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15 Bowen National Research 155 E. Columbus Street, Suite 220 Pickerington, Ohio 43147 (614) 833-9300 Therefore, in order to more accurately assess the value that the proposed rents will represent, achievable market rents have been derived utilizing HUD Rent Comparability Grids, which are illustrated in Addendum B. It was determined that the present-day achievable market rent for units similar to the proposed development are $1,020 for a one-bedroom unit, $1,225 for a two-bedroom unit and $1,460 for a three-bedroom unit, which are illustrated as follows: Bedroom Type Proposed Collected Rent (%AMHI) Achievable Market Rent Market-Rent Advantage One-Bedroom $740 (60%) $1,020 27.5% Two-Bedroom $885 (60%) $1,225 27.8% Three-Bedroom $1,045 (60%) $1,460 28.4% As the preceding illustrates, the subject’s proposed rents represent market rent advantages ranging from 27.5% to 28.4%, depending upon unit type. Typically, Tax Credit product should represent a market rent advantage of at least 10.0% to be perceived a value and ensure a sufficient flow of qualified applicants within a given market. This suggests that the subject rents will represent significant values within the market as compared to similar market-rate product. Pipeline Development Based on our interviews with local planning and building representatives, it was determined that there is one rental property currently in the development pipeline within the Mounds View Site PMA. This planned development is summarized as follows:  A 194-unit property is being developed by Dominium Development at 1066 County Highway 10 in Spring Lake Park. This property is anticipated to target seniors age 50 and older and is expected to operate with an affordable component. Note, however, that this property is not listed on the state Tax Credit allocation list. This project has been approved, but has not yet begun construction. Construction is anticipated to begin sometime in summer of 2017. Additional details pertaining to this property were unavailable at the time of this analysis. Regardless, as this property is anticipated to be age-restricted, and will not operate under the LIHTC program, it is not expected to be directly competitive with the proposed general-occupancy LIHTC property. MHFA-Formatted Demographic Demand Analysis Based on the proposed gross Tax Credit rents previously illustrated in this letter and assuming the subject project will generally house up to five-person households and that management of the subject project qualify residents utilizing a 35% rent-to-income ratio, the income-appropriate range required to live at the proposed project is $26,880 to $55,620.