EXCLUSIVE OFFERING. Payette Manor Apartments 32 Units 106 N. 12th St. Payette, ID 83661

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1 EXCLUSIVE OFFERING Payette Manor Apartments 32 Units 106 N. 12th St. Payette, ID 83661

2 2 CONFIDENTIALITY AND DISCLAIMER The information contained in this package is confidential and is intended for review solely by the person receiving it directly from LIHTC Advisors. It should not be copied, distributed, nor made available to any person without the written consent from LIHTC Advisors. The information in this package has been obtained from sources we believe reliable. However, LIHTC Advisors has not verified and will not verify, any of the information contained herein and makes no guarantee, warranty, or representation about it. It is the sole responsibility of any interested parties to independently confirm the accuracy and completeness of the information provided herein. All prospective clients must conduct their own due diligence and take appropriate measures to verify all information. FOR MORE INFORMATION, PLEASE CONTACT: LIHTC Advisors W. Explorer Drive, Suite 200 Boise, ID John Nicolas (phone) (direct) (fax) Jeff Irish (phone) (direct) (fax)

3 3 Table of Contents Description Unit Mix Historical AMI, MAX Rent, CPI, OCAF, and FMR Area Highlights Summary Features Photos Area Maps COMPARABLE PROPERTIES Rent Comparables Map Rental & Occupancy Statistics Rent Comparable Details DEMOGRAPHIC ANALYSIS Demographic Report Demographic Analysis ABOUT LIHTC ADVISORS Who We Are How We Are Different How We Do It

4 4 Property Description Highlights Constructed in 1971 Property Believed to be Eligible for Section 42 Acquisition Rehab Credits Mix of Market Rate and HAP Units Walking Distance to Payette Primary School Quick Access to U.S. Route 95 Half Mile to Grocery Store and Restaurants 15 Minutes to Ontario, Oregon Payette Manor Apartments is a federally subsidized affordable housing property located in Payette, ID. The property provides rental housing for tenants that have been certified to meet specific income and percentage of Area Median Income requirements. Payette Manor receives a projectbased operating subsidy in the form of rental assistance which is based upon housing programs authorized by Section 8 of the Federal Housing Act of This program is governed and monitored by The US Department of Housing and Urban Development (HUD) with additional regulatory oversight and agency monitoring provided by the Idaho Housing and Finance Association (IHFA). Payette Manor is a recipient of HUD Section 8 project-based rental income assistance pursuant to a Section 8 Housing Assistance Payment Contract (HAP). The current contract has an effective beginning date of May 1, 2013 and shall run for a period of 20 years. The contract provides assistance for 16 of the 32 units offered at the property. The contract authorizes payment to the property for the difference between the HAP contract rents (as defined) and the portion of rent payable by qualified tenants. The contractual annual subsidy provided for in the current HAP contract is $74,853. The property is additionally subject to specific surplus cash and annual distributions to owner restrictions which are governed by executed regulatory agreements. During 1993, the Project submitted a Plan of Action under Section 236 of the National Housing Act subject to the Low Income Housing Preservation and Resident Ownership Act of 1990 (LIHPRHA). Distribution for any one year are limited to 8% of the Extension Preservation Equity of $414,985 and the maximum annual distribution is $33,198. Payette Manor is conveniently located close to shopping, restaurants and 6.2 miles from Ontario, Oregon. Residents benefits from amenities such as on-site laundry facilities and on-site management.

5 5 Unit Mix UNIT TYPE # OF UNITS SF RENTS $ PER SF MAX 60% LIHTC UTILITY ALLOWANCE NET LIHTC CURRENT HAP RENT CURRENT HUD FMR 1 BD 1 BTH (HAP) $719 $1.07 $641 $53 $588 $719 $483 1 BD 1 BTH $319 $0.47 $641 $53 $588 $0 $483 1 BD UNIT TOTAL 20 13,480 $11,180 $12,820 $11,760 $8,628 $9,660 1 BD UNIT AVG 674 $559 $0.83 $641 $588 $431 $483 2 BD 1 BTH (HAP) $827 $1.00 $769 $79 $690 $719 $654 2 BD 1 BTH $411 $0.50 $769 $79 $690 $0 $654 2 BD UNIT TOTAL 12 9,912 $6,596 $9,228 $8,280 $2,876 $7,848 2 BD UNIT AVG 826 $550 $0.67 $769 $690 $240 $654 TOTAL 32 23,392 $17,776 $22,048 $20,040 $11,504 $17,508 AVERAGE 731 $556 $0.77 $689 $626 $360 $547 2BD 2BTH 8 UNITS 1BD 1BTH (HAP) 12 UNITS 2BD 2BTH (HAP) 4 UNITS 1BD 1BTH 8 UNITS

6 Historical AMI, MAX Rent and FMR AMI Growth Rate $55,000 $54,000 Year AMI % Change $53, $49, % 2010 $49, % $52, $52, % $51, $53, % $50, $53, % $49, $54, % $48,000 $47,000 3 Yr Avg 0.94% $46,000 5 Yr Avg 2.07% Max Allowable LIHTC Rent Growth- 2BD/ 60% Year Rent % Change 2009 $ % 2010 $ % 2011 $ % 2012 $ % 2013 $ % 2014 $ % 3 Yr Avg 0.93% 5 Yr Avg 2.05% $780 $760 $740 $720 $700 $680 $660 $ Fair Market Rents Year STUDIO 1 BD 2 BD 3 BD 4 BD 2009 $399 $481 $611 $774 $1, $415 $500 $635 $804 $1, $419 $504 $641 $812 $1, $374 $451 $573 $725 $ $460 $463 $626 $878 $1, $480 $483 $654 $917 $1,104 * Data provided by Novoco.com and The Federal Register

7 7 Historical FMR and OCAF Fair Market Rent- Averages Year FMR Avg % Change 2009 $ % 2010 $ % 2011 $ % 2012 $ % 2013 $ % 2014 $ % 3 Yr Avg 2.42% 5 Yr Avg 2.43% $740 $720 $700 $680 $660 $640 $620 $600 $580 $560 $ Annual OCAF Adjustment Year % % % % % % % 3 Yr Avg 1.93% 5 Yr Avg 3.00% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% * Data provided by Novoco.com and The Federal Register

8 8 Area Highlights Payette is a city in and the county seat of Payette County, Idaho, United States. Payette, Idaho is a small rural community of with a population of 8,150 people within the city. Payette County continues to see an increasing share of retirees and commuters moving in as the cost of living is lower and a small town, rural lifestyle can still be enjoyed. Payette County is Idaho s smallest county, but 14th in population in the state. Recreation is abundant where the Payette River meets and joins the Snake River, which includes a green way, that runs the length of most of the city along the river. Only about 1/4 mile of it is paved, the rest is left natural with a path through it. It is popular area for fishing, bird watching, walking, riding bikes, and picnicking. The Payette River is also a local favorite to float on tubes and rafts. The Snake river has an area for waterskiing and fishing. Future job growth over the next ten years is 28.90%. The most common occupations in Payette are truck drivers (6%), laborers and material movers (6%), production occupations including supervisors (6%), law enforcement workers including supervisors (6%), and agricultural workers including supervisors (6%). Measured against the US, Payette County has a very low amount of vacant housing units, 186 or 7%, are currently vacant in Payette County, Idaho.

9 9 Property Summary NAME & LOCATION Property Name Property Address SITE INFORMATION Assessor s Parcel Number Number of Units Number of Buildings Number of Stories Rentable Square Feet Year Built Lot Size Type of Ownership Density Landscaping Topography Payette Manor Apartments 106 N. 12th Street Payette, ID P , Acres Fee Simple 16 Units / Acre Mature Trees, Shrubs & Grass Relatively Flat UTILITIES Water Electric Gas City of Payette Idaho Power Intermountain Gas CONSTRUCTION Foundation Framing Exterior Parking Surface Roof Concrete Pad 2x6 Construction T1-11 Asphalt Metal

10 10 Property Features FEATURES Laundry Facilities On Site Leasing Office Well Maintained Grounds

11 11 Property Photos

12 12 Property Photos

13 13 Property Photos

14 14 Aerial Neighborhood Map

15 15 Regional Map PAYETTE ONTARIO OREGON IDAHO BOISE

16 16 Local Map PAYETTE MANOR APARTMENTS

17 17 Rent Comparables Map RENT COMPARABLES Payette Manor Apartments 1 Payette Plaza Apartments 4 Brandon Bay Apartments 2 Louise Gardens Apartments 5 Leisure Village IV Apartments 3 Kenmare Trace Apartments

18 18 Occupancy & Average Rent per SF OCCUPANCY 100% 95% Average 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% Payette Manor Apartments Payette Plaza Apts. Louise Gardens Apts. Kenmare Trace Apts. Brandon Bay Apts. Leisure Village IV Apts. RENT PER SF $1.00 $0.90 $0.80 $0.74 Average RENT COMPARABLES $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $

19 19 Rent Comparable Details # OF UNITS: Occupancy: Year Built: 32 97% 1971 PAYETTE MANOR APARTMENTS 106 N. 12th Street Payette, ID UNIT TYPE # OF UNITS RENT SF RENT PER SF 1BD 1BTH (HAP) 12 $ $1.07 1BD 1BTH 8 $ $0.47 2BD 1BTH (HAP) 4 $ $1.00 2BD 1BTH 8 $ $0.50 TOTALS/AVG. 32 $ $ PAYETTE PLAZA APARTMENTS 80 N. 9th Street Payette, ID # OF UNITS: Occupancy: Year Built: 24 95% 2005 UNIT TYPE # OF UNITS RENT SF RENT PER SF 1BD 1BTH 24 $ $0.97 TOTALS/AVG. 24 $ $0.97 RENT COMPARABLES 2 LOUISE GARDENS APARTMENTS th Avenue South Payette, ID # OF RENT UNIT TYPE UNITS RENT SF PER SF 1BD 1BTH 32 $ $0.80 TOTALS/AVG. 32 $ $0.80 Comments: Section 8 Property. # OF UNITS: Occupancy: Year Built: 32 93% 1996

20 20 Rent Comparable Details 3 KENMARE TRACE APARTMENTS 643 S. 12th Street Payette, ID # OF UNITS: Occupancy: Year Built: 36 93% 1999 UNIT TYPE # OF UNITS RENT SF RENT PER SF 1BD 1BTH 4 $ $0.53 2BD 1BTH 24 $ $0.61 3BD 1BTH 8 $600 1,050 $0.57 TOTALS/AVG. 36 $ $ BRANDON BAY APARTMENTS 660 S. 12th Street Payette, ID # OF UNITS: Occupancy: Year Built: 28 99% 2002 UNIT TYPE # OF UNITS RENT SF RENT PER SF 1BD 1BTH 4 $ $0.53 2BD 1BTH 14 $ $0.61 3BD 1BTH 8 $600 1,050 $0.57 TOTALS/AVG. 26 $ $0.59 RENT COMPARABLES 5 LEISURE VILLAGE IV APARTMENTS 1555 S. Seventh Street Payette, ID UNIT TYPE # OF UNITS RENT SF RENT PER SF 1BD 1BTH 14 $ $0.49 2BD 1BTH 4 $ $0.63 TOTALS/AVG. 18 $ $0.53 # OF UNITS: Occupancy: Year Built: 18 94% 1974

21 21 Demographic Report POPULATION* 1 Mile 3 Miles 5 Miles 2013 Total Population 6,164 10,772 29,034 Population Change ,181 2,283 6,131 Population Change , Male Population 3,018 5,261 14, Female Population 3,145 5,511 15,018 HOUSEHOLDS* 1 Mile 3 Miles 5 Miles 2013 Total Households 2,354 4,067 10,806 Household Change ,179 Household Change INCOME* 1 Mile 3 Miles 5 Miles 2013 Household Income: Median $32,202 $33,419 $33, Household Income: Average $19,687 $19,379 $18, Per Capita Income $51,550 $51,327 $50, Household income: Less than $10, , Household income: $10,000 to $14, Household income: $15,000 to $19, Household income: $20,000 to $24, Household income: $25,000 to $29, Household income: $30,000 to $34, Household income: $35,000 to $39, Household income: $40,000 to $44, Household income: $45,000 to $49, Household income: $50,000 to $59, Household income: $60,000 to $74, , Household income: $75,000 to $99, Household income: $100,000 to $124, Household income: $125,000 to $149, Household income: $150,000 to $199, Household income: $200,000 or more DEMOGRAPHIC ANALYSIS * Data provided by LoopNet

22 22 Demographic Analysis HOUSING * The median housing value in Payette was $108,178 in 2012, compared to the Idaho average of $154,500. In 2012, there were 1,701 owner occupied housing units in Payette and there were 937 renter occupied housing units. The rental vacancy rate was roughly 7%, and there were 186 housing units vacant. The median gross rent in Payette is $642. EMPLOYMENT * The median household income in 2012 was $20,065 and the per capita income was $14,213. The largest occupation in the area truck drivers (6%), laborers and material movers (6%), production occupations including supervisors (6%), law enforcement workers including supervisors (6%), and agricultural workers including supervisors (6%). HOUSEHOLD INCOME LEVELS * Under $10,000 $10,000- $20,000 $20,000- $30,000 $30,000- $40,000 $40,000- $50,000 $50,000- $60,000 OWNER & RENTER OCCUPIED HOUSING * $60,000- $75,000 $75,000- $100,000 $100,000- $150,000 $125,000- $150,000 $150,000- $200,000 Over $200,000 RENTAL OCCUPANCY RATES* DEMOGRAPHIC ANALYSIS VACANT (7%) RENTER 36% OWNER 64% OCCUPIED (93%) * Data provided by City-Data.com

23 23 Who We Are LIHTC Advisors is operated by industry professionals who collectively have over 15 years of experience in commercial real estate. Our team has worked with investors and LIHTC limited partnerships in over $300 million worth of real estate transactions. We are dedicated to taking the time to understand the needs of developers and investors in the multifamily market in order to provide a full service solution. LIHTC Advisors offers a number of services to meet the needs of our clients. The following services are available to help our clients develop strategies and achieve their business objectives with maximum results: Market the Sale of LIHTC Fee-Simple Interest Market the Sale of LIHTC General Partnership Interest Sale of Properties Prior to Expiration of Initial Compliance Period Sale of Year 15 Properties List and Market Property Upon Completion of LP/GP Negotiations Consulting Services and Broker s Opinion of Value Overall, our unique expertise in the multifamily and LIHTC industry has proven to help our clients achieve success in the marketplace. LIHTC Advisors takes pride in being different while making sure we deliver on our commitments. When you hire us as your advisor or broker, we will strive to provide results through hard work, persistency, integrity, focus, and passion. ABOUT LIHTC ADVISORS

24 24 How We Are Different COLLECTIVE INSIGHTS AND STRATEGIES We work together with our clients to determine a strategy unique to the circumstances surrounding each transaction. Unlike larger brokerage firms, LIHTC Advisors has the ability to be flexible and adapt to unconventional conditions. FOSTERING RELATIONSHIPS WITH OTHERS We value client relationships above all else. All of our efforts are centered around strengthening our client relationships and representing their best interest. This includes a strategy to work as a team on each assignment and cooperate fully with other brokerage firms to ensure we achieve maximum results. TAKE TIME TO EDUCATE CLIENTS Brokerage of LIHTC properties is a unique expertise many are unaccustomed to. In an effort to maximize value on behalf of our clients, we will often work with groups with little to no Section 42 housing experience by educating them on the intricacies of owning affordable housing. BOOTS ON THE GROUND APPROACH Understanding an asset s strategic position in a given market is key to achieving a high level of success. Rather than rely on a photo or another s depiction, we take the time to visit each property and conduct our own analysis. ABOUT LIHTC ADVISORS

25 25 How We Do It RESEARCH & ANALYSIS Conditions are ever changing in the multifamily industry. Whether it is helping our clients to devise an exit strategy or providing a Broker s Opinion of Value, we have the tools to access rent and sales comparable data in different markets. Our underwriting and valuation models are modeled specifically to LIHTC assets and include details necessary to provide quality information to our clients so they can make sound business decisions. NATIONAL CAPABILITIES We have spent years developing relationships with thousands of private and institutional investors all throughout the country. Coupled with our strategic relationships, this proprietary database of investors allows us the ability to undertake and execute on assignments anywhere in the country. LIHTC CAPITAL SOLUTIONS Providing a single source option to our clients, the combined efforts of LIHTC Advisors and LIHTC Capital Solutions increases the probability of the successful consummation of a tax credit transaction. LIHTC Capital Solutions understands the nuances of LIHTC underwriting standards and has a track record of securing competitive loan products to help our clients close their transactions on time. ABOUT LIHTC ADVISORS

26 Contact Information FOR MORE INFORMATION, PLEASE CONTACT: LIHTC Advisors W. Explorer Drive, Suite 200 Boise, ID John Nicolas (office) (direct) (fax) Jeff Irish (office) (direct) (fax)