Fort Walton Beach Council agenda — 03-23-2010 Special-Soundside Develp. Project — reading text

000 to $ 14, 999 Low Income 197 247 238 213 895 15, 000 to $ 19, 999 60 %/ 80% AM 1) 182 289 247 132 850 20,000 to $24, 999 60% / 80% AMI 184 452 418 229 1, 283 25, 000 to $29, 999 60 %/ 80% AMI 263 420 405 207 19295 30,000 to $34, 999 60 %/ 80% AMI 179 367 537 200 1, 283 35, 000 to $39, 999 60 %/ 80% AM 1) 155 408 545 241 1, 349 40, 000 to $44, 999 60% / 80% AMI 89 325 378 302 1, 094 45, 000 to $49,999 60% / 80% AMI 27 288 364 226 905 50, 000 to $59, 999 107 441 607 379 1, 534 60, 000 to $74, 999 77 312 539 542 1, 470 75, 000 to $99,999 33 204 361 494 1, 092 100, 000 to $ 124, 999 6 51 161 255 473 125, 000 to $ 149, 999 11 26 67 84 188 150, 000 to $ 199,999 7 0 53 76 136 200, 000 or more 0 0 28 52 80 Source:P55, Age of Householder by Household Income in 1999. Data Set: Census 2000 Summary File 3 SF 3) Sample Data. Defined Market Demographic Analysis: Low Income ( Section 8) The property will not cater to any specific age group. The amenities and floor plans are oriented toward families; however; it may be noted that seniors aged 55+ may choose to reside at the subject property. Nevertheless, they have been excluded from potential rental demand. The subject project will offer 50 project -based Section 8 units. Typically, these residents will be low income in nature. As such, the low income thresholds were utilized to quantify the potential market for these units. According to discussions with the Public Housing Authority, there are about 700 vouchers includes the subject 50) in the count. The low income limits utilized to analysis the low income household is provided below: sTME: Flr U ---------------------- - - - - - I N c o N E L I M I T s -- ---------- - - - - -- - - - - -- P cR 1 PERSON 2 PERSON 3 MkSM 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PEK90N Fort Walton Beach- Crestvi FY 2009 Wl-. 66300 rttar toiw,. TAN inqsn__ ir% qnn VERY IDW IP7IOM 23206 26500 29850 33150 35800 38450 41100 43750 LOW INCOME 37150 42450 47750 53050 57,300 61550 65800 70050 Maximum incomes vary by household size. The largest unit offered by the subject is a four -bedroom Generally, four- bedroom units do not accommodate more than eight people. An annual apartment. household income of $15, 000 was utilized to set the upper income threshold for the low -income market. Since the US Census Bureau uses $ 5, 000 increments for income classification, an income band of $0 to 14, 999 will be used for our analysis. Value Tech Realty Services, Inc. www.gotovalue.com Page 45 60-  Sound Side Apartments Market Supply and Demand Analysis Households earning $ 0 to $ 14, 999 are shown below. MARKET HOUSEHOLD INCOME BY AGE GROUP— LOW INCOME Income Levels 18 -24 25 -34 35 -44 45 -54 Total Less than $ 10, 000 124 224 308 239 895 10, 000 to $ 14, 999 197 247 238 213 895 2000 Census Total 321 471 546 452 1, 790 Source: P55, Age of Householder by Household Income in 1999. Data Set: Census 2000 Summary File 3 ( SF 3) Sample Data. The data above reflects US Census estimates based on year 2000. The 2000 Census was utilized because other demographic sources do not provide as detailed income segmentations. Environmental Systems Research Institute, Inc. provided household growth from 2000 to. 2009 as shown in the table below. HOUSEHOLDS BY AGE: PRIMARY MARKET AREA Households Households Percent Change, Households Percent Change, Age in 2000 in 2009 2000 to 2009 in 2014 2009 to 2014 Under 25* 1, 641 1, 615 - 1. 6% 1, 514 6.3% 25 -34 4,054 4, 565 12. 6% 4, 774 4.6% 35 -44 5, 256 4,214 - 19. 8% 4, 401 4.4% 45 -54 3, 871 4,912 26. 9% 4, 530 7. 8% Totals 13, 181 13, 691 3. 9% 13, 705 0. 1% Compounded Annual Growth Rate, 2009 to 2014 0. 02% Consists of adult householders. Source: Demographic and Income Profile, STDB ESRI Site Analysis Growth between 2000 and 2009 was 3. 9 %. Growth each year from 2009 through 2011 when the subject' s construction is complete is 0. 02 %. These growth rates are applied to the 2000 Census household by income statistics in order to bring the number of potential income qualified households forward to 2011. MARKET HOUSEHOLD INCOME BY AGE GROUP— LOWLOW INCOMEINCOME Income Levels 18 -24 25 -34 35 -44 45 -54 Total Less than $ 10, 000 124 224 308 239 895 10, 000 to $ 14, 999 197 247 238 213 895 2000 Census Total 321 471 546546 452 1, 790 GrowthGrowth 20002000 - - 20092009 3.3. 87% 87% 3. 87% 3.3. 87% 87% 3. 87% 3. 87% 2009 Households 333 489 567 469 1, 859 Growth 2010 0. 02% 0. 02% 0. 02% 0. 02% 0. 02% 2010 Households 333 489 567 470 1, 860 Growth 2011 0.02% 0. 02% 0. 02% 0. 02% 0. 02% 2011 Households 334 489 567 470 1, 860 Source: P55, Age of Householder by Household Income in 1999. Data Set: Census 2000 Summary File 3 ( SF 3) Sample Data. Page 46 Value Tech Realty Services, Inc. www.gotovalue.com 61-  Sound Side Apartments Market Supply and Demand Analysis Dernand for rental apartments is estimated as follows: 2011 SUPPLY AND DEMAND ANALYSIS —LOW INCOME SECTION 8 One -Bedroom Two -Bedroom Three -Bedroom Total Potential Rental Demand 534 1, 157 170 1 1, 860 Capture Rate _ Low Income (Section 8) Once income qualified households are projected forward to the point in time when the subject project will be constructed, a capture rate is applied. Capture rates were based on the propensity to rent by income as shown below. HOUSEHOLD TENURE BY INCOME - 2010 PRIMARYPRIMARY MARKETMARKET AREAAREA — — LOWLOW INCOMEINCOME HouseholdHousehold IncomeIncome Owner Renter Propensity to Rent 0 -30% AMI 316 461461 59.3% 30. 1 - 50% AMI 454 487 51. 8% 50. 1 - 80% AMI 917 780 46. 0% 80. 01- 120% AMI 1288 807 38. 5% 120 +% AMI 3020 677 18. 3% Source: Florida Housing Data Clearinghouse, " Housing Needs Assessment." Shimberg Center for Affordable Housing, 2010. As shown above, the Florida Housing Data Clearinghouse provides estimates of propensity to rent in ranges. The propensity to rent in the defined area for persons earning less than 30% of the Area Median Income is 59. 3 %. Therefore, a capture rate of 59. 3% will be utilized in the low income ( Section 8) supply and demand analysis. Rental demand will be determined by factoring income qualified households within the market with their respective capture rate, after accounting for current and future supply. Defined Market Demographic Analysis: 60% AMI and 80% AMI In order to more accurately quantify demand affordable rental apartments, an analysis was conducted of current homes sales in the market. A review of closed sales indicated that the lower -end of the price spectrum that would compete with the rental market is about $ 190, 000. Therefore, this figure was estimated for the sale