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

reported analyses, opinions, and conclusions were developed and this report prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. As of the date of this report, Kay Kauchick, MAI completed the continuing education program of the Appraisal Institute. We certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. This Limited Appraisal is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. Respectfully submitted, VALUE TECH REALTY SERVICES, INC. Kay C. Kauchick, MAI President State -Certified General Appraiser 0002066 ( FL) Value Tech Realty Services, Inc. www.gotovalue.com Page 2 85-  Sound Side Apartments Certificate of Limited Appraisal APPRAISER CERTIFICATION FOR HUD I understand that my Limited Appraisal will be used by Berkadia Commercial Mortgage LLC and the Fort Walton Beach Housing Authority to document to the U. S. Department of Housing and Urban Development and that the MAP Lender' s application for FHA multifamily mortgage insurance was prepared and reviewed in accordance with HUD requirements. I certify that my review was in accordance with the HUD requirements applicable on the date of my review and that I 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, or engage in any business that might present a conflict of interest. I am employed under contract for this specific assignment, and I have no other side arrangements, agreements, or financial considerations with MAP Lender or others in connection with this transaction. Signature Warning: Title 18 U. S. C. 1001 provides in part that whoever knowingly and willfully makes or uses a document containing any false, fictitious, or fraudulent statement or entry, in any manner in the jurisdiction of any department of agency of the United States, shall be fined not more than $ 10, 000 or imprisoned for not more than five years, or both. Value Tech Realty Services, Inc. www.gotovalue.com Page 3 86- Sound Side Apartments Executive Summary Executive Summary Property Name Sound Side Apartments Property Identification - Street Address: 20 Carson Drive Municipality: Fort Walton Beach County: Okaloosa State: Florida Zip: 32548 Congressional District FL -1 Census Tract - State Code: 12 MSA Code: 23020 County Code: 091 Tract /BNA Code: 0226. 00 Purpose of the Limited Appraisal: To provide estimates of revenues and expenses for the proposed project as if stabilized. Property Rights Appraised: Fee Simple Interest Pertinent Dates - Valuation Date: January 6, 2010 Report Date: January 8, 2010 Certification - Certified Appraiser: Kay Kauchick, MAI Certification Number: 0002066 ( Florida) Certification Type: State -Certified General Real Estate Appraiser Site Summary - Site Size ( Acres): 13. 50 Site Size: ( Square Feet) 13. 50 Shape: 588,588, 060060 Zoning: Rectangular Zoning Compliance: Planned Unit Development ( PUD) Utilities: Legal, conforming use Flood Hazard Zone - Zone: X Panel Number: 1201740461H Panel Date: December 6, 2002 Flood Insurance Required: No value Tech Realty Services, Inc. www.golovalue.com Page 4 87-  Sound Side Apartments Executive Summa Improvement Summary - Property Type: Multifamily Year of Construction: 2011 Construction Type: Wood Frame Rentable Building Area (SF) 221, 092 Number of Stories: 34 Number of Units: 8 Parking Spaces 200 Garages 400 Occupancy Summary - Units Occupied at Inspection 0 ( Proposed) Forecasted Stabilized Occupancy 95% Unit Mix: Sound Side Apartments SUBJECT UNIT SIZE ANALYSIS Unit Type Units Percent Square Feet Living Area One Bed/ One Bath 68 34. 0% 770 52, 360 Two Bed/ Two Bath 72 36.0% 1, 158 83, 376 Three Bed/ Two Bath 48 24.0% 1, 384 66, 432 Four Bed/ Two Bath 12 6. 0% 1, 577 18, 924 Total/ Weight Average 200 100. 0% 1, 105 221, 092 Concluded Rents: The proposed, affordable apartment community will consist of 50 units at Section 8, 70 units at 60% AMI and the remaining 80 units at 80% AMI. The net rent after the utility allowance is presented as follows: CONCLUDED RESTRICTED RENTS Income Units Percent Utility Unit Type Orientation Unit Mix of Total Gross Rent Allowance Net Rent One Bed/ One Bath Section 8 17 8. 5% 729 N/ A 729 One Bed/ One Bath 60% AMI 24 11. 9% 745 123 622 One Bed/ One Bath 80% AMI 27 13. 6% 994 123 871 Two Bed/ Two Bath Section 8 18 9. 0% 820 N/ A 820 Two Bed/ Two Bath 60% AMI 25 12. 6% 895 148 747 Two Bed/ Two Bath 80% AMI 29 14. 4% 1, 194 148 1, 046 Three Bed/ Two Bath Section 8 12 6. 0% 1, 259 N/A 1, 259 Three Bed/ Two Bath 60% AMI 17 8. 4% 1, 034 194 840 Three Bed/ Two Bath 80% AMI 19 9. 6% 1, 379 194 1, 185 Four Bed/ Two Bath Section 8 3 1. 5% 1, 244 N/ A 1, 244 Four Bed/ Two Bath 60% AMI 4 2. 1% 1, 153 244 909 Four Bed / Two Bath 80% AMI 5 2. 4% 1, 538 244 1, 294 Total / Weighted Average 200 100. 0% 1, 019 117 902 Value Tech Realty Services, Inc. www.gotovalue.com Page S 88- Sound Side Apartments Executive Summa Concluded NOI: NET OPERATING INCOME Potential Rental Income 2, 165, 266 Other Income 84,000 Potential Gross Income 2, 249,266 Less: Vacancy and Collection 112, 463 Effective Gross Income 2, 136, 802 Less: Total Expenses 788, 058 Net Operating Income 1, 348, 744 Conditions: This Limited Appraisal is subject to the General Assumptions, General Limiting Conditions, Special Conditions, and Certificate of Limited Appraisal contained within this report. We reserve the right to modify the conclusions contained herein in the event of changes in the proposed plans. Page 6 Value Tech Realty Services, Inc. www.gotovalue.com 89_  Sound Side Apartments Definitions Definitions The definitions included in this section have been extracted, solely or in combination, from definitions and descriptions printed in: The Uniform Standards of Professional Appraisal Practice 1999 Edition ( USPAP); The Dictionary of Real Estate Appraisal, Third Edition, Appraisal Institute, Chicago, Illinois, 1993 Dictionary); The Appraisal of Real Estate, Twelfth Edition, Appraisal Institute, Chicago, Illinois, 2001 ( Twelfth Edition); and /or Marshall Valuation Service, Marshall & Swift, L. P., Los Angeles, California, 1998 ( MVS). Household A household includes all the people who occupy a housing unit as their usual place of residence. Householder The person, or one of the people, in whose name the home is owned, being bought, or rented. If there is no such person present, any household member 15 years old and over can serve as the householder for the purposes of the census. Two types of householders are distinguished: a family householder and a non -family householder. A family householder is a householder living with one or more people related to him or her by birth, marriage, or adoption. The householder and all people in the household related to him are family members. A non -family householder is a householder living alone or with nonrelatives only. Family household ( Family) A family includes a householder and one or more people living in the same household who are related to the householder by birth, marriage, or adoption. All people in a household who are related to the householder are regarded as