2. CCSR-HRSR 09-04-2012 SPEC JOINT

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RENTAL MARKET ANALYSIS Because the two newer Tax Credit properties were built in the last 5 years, the properties offer more amenities than the other older affordable and subsidized properties amenities include in- unit washer and dryers, dishwashers, central a/c units, and heated underground garages. Unit and common area amenities are minimal at the older affordable and subsidized projects. All projects feature attached or detached garages renting from $30 to $55 per month. FIGURE 1 2012 MHFA/HUD Income Limits Sherburne County Income Limits by Household Size 1 phh I I 2 phh I I 3 phh I I 4 phh I 5phh 6phh 7phh 8phh 30%of median $17,640 $20,160 $22,680 $25,200 $27,240 $29,250 $31,260 $33,270 50%of median $29,400 $33,600 $37,800 $42,000 $45,400 $48,750 $52,100 $55,450 60%of median $35,280 $40,320 $45,360 $50,400 $54,480 $58,500 $62,520 $66,540 Maximum Gross Rents by Bedroom Size 0 BR I I 1BR I I 2BR I I 3BR I 30%of median $441 $472 $567 $655 50%of median $735 $787 $945 $1,092 60%of median $882 $945 $1,134 $1,311 Sources: MHFA; Maxfield Research Inc. Figure 1 above shows the maximum allowable incomes by household size to qualify for affordable housing and maximum gross rents that can be charged by bedroom size in Sherburne County. Comparing the maximum rents with the market rate rents in Table RMA-1 we can see that all rental buildings except for The Depot at Elk River Station offer rents below 60% of the AMI and most units are below 50% of the AMI. The majority of the properties with rents below 50% of AMI are 20 years and older. The quick absorption occurring at Granite Shores, which offers the highest rents in the market and is the newest rental development, indicates the market is willing and able to afford higher market rents when buildings with updated amenities are offered. Subsidized Housing Assistance Program In addition to subsidized apartments, Elk River also has a "tenant-based" subsidy called Housing Choice Vouchers to help lower income households find affordable housing. The tenant-based subsidy is funded by the Department of Housing and Urban Development's (HUD), and is managed by the St. Cloud Housing and Redevelopment Authority (HRA). Under the Housing Choice Voucher program (formerly Section 8 Certificates and Vouchers) qualified households are issued a voucher that the household can take to an apartment that has rent levels allowable under HUD guidelines. The household then pays 30% of their adjusted gross income for rent and utilities, and the Federal government pays the remainder of the rent to the landlord. MAXFIELD RESEARCH INC. 49