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I 'iEMORANDUI I To:_. Redevelopment Aqency F~m: Executive_ Director $~iect: S?AF~ RRP~RT ~M LAND VAT.IIR December 30. ~975~ An independent appraisal was made of subject property to deter- mine a fair reuse value. Donahue & Company of Tustin conducted the appraisal and determined the price of subject land ($800 per unit) to be within the'fair market range for senior citizen housing on this site. The price of $800 per unit was offered to all developers who proposed on the site. In determining value for subsidized senior citizen housing, the land has a residual value based on the fact that there is only a limited amount of dollars left for land after all other require- ments are imposed on the developer by the FHA standards, the available rental subsidy and city requirements. Because the rental level is set by HUD this affects the maximum mortgage available and consequently, land value. Past experience of Redevelopment Agencies in assembling land for subsidized housing has been to reduce the land to as iow as $500 per unit. As the Agency is aware, even reducing the land to $160,000 has not assured the development's feasibility, as the developer is still having problems making the figures balance to show a reasonable profit. Staff feels, based on independent appraisal, past HUD practices and personal housing experience that the figure of $800 per unit · for a ~otal Df $160,000 for 200 units is .a fair value for the uses intended. Richard E. Goblirsch SC The independent appraisal of Donahue and Company is, by th{$ reference, made a part of this report as though fully set forth, and is marked Exhibit "C" on file in the office of the Commu- nity Redevelopment Agency available for public inspection. EXHIBIT "A"