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EXHIBIT 2 <br />D. Conclusion <br />JHC has demonstrated the development capacity and fiscal soundness to undertake the Project. <br />V. MARKET ASSESSMENT <br />The Developer provided KMA with a multifamily rental market study conducted by Lea & <br />Company. The study includes an overview of the market area economy, household and income <br />trends, demand estimates, and absorption rates. The study also presents rental comparables <br />for both affordable and market rate properties as follows: <br />Development <br />Ross & Durant Apartments <br />Structure <br />LIHTC <br />Subject Site <br />2.61 miles <br />Triada at the Station District Apartments <br />LIHTC <br />3.08 miles <br />Warwick Square Apartments <br />LIHTC <br />4.01 miles <br />Bentley Parke Apartments <br />Market <br />0.26 miles <br />Vintage Wood Apartments <br />Market <br />0.50 miles <br />Villa Del Sur Apartments <br />Market <br />0.89 miles <br />The market study offers the following conclusions: <br />■ The achievable market rent for one -bedroom units is approximately $1,510 per month. <br />■ The achievable market rent for two-bedroom units is approximately $1,840 per month. <br />• Given that the highest affordable rents being proposed for the subject property is $273, <br />the proposed rents represent at least an 85% discount from the currently prevailing <br />market rents. <br />■ The market area is experiencing very low vacancy rates ranging from 0.0% to 1.8%, and <br />waiting lists are maintained at both market rate and comparable income restricted <br />developments. <br />In addition, the Demand Estimate section of the study considers the number of existing <br />homeless households, number of homeless adults, and the number of homeless veterans, <br />concluding that there is considerable unmet demand for supportive housing targeted towards <br />homeless veterans in the area. There are currently only 12 existing affordable housing <br />developments in the area, and one development in the pipeline, that provide housing for <br />special needs households which could potentially compete with the proposed project. Based on <br />high rates of absorption at three recently constructed properties in the area, the proposed <br />project is anticipated to reach stabilized occupancy within one to two months of completion. <br />Based on the market assessment results, KMA concludes that there is adequate demand for <br />affordable housing to support the Project. Therefore, it is anticipated that the Project will be <br />leased up well before the six-month HOME requirement. <br />City of Santa Ana Underwriting & Subsidy Layering Review: Veteran's Village Page 116 <br />25L-26 <br />