AFFORDABLE MULTIFAMILY HOUSING MARKET STUDY EAGLE HOUSING 2437 Eagle Ave, Alameda, CA. Housing Authority of the City of Alameda ALAMEDA COUNTY, CALIFORNIA Prepared for ALAMEDA HOUSING AUTHORITY JUNE 2016 Eagle Housing Alameda Market Area TABLE OF CONTENTS PAGE COVER LETTER TABLE OF CONTENTS ................................................................................................... i LIST OF TABLES ........................................................................................................... iii LIST OF CHARTS ..........................................................................................................iv LIST OF EXHIBITS ........................................................................................................ v EXECUTIVE SUMMARY ............................................................................................. E-1 CHAPTER I - THE PROPOSED PROJECT – EAGLE HOUSING Project Description ........................................................................................1-1 Project Site ................................................................................................... 1-2 Adjacent Land Uses ...................................................................................... 1-2 Services and Facilities ................................................................................... 1-8 Other Services and Facilities......................................................................... 1-8 CHAPTER II - GEOGRAPHIC LOCATION AND AREA DESCRIPTION Alameda County ............................................................................................ 2-1 City of Alameda ............................................................................................. 2-2 Alameda Primary Market Area .....................................................................2-3 Alameda Secondary Market Area ............................................................... 2-4 CHAPTER III - DEMOGRAPHIC ANALYSIS Statistical Methodology ............................................................................... 3-1 Population ..................................................................................................... 3-1 Households ................................................................................................... 3-5 Housing ......................................................................................................... 3-9 Multifamily Housing i June 2016 Eagle Housing Alameda Market Area Employment and Economics ...................................................................... 3-12 CHAPTER IV - CONCLUSIONS METHODOLOGY AND CAPTURE RATE – CTCAC DEMAND CALCULATION Conclusions ................................................................................................... 4-1 Methodology for General Occupancy ........................................................ 4-2 Capture Rate ................................................................................................ 4-4 Penetration Rate .......................................................................................... 4-5 Absorption Rate ........................................................................................... 4-5 CHAPTER V - COMPETITIVE ANALYSIS Survey Methodology .................................................................................... 5-1 Competitive Offerings .................................................................................. 5-1 Vacancy ......................................................................................................... 5-2 Rent Comparability Matrix .......................................................................... 5-5 Turnover ...................................................................................................... 5-18 Pending or Proposed Projects.................................................................... 5-18 Survey of Multifamily Units ........................................................................ 5-18 ATTACHMENTS Attachment 1 – Works Cited Attachment 2 – Demographic Reports Attachment 3 – Utility Allowance Attachment 4 – Market Study Index Attachment 5 – Resume Attachment 6 – Glossary of Terms Multifamily Housing ii June 2016 Eagle Housing Alameda Market Area LIST OF TABLES PAGE TABLE 1-1 – Proposed Project Summary ...................................................................1-1 TABLE 2-1 – Crime Statistics ......................................................................................2-3 TABLE 3-1 - Population Trends ..................................................................................3-2 TABLE 3-2 - Population By Age – North Alameda Market Area ............................. 3-3 TABLE 3-3 - Population By Age – City of Alameda .................................................. 3-4 TABLE 3-4 – Households .......................................................................................... 3-5 TABLE 3-5 – Persons Per Household ....................................................................... 3-6 TABLE 3-6 – Housing Units By Tenure .................................................................... 3-6 TABLE 3-7 – Households By Income –Alameda Market Area ................................ 3-7 TABLE 3-8 – Renter Households by Income - 2014 ................................................. 3-7 TABLE 3-9– Proportion of Households Income- 50%-60% of AMI ................................................................................. 3-8 TABLE 3-10– Proportion of Households Income- Eligible – 0%-40% of AMI ................................................................... 3-8 TABLE 3-11 – Households by Income Groups Alameda Market Area 2014 ............................................................................ 3-9 TABLE 3-12 – Housing Units by Type – City of Alameda ......................................... 3-9 TABLE 3-13 – Renter Households Overpaying by Income Group - City of Alameda - 2014 ................................................................... 3-10 TABLE 3-14 – Renter Households Overpaying by Income Group – Alameda County - 2014 ................................................................... 3-11 TABLE 3-15 – Indicators of Substandard Housing - 2014 ........................................ 3-11 TABLE 3-16 – 2014 Employment by Industry –Alameda Market Area .................................................................................. 3-12 TABLE 3-17 – Civilian Labor Force ........................................................................... 3-13 TABLE 3-18 – Travel Time to Work –Alameda Market Area .................................. 3-14 TABLE 3-19 – Wages by Occupation – Oakland-Fremont-Hayward MSA ............. 3-14 TABLE 3-20 – Major Employers – Alameda County ............................................... 3-15 Multifamily Housing iii June 2016 Eagle Housing Alameda Market Area TABLE 4-1 – 2018 Demand Summary - General Occupancy ..................................... 4-1 TABLE 4-2 – Absorption Rate .................................................................................. 4-5 TABLE 5-1 – Field Study Summary –Alameda Market Area ..................................... 5-1 TABLE 5-2 – Vacancy Rate Alameda Market Area - 2016 .........................................5-2 TABLE 5-3– Net Rental Rate Comparison – Non Adjusted Rents ...........................5-2 TABLE 5-4 – Rental Housing Units – City of Alameda - 2014 .................................. 5-3 TABLE 5-5 – Residential Building Permits Issued – City of Alameda – 2006-2016 ........................................................... 5-3 TABLE 5-6 – Net Rental Rate Comparison – Adjusted Market Rents – CTCAC ............................................................................................... 5-5 TABLE 5-7 – Rent Comparability Matrix – Market Rate One-Bedroom / One Bath Units ...................................................... 5-6 TABLE 5-8 – Rent Comparability Matrix – Market Rate Two-Bedroom / One Bath Units ...................................................... 5-8 TABLE 5-9 – Rent Comparability Matrix – Market Rate Three-Bedroom / One and One Half Bath Units ............................ 5-10 TABLE 5-10 – Rent Comparability Matrix – Affordable One-Bedroom / One Bath Units ..................................................... 5-12 TABLE 5-11 – Rent Comparability Matrix – Affordable Two-Bedroom / One Bath Units ..................................................... 5-14 TABLE 5-12 – Rent Comparability Matrix – Affordable Three-Bedroom / One and One Half Bath Units ............................ 5-16 TABLE 5-13 – Location of Surveyed Complexes .................................................... 5-18 LIST OF CHARTS PAGE CHART 3-1 – Population Growth Trends ................................................................ 3-1 CHART 3-2 – Housing Units by Year Built –Alameda Market Area ..................... 3-10 LIST OF EXHIBITS PAGE EXHIBIT 1-1- Site Photographs ................................................................................ 1-3 EXHIBIT 1-2- Neighborhood Photographs .............................................................. 1-5 Multifamily Housing iv June 2016 Eagle Housing Alameda Market Area EXHIBIT 1-3- Site and Adjacent Land Uses ............................................................. 1-6 EXHIBIT 1-4- City of Alameda Zoning Map ............................................................. 1-7 EXHIBIT 1-5 - Location of Services and Facilities ...................................................