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<br /> <br /> <br /> <br />Hillside Heights Apartments, Elk River, Minnesota <br /> <br />Market Analyst Professionals, LLC 48 April 24, 2020 <br />hypothetical market. Competitive rents and strong demand for affordable housing in the area offer support <br />for the success of the proposal. <br /> <br />Competitive Environment <br /> Credit restrictions particularly for lower income buyers, as well as initial money cost have made <br />purchasing a home outside the reach of potential buyers who would fall within the qualified income <br />range. Thus, competition between rental and ownership options are limited for the subject within the <br />qualified income range, making rental housing the most viable option for low to moderate income <br />families. Given the high occupancy evident among comparable properties the subject will have no impact <br />on existing housing in the area. <br /> <br />Concessions Currently Offered and Trends in Rents <br />No comparable projects reported concessions. Among the comparable projects, rent increases of <br />approximately 5 to 15 percent over the past year were observed based on MAP’s previous contact with <br />these facilities. <br /> <br />Pipeline Considerations <br />The Crossing II is under construction and will enter the market in 2020. This project offers 38 <br />general occupancy units and these units are deducted from the demand analysis in the following section. <br />Additionally, Elk River Lodge received an allocation in 2019, this project will offer 60 units and is <br />deducted from the demand analysis. <br /> <br />