240 28,340 29,440 50% AMI 23,850 25,550 27,250 30,650 34,050 35,425 36,800 60% AMI 28,620 30,660 32,700 36,780 40,860 42,510 44,160 80% AMI 38,160 40,880 43,600 49,040 54,480 56,680 58,880
Program Mix # % Income Mix # % 1-bdrm 33 75.0% <30% AMI 14 31.8% 2-bdrm 11 25.0% <40% AMI 17 38.6% Total 44 100.0% <45% AMI 0 0.0% <50% AMI 13 29.5% Total 44 100.0% Wt. Avg Rent Targeting 39.8% Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Operating Expenses Assumptions Reno, NV Page 4
Expenses
Administration Payroll Marketing 2,500 Manager (.6 FTE) 27,500 Office Supplies 3,500 Asst. Manager 0 Legal 1,000 Leasing Agent 0 Audit 9,000 Maintenance Super (.6FTE) 20,000 Telephone 4,800 Janitorial 9,000 Miscellaneous Admin. 0 Employers Payroll Tax 7,250 15.3% NHD Fees 1,936 Monitoring ($40/unit) Workman’s Comp. 0 0.0% Other 3,500 Employee Benefits 5,500 11.6% TOTAL ADMIN. EXPENSE 26,236 Employee Apt. Rent 0 Commissions and Bonuses 0 Utilities TOTAL PAYROLL EXPENSE 69,250 Fuel Oil 0 Electric 11,000 0.25 per GSF Taxes and Insurance Natural Gas 2,000 0.05 per GSF Real Estate Taxes Water 5,000 0.11 per GSF Misc. Taxes & Permits 775 Sewer 14,500 0.33 per GSF Property & Liab. Ins. 15,750 Cable 0 0.00 per GSF Misc. Insurance 150 TOTAL UTILITIES 32,500 UW Cushion 10,000 TOTAL TAXES & INS. 26,675 Operating and Maintenance Janitor Supplies 0 Prop. Mgmt. and LIHTC Mgmt. Fees Extermination 1,200 Property Management Fee 20,282 7.0% of EGI Rubbish Removal 4,000 Bookkeeping Fee 0 Security 0 Investor Mgmt. Fee 0 Grounds/Parking Maint. 4,000 Prtship Mgmt. Fee 0 Repairs Materials 10,000 20,282 Repairs Contract 0 Pool Maint. 0 HVAC Maintenance 0 TOTAL OPER. EXPENSES 196,143 Turnover Costs 2,000 Misc. Oper. & Maint. Expense 0 Total Units 44 Other 0 Annual Expenses Per Unit 4,458 371 TOTAL OPER. & MAINT. 21,200 Ann. Expenses w/Replacement 4,708 392
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Operating Statement Reno, NV Page 5
Base Year Rental Revenue 306,948 Construction Start 4/1/19 Base Year Rental Revenue (ancillaryincome) 4,604 Construction Completion 4/1/20 Base Year Expense 196,143 Full Rent Up 10/1/20 First Mortgage Debt Service 59,356 Placed-in-Service Date 4/1/20 Vacancy 7.0% Conversion 1/1/21
Replacement Reserve $250.00 /unit Income Trending 2.00% Years 1-16 Expense Trending 3.00% Years 1 -16 # of Months in Year 1 9.0
Rental Ancillary Operating Net Oper Reserve Debt Service Cash 1st Mtg. Year Revenue Revenue Vacancy Expenses Income Funding (1st Mtge) Flow DCR
Year 1 2020 167,000 2,511 (11,866) (154,096) 3,549 (6,000) - (2,451) N/A Year 2 2021 313,087 4,696 (22,245) (202,027) 93,511 (11,000) (59,356) 23,156 1.39 Year 3 2022 319,349 4,790 (22,690) (208,088) 93,361 (11,330) (59,356) 22,676 1.38 Year 4 2023 325,736 4,886 (23,144) (214,331) 93,147 (11,670) (59,356) 22,122 1.37 Year 5 2024 332,250 4,984 (23,606) (220,761) 92,867 (12,020) (59,356) 21,492 1.36 Year 6 2025 338,895 5,083 (24,079) (227,384) 92,517 (12,381) (59,356) 20,781 1.35 Year 7 2026 345,673 5,185 (24,560) (234,205) 92,093 (12,752) (59,356) 19,986 1.34 Year 8 2027 352,587 5,289 (25,051) (241,231) 91,593 (13,135) (59,356) 19,103 1.32 Year 9 2028 359,639 5,395 (25,552) (248,468) 91,013 (13,529) (59,356) 18,129 1.31 Year 10 2029 366,831 5,502 (26,063) (255,922) 90,348 (13,934) (59,356) 17,058 1.29 Year 11 2030 374,168 5,613 (26,585) (263,600) 89,596 (14,353) (59,356) 15,888 1.27 Year 12 2031 381,651 5,725 (27,116) (271,508) 88,752 (14,783) (59,356) 14,613 1.25 Year 13 2032 389,284 5,839 (27,659) (279,653) 87,812 (15,227) (59,356) 13,230 1.22 Year 14 2033 397,070 5,956 (28,212) (288,043) 86,772 (15,683) (59,356) 11,733 1.20 Year 15 2034 405,011 6,075 (28,776) (296,684) 85,627 (16,154) (59,356) 10,117 1.17 Year 16 2035 413,112 6,197 (29,352) (305,584) 84,372 (16,638) (59,356) 8,378 1.14
Year 1 DSC 1.39 Year 1 NOI $82,601
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Lease-Up/Reserve Requirements Reno, NV Page 6
33 11 % LIHTC Total Ancillary Operating Debt Replacement Lease-Up Cum. Lease Date 1 BR 2 BR Leased Months Rent Income Expenses Service Reserves Reserves Reserves 2020 Jan-20 0 0 0% 0 0 0 0 0 0 0 0 Feb-20 0 0 0% 0 0 0 0 0 0 0 0 Mar-20 0 0 0% 0 0 0 13,637 0 0 13,637 13,637 Apr-20 5 3 18% 8 PIS 4,615 70 14,129 0 167 9,611 23,248 May-20 10 6 36% 16 9,230 140 14,622 0 333 5,585 28,833 Jun-20 15 9 55% 24 13,846 209 15,114 0 500 1,559 30,392 Jul-20 20 11 70% 31 17,906 270 15,545 0 646 0 30,392 Aug-20 25 11 82% 36 20,857 314 15,853 0 750 0 30,392 Sep-20 30 11 93% 41 23,808 358 16,161 0 854 0 30,392 Oct-20 33 11 100% 44 100% occ. 25,579 384 16,345 0 917 0 30,392 Nov-20 33 11 100% 44 25,579 384 16,345 0 917 0 30,392 Dec-20 33 11 100% 44 25,579 384 16,345 0 917 0 30,392 2021 Jan-21 33 11 100% 44 Conversion 26,091 391 16,836 4,946 917 0 30,392 Feb-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Mar-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Apr-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 May-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Jun-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Jul-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Aug-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Sep-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Oct-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Nov-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392 Dec-21 33 11 100% 44 26,091 391 16,836 4,946 917 0 30,392
Rent/Unit 1 BR 2 BR Anc. LITHC Total Ancillary Operating Debt Replacement Lease-Up Year Rent Rent Income % Rent Income Expenses Service Reserves Reserves 2020 590 555 384 288 54.55% 167,000 2,511 154,096 0 6,000 30,392 2021 602 566 391 528 100.00% 313,087 4,696 202,027 59,356 11,000 0
Income trend 2.00% Expense trend 3.00%
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Tax Credit Analysis Reno, NV Page 7
9% Residential Commercial Equipment & Amort Site Amortize Non- Credit Uses Total Depreciation Depreciation Acquisition Personal Prop Imprvmnt 1st Mortgage Expensed Depreciation Basis
Land 0 0 0 0 0 0 0 0 0 0 - Demolition 100,000 0 0 100,000 0 0 0 0 0 0 - Hard Cost--Off-Site Sitework 75,000 0 0 0 0 75,000 0 0 0 75,000 - Hard Costs--On-Site Sitework 550,000 0 0 0 0 550,000 0 0 0 550,000 - Hard Costs-Building 5,242,600 5,242,600 0 0 0 0 0 0 0 5,242,600 - General Requirements 352,056 352,056 0 0 0 0 0 0 0 352,056 - Contractor Overhead 117,352 117,352 0 0 0 0 0 0 0 117,352 - Contractor Profit 234,117 234,117 0 0 0 0 0 0 0 234,117 - FF&E 88,000 88,000 0 0 0 0 0 0 0 88,000 - Hard Cost Contingency 328,556 328,556 0 0 0 0 0 0 0 328,556 - Architectural & Engineering 312,128 312,128 0 0 0 0 0 0 0 312,128 - Environmental/Geotech/Survey 45,000 45,000 0 0 0 0 0 0 0 45,000 - Building Permit 0 0 0 0 0 0 0 0 0 0 - Payment/Performance Bond 0 0 0 0 0 0 0 0 0 0 - Planning Appl. and Impact Fees 572,000 572,000 0 0 0 0 0 0 0 572,000 - Testing and Inspection 25,000 25,000 0 0 0 0 0 0 0 25,000 - RE Taxes during construct. 0 0 0 0 0 0 0 0 0 0 - Insurance during construct. 60,000 60,000 0 0 0 0 0 0 0 60,000 - Market Study/Appraisal 17,000 17,000 0 0 0 0 0 0 0 17,000 - Title & Recording 25,000 25,000 0 0 0 0 0 0 0 25,000 - Developer Legal 75,000 45,000 0 10,000 0 0 5,000 0 15,000 45,000 - Marketing/Lease-Up 50,000 0 0 0 0 0 0 50,000 0 0 - Accounting & Audit 35,000 35,000 0 0 0 0 0 0 0 35,000 - Permanent Loan Fees 20,313 0 0 0 0 0 20,313 0 0 0 - Construction Loan Fees 91,266 91,266 0 0 0 0 0 0 0 91,266 - Construction Loan Interest 210,944 51,585 0 0 0 0 0 159,359 0 51,585 - Development Consultant 65,500 65,500 0 0 0 0 0 0 0 65,500 - NHD Fee 88,103 0 0 0 0 0 0 0 88,103 0 - Misc. Soft Costs 84,613 84,613 0 0 0 0 0 0 0 84,613 - Operating Reserve 121,000 0 0 0 0 0 0 0 121,000 0 - Replacement Reserve 0 0 0 0 0 0 0 0 0 0 - Developer Fee 915,000 915,000 0 0 0 0 0 0 0 915,000 - TOTAL USES 9,900,548 8,706,773 0 110,000 0 625,000 25,313 209,359 224,103 9,331,773
Acquisition Rehab Eligible Basis 0 9,331,773 QCT/DDA 100% 130% QCT (tract 18.01) Adj. Basis 0 12,131,305 12,131,305 Interest During Operations: 64,507 Nov. 2017 Rate 0.00% 9.00% HERA Rate Lock Eligible Credits 0 1,091,817 Actual Credits 837,925 Washoe County Set-Aside (estimate) Estimated Raise 0.925 LP share 99.99% Final Adjusted Equity Contrib. 7,750,031
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Depreciation Analysis Reno, NV Page 8 Rehabilitation Commercial Acquisition Total Capitalized Costs 9,790,548 - 110,000 (Equip & Personal Property) - - - (Site Improvements) (625,000) - - (First Mortgage) (25,313) (Expensed) (209,359) - - (Non-Depreciation) (224,103) - - (Historic Tax Credit) - - -
Total Real Property 8,706,773 - 110,000 In Service Date 4/1/20 274 days remaining in Year 1 12/31/20 Rehabilitation Commercial Acquisition Equipment & Site Real Real Real Personal Improvements First Replacement Equipment & Property Property Property Property 150% Mortgage Expensed Reserves Pers Prop Year 27.5 31.0 27.5 (See schedule) 15 30 Year 2020 27.5 Total Schedule
2020 237,674 - 3,003 - 46,918 633 209,359 - 497,587 14.29% 2021 316,610 - 4,000 - 57,808 844 - 379,262 24.49% 2022 316,610 - 4,000 - 52,027 844 - - 373,481 17.49% 2023 316,610 - 4,000 - 46,825 844 - 1,496 369,774 12.49% 2024 316,610 - 4,000 - 42,142 844 - 1,496 365,092 8.93% 2025 316,610 - 4,000 - 37,928 844 - 1,496 360,878 8.92% 2026 316,610 - 4,000 - 34,135 844 - 1,496 357,085 8.93% 2027 316,610 - 4,000 - 30,722 844 - 3,379 355,554 4.46% 2028 316,610 - 4,000 - 27,649 844 - 3,379 352,482 0.00% 2029 316,610 - 4,000 - 24,885 844 - 3,379 349,717 0.00% 2030 316,610 - 4,000 - 22,396 844 - 3,379 347,229 0.00% 2031 316,610 - 4,000 - 20,156 844 - 5,498 347,108 0.00% 2032 316,610 - 4,000 - 18,141 844 - 5,498 345,093 0.00% 2033 316,610 - 4,000 - 16,327 844 - 5,498 343,279 0.00% 2034 316,610 - 4,000 - 14,694 844 - 5,498 341,646 0.00% 2035 316,610 - 4,000 - 13,225 844 - 7,883 342,562 0.00%
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Investor Annual Benefits Reno, NV Page 9
Net Asset Mgmt. Interest Interest Interest Interest Interest Depreciation Taxable Operating Reserve Fee and Investor Expense Expense Expense Expense Expense and Income Year Income Interest Service Fee Const. Loan 1st Mtg. 2nd Mtg. 3rd Mtg. Def Dev Fee Amortization (Loss)
Year 0 2019 - - - (31,604) - - - (31,604) Year 1 2020 3,549 - (5,000) - - (38,981) - - (497,587) (538,019) Year 2 2021 93,511 220 (5,150) - (49,224) (40,167) - - (379,262) (380,072) Year 3 2022 93,361 344 (5,305) - (48,600) (41,389) - - (373,481) (375,068) Year 4 2023 93,147 578 (5,464) - (47,936) (42,647) - - (369,774) (372,096) Year 5 2024 92,867 - (5,628) - (47,232) (43,945) - - (365,092) (369,029) Year 6 2025 92,517 240 (5,796) - (46,484) (45,281) - - (360,878) (365,682) Year 7 2026 92,093 493 (5,970) - (45,690) (46,658) - - (357,085) (362,818) Year 8 2027 91,593 758 (6,149) - (44,847) (48,078) - - (355,554) (362,278) Year 9 2028 91,013 - (6,334) - (43,952) (49,540) - - (352,482) (361,296) Year 10 2029 90,348 271 (6,524) - (43,002) (51,047) - - (349,717) (359,672) Year 11 2030 89,596 555 (6,720) - (41,994) (52,599) - - (347,229) (358,391) Year 12 2031 88,752 853 (6,921) - (40,923) (54,199) - - (347,108) (359,547) Year 13 2032 87,812 - (7,129) - (39,786) (55,848) - - (345,093) (360,044) Year 14 2033 86,772 305 (7,343) - (38,579) (57,546) - - (343,279) (359,671) Year 15 2034 85,627 624 (7,563) - (37,298) (59,297) - - (341,646) (359,553) Year 16 2035 84,372 960 (7,790) - (35,937) (61,100) - - (342,562) (362,057) Total (6,036,896)
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Taxable Benefits Reno, NV Page 10
LP ownership interest: 99.99% 1st-Year Credit % 54.55%
Taxable Benefits from Tax Low-Income Income Tax Losses @ Consequences of Housing Total Investor IRR Year (Loss) 35.00% Sale for $1 Tax Credits Benefits Contributions Analysis
Year 0 2019 775,003 (775,003) Year 1 2020 (537,965) 188,288 457,004 645,292 5,967,524 (5,322,232) Year 2 2021 (380,034) 132,999 837,841 970,840 1,007,504 (36,664) Year 3 2022 (375,031) 131,248 837,841 969,089 - 969,089 Year 4 2023 (372,059) 130,208 837,841 968,049 - 968,049 Year 5 2024 (368,992) 129,134 837,841 966,975 - 966,975 Year 6 2025 (365,646) 127,963 837,841 965,804 - 965,804 Year 7 2026 (362,782) 126,961 837,841 964,802 - 964,802 Year 8 2027 (362,242) 126,772 837,841 964,613 - 964,613 Year 9 2028 (361,260) 126,428 837,841 964,269 - 964,269 Year 10 2029 (359,636) 125,860 837,841 963,701 - 963,701 Year 11 2030 (358,355) 125,412 380,837 506,249 - 506,249 Year 12 2031 (359,511) 125,816 125,816 - 125,816 Year 13 2032 (360,008) 125,990 - 125,990 - 125,990 Year 14 2033 (359,635) 125,860 - 125,860 - 125,860 Year 15 2034 (359,517) 125,818 - 125,818 - 125,818 Year 16 2035 (362,021) 126,695 610,869 - 737,564 - 737,564
(6,004,691) 2,101,451 8,378,412 11,090,732 7,750,031 6.85% Quarterly IRR 6.45% Capital Account at Year 16 1,745,340 6,801,468 6,633,575 1.025 Tax Liaiblity at 35% (610,869)
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Debt Analysis - First Mortgage Debt Reno, NV Page 11
Principal 825,000 Interest Rate 6.00% Amortization Period 30 Term 16 Beginning Date 1/1/21 Monthly Payment 4,946 59,356
Ending Ending Year Date Payment Principal Interest Balance 1/1/21 - - - 825,000 0 12/31/21 59,356 10,131 49,224 814,869 1 12/31/22 59,356 10,756 48,600 804,113 2 12/31/23 59,356 11,419 47,936 792,694 3 12/31/24 59,356 12,124 47,232 780,570 4 12/31/25 59,356 12,871 46,484 767,698 5 12/31/26 59,356 13,665 45,690 754,033 6 12/31/27 59,356 14,508 44,847 739,525 7 12/31/28 59,356 15,403 43,952 724,122 8 12/31/29 59,356 16,353 43,002 707,769 9 12/31/30 59,356 17,362 41,994 690,407 10 12/31/31 59,356 18,432 40,923 671,975 11 12/31/32 59,356 19,569 39,786 652,405 12 12/31/33 59,356 20,776 38,579 631,629 13 12/31/34 59,356 22,058 37,298 609,571 14 12/31/35 59,356 23,418 35,937 586,153 15 12/31/36 59,356 24,863 34,493 561,290 16 12/31/37 59,356 26,396 32,959 534,894 17 12/31/38 59,356 28,024 31,331 506,870 18 12/31/39 59,356 29,753 29,603 477,117 19 12/31/40 59,356 31,588 27,768 445,530 20 12/31/41 59,356 33,536 25,820 411,994 21 12/31/42 59,356 35,604 23,751 376,389 22 12/31/43 59,356 37,800 21,555 338,589 23 12/31/44 59,356 40,132 19,224 298,457 24 12/31/45 59,356 42,607 16,748 255,850 25 12/31/46 59,356 45,235 14,120 210,615 26 12/31/47 59,356 48,025 11,330 162,590 27 12/31/48 59,356 50,987 8,368 111,603 28 12/31/49 59,356 54,132 5,224 57,471 29 12/31/50 59,356 57,471 1,885 0 30 12/31/51 - - - 0
Praxis Consulting Group, LLC 12/5/17 Sutro Street Apartments Construction Cash Flow Revised: December 5, 2017 Total Closing Sources Total Budget Pre-Devlpmnt Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 ______Beginning Cash - - 453,497 290,328 ------Idaho Nevada CDFI 6.00% 825,000 - - WCHC HOME Funds 3.00% 1,250,000 1,240,000 FHLBSF AHP 3.00% - - MM Loan 3.00% - - Limited Partner Equity N/A 7,750,031 775,003 Construction Loan 4.50% 6,401,933 - - 28,083 473,759 630,779 943,630 1,140,814 838,593 678,017 680,560 MM Contribution (predev.) N/A 538,852 538,852 Def. Dev. Fee 3.00% 75,517 ______16,841,333 538,852 2,015,003 453,497 318,411 473,759 630,779 943,630 1,140,814 838,593 678,017 680,560
Construction draw schedule 0.0% 2.5% 5.0% 7.5% 10.0% 15.0% 15.0% 12.5% 10.0% 10.0% Construction draw to date 100% 98% 93% 85% 75% 60% 45% 33% 23% 13% Total Closing release 50% retention Uses Total Budget Pre-Devlpmnt Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 ______Land 0 0 0 Demolition 100,000 100,000 Hard Cost--Off-Site Sitework 75,000 0 1,688 3,375 5,063 6,750 10,125 12,000 8,906 7,125 7,125 Hard Costs--On-Site Sitework 550,000 0 12,375 24,750 37,125 49,500 74,250 88,000 65,313 52,250 52,250 Hard Costs-Building 5,242,600 0 117,958 235,917 353,875 471,834 707,751 838,816 622,559 498,047 498,047 General Requirements 352,056 0 7,921 15,843 23,764 31,685 47,528 56,329 41,807 33,445 33,445 Contractor Overhead 117,352 0 2,640 5,281 7,921 10,562 15,843 18,776 13,202 10,562 10,562 Contractor Profit 234,117 0 5,268 10,535 15,803 21,071 31,606 37,459 27,801 22,241 22,241 FF&E 88,000 0 Hard Cost Contingency 328,556 0 7,393 14,785 22,178 29,570 44,355 52,569 39,016 31,213 31,213 Architectural & Engineering 312,128 234,096 0 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 6,002 Environmental/Geotech/Survey 45,000 45,000 0 Building Permit 0 0 0 Payment/Performance Bond 0 0 Planning Appl. and Impact Fees 572,000 58,892 513,108 Testing and Inspection 25,000 0 1,923 1,923 1,923 1,923 1,923 1,923 1,923 1,923 1,923 RE Taxes during construct. 0 0 Insurance during construct. 60,000 60,000 Market Study/Appraisal 17,000 17,000 0 Title & Recording 25,000 0 25,000 Developer Legal 75,000 31,025 43,975 Marketing/Lease-Up 50,000 0 Accounting & Audit 35,000 10,000 0 Permanent Loan Fees 20,313 20,313 Construction Loan Fees 91,266 91,266 Construction Loan Interest 210,944 0 0 0 105 1,882 4,247 7,786 12,064 15,209 17,751 Development Consultant 65,500 33,583 21,917 NHD Fee 88,103 88,103 Misc. Soft Costs 84,613 21,153 21,153 21,153 Operating Reserve 121,000 0 Replacement Reserve 0 0 Deferred Dev. Fee 75,517 0 Paid Dev. Fee 839,483 125,923 Repayment of Construction Loan 6,401,933 0 Repayment of GP Contribution 538,852 538,852 ______Total Uses 16,841,333 538,852 1,561,507 163,168 318,411 473,759 630,779 943,630 1,140,814 838,593 678,017 680,560
Ending Cash 0 0 453,497 290,328 0 0 0 0 0 0 0 0
Praxis Consulting Group, LLC 12/5/17, 11:31 AM Sutro Street Apartments Construction Cash Flow Revised: December 5, 2017 proj. completion C of O Retainage 100% Occupancy Conversion Sources Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 ______Beginning Cash - - - - - 3,969 (1,094) (27,310) (32,372) (37,435) (42,497) (47,560) (52,622) Idaho Nevada CDFI 6.00% 825,000 WCHC HOME Funds 3.00% 10,000 FHLBSF AHP 3.00% MM Loan 3.00% Limited Partner Equity N/A 5,967,524 930,004 Construction Loan 4.50% 355,670 193,283 194,008 244,736 MM Contribution (predev.) N/A Def. Dev. Fee 3.00% ______355,670 193,283 194,008 244,736 5,977,524 3,969 (1,094) (27,310) (32,372) (37,435) (42,497) (47,560) 1,702,382
Construction draw schedule 5.0% 2.5% 2.5% 2.5% Construction draw to date 7% 5% 2% 0% C of O Retainage 100% Occupancy Conversion Uses Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 ______Land Demolition Hard Cost--Off-Site Sitework 3,563 1,781 1,781 1,781 3,938 Hard Costs--On-Site Sitework 26,125 13,063 13,063 13,063 28,875 Hard Costs-Building 249,023 124,512 124,512 124,512 275,236 General Requirements 16,723 8,361 8,361 8,361 18,483 Contractor Overhead 5,281 2,640 2,640 2,640 8,801 Contractor Profit 11,121 5,560 5,560 5,560 12,291 FF&E 88,000 Hard Cost Contingency 15,606 7,803 7,803 7,803 17,249 Architectural & Engineering 6,002 6,002 6,002 6,002 0 Environmental/Geotech/Survey Building Permit Payment/Performance Bond Planning Appl. and Impact Fees 0 Testing and Inspection 1,923 1,923 1,923 1,923 RE Taxes during construct. Insurance during construct. Market Study/Appraisal Title & Recording Developer Legal 0 Marketing/Lease-Up 50,000 Accounting & Audit 25,000 Permanent Loan Fees Construction Loan Fees Construction Loan Interest 20,303 21,637 22,362 23,089 24,007 5,063 5,063 5,063 5,063 5,063 5,063 5,063 5,063 Development Consultant 10,000 NHD Fee Misc. Soft Costs 21,153 Operating Reserve 121,000 Replacement Reserve Deferred Dev. Fee Paid Dev. Fee 419,742 216,319 Repayment of Construction Loan 5,051,933 1,350,000 Repayment of GP Contribution ______Total Uses 355,670 193,283 194,008 244,736 5,973,555 5,063 26,216 5,063 5,063 5,063 5,063 5,063 1,702,382
Ending Cash 0 0 0 0 3,969 (1,094) (27,310) (32,372) (37,435) (42,497) (47,560) (52,622) (0)
Praxis Consulting Group, LLC 12/5/17, 11:31 AM Sutro Street Apartments Page 12-14 Construction Cash Flow Revised: December 5, 2017 Tax Return Sources Feb-21 Mar-21 Apr-21 Total Budget Variance ______Beginning Cash (0) (0) (0) Idaho Nevada CDFI 6.00% 825,000 825,000 - WCHC HOME Funds 3.00% 1,250,000 1,250,000 - FHLBSF AHP 3.00% 0 - - MM Loan 3.00% 0 - - Limited Partner Equity N/A 77,500 7,750,031 7,750,031 - Construction Loan 4.50% 6,401,933 6,401,933 - MM Contribution (predev.) N/A 538,852 538,852 - Def. Dev. Fee 3.00% 75,517 75,517 75,517 - ______(0) (0) 153,017 16,841,333 16,841,333 -
Construction draw schedule Construction draw to date Tax Return Uses Feb-21 Mar-21 Apr-21 Total Budget Variance ______Land 0 0 0 Demolition 100,000 100,000 0 Hard Cost--Off-Site Sitework 75,000 75,000 0 Hard Costs--On-Site Sitework 550,000 550,000 0 Hard Costs-Building 5,242,600 5,242,600 0 General Requirements 352,056 352,056 0 Contractor Overhead 117,352 117,352 0 Contractor Profit 234,117 234,117 0 FF&E 88,000 88,000 0 Hard Cost Contingency 328,556 328,556 0 Architectural & Engineering 312,128 312,128 0 Environmental/Geotech/Survey 45,000 45,000 0 Building Permit 0 0 0 Payment/Performance Bond 0 0 0 Planning Appl. and Impact Fees 572,000 572,000 0 Testing and Inspection 25,000 25,000 0 RE Taxes during construct. 0 0 0 Insurance during construct. 60,000 60,000 0 Market Study/Appraisal 17,000 17,000 0 Title & Recording 25,000 25,000 0 Developer Legal 75,000 75,000 0 Marketing/Lease-Up 50,000 50,000 0 Accounting & Audit 35,000 35,000 0 Permanent Loan Fees 20,313 20,313 0 Construction Loan Fees 91,266 91,266 0 Construction Loan Interest 210,944 210,944 0 Development Consultant 65,500 65,500 0 NHD Fee 88,103 88,103 0 Misc. Soft Costs 84,613 84,613 0 Operating Reserve 121,000 121,000 0 Replacement Reserve 0 0 0 Deferred Dev. Fee 75,517 75,517 75,517 0 Paid Dev. Fee 77,500 839,483 839,483 0 Repayment of Construction Loan 6,401,933 6,401,933 0 Repayment of GP Contribution 538,852 538,852 0 ______Total Uses 0 0 153,017 16,841,333 16,841,333 0
Ending Cash (0) (0) 0 0 0 (0)
Praxis Consulting Group, LLC 12/5/17, 11:31 AM MF-14 ZONING PURPOSE & DEVELOPMENT STANDARDS
MF-14 ZONING PURPOSE & DEVELOPMENT STANDARDS