1. Repositioning Year 15-30 Properties
2018 Texas Housing Conference
Tuesday, July 24th – 1:00 PM

2. LIHTC Disposition Market Comparison
Market Metrics
2013
2018
10 Yr Treasury (as of July 19th)
2.50%
2.84%
Avg LIHTC Cap Rate - Major TX Mkt (source: Costar, RCA, ARA)
7.06%
6.17%
Avg LIHTC Cap Rate - Tertiary TX Mkt (source: Costar, RCA, ARA)
7.68%
6.91%
Property or GP Transfer (source: TDHCA and Costar) 33
56 (annualized)
Dallas Metro Avg Market Rent – 2 bdrm Class B/C (source: REIS)
$905
$1,230
Houston Metro Avg Market Rent – 2 bdrm Class B/C (source: REIS)
$893
$1,142
Austin Metro Avg Market Rent – 2 bdrm Class B/C (source: REIS)
$1,032
$1,337
San Antonio Avg Market Rent – 2 bdrm Class B/C (source: REIS)
$857
$1,037
Dallas County 60% AMI Gross LIHTC Rent – 2 bdrm (assuming $150 UA)
$822
$927
Harris County 60% AMI Gross LIHTC Rent – 2 bdrm (assuming $150 UA)
$754
$862
Travis County 60% AMI Gross LIHTC Rent – 2 bdrm (assuming $150 UA)
$904
$1045
Bexar County 60% AMI Gross LIHTC Rent – 2 bdrm (assuming $150 UA)
$678
$753
Affordable Restrictions
Standard
Additional
Qualified Contract Eligibility
Few
Almost None
Right of First Refusal
Fair Mkt Value
Debt & Taxes

3. Purchasers/ Investors of Year 15 Properties
Local LIHTC Developers/ Operators
Local or Regional Private Capital Owners/ Operators
National/ Institutional Owners
LIHTC Developers for an Acquisition/ Rehab Execution
Nonprofit Owners/ Operators
Housing Authorities
1031 Exchanges

4. Year 15 Purchaser Underwriting Sensitivities
Physical Condition/ Immediate Capital Needs
Ability to finance
Max LIHTC Rents
Level of rent subsidy
Potential for new LIHTC developments in the market
Pre-Year 15 transaction – Compliance Guarantee or Recapture Bond
Current Property Tax Assessed Values