Anne_Arundel_Assessment

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					            RealPropertyResearchGroup




              Multifamily Rental Market Assessment

                  Anne Arundel County, Maryland




                                September 2010




                                  Prepared for:

          Maryland Department of Housing and Community Development

                     Community Development Administration

                     BRAC Market Study Services Contract




10400 LITTLE PATUXENT PARKWAY SUITE 450                     VOICE 410.772.1004
COLUMBIA, MARYLAND 21 0 4 4                                   FAX 410.772.1110
               RealPropertyResearchGroup



September 2010

Ms. Patricia Rynn Sylvester
Director, Multifamily Housing
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, Maryland 21032-2023

and

Kathleen M. Koch
Executive Director
Arundel Community Development Services, Inc.
2666 Riva Road, Suite 210
Annapolis, Maryland 21401



RE: Anne Arundel County Multifamily Rental Market Assessment

Dear Ms. Sylvester and Ms. Koch:

We are pleased to present our comprehensive assessment of the Multifamily Rental Market in Anne
Arundel County, Maryland. This is the first of two deliverables under our contract with the Maryland
Department of Housing and Community Development (the “Department”). The second deliverable
will be an electronic database of the inventory of multifamily rental properties in Anne Arundel
County with a ranking of the properties in order of feasibility for preservation as affordable housing.

This assignment is part of the Maryland Preservation Compact, a partnership between the John D. and
Catherine T. MacArthur Foundation, MD-DHCD and the eight subject Maryland counties: Anne
Arundel, Baltimore, Cecil, Frederick, Harford, Howard, Prince George’s and St. Mary’s Counties.
The Compact seeks to preserve the existing stock of affordable rental housing in Maryland in areas
anticipated to be impacted by growth stemming from the US Department of Defense’s ongoing efforts
to expand military installations throughout the state. Maryland stands to gain more military, civilian
and mission contractor personnel than any other state under the Base Realignment and Closure
(BRAC) recommendations approved by the President and Congress in 2005. With construction to
accommodate new and expanded military missions already underway, the Maryland Preservation
Compact will use the results of this and the assessments of the seven other BRAC-impacted counties
to proactively target preservation resources.

The following report includes our analysis and findings of the multifamily rental market in Anne
Arundel County. Our key findings are:



10400 LITTLE PATUXENT PARKWAY SUITE 450                                          VOICE 410.772.1004
COLUMBIA, MARYLAND 21 0 4 4                                                        FAX 410.772.1110
                                                                                 RealPropertyResearchGroup

Ms. Sylvester and Ms. Koch
September 2010 Page 2


Study Purpose

•   Anne Arundel County households face a shrinking supply of affordable rental housing options.
    With rents rising faster than household incomes, Anne Arundel County had 5,432 fewer
    affordable rental units (or units affordable to households earning up to 60 percent of county
    median income) during the 2006-2008 period than in 2000. In 2000, affordable rental units
    accounted for 68 percent of the county’s overall rental stock. By 2006-2008, the share of rental
    units affordable to households with incomes up to 60 percent county median income fell to 50
    percent.
•   In response to this vanishing supply of affordable units, more renters are paying a greater share of
    their income toward rent. The share of Anne Arundel County renters paying more than 30
    percent of their income on rent increased from 34 percent in 2000 to 45 percent in the 2006-2008
    period. Anne Arundel County renters paying more than 50 percent of their income on rent
    increased from 13 percent to 18 percent over the same period.
•   Home to Fort Meade, Anne Arundel County will be directly impacted by the BRAC expansions at
    that military installation, primarily through employment and household growth. Anne Arundel
    County will gain 10,049 jobs, or 22 percent of the state’s total employment impact from the APG,
    Fort Meade and JBA expansions. Using commuting patterns in the region, RESI allocated 16
    percent of the 28,200 anticipated new households from BRAC, or 4,450 new households, to Anne
    Arundel County.

Economic Context

•   Over the past 20 years, Anne Arundel County has evolved from a bedroom community to an
    employment center in its own right. The job base in the county doubled between 1992 and 2008.
    While at place employment contracted in 2009, the total employment as of third quarter 2009 was
    still above the 2006 level. Unemployment rates remained below four percent from the mid 1990s
    to 2008, but rose above six percent in 2009 in the wake of the recession.
•   Anne Arundel County will directly benefit from the BRAC and NSA expansions at Fort Meade,
    which is located in the northwestern section of the county. These expansions will create
    economic stimulus that will have region-wide impacts.

Neighborhood Context

•   The largest concentration of retail stores and other services in the county is in the Annapolis
    submarket, with large retail centers also operating in Gen Burnie and the Hanover section of
    Odenton-Crofton. The county’s two full service hospitals are located in Annapolis and Glen
    Burnie, and smaller neighborhood retail centers are scattered throughout the four submarkets.
    North-south travel through the county is facilitated by Route 2, Interstate-97, and the Baltimore-
    Washington Parkway. The primary east-west arterials are Route 50 and Route 100.
•   To analyze Anne Arundel County rental market dynamics most effectively, RPRG outlined four
    distinct submarkets within the county based mainly on the small planning area boundaries in the
    Anne Arundel County General Development Plan: 1) Glen Burnie -Marley Neck which includes
    the northernmost section of the county, 2) Severna Park-Mountain Road which includes the north-
    eastern section of the county, 3) Annapolis which includes the eastern part of the county, and 4)
    Odenton-Crofton which is comprised of the western part of the county.
                                                                               RealPropertyResearchGroup

Ms. Sylvester and Ms. Koch
September 2010 Page 3


Demographic Context

•   Over the next five years, the household base of the Annapolis and Severna Park submarkets is
    projected to remain stable , while modest annual growth rates of 1.1 and 1.4 percent are expected
    for the Glen Burnie and Odenton-Crofton submarkets, respectively. The Odenton-Crofton
    submarket has the largest amount of planned development projects. Most of the projects are part
    of the transit-oriented Odenton Town Center, a mixed use development near the Odenton MARC
    train station.
•   Incomes in Anne Arundel County are higher than in the Baltimore Region as a whole. The 2010
    median household income in Anne Arundel County is $83,573 or 1.3 times greater than the
    Baltimore Region median income of $65,646. The Annapolis, Severna Park, and Odenton-
    Crofton submarkets all have similar median incomes ranging from $86,000 to $90,000, while the
    Glen Burnie median income is much lower at $62,318.
•   Anne Arundel County as a whole has a high homeownership rate; nearly 76 percent of housing
    units are owner-occupied compared to nearly 68 percent in the Baltimore Region. Considering
    renter households, the Glen Burnie submarket has the highest renter proportion of 29 percent, and
    Severna Park submarket has the smallest renter proportion of 20 percent.

Rental Market

•   Of the approximately 26,800 multifamily rental units in Anne Arundel County, 32 percent are
    located in the Odenton-Crofton submarket, closely followed by the Annapolis submarket with 27
    percent of the rental inventory. The Glen Burnie submarket contains 22 percent of the rental
    units, while the Severna Park submarket has 19 percent.
•   The unsubsidized rental market in Anne Arundel County is performing well in general with an
    overall market vacancy rate of 3.6 percent. Three submarkets have low vacancy rates ranging
    from 2.4 to 3.3 percent, and Glen Burnie’s vacancy rate is only slightly elevated at 5.6 percent.
•   The weighted average market rent in Anne Arundel County is $1,205, with a disparity of 70
    percent between average upper tier and market/affordable units. On the whole , achievable rents
    of upper tier properties are not significantly higher than the top of the market/affordable
    inventory. In general, a limited number of rental properties have been introduced in the county
    over the last two decades, and no particular rental market or markets has a strong locational
    advantage for which a high premium can be charged. These dynamics could shift as development
    near Ft. Meade progresses.
•   The deeply subsidized multifamily rental stock of Anne Arundel County includes 29 communities
    and 3,600 total units, of which 65 percent are located in the Annapolis submarket. Another 22
    percent are located in the Glen Burnie submarket and 11 percent are in the Odenton-Crofton
    submarket. Less than two percent of the subsidized units in the county are located in the Severna
    Park Submarket. The overall stabilized vacancy rate for subsidized units in the county is a scant
    0.5 percent.
•   Based on information available to RPRG, the development pipeline for multifamily residential
    communities in Anne Arundel County includes 27 properties of over 5,000 units. Of those units
    RPRG projects that approximately 1,000 rental units could deliver in the county in the next three
    years, with an additional 1,800 rental units could deliver within three to five years.
                                                                               RealPropertyResearchGroup

Ms. Sylvester and Ms. Koch
September 2010 Page 4


Conclusions

•   Based on projected household growth rates and a review of planned additions to the supply of
    multifamily rental housing, RPRG estimates that there will be excess demand for more than 1,400
    rental units throughout Anne Arundel County through 2014, but just 925 rental units through
    2016. Over the long term, the Annapolis submarket is expected to have the greatest excess
    demand of the four submarkets, increasing from 419 rental units in 2014 to 624 units by 2016.
    With a growing pipeline of proposed units, the excess rental demand in Odenton-Crofton
    submarket is expected to decrease over time, from 343 units through 2014 to -247 through 2016.
    Overall, we expect demand for rental housing in the Odenton-Crofton submarket to continue to
    build over the next decade with ongoing BRAC and NSA expansions and as the new supply of
    rental housing is constricted in other parts of the county.

•   Each of the four rental submarkets in the county targets a different composition of household
    income levels and presents four different risk profiles related to the potential loss of housing
    affordability. Independent of other risk factors, we find that properties serving the Moderate
    Income band in Severna Park, with a penetration rate of 145 percent, are particularly at risk.
    Extremely Low Rent and Subsidized units in Annapolis are also at risk, although not from
    product repositioning. Rather, the properties at greatest risk in Annapolis are those privately
    owned subsidized properties where owners have an opportunity to opt-out of subsidy programs
    and take advantage of underlying land values by demolishing existing units.

    The Odenton-Crofton and Glen Burnie submarkets are lower risk to losing affordability based on
    the penetration rate analysis. The Odenton-Crofton submarket appears to be under supplied
    across the entire price spectrum. In Glen Burnie, the two highest-priced affordability
    classifications serving the submarket also have the highest penetration rates. While both
    classifications are oversaturated, there is no existing market for units at higher rents in this
    submarket. Until such a market exists, it is unlikely that owners will speculate by repositioning
    units into these untested price levels.

The next phase of our assignment is to perform a risk assessment using the property-specific
characteristics and market trends identified in this report for each rental property in Anne Arundel
County and throughout the eight Preservation Compact counties. We hope the information provided
by this analysis will assist the Department and the Preservation Compact in their efforts to target
affordable housing preservation resources effectively.

Respectfully Submitted,

REAL PROPERTY RESEARCH GROUP, INC.




Robert Lefenfeld, Managing Principal            James M. Riggs, Director




Kara Olsen Salazar, Analyst
                                                TABLE OF CONTENTS


I.   PROJECT OVERVIEW .................................................................................................... 1
     A. Rental Housing Dynamics in Anne Arundel County....................................................... 2
     B. Base Realignment and Closure (BRAC)....................................................................... 5
     C. Scope of Assignment .................................................................................................. 8
II. ECONOMIC CONTEXT .................................................................................................. 11
    A. Anne Arundel County BRAC Impacts......................................................................... 11
    B. Labor Force and Unemployment ............................................................................... 13
    C. At-Place Employment ............................................................................................... 15
    D. Commuting Patterns ................................................................................................. 21
    E. Future Employment Trends ....................................................................................... 24
III. DEFINITION OF SUBMARKETS .................................................................................... 29
IV. AVAILABLE INFRASTRUCTURE AND AMENITIES ....................................................... 34
    A. Anne Arundel County Overview................................................................................. 34
       1. Road and Transit Infrastructure ........................................................................... 34
       2. Retail, Services, and Recreation ......................................................................... 35
       3. Schools ............................................................................................................. 37
    B. Annapolis Submarket ............................................................................................... 40
    C. Glen Burnie-Marley Neck Submarket ......................................................................... 45
    D. Severna Park-Mountain Road Submarket .................................................................. 47
    E. Odenton-Crofton Submarket ..................................................................................... 50
V. POPULATION AND HOUSEHOLD CHARACTERISTICS ................................................ 52
   A. Growth Trends ......................................................................................................... 52
   B. Demographic Characteristics .................................................................................... 58
   C. Renter Household Characteristics ............................................................................. 60
   D. Educational Attainment and Income Characteristics ................................................... 62
VI. RENTAL HOUSING ANALYSIS ..................................................................................... 66
    A. Existing Rental Housing Stock Characteristics ........................................................... 66
    B. Comprehensive Multifamily Rental Survey, Overview ................................................. 66
    C. Multifamily Rental Survey, Submarket Detail .............................................................. 76
       1. Annapolis Submarket ......................................................................................... 76
       2. Glen Burnie Submarket ...................................................................................... 83
       3. Severna Park Submarket .................................................................................... 89
       4. Odenton-Crofton Submarket ............................................................................... 95
    D. Age-Restricted Multifamily Rental Communities ........................................................101
    E. Subsidized Rental Communities ...............................................................................101
    F. Tenant-Based Rent Subsidies ..................................................................................104
    G. Pipeline Multifamily Communities .............................................................................106
VII. FINDINGS AND CONCLUSIONS ..................................................................................112
     A. Overall Findings ......................................................................................................112
     B. Balance of Supply and Demand ...............................................................................114
     C. Rental Unit Affordability ...........................................................................................120
     D. Penetration Rate Analysis........................................................................................125
APPENDIX 1 UNDERLYI NG ASSUMPTIONS AND LIMITING CONDITIONS .......................133
APPENDIX 2 GROSS RENT ANALYSIS............................................................................135
APPENDIX 3 COUNTY MEDIAN INCOME PENETRATION RATE ......................................144
APPENDIX 4 ANALYST RESUMES ...................................................................................149
APPENDIX 5 RESIDENTIAL RENTAL COMMUNITY PROFILES .........................................150

                                                                i                                         RealPropertyResearchGroup
                                                   LIST OF TABLES

Table 1 Anne Arundel County Labor Force and Unemployment Rates ......................................... 14
Table 2 Largest Employers in Anne Arundel County. .................................................................. 20
Table 3 2008 Commuting Destinations of Anne Arundel County Resident Labor Force ................. 23
Table 4 2008 Origination of Employees Working in Anne Arundel County .................................... 25
Table 5 Employment Projections ............................................................................................... 26
Table 6 Definition of Anne Arundel County Submarkets .............................................................. 31
Table 7 MSA and HSA Test Results, 2008-2009, Counties of Maryland. ...................................... 39
Table 8 Anne Arundel County Public Elementary School Data, 2008-2009. .................................. 41
Table 9 Anne Arundel County Public Middle School Data, 2008-2009. ......................................... 43
Table 10 Anne Arundel County Public High School Data, 2008-2009. .......................................... 44
Table 11 Population & Household Trends, 2000-2015 ................................................................ 53
Table 12 Anne Arundel County Building Permit Trends ............................................................... 56
Table 13 Senior Household Trends ........................................................................................... 57
Table 14 Age and Household Type............................................................................................ 59
Table 15 Renter Household Characteristics ............................................................................... 61
Table 16 Household Income Characteristics............................................................................... 63
Table 17 Indicators of Economic Distress................................................................................... 64
Table 18 Rental Housing Stock ................................................................................................. 67
Table 19 Summary of Anne Arundel County Multifamily Rental Inventory ..................................... 71
Table 20 Multifamily Rental Summary, Annapolis Submarket ...................................................... 77
Table 21 Multifamily Community Details, Annapolis Submarket ................................................... 81
Table 22 Multifamily Rental Summary, Glen Burnie Submarket ................................................... 84
Table 23 Multifamily Community Details, Glen Burnie Submarket ................................................ 87
Table 24 Multifamily Rental Summary, Severna Park Submarket ................................................. 90
Table 25 Multifamily Community Details, Severna Park Submarket.............................................. 93
Table 26 Multifamily Rental Summary, Odenton-Crofton Submarket ............................................ 96
Table 27 Multifamily Community Details, Odenton-Crofton Submarket ......................................... 99
Table 28 Age Restricted Non-Subsidized Rental Communities .................................................. 102
Table 29 Anne Arundel County Subsidized Rental Community Summary. .................................. 103
Table 30 Proposed Multifamily Residential Developments......................................................... 108
Table 31 Short-Term Balance of Supply and Demand. .............................................................. 115
Table 32 Long-Term Balance of Supply and Demand. .............................................................. 116
Table 33 Classification of Affordable Units. .............................................................................. 122
Table 34 Inventory of Affordable Rental Units........................................................................... 124
Table 35 Penetration Rate Analysis ......................................................................................... 127

Table A2 1     Gross Rent Detail by Community – Annapolis Submarket ........................................ 136
Table A2 2     Gross Rent Detail by Affordability Class – Annapolis Submarket ............................. 137
Table A2 3     Gross Rent Detail by Community – Glen Burnie Submarket ..................................... 138
Table A2 4     Gross Rent Detail by Affordability Class – Glen Burnie Submarket .......................... 139
Table A2 5     Gross Rent Detail by Community – Severna Park Submarket ................................... 140
Table A2 6     Gross Rent Detail by Affordability Class – Severna Park Submarket ........................ 141
Table A2 7     Gross Rent Detail by Community – Odenton-Crofton Submarket .............................. 142
Table A2 8     Gross Rent Detail by Affordability Class – Odenton-Crofton Submarket ................... 143

Table A3 1 Classification of Affordable Units – County Median Income ....................................... 146
Table A3 2 Inventory of Affordable Units – County Median Income ............................................ 147
Table A3 3 Penetration Rate Analysis – County Median Income ................................................ 148




                                                              ii                                       RealPropertyResearchGroup
                                                LIST OF FIGURES

Figure 1 Change in Median Household Income ............................................................................ 3
Figure 2 Affordable Units as % of Rental Stock ............................................................................ 4
Figure 3 Gross Rent Burden as % of Household income, Anne Arundel County ............................. 5
Figure 4 Anne Arundel County At-Place Employment Trends ...................................................... 16
Figure 5 Anne Arundel County Total Employment and Employment Change by Sector. ................ 17
Figure 6 Employment Change by Sector, 2007 to 2009 Q3. ........................................................ 19
Figure 7 Range of Effective 1, 2, and 3 Bedroom Rents, Annapolis Submarket............................. 82
Figure 8 Range of Effective 1, 2, and 3 Bedroom Rents, Glen Burnie Submarket ......................... 88
Figure 9 Range of Effective 1, 2, and 3 Bedroom Rents, Severna Park Submarket ....................... 94
Figure 10 Range of Effective 1, 2, and 3 Bedroom Rents, Odenton-Crofton Submarket .............. 100
Figure 11 Submarket Penetration Rates .................................................................................. 130




                                                   LIST OF MAPS

Map 1 Greater Washington Region and Maryland BRAC Installations .......................................... 12
Map 2 Anne Arundel County Employment Density and Employment Change ............................... 22
Map 3 Anne Arundel County Multifamily Rental Submarkets ....................................................... 30
Map 4 Annapolis Submarket Amenities ...................................................................................... 46
Map 5 Glen Burnie-Marley Neck Submarket Amenities ............................................................... 48
Map 6 Severna Park-Mountain Road Submarket Amenities ........................................................ 49
Map 7 Odenton-Crofton Submarket Amenities............................................................................ 51
Map 8 Multifamily Rental Communities, Annapolis Submarket. .................................................... 78
Map 9 Multifamily Rental Communities, Glen Burnie Submarket .................................................. 85
Map 10 Multifamily Rental Communities, Severna Park Submarket ............................................. 91
Map 11 Multifamily Rental Communities, Odenton-Crofton Submarket ......................................... 97
Map 12 Proposed Multi-Family Residential Communities, Anne Arundel County......................... 107




                                                           iii                                     RealPropertyResearchGroup
I.   PROJECT OVERVIEW

     In February 2009, the John D. and Catherine T. MacArthur Foundation announced
     awards of $32.5 million in grants and loans to 12 states and cities throughout the
     country to support innovative programs intended to preserve more than 70,000 units
     of affordable housing. Maryland, with ongoing military base expansions throughout
     the state expected to bring in more than 25,000 new households by 2011, received
     $4.5 million. The Department of Housing and Community Development of the State
     of Maryland (DHCD) and eight Maryland counties (Anne Arundel, Baltimore, Cecil,
     Frederick, Harford, Howard, Prince George’s and St. Mary’s) joined together under a
     Preservation Compact to seek the funding.


     The Compact seeks to preserve the existing stock of affordable rental housing in
     Maryland that is in the path of anticipated growth stemming from US Department of
     Defense’s ongoing efforts to expand military installations throughout the state.
     Maryland stands to gain more military, civilian and mission contractor personnel than
     any other state under the Base Realignment and Closure (BRAC) recommendations
     approved by the President and Congress in 2005. With construction to accommodate
     new and expanded military missions already underway, the Maryland Preservation
     Compact will work to proactively target preservation resources, including the newly
     capitalized Maryland-BRAC Preservation Loan Fund, to the owners and investors of
     existing multifamily rental housing that could feasibly be preserved or that is at the
     greatest risk of losing affordability.


     As part of this project, Real Property Research Group, Inc. (RPRG) has been retained
     by the Maryland Department of Housing and Community Development (MD-DHCD) to
     (1) create an inventory of existing multifamily rental properties in eight Maryland
     counties, (2) to conduct an assessment of the rental market in each of the counties,
     and (3) to create a methodology to rank the properties in the inventory in terms of
     feasibility for the preservation as affordable housing. Our work on this assignment is
     delivered in two parts, the first is a comprehensive assessment of the multifamily
     rental market in each of the eight subject counties and the second is an electronic
     database containing detailed records of the complete inventory of multifamily rental


                                              1                       RealPropertyResearchGroup
communities in each of the eight counties. The database includes a wide range of
information on each property, including a rating of each property reflecting that
                                                                  ut
properties feasibility for preservation and its risk of dropping o of the stock of
affordable rental housing.


This report is our comprehensive assessment of the multifamily rental market in Anne
Arundel County.


A.     Rental Housing Dynamics in Anne Arundel County
Through the earlier part of the last decade, Anne Arundel County, along with much of
the rest of the country, experienced an unprecedented appreciation in home values,
and consequently, a decline in housing affordability.    The American Community
Survey (ACS) provides three-year estimates of demographic, social, economic and
housing characteristics for communities throughout the country. ACS data shows that
in Anne Arundel County, household incomes increased by eight percent between
2000 and the three-year period 2006-2008, increasing from $77,200 to $83,400 in
constant 2008 dollars (Figure 1).   Over the same period, the median household
income for the Baltimore Region as a whole increased from $62,300 to $65,600, an
increase of only five percent.




                                    2                          RealPropertyResearchGroup
Figure 1 Change in Median Household Income

                   $90,000


                   $85,000                           2000

                                         $83,398     2006-08
                   $80,000


                   $75,000     $77,228
 Constant 2008 $




                   $70,000


                   $65,000
                                                                        $65,570

                   $60,000                                  $62,266


                   $55,000


                   $50,000
                               Anne Arundel County             Baltimore Region


Source: US Census Bureau, 2000 Census of Population and Households; 2006-2008 American
Community Survey


Despite real income gains over the period, housing affordability declined in Anne
Arundel County.              To measure this change in affordability, RPRG estimated the
number of affordable rental units in the rental stock as of 2000 using Census data and
as of 2006-2008 using ACS data. Rental units were considered affordable if the
gross rent for the unit was affordable to households earning no more than 60 percent
of county median household income and spending no more than 30 percent of their
income on rent. In Anne Arundel County, affordable rental units accounted for 68
percent of entire stock of rental units in 2000 (Figure 2). By 2006-2008, affordable
rental units, as a share of the total rental stock, decreased to 50 percent. In real
numbers, based on these trends in incomes and rents, Anne Arundel County had
5,432 fewer affordable rental housing units during the 2006-2008 period than in 2000.
The proportional loss of affordability in Anne Arundel County was in line with that of
the Baltimore Region. After losing an estimated 53,000 affordable housing units, only


                                            3                            RealPropertyResearchGroup
half of the 2006-2008 Baltimore region rental stock was affordable, compared to more
than two-thirds of the stock in 2000.

Figure 2 Affordable Units as % of Rental Stock




   80.0%

                                                 2000
   70.0%
                                                 2006-08
                          68.0%                                        67.6%
   60.0%


   50.0%
                                        49.6%                                         50.6%

   40.0%


   30.0%                     5,432 Fewer                                   53,043 Fewer
                              Affordable                                    Affordable
                                 Units                                         Units
   20.0%


   10.0%


     0.0%
                        Anne Arundel County                             Baltimore Region

  Note: Affordable units are units affordable to HHs at 60% of county median income with 30% gross rent burden

Source: US Census Bureau, 2000 Census of Population and Households; 2006-2008 American
Community Survey; RPRG, Inc.


The decline in affordable rental housing units, both in total count as well as the share
of the overall stock, does not mean that the need for affordable housing has abated.
To the contrary, over this six to eight year period of modest income growth, the
percentage of rental households shouldering excessive housing costs as a
percentage of household income has increased.                            As of 2000, one-third of renter
households paying cash rent in Anne Arundel County paid more than 30 percent of
their income for gross rent and 13 percent paid more than 50 percent of their income
for gross rent (Figure 3). By 2006-2008, the share of county renters paying more than
30 percent of their income for gross rent increased to 45 percent while the share of




                                                  4                                       RealPropertyResearchGroup
renters paying more than 50 percent of their income for gross rent increased to 18
percent.


Figure 3 Gross Rent Burden as % of Household income, Anne Arundel County


     50.0%


     45.0%
                               44.9%
     40.0%                                        2000
                                                  2006-08
     35.0%

                   33.7%
     30.0%


     25.0%


     20.0%


     15.0%                                                       17.6%

                                                      12.9%
     10.0%


     5.0%


     0.0%
                   Rent Burden >30%                   Rent Burden >50%

Source: US Census Bureau, 2000 Census of Population and Households; 2006-2008 American
Community Survey


B.      Base Realignment and Closure (BRAC)
After determining that excess capacity existed at military installations throughout the
country, the US Department of Defense (DOD) worked with an independent
commission to generate Base Realignment and Closure (BRAC) recommendations to
be approved by the President and the Congress in 2005. Maryland’s share of the
BRAC impact as initially estimated by the DOD, a net gain of 9,300 military, civilian
and mission contractor personnel, was greater than that of any other state. Under the
final BRAC recommendations as approved, 18 installations in Maryland were
impacted, seven of which gained military, civilian and/or mission contractor personnel:



                                    5                             RealPropertyResearchGroup
•   Aberdeen Proving Ground (APG) APG, located in Harford County, was home to
    15,500 military, civilian, and contractor personnel before the BRAC process was
    implemented. Its primary missions included testing material, training of Army
    ordnance personnel, and chemical warfare research and development. In 2006,
    Science Applications International Corporation (SAIC) reported to the Maryland
    Department of Business and Economic Development that BRAC was expected to
    result in an increase of 9,154 positions at APG through the five-year
    implementation period beginning in 2006. The consolidation of Communications
    Electronics related commands from Fort Monmouth, New Jersey and other
    installations across the country accounts for nearly all of the job gains at APG.
    Military construction needed to house the new missions at the base was
    estimated by the DOD (in 2005) to be $1.2 billion. As a follow up to the SAIC
    report, the Regional Economic Studies Institute (RESI) of Towson University
    estimated that the APG relocations would result in total employment impact of
    over 25,000 jobs, including direct, indirect and induced employment impacts.
    That employment impact is expected to generate 15,600 new households in
    Maryland.
•   Fort George G. Meade Fort Meade, located in Anne Arundel County, is home of
    the National Security Agency and supports other intelligence and information
    management activities. In 2005, Fort Meade was home to more than 30,000
    personnel.      BRAC implementation will bring three new military missions
    (Adjudication, Media, and Defense Information Systems Agency (DISA)) and an
    estimated 5,717 new positions to Fort Meade. Many of the positions being
    relocated to Fort Meade are originating from military installations in Washington
    DC and Northern Virginia. SAIC reported that the estimated capital costs of Fort
    Meade’s expansion, including construction, technology and other one-time costs,
    was $292 million in 2006. The new home of the DISA, a 1 million square foot
    state-of-the-art facility, is expected to be ready for staged-occupancy beginning in
    2010. The RESI report estimates that the total impact of BRAC implantation at
    Fort Meade is over 19,000 jobs and 12,000 households after taking into account
    the direct, indirect and induced impacts.
•   Joint Base Andrews (JBA) Formerly known as Andrews Air Force Base, JBA is
    located in Prince George’s County, just east of Washington, DC. JBA is home to
    Air Force One, the 89th Airlift Wing and Naval Air Facility Washington. After BRAC
    implementation, Andrews AFB will also be home to elements of Air Force and Air
    National Guard headquarters. While Andrews will experience a net gain of
    employment, some existing installations will be relocated away from the base
    during BRAC. Overall, Andrews is expected to experience a net increase in
    personnel with 400 relocated positions. New construction to accommodate Air
    Force and Air National Guard headquarters functions is estimated to be nearly
    $52 million. RESI estimates a total impact from BRAC implementation at JBA of
    919 jobs and 557 households.
•   Bethesda National Naval Medical Center (NNMC Bethesda) NNMC Bethesda,
    located in Montgomery County, provides medical care for the military
    establishment and important elected officials, including the President. The facility
    also supports education and medical research functions for the DOD. In 2006,
    NNMC Bethesda had 4,550 staff members supporting a 257-bed hospital and
    various clinics. With BRAC, the D  OD is consolidating the tertiary medical and


                                     6                            RealPropertyResearchGroup
    other services from Walter Reed Army Medical Center in Washington DC with
    NNMC Bethesda. With total construction costs in excess of $640 million, the new
    Walter Reed National Military Medical Center will include a new 560,000 square
    foot ambulatory care clinic, a 165,000 square foot in-patient addition to the
    existing NNMC hospital, and renovations on 450,000 square feet of existing
    space. The project is now under construction and is expected to be completed by
    the fall of 2010. An estimated 2,200 additional medical and administrative
    personnel, including transfers from the soon-to-close Walter Reed Army Medical
    Center, will be added to the existing NNMC Bethesda staff.
•   Fort Detrick Fort Detrick, in central Frederick County, is home to more than
    three dozen military and federal government agencies involved with medical
    research, medical intelligence, and bio-defense. The fort occupies approximately
    1,200 acres, and currently hosts an estimated 8,460 jobs, including approximately
    1,500 active duty military and nearly 7,000 civilian positions.               BRAC
    recommendations including the creation of the Joint Center of Excellence for
    Medical Biological Defense Research and the Joint Center of Excellence for
    Medical Research, Development and Acquisition alone were expected to create a
    net increase of 225 jobs at Fort Detrick. Other activities, including the creation of
    the National Interagency Biodefense Campus (NIBC) are not BRAC related and
    are expected to generate additional employment impact in Frederick County. In
    2009, Garrison Commander Colonel Judith D. Robinson reported that the base
    would benefit from $2 billion of construction activity through 2011. Combined on
    and off-post expansions of federal agencies involved with Fort Detrick’s medical
    and bio-defense research missions in Frederick are expected to generate 1,075
    new jobs between 2010 and 2012.
•   Naval Air Station Patuxent River (NAS Pax River) NAS Pax River is located
    along the shores of the Chesapeake Bay in St. Mary’s County. This installation
    was the target of BRAC processes throughout the 1990’s and gained an
    estimated 6,800 jobs from the 1995 BRAC alone. The installation now employs
                                                                        a
    18,000 civilians, contractors and active military personnel. The l test round of
    BRAC recommendations initially identified a net impact of 87 mostly civilian
    positions for NAS Pax River. BRAC 2005 establishes NAS Pax River as a center
    for fixed wing and rotary wing air platform research, development and testing.
•   Naval Surface Warfare Center Carderock Division (NSWC Carderock) The
    Headquarters of NSWC Carderock is located in Montgomery County and is home
    to 3,200 scientists, engineers, and support personnel providing research,
    development, testing, evaluation, engineering, and fleet support organization for
    the Navy's ships, submarine, military watercraft, and unmanned vehicles. BRAC
    2005 consolidates Sea Vehicle Development and Acquisition activities at
    Carderock with an estimated employment impact of 6 positions.


As BRAC requires that all recommended military relocations be completed by 2011,
the construction necessary to accommodate incoming personnel is completed or well
underway at these Maryland installations. The RESI study only analyzed the impact
of BRAC on three installations: APG, Fort Meade, and JBA. RESI estimated that the


                                     7                             RealPropertyResearchGroup
relocations at these three bases would generate 45,000 jobs with average wages of
over $70,000. These new jobs are estimated to bring nearly 28,200 new households
to Maryland between 2006 and 2015.


As a follow up to the RESI study, the Maryland Department of Planning (MDP)
examined projected household demand from BRAC with the development capacity of
central Maryland jurisdictions in a 2007 report. MDP found that BRAC will increase
development pressure on jurisdictions that already experience “fairly high growth
rates” and recommends that jurisdictions “take significant steps now to enable their
growth areas to accommodate more development capacity.” The study compared the
housing demand expected as a result of BRAC with the potential supply of new units
available to in-migrating households and found that BRAC growth will absorb at least
five and up to nearly 40 percent of the available supply of housing units in each
jurisdiction studied between 2009 and 2015.




C.     Scope of Assignment
The first part of our assignment for MD DHCD is to conduct a comprehensive
assessment of the multifamily rental market in each of the eight BRAC counties. The
assessment addresses the inventory of multifamily properties assisted with federal
and state housing programs/subsidies as well as those properties that are not
assisted by a housing program in each of the eight counties. The second part is an
electronic database containing detailed records of the complete inventory of
multifamily rental communities in each of the eight BRAC counties. The database
contains a wide range of information on each property, including, but not limited to,
location, program type, number of units, type of units, current occupancy information
and current rent levels.     This database also includes a rating of each property
reflecting its feasibility for preservation and its risk of dropping out of the stock of
affordable rental housing.


In conducting this analysis, RPRG utilized a wide variety of sources to compile the list
of multifamily properties. RPRG’s proprietary database of rental communities, built
from more than twenty years of analyzing local rental markets in Maryland, was the


                                     8                             RealPropertyResearchGroup
primary source of information for the inventory. RPRG compared information in its
database with other data sources, including information from the US Department of
Housing and Urban Development (HUD); MD -DHCD; the Maryland State Department
of Assessments and Taxation; local governments and public directories to compile the
complete inventory for each county.


Once listings were compiled, we developed property specific data for all properties in
the inventory.   RPRG staff and contractors visited each of the properties in the
inventory to assess condition, take photos and survey management. The information
collected from field visits and follow-up phone interviews was entered into an
electronic database enabling RPRG to review and analyze the salient characteristics
of each property, each submarket area, and each county.


Once assessments of each of the eight BRAC counties is completed, RPRG will
develop a methodology to assess each property in the inventory with regard to
feasibility for preserving affordable housing and risk of a property losing its
affordability status. The methodology and risk ranking will use a variety of property
specific data points, including condition, age, unit size, ownership, financing, and rent
and occupancy levels, in context with local market conditions such as the balance of
supply and demand for affordable housing units, the penetration rate of units
classified by affordability level, and the rent disparity between upper and
market/affordable units of the local market. The methodology and risk ranking for
each county will be presented in a separate report.


The conclusions reached in a market assessment are inherently subjective, and
should not be relied upon as a determinative predictor of results that will actually
occur in the marketplace. There can be no assurance that the estimates made or
assumptions employed in preparing this report will in fact be realized or that other
methods or assumptions might not be appropriate. The conclusions expressed in this
report are as of the date of this report, and an analysis conducted as of another date
may require different conclusions.        The actual results achieved will depend on a
variety of factors including the performance of management, the impact of changes in
general and local economic conditions, and the absence of material changes in the
regulatory or competitive environment.         Reference is made to the statement of

                                      9                            RealPropertyResearchGroup
Underlying Assumptions and Limiting Conditions attached as Appendix 1 and
incorporated in this report.




                               10                      RealPropertyResearchGroup
II.   ECONOMIC CONTEXT

      A.     Anne Arundel County BRAC Impacts
      Home to Fort Meade, Anne Arundel County will be directly impacted by the BRAC
      expansions at that military installation, primarily through employment and household
      growth (Map 1). The RESI report projects that Anne Arundel County will gain 10,049
      jobs, which equals 22 percent of the state’s total employment impact from the APG,
      Fort Meade and JBA expansions. Using commuting patterns in the region, RESI
      allocated 16 percent of the 28,200 anticipated new households from BRAC, or 4,450
      new households, to Anne Arundel County. A follow up study by Sage Policy Group in
      2009 estimates that net housing demand in Anne Arundel County resulting from the
      BRAC expansion of Fort Meade will range from 3,096 to 3,806 units, with a likely
      scenario of demand for 3,451 units by 2015.


      Fort Meade in located in the northwestern section of Anne Arundel County, and is
      proximate to both the Howard County and Prince George’s County borders. The
      installation is home to the National Security Agency and supports other intelligence
      and information management missions for the DOD.            BRAC will add three new
      missions to the Fort Meade. Joint adjudication activities covering Army, Air Force,
      Navy and intelligence services are expected to bring an increase of 951 jobs to Fort
      Meade. Consolidation of Army, Navy and Air Force media activities at Fort Meade is
      expected to add an additional 669 jobs. However, the largest impact at Fort Meade
      will be from the consolidation of the Defense Information Services Agency which will
      add more than 4,000 positions. The jobs coming into Fort Meade are high paying
      technical positions, with an estimated average annual pay of $85,500 for 5,700 new
      positions (according to the SAIC report). The RESI report estimates that the total
      impact of BRAC implantation at Fort Meade is over 19,000 jobs and 12,000
      households after taking into account the direct, indirect and induced impacts.


      The $56 million, state-of-the-art headquarters for the Defense Media Activity (DMA)
      mission is under construction at Fort Meade and is expected to be completed in May
      2011. In its new 185,000 square foot facility, DMA presents news, information and
      entertainment through a variety of media to millions of active duty personnel,


                                          11                            RealPropertyResearchGroup
                                                     Pennsylvania
                                                     Pennsylvania




                                                                                            Aberdeen Proving Ground
                                 Carroll County
                                 Carroll County

                                                                                                Harford County
                                                                                                Harford County
                                                                                                                 .
                                                                                                                 .
    .
    .          Fort Detrick                                           Baltimore County
                                                                      Baltimore County




     Frederick County
     Frederick County                             Maryland
                                                  Maryland

                                                                      Baltimore City
                                                                      Baltimore City
                                          Howard County
                                          Howard County

                                                                                                                 Kent County
                                                                                                                 Kent County

                    Montgomery County
                    Montgomery County                        Fort Meade


                                                             .
                                                             .
                          National Naval Medical Center Bethesda

                                .
                                .                                     Anne Arundel County
                                                                      Anne Arundel County
                                                                                                    Queen Anne's County
                                                                                                    Queen Anne's County
    Virginia
    Virginia                    Washington
                                Washington
                                   D.C.
                                   D.C.
                                                   Andrews Air Force Base

                                                    .
                                                    .                                                               Talbot County
                                                                                                                    Talbot County



                                            Prince George's County
                                             Prince George's County




0      5       10
                                                                         Calvert County
                                                                         Calvert County
      miles


                                         Charles County
                                         Charles County
                                                                                                            Dorchester County
                                                                                                            Dorchester County




                                                  Map 1
                         Greater Baltimore Region and Maryland BRAC Installations
reservists, civilian employees and military retirees and their families throughout the
world.


Construction of the $32 million Adjudication Co-Location Activities Facility started in
April 2009 and is expected to be completed by March 2011. The facility will host ten
distinct adjudication activities for the various military branches and intelligence
services. The adjudication services assign national security clearances to military
and civilian employees and contractors.


The $390 million Defense Information Services Agency (DISA) facility is expected to
be completed by September 2011. The 1.1 million square foot building will be the
new headquarters for DISA, a combat support agency that provides command and
control capabilities and infrastructure for a global network.


B.       Labor Force and Unemployment
The labor force of Anne Arundel County exhibited consistent growth from 1990 to
2008, experiencing a net increase of 23.8 percent, adding 54,800 workers over nearly
two decades (Table 1). With the national recession taking hold in 2009, the county
labor force contracted, losing a net of 5,100 workers compared to the 2008 total. As of
2009, Anne Arundel County’s labor force included approximately 280,000 workers.

During this period of overall labor force expansion, the unemployment rate in Anne
Arundel County has remained below the statewide unemployment rate every year
since 1990, while the State of Maryland’s unemployment rate has consistently
remained below the national rate. After the recession of the early 1990s, when the
county unemployment rate exceeded five percent, the annual rate averaged 3.7
percent in the mid 1990s. It remained below four percent through 2008 even during
the post-9/11 recession, dot.com crash, and most recent recession, a testament to
the county’s economic stability. In 2009, unemployment rates jumped to an average
of 6.4 percent, which was still slightly below the state rate of 7.0 percent and
significantly below the national rate of 9.3 percent.




                                     13                           RealPropertyResearchGroup
                            TABLE 1 Anne Arundel County Labor Force and Unemployment Rates

                            Annual Labor Force Statistics - Not Seasonally Adjusted
                                                                                   1990       1991       1992        1993         1994            1995            1996        1997        1998          1999           2000        2001        2002        2003        2004         2005            2006           2007           2008          2009

                               Labor Force                                        230,440    232,837    235,674     240,101      241,633      245,589         251,025       255,213      255,862       258,784        268,268     269,868     271,897     269,849     270,761      276,546      281,713           283,765        285,263       280,159
                               Employment                                         222,575    220,831    222,551     227,457      231,341      235,711         240,857       245,897      247,524       251,428        260,150     260,513     261,203     259,463     260,652      266,827      272,508           275,058        274,193       262,239
                               Unemployment                                        7,865     12,006     13,123      12,644       10,292        9,878          10,168         9,316        8,338         7,356          8,118       9,355      10,694      10,386      10,109        9,719        9,205             8,707          11,070        17,920
                            Unemployment Rate
                               Anne Arundel County                                 3.4%       5.2%       5.6%        5.3%         4.3%            4.0%            4.1%        3.7%        3.3%          2.8%           3.0%        3.5%        3.9%        3.8%        3.7%         3.5%            3.3%           3.1%           3.9%          6.4%
                               Maryland                                            4.6%       6.2%       6.6%        6.0%         5.2%            5.2%            4.9%        4.8%        4.3%          3.6%           3.6%        4.1%        4.5%        4.5%        4.3%         4.1%            3.8%           3.5%           4.4%          7.0%
                               United States                                       5.6%       6.8%       7.5%        6.9%         6.1%            5.6%            5.4%        4.9%        4.5%          4.2%           4.0%        4.7%        5.8%        6.0%        5.5%         5.1%            4.6%           4.6%           5.8%          9.0%


                                      Annual Labor Force and Unemployment Rates
                                      1990 - 2009 Baltimore County, State and US
                                                  300,000                                                                                                                                                                                                                                                                             10.0%

                                                                                                                                    Labor Force              Anne Arundel County            Maryland             United States
                                                                                                                                                                                                                                                                                                                                      9.0%
                                                  250,000
                                                                                                                                                                                                                                                                                                                                      8.0%




                                                                                                                                                                                                                                                                                                                                                Unemployment Rate
                                                                                                                                                                                                                                                                                                                                                Unemployment Rate
                                 Labor Force




                                                                                                                                                                                                                                                                                                                                      7.0%
                                                  200,000
                                                                                                                                                                                                                                                                                                                                      6.0%

                                                  150,000                                                                                                                                                                                                                                                                             5.0%

                                                                                                                                                                                                                                                                                                                                      4.0%
                                                  100,000
                                                                                                                                                                                                                                                                                                                                      3.0%

                                                                                                                                                                                                                                                                                                                                      2.0%
                                                   50,000
                                                                                                                                                                                                                                                                                                                                      1.0%

                                                       0                                                                                                                                                                                                                                                                              0.0%
                                                               1990        1991       1992       1993        1994        1995         1996            1997           1998         1999         2000            2001        2002        2003        2004        2005        2006         2007               2008           2009



                            Monthly Labor Force Statistics - Not Seasonally Adjusted
 14




                                                                                  Aug-08     Sep-08     Oct-08      Nov-08       Dec-08           Jan-09      Feb-09         Mar-09      Apr-09        May-09         Jun-09      Jul-09      Aug-09      Sep-09      Oct-09       Nov-09       Dec-09            Jan-10         Feb-10        Mar-10

                               Labor Force                                        286,677    283,721    285,727     283,936      282,666      280,808         280,374       280,234      280,407       281,236        283,230     284,841     280,638     278,032     278,526      277,969      275,615           276,088        274,021       276278
                               Employment                                         274,519    272,153    273,235     271,130      269,064      264,573         262,765       263,050      263,920       263,476        264,222     265,337     262,048     259,967     259,932      259,840      257,737           255,037        252,755       256776
                               Unemployment                                       12,158     11,568     12,492      12,806       13,602       16,235          17,609        17,184       16,487        17,760         19,008      19,504      18,590      18,065      18,594       18,129       17,878             21,051         21,266        19502
                            Unemployment Rate
                               Anne Arundel County                                 4.2%       4.1%       4.4%        4.5%         4.8%            5.8%            6.3%        6.1%        5.9%          6.3%           6.7%        6.8%        6.6%        6.5%        6.7%         6.5%            6.5%          7.6%           7.8%          7.1%
                               Maryland                                            4.6%       4.6%       4.9%        5.1%         5.5%            6.6%            7.0%        6.8%        6.5%          6.9%           7.3%        7.4%        7.1%        7.0%        7.2%         7.1%            7.1%          8.2%           8.2%          7.7%
                               United States                                       6.1%       6.0%       6.1%        6.5%         7.1%            8.5%            8.9%        9.0%        8.6%          9.1%           9.7%        9.7%        9.6%        9.5%        9.5%         9.4%            9.7%          10.6%          10.4%         10.2%



                                       Monthly Unemployment Rates
                                       Baltimore County, State and US
                                                  12.0%
                                                                                                                                              Anne Arundel County                      Maryland                 United States

                                                  10.0%
                              Unemployment Rate




                                                   8.0%
RealPropertyResearch




                                                   6.0%



                                                   4.0%



                                                   2.0%
                    Group




                                                   0.0%
                                                      Aug-08          Sep-08      Oct-08      Nov-08      Dec-08        Jan-09           Feb-09          Mar-09          Apr-09       May-09          Jun-09          Jul-09      Aug-09        Sep-09       Oct-09       Nov-09           Dec-09           Jan-10           Feb-10          Mar-10
To understand the impact of the recent recession, we examined monthly
unemployment data. The lower half of Table 1 shows the monthly change in the
unemployment rate for Anne Arundel County, the state of Maryland, and the United
States, from August 2008 to March 2010. Over that 20 month period, the county’s
employment rate increased from a low point of 4.1 percent in September 2008 to a
peak of 7.8 percent in February 2010. The March 2010 unemployment rate was 7.1
percent for the county, slightly below the statewide rate of 7.7 percent and
significantly below the national rate of 10.2 percent.

C.     At-Place Employment
Anne Arundel County’s economy is robust, and is strengthened by the federal
government’s presence given its location within the Baltimore/Washington DC area.
Employment centers, including government contractors, tend to be clustered on the
west side of the county in the vicinity of Fort Meade and BWI-Marshall Airport while
the east side of the county tends to be more residential with a mix of older commercial
functions.


As it evolved from a cluster of bedroom communities to an employment center, the
Anne Arundel County economy added more than 79,000 new jobs between 1992 and
2008. This 51 percent increase brought the county’s total at-place employment to
233,800 jobs by the end of 2008 (Figure 4). After the early 1990’s recession, the
county’s job base expanded quickly, with the county netting an average of nearly
5,000 new jobs each year between 1992 and 2008. As of third quarter 2009, the
county’s job base shrank by 7,300 jobs from the 2008 total, evidence that even this
strong economy was not immune to the impacts of the recent severe recession.
However, even with these losses, at place employment remains above the 2006 level.


One of Anne Arundel County’s economic strengths is the diversity of its dominant
employment sectors. The three largest employment sectors as of third quarter 2009
were trade-transportation-utilities (22.7 percent), government (16.6 percent), and
professional-business (14.8 percent) (Figure 5).          The largest sector, trade-
                                                              i
transportation-utilities, is critical as this industry sector s an economic mainstay,
including positions in wholesale and retail trade. The prominence of the trade-
transportation-utilities sector is further enhanced by the presence of Baltimore

                                     15                            RealPropertyResearchGroup
FIGURE 4 Anne Arundel County At Place Employment



             Total Employment
             1990 - 3Q 2009
       250,000




                                                                                                                                                                                                                                                                                               233,799
                                                                                                                                                                                                                                                                             232,734




                                                                                                                                                                                                                                                                                                         226,507
                                                                                                                                                                                                                                                                225,577
                                                                                                                                                                                                                                                  222,072
                                                                                                                                                                                                                                214,637
       200,000




                                                                                                                                                                                                              205,439
                                                                                                                                                                                            201,469
                                                                                                                                                                          199,880
                                                                                                                                                        193,411
                                                                                                                                          183,253
                                                                                                                            178,194
                                                                                                                173,420
                                                                                                    168,148
                                                                                         168,050
       150,000                                                                 162,909
                                 161,296




                                                                     157,441
                                             156,530

                                                        154,544




       100,000




               50,000




                         0
                                 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009




     Annual Change in Employment
     Anne Arundel County and United States
                                                                                                                                      10,158




                     12,000                                                                                                                                                                                                                                                                       10.0%
                                                                                                                                                                                                      9,198
                     10,000
                                                                                                                                                                                                                        7,435




                                                                                                                                                                                                                                                        7,157
                                                                                                                                                                                                                                                                                                  8.0%
                                                                                                                                                    6,469
                                                                                                                                                      469




                      8,000
                      8 000
                                                                      5,468
                                                                          8




                                                                                                   5,272
                                                                                                       2
                                                                               5,141




                                                                                                                          5,059
                                                                                                              4,774




                                                                                                                                                                                                                                                                                                  6.0%
                                                                                                                                                                                    3,970




                      6,000                                                                                                                                                                                                               3,505
                                                         2,897
   Annual New Jobs




                                                                                                                                                                                                                                                                                                           % Annual Growth
                      4,000
                                                                                                                                                                  1,589




                                                                                                                                                                                                                                                                                                  4.0%



                                                                                                                                                                                                                                                                     1,065
                      2,000
                                                                                         98




                                                                                                                                                                                                                                                                                                  2.0%
                             0

                      -2,000                                                                                                                                                                                                                                                                      0.0%
                                               -1,986




                      -4,000
                                                                                                                                                                                                                                                                                                  -2.0%
                                    -4,766




                      -6,000                                      Anne Arundel County                          United States                                 Anne Arundel County Growth Rate
                                                                                                                                                                                                                                                                                                  -4.0%
                      -8,000
                                                                                                                                                                                                                                                                                 2009 -7,292




                     -10,000                                                                                                                                                                                                                                                                      -6.0%
                                    1991

                                               1992

                                                         1993

                                                                     1994

                                                                               1995

                                                                                         1996

                                                                                                   1997

                                                                                                              1998

                                                                                                                          1999

                                                                                                                                      2000

                                                                                                                                                    2001

                                                                                                                                                                  2002

                                                                                                                                                                                    2003

                                                                                                                                                                                                      2004

                                                                                                                                                                                                                        2005

                                                                                                                                                                                                                                      2006

                                                                                                                                                                                                                                                       2007

                                                                                                                                                                                                                                                                     2008




Source: US Bureau of Labor Statistics, Covered Employment and Wages (NAICS)




                                                                                                                                      16                                                                                                          RealPropertyResearchGroup
FIGURE 5 Anne Arundel County Employment and Employment Change by Sector



  Employment by Sector
  3Q 2009
                   Other           3.4%                                                                               United States
                                     3.9%
     Leisure-Hospitality                                      10.0%                                                   Anne Arundel
                                                                       12.0%
                                                                                                                      County
       Education Health                                                             14.1%
                                                                     11.3%
  Professional-Business                                                      12.8%
                                                                                      14.8%
     Financial Activities                     5.9%
                                     4.2%
            Information      2.2%
                                     2.2%
   Trade-Trans-Utilities                                                                                   19.1%
                                                                                                                           22.7%
         Manufacturing                                       9.3%
                                              5.8%
           Construction                4.6%
                                                6.5%
  Nat Resources-Mining      1.4%
                            0.1%
            Government                                                                          17.1%
                                                                                              16.6%

                        0.0%                  5.0%                  10.0%                   15.0%                  20.0%              25.0%




   Annualized Change in Employment by Sector                                                                                 United States
   2001 - 3Q 2009
                   Other                                                                    0.5%                             Anne Arundel
                                                                                                             2.8%            County
     Leisure-Hospitality                                                                1.1%
                                                                                                                    3.3%
       Education Health                                                                                    2.6%
                                                                                                                           3.9%
  Professional-Business                                                                0.2%
                                                                                                   1.9%
     Financial Activities                                                    0.0%
                                                                                                    1.9%
            Information                              -2.8%
                                                                                                   1.8%
   Trade-Trans-Utilities                                              -0.5%
                                                                                               0.8%
         Manufacturing                      -3.7%
                                                             -2.1%
           Construction                                               -1.3%
                                                                                                           1.8%
  Nat Resources-Mining                                                                      0.4%
                                                              -1.0%
            Government                                                                  1.0%
                                                                                          1.2%

                       -5.0%       -4.0%      -3.0%     -2.0%        -1.0%     0.0%          1.0%         2.0%      3.0%      4.0%     5.0%

Source: US Bureau of Labor Statistics, Covered Employment and Wages (NAICS)




                                                                       17                                          RealPropertyResearchGroup
Washington Thurgood Marshall International Airport (BWI). Relative to the nation’s
economy, Anne Arundel County has a higher proportion of jobs in the trade-
transportation-utilities, professional-business, hospitality, and construction sectors.
The county’s proportion of jobs in the education-health, financial activities and
manufacturing sectors is lower than that of the nation as a whole.


As shown in the lower panel of Figure 5, net job growth occurred in almost all industry
sectors between 2001 and third quarter 2009, far outstripping the national annual
average increases in most areas. Jobs related to support an expanding population
base showed the strongest increases. While government growth was modest, the
number of new jobs in four other sectors increased at an annual rate of two percent or
more during this time. The largest gains were in leisure-hospitality and education-
health, both of which expanded at an annualized rate of more than three percent. It is
also notable that the trade, construction and information sectors experienced growth
on a local level, contrary to declining trends of these industries nationwide. While
manufacturing jobs within the county contracted, the declines were proportionally
lower than the national rate.


To gain insight on how the recent recession has affected the local job base, we
examined employment changes by sector from 2007 through the third quarter of 2009
(Figure 6). In this period of economic turmoil, five economic sectors in the county
achieved positive annualized growth and five sectors contracted. The county’s
education-health sectors experienced a 9.5 percent increase in total employment,
more than doubling the national growth rate. The county’s largest losses were in
financial activities (16.4 percent) and construction (16.7 percent), both repercussions
of the real estate market collapse.


Anne Arundel County’s list of major employers reflects the dominance of the defense
and intelligence industries (Table 2). Fort Meade is by far the largest employer, with
approximately 36,000 jobs. Defense contractor Northrop Grumman is the county’s
fifth largest employer with 8,000 jobs, while additional defense contractors among the
eighteen largest employers include Booz Allen Hamilton, ARINC and Lockheed
Martin. The education-health sector also has a strong presence among the county’s
largest employers. Anne Arundel County’s public school system is the county’s

                                      18                         RealPropertyResearchGroup
FIGURE 6 Anne Arundel County Recent Change in Employment by Sector



   % Change in Employment by Sector
   2007 - 3Q 2009                                                                                                   United States

                   Other                                                         -1.5%                              Anne Arundel
                                                                                   -0.8%
                                                                                                                    County
     Leisure-Hospitality                                                              -2.9%
                                                                                               0.6%
       Education Health                                                                           4.6%
                                                                                                             9.5%
  Professional-Business                                                  -7.4%
                                                                                      -3.1%
      Financial Activities                                                    -6.1%
                                                  -16.4%
             Information                                                      -6.1%
                                                                                              3.1%
    Trade-Trans-Utilities                                                   -6.3%
                                                                           -6.5%
          Manufacturing                                    -13.0%
                                                                                      -1.2%
            Construction                -20.5%
                                                 -16.7%
  Nat Resources-Mining                                                                -3.8%
                                                                                              3.2%
            Government                                                                         3.3%
                                                                                              2.5%

                        -25.0%      -20.0%       -15.0%     -10.0%        -5.0%            0.0%       5.0%       10.0%       15.0%



Source: US Bureau of Labor Statistics, Covered Employment and Wages (NAICS)




                                                                    19                                   RealPropertyResearchGroup
TABLE 2 Largest Employers in Anne Arundel

                                                                            Industry and Employment

Rank                     Name                                                  Industry                     Employment
 1      Fort George Meade                                                       Defense                       36,209
 2      Anne Arundel County Schools                                            Education                      14,000
 3      BWI Thurgood marshall Airport                                      Regional Airport                   9,717
 4      State of Maryland                                                    Government                       9,082
 5      Northrop Grumman                                                 Defense Contracting                  8,000
 6      Anne Arundel County Government                                       Government                       4,163
 7      Southwest Airlines                                                       Airline                      3,200
 8      Anne Arundel Health System                                            Healthcare                       2800
 9      Baltimore Washington Medical Center                                   Health Care                      2650
 10     US Naval Academy                                                        Defense                        2340
 11     CSC                                                            Information Technology                  1829
 12     Booz Allen Hamilton                                      Defense and Government Consulting             1600
 13     US Coast Guard                                                          Defense                        1200
 14     Anne Arundel Community College                                     Higher Education                    1100
 15     Alegis Group                                                     IT and Engineering                     926
 16     Lockheed Martin                                                      Engineering                        925
 17     ARINC                                                     Aircraft and Telecommunications               900
 18     Verizon                                                          Telecommunications                     844

Source: Anne Arundel Economic Development Corporation, Accessed July 2010




                                                                 20                            RealPropertyResearchGroup
second largest employer, while the U.S. Naval Academy and the county’s community
college are also among the county’s top eighteen employers. Two hospitals are
among the top ten employers. Annapolis, the state capital, is located in Anne Arundel
County and as a result, the state government plays a key role in local economy,
ranking as the fourth largest employer, while the county government is the county’s
sixth largest employer. BWI Airport plays a key role in the county’s economy, with
more than 9,700 employees, making it the third largest employer in the county.


As southern Anne Arundel County is rural, employment nodes are concentrated in the
northern half of the county. As shown in Map 2, the denser areas of employment in
                                                    I
that area are along the major thoroughfares: I-295, -97, Route 2, and Route 50
around Annapolis.


According to US Census Bureau Local Employment Dynamics data on change in total
employment, the block groups encompassing BWI airport and the area north of
Annapolis experienced the greatest loss in jobs between 2002 and 2008. Areas with
the greatest increase in employment include the I-295 corridor in the northwest
section of the county and the Route 2 corridor in South County.


D.     Commuting Patterns
Anne Arundel County functions as a bedroom community of the Baltimore-
Washington region.    While the job base has increased significantly over the last
decade, a large proportion of residents still commute to other jurisdictions for work.
Data from the US Census Bureau’s LED Origin-Destination database indicate that
less than half of county residents (45 percent) worked in the county in 2008 (Table 3).
Prince George’s County was the destination of 12 percent of Anne Arundel County
commuters, nearly 10 percent of the labor force commuted to Baltimore City, nearly 9
percent commuted to Baltimore County, and nearly 8 percent commuted to Howard
County. Seven percent of the labor force worked in Montgomery County. The District
of Columbia does not participate in the Census Bureau’s Local Employment
Dynamics program so jobs based in the District are not accounted for in these
commuting pattern estimates. Also, several major employee groups are left out of
these calculations, including federal employees.


                                    21                            RealPropertyResearchGroup
                              Baltimore County                                                                                                   Baltimore County
                                                                      Baltimore City                                                                                                  Baltimore City
                %!
                &"                                 168            2                                                              &"
                                                                                                                                 %!                                168            2

              % 5
              & 6
       Howard County                 295             695
                                                                                                                               & 5
                                                                                                                               % 6
                                                                                                                        Howard County                295             695

              6
              5                          195
                                                                                                                               5
                                                                                                                               6                         195


            % % %
            & & &            100
                                              176                 270                                                        & & &
                                                                                                                             % % %          100
                                                                                                                                                              176                 270



            % %% #
            & && $       %
                         &                                                                                                   & && $
                                                                                                                             % %% #       &
                                                                                                                                          %
                                      170           174               10                           173                                                170           174               10                           173
                            713                                                                                                           713

                 " && &
                 ! %% %                                                                                                           " && &
                                                                                                                                  ! %% %
                                                                           100                                                                                                             100
                                                         3                                  607                                                                          3                                  607

                                                                                                                                          &
                                                                                                                                          %
                                                                                 648                                                                                                             648
                         %
                         &                                                                          177                                                                                                             177

        %
        & %
          &
         295
              # 3
              $ 4 198
                                         32
                                                             97                                                          &
                                                                                                                         % &
                                                                                                                           %
                                                                                                                           295
                                                                                                                               $ 3
                                                                                                                               # 4
                                                                                                                                 198
                                                                                                                                                         32
                                                                                                                                                                             97
               %
               &     !
                     "                    175                                           2
                                                                                                                                &
                                                                                                                                %     !
                                                                                                                                      "                   175                                           2


                  %
                  &                                           178
                                                                                                                                   &
                                                                                                                                   %                                          178


                           %
                           &                                                                              179
                                                                                                                                            &
                                                                                                                                            %                                                                             179

             !
             "           %
                         &
                                     3
                                                                                                  450                         !
                                                                                                                              "           &
                                                                                                                                          %
                                                                                                                                                     3
                                                                                                                                                                                                                  450

                &
                %      #
                       $     +
                             ,                  450
                                                                                             70                 50
                                                                                                                                 %
                                                                                                                                 &      #
                                                                                                                                        $     ,
                                                                                                                                              +                 450
                                                                                                                                                                                                             70                 50

                    -+ %
                    ., &                                                     301 50               436                                ., &
                                                                                                                                     -+ %                                                    301 50               436
                      %
                      &                                                                     665
                                                                                                                                       &
                                                                                                                                       %                                                                    665

                %
                &   !
                    "
                                                424
                                                                                   2                                             %
                                                                                                                                 &   "
                                                                                                                                     !
                                                                                                                                                                424
                                                                                                                                                                                                   2



                     %
                     &                                                            214
                                                                                                                                      &
                                                                                                                                      %
                                                                                                                          Prince George's
                                                                                                                                                                                                  214

                                                                                                                              County

     Prince George's
         County

                                                 ! %
                                                 " &              2
                                                                             255                                                                                 " &
                                                                                                                                                                 ! %              2
                                                                                                                                                                                             255

                                               %
                                               &   422
                                                                                                                                                              %&   422

                                              %
                                              &408 %
                                                   &                             468
                                                                                                                                                              &
                                                                                                                                                              %408 %
                                                                                                                                                                   &                             468


                                              %
                                              &    259
                                                                                                                                                              &
                                                                                                                                                              %    259

  2008 Job Density
  Jobs per Acre                               !%
                                              "&
                                               4
                                                   &
                                                   %  258
                                                                                 256
                                                                                                                     Jobs Change 2002-2008
                                                                                                                     Number of Jobs                           "&
                                                                                                                                                              !%
                                                                                                                                                               4
                                                                                                                                                                   &
                                                                                                                                                                   %  258
                                                                                                                                                                                                 256

       1.5 to 89.2   (81)                                                                                                   250 to 3,100 (48)

                                                  !%
                                                  "&                                                                                                              "&
                                                                                                                                                                  !%
       0.8 to 1.5    (46)                                                                                                    50 to 250 (88)
       0.4 to 0.8    (53)                                               2        423                                        -50 to    50 (123)                                          2        423

                                                 % %
                                                 & &                                                                                                             & &
                                                                                                                                                                 % %
       0.2 to 0.4    (39)                                                                                                  -250 to -50 (33)
       0 to 0.2      (90)                                     260                  261                                   -2,440 to -250 (17)                                  260                  261


Source: US Census Bureau, Local Employment Dynamics
                                                                                                              Map 2
                                                                                            Employment Density and Employment Change
                                                                                                  Anne Arundel County, Maryland
TABLE 3 2008 Commuting Patterns - Destinations
                                                                     Anne Arundel County

Commuting Destinations of County Resident Labor Force
Total Employeed Workers (2008)               227,072
     Anne Arundel County, MD                  101,605                                    44.7%
     Prince George's County, MD                26,742                                    11.8%
     Baltimore city, MD                        21,708                                     9.6%
     Baltimore County, MD                      19,604                                     8.6%
     Howard County, MD                         17,606                                     7.8%
     Montgomery County, MD                     15,811                                     7.0%
     Fairfax County, VA                        3,123                                      1.4%
     Harford County, MD                        1,916                                      0.8%
     Frederick County, MD                      1,909                                      0.8%
     Washington County, MD                     1,667                                      0.7%
     All Other Locations                       15,381                                     6.8%

Note that Washington, DC does not participate in Local Employment Dynamics so jobs based there are not included in
these figures.
Source: US Census Bureau; Local Employment Dynamics Origin-Destination Database




                                                           23                                      RealPropertyResearchGroup
A labor shed analysis of the LED data shows that in 2008, less than half of employees
working in Anne Arundel County were also residents of the county (Table 4). Forty-
two percent of employees were county residents, 12 percent resided in Baltimore
County, 9 percent lived in Baltimore City, and 7 percent lived in Prince George’s
County. Five percent of employees working in Anne Arundel County originated from
Howard County, and four percent originated from Montgomery County.


E.      Future Employment Trends
The economic outlook for Anne Arundel County suggests that the county will maintain
a moderate rate of job growth while the Baltimore region as a whole will create jobs at
a slightly slower pace. Round 7b employment projections prepared by the Baltimore
Metropolitan Council as of July 2009 take into account the impacts of BRAC as well
as the current economic downturn (Table 5). Employment estimates for 2010 suggest
that the employment base in Anne Arundel County increased by 1.3 percent annually
since 2000 while the region grew at a slightly slower rate of 1.1 percent. Over the
next five years, Anne Arundel’s employment base is projected to continue to grow at
1.3 percent annually, adding 4,600 jobs each year. Growth throughout the region is
expected to continue at a slightly slower annual rate of 1.0 percent. In the long term,
BMC projections show the county adding jobs at an annual rate of 1.2 percent and the
region adding jobs at a slower 0.8 percent annual rate.


        RPRG interviewed economic development officials and planners for Anne
Arundel County and reviewed local news sources and developer websites to
document current and planned economic development activity in the county. The
following is a description of some of the major current and long term economic
development projects in Anne Arundel County in addition to the direct job and
infrastructure expansions at Fort Meade related to BRAC:

•    The National Security Agency (NSA) is planning a $5.2 billion expansion at Fort
     Meade that would add between 6,500 and 11,000 jobs and between 1.8 and 5.8
     million square feet of office space, depending on which of three development
     options is pursued. In each of the three scenarios, approximately one third of the
     added workers would be shifted from private office space surrounding Fort
     Meade, and the remainder would be relocated from sites across the Baltimore-
     Washington region. A large driver for this expansion is the growth of cyber



                                    24                            RealPropertyResearchGroup
TABLE 4 2008 Commuting Patterns - Origination
                                                                              Anne Arundel County

Origination of Employees Working in County
Total Jobs (2008)                                                           240,994
     Anne Arundel County, MD                                                101,605         42.2%
     Baltimore County, MD                                                    29,942         12.4%
     Baltimore City, MD                                                      21,333         8.9%
     Prince George's County, MD                                              17,146         7.1%
     Howard County, MD                                                       12,170         5.0%
     Montgomery County, MD                                                   10,411         4.3%
     Harford County, MD                                                      7,201          3.0%
     Queen Anne's County, MD                                                 5,122          2.1%
     Carroll County, MD                                                      4,552          1.9%
     Frederick County, MD                                                    2,919          1.2%
     All Other Locations                                                     28,593         11.9%


Source: US Census Bureau; Local Employment Dynamics Origin-Destination Database




                                                          25                               RealPropertyResearchGroup
                            TABLE 5 Employment Estimates and Projections
                            Anne Arundel County and Region



                                                                                      Total Employment                           Change 2000 to 2010               Change 2010 to 2015                    Change 2015 to 2020
                                                                                                                                Total            Annual           Total            Annual                Total            Annual
                                                                    2000            2010                2015       2020       #       %       #         %       #       %       #        %           #         %       #        %

                            Anne Arundel County                    297,000         339,000             362,000    384,400    42,000    14.1%    4,200   1.3%    23,000    6.8%     4,600      1.3%   22,400      6.2%    4,480   1.2%

                            Baltimore Region                      1,534,400       1,711,900        1,797,600     1,871,500   177,500   11.6%   17,750   1.1%    85,700    5.0%    17,140      1.0%   73,900      4.1%   14,780   0.8%



                            Note: Annual change is compounded rate.
                            Source: Baltimore Metropolitan Council, Round 7B Cooperative Projections

                              Annualized Employment Growth
                              2000 - 2020
                                                                                                                                                            Anne Arundel County
                                 1.4%

                                                               1.3%                                                            1.3%                         Baltimore Region
                                 1.2%
                                                                                                                                                                                           1.2%

                                 1.0%                                              1.1%
                                                                                                                                               1.0%
                                 0.8%
 26




                                                                                                                                                                                                          0.8%

                                 0.6%


                                 0.4%


                                 0.2%


                                 0.0%
                                                                Change 2000 to 2010                                             Change 2010 to 2015                                        Change 2015 to 2020
RealPropertyResearchGroup
             security needs.1 This project is separate from and in addition to the BRAC
             expansions at Fort Meade.
        •    National Business Park. National Business Park is located at MD Route 32 and
             MD Route 295 adjacent to Fort Meade. With a road connecting directly to the
             base, the office park is expected to become home to many of the new civilian
             defense contractors that will follow the transfer of new military missions to Fort
             Meade. The park is owned and developed by Corporate Office Properties Trust
             (COPT), who broke ground on a $35 million, 161,000 square foot office building at
             the park in June 2009. Tenants at National Business Park are generally either
             government agencies or government contractors. The park has approximately 2.5
             million square feet of additional capacity. 2
        •    Annapolis Junction Business Park.                Konterra Realty LLC and Boston
             Properties are developing an office park at the intersection of Route 32 and the B-
             W Parkway, proximate to Fort Meade. The first phase includes three Class A
             office buildings and the total build out could include up to 2.3 million square feet of
             development, including office, hotel and retail space. The first building has been
             completed.
        •    Fort Meade Technology Center. This is a proposed enhanced use lease project
             on the grounds of Fort Meade, to be developed by Trammell Crow. The center
             would include up to 1.7 million square feet of Class A office space for defense
             contractors.
        •    Village at Waugh Chapel. Greenberg Gibbons broke ground in August 2010 on
             a $275 expansion to the Village at Waugh Chapel, a commercial development in
             Crofton. The new Village South at Waugh Chapel will offer 540,000 square feet of
             retail, a 50,000 square foot office building and approximately 300 residential units
                                                           e
             in its first phase. The development will b anchored by Target and Wegmans
             grocery. In May 2010, the Anne Arundel County Council approved $16 million in
             TIF bonds to help finance infrastructure for the project.3
        •    Town Center at Arundel Preserve. Somerset Construction Co. is the master
             developer of this $140 million mixed-use project that includes a 150-room hotel,
             six-story office building, and 242-unit luxury apartment building. The project is
             now under construction and is scheduled for completion in June 2011. The site is
             located in Hanover near Arundel Mills.4
        •    Odenton Town Center. This 1,600-acre mixed-use project of homes, offices
             shops and restaurants will be developed by several development companies.
             Most of the development is at least three years away because water and sewer
             infrastructure improvements first need to be completed. In August 2010, the Anne
             Arundel County Council approved funding for this infrastructure.           Some
             development is not constrained by these infrastructure improvements. Initial site

1
  Sernovitz, Daniel. “NSA breaks secrecy on its plans for $5.2B expansion.” Baltimore Business Journal, 16 July
   2010.
2
  Sernovitz, Daniel. “COPT breaks ground on $35M National Business Park expansion.” Baltimore Business
   Journal, 20 July 2009.
3
  Sernovitz, Daniel. “Village at Waugh Chapel $275M expansion begins.” Baltimore Business Journal, 27 August
   2010.
4
  Sernovitz, Daniel. “Developers seek to build on success of Arundel corridor.” Baltimore Business Journal, 14
   May 2010.

                                                   27                                 RealPropertyResearchGroup
            work is underway at the Village at Odenton Station, located directly across from
            the MARC train station. Dolben Co. Inc. is the developer of this mixed-use project
            of 235 luxury rental apartments plus retail. 5
        •   Buckingham. Merritt Properties, LLC is the developer of this 220,000 square foot
            mixed use development that is now under construction. The project consists of
            two Class A office buildings, four retail/restaurant buildings, an athletic club and
            106 townhomes. The site is located near the intersection of Route 100 and
            Telegraph Road, and is within a five mile radius of Fort Meade. 6
        •   Cedar Hill PUD. This proposed development is located in the northern section of
                                               -
            the county, at the intersection of I 695 and Ritchie Highway. The total build out
            could be up to 1,600 residential units. Cherrywood Development, LLC is the
            developer of the project. The first two phases of planned development are 238
            and 355 units, respectively. The county recently approved a $24 million
            infrastructure financing package for the development.
        •   Preston Commons. Preston Partners is planning a 561-unit residential
            community off Dorsey Road in Hanover, near Arundel Mills. The 26-acre parcel
            will be developed in phases, with the first phase offering 281 multifamily units.
            The developer hopes to have final plat approval by spring 2011.
        •   Oxford Square. Preston Partners plans to buy 122 acres of industrial land in
            Hanover and build 1.6 million square feet of office, residential and retail space.
            The land is a former Coca-Cola property located directly east of a MARC train
                                                 -     -
            station, and proximate to Route 100, I 95, I 295 and Route 1. In August 2010,
            Preston Partners received a $17.5 million investment from Canyon-Johnson
            Urban Funds, backed by basketball star Magic Johnson, to help purchase the
            property. 7




5
  Sernovitz, Daniel. “Odenton Town Center development clears county hurdles.” Baltimore Business Journal, 17
   August 2010.
6
  Anne Arundel Economic Development Corporation.
7
  Sharrow, Ryan. “Magic Johnson-backed fund gives Preston Partners $17.5M for Hanover project.” Baltimore
   Business Journal, 9 August 2010.

                                                  28                                RealPropertyResearchGroup
III.   DEFINITION OF SUBMARKETS

       The concept of a ‘primary market area’ is critical to analyzing the feasibility of a
       specific residential rental community.     A ‘primary market area’ is defined as the
       geographic area from which future residents of the community would primarily be
       drawn and in which competitive rental housing alternatives are located. In defining a
       primary market area for a particular project, RPRG typically considers variation in
       factors such as existing land use, development patterns, and density; access to public
       and private sector amenities; linkages to key roadways and public transit; political,
       natural, and man-made        boundaries;     the   demographic   and    socio-economic
       characteristics of local populations; and growth pressures. We attempt to define a
       primary market area that captures those nearby areas exhibiting similar
       characteristics to the neighborhood immediately surrounding the site or community in
       question.


       In this market assessment, the primary market area concept is not directly applicable,
       since our analysis seeks to evaluate the rental market of Anne Arundel County in its
       entirety rather than a specific site or sites. Nonetheless, in providing a countywide
       assessment it is critical to acknowledge the county’s diversity in terms of development
       patterns, accessibility, demographic profiles of residents, and other factors that feed
       into the process of defining primary market areas.


       To analyze rental market dynamics in Anne Arundel County most effectively, RPRG
       outlined four distinct submarkets within the county based mainly on the small planning
       area boundaries in the Anne Arundel County General Development Plan.                   The
       planning areas help to illustrate and acknowledge the county’s diversity in terms of
       development patterns, accessibility, demographic profiles of residents, as well as
       rental housing options.


       The rental submarkets for Anne Arundel County used in this analysis are presented
       on (Map 3). For reference, the census tracts included in each market area are listed
       in (Table 6): A description of each market is as follows:




                                           29                            RealPropertyResearchGroup
                           Baltimore County
                                                                                Baltimore City

                                                % !
                                                & "
                                                 168
                                                                     2


                               %
                               &295              6
                                                 5    695

Howard County
                               6
                               5   195
                                                                Glen Burnie-Marley Neck

                    %
                    &100
                                         %
                                         &176       %
                                                    &                    270


                                %
                                &  170
                                                 %
                                                 &  #
                                                    $174                   10
                                                                                                                %
                                                                                                                &173

                   %
                   &
                   713


                                                  !
                                                  "   &
                                                      %    3
                                                                                 100
                                                                                                        &
                                                                                                        %607

                                                                                        %
                                                                                        &648
                                                                                                                 &
                                                                                                                 %   177



 % %
 & &
         198                                                                   Severna Park-Mountain Rd
 295
                                  #
                                  $32
                                                           3
                                                           4   97

                                   %
                                   &     175                                                     !
                                                                                                 " 2



                 Odenton-Crofton
                                                                %
                                                                &   178




                                                                                        Annapolis                          %
                                                                                                                           &
                                                                                                                           179

                             !
                             " 3
                                                                                                               &
                                                                                                               %
                                                                                                               450



                                               %
                                               &450                                                     #
                                                                                                        $ 70
                                                                                                                                 ,
                                                                                                                                 +
                                                                                                                                 50

                                                                                   -+
                                                                                   .,  %
                                                                                       &
                                                                                       301         50
                                                                                                               436

                                                                                     &
                                                                                     %                  665

                                               %
                                               &424

                                                                                   !
                                                                                   "         2                                        Que
                                                                                                                                        C



         Prince George's County
                                                                                         %
                                                                                         &   214




                                                                !
                                                                "   2
                                                                                   %
                                                                                   &   255


                                           %
                                           &     422



                                           %
                                           &   408
                                                                                       &
                                                                                       %468



                                           &
                                           %     259

                                                    Map 3
                                              Rental Submarkets
                                         Anne Arundel County, Maryland
                            TABLE 6 Anne Arundel Submarkets
                                                                                                                                          Anne Arundel
                                                                           Annapolis    Glen Burnie    Severna Park   Odenton Crofton                         Baltimore Region
                                                                                                                                            County

                            Geography
                            Area (acres)                                     49,980        30,900          32,220         76,590             266,300              1,431,000
                            Components of Market Area (Census Tracts)    7021          750102         731308          740102            Anne Arundel County   Anne Arundel County
                                                                        731101         750101         731306          740201                                    Baltimore County
                                                                        731102          7503          731309          740103                                     Baltimore City
                                                                        731001          7505          731310          740202                                     Carroll County
                                                                         7308          750202         731311            7404                                     Harford County
                                                                        731103         750201         730503          740104                                     Howard County
                                                                        731002         750203         730502          740303
                                                                         7027           7504          731307          740203
                                                                        730902          7506          731204          740105
                                                                        702401         751102         731303          740602
                                                                        730901          7301          730504          740601
                                                                        702402         750803         730603            7410
                                                                         7066          750804         731202            7405
                                                                         7067          750801         730601          740301
                                                                        706101          7507          731203          740603
                                                                         7065          751103         730604            7411
                                                                         7025           7509          731201            7407
                                                                        706402          7510           7307             7409
                                                                        706401         730203                           7408
                                                                         7063          730401                         702203
 31




                                                                        702601          7303                          702202
                                                                        701101         730204                           7028
                                                                        702602         730402                         702201
                                                                        701102                                          7023
                                                                         7012
                            Sources: US Census Bureau; RPRG, Inc.
RealPropertyResearchGroup
•   Glen Burnie -Marley Neck. This submarket includes the northernmost section
    of Anne Arundel County. The general boundaries are Howard County to the
    west, Baltimore County to the north, Baltimore City to the northeast, the
    Patapsco and Magothy Rivers to the east and southeast, and Route 100 to the
    south. Four Small Planning Areas are located within the submarket: Brooklyn
    Park, Linthicum, Pasadena-Marley Neck and Glen Burnie. The housing stock
    in this submarket is fairly old and includes a significant proportion of
    multifamily rental housing. The area is largely built out, and the limited new
    construction residential projects are mainly smaller infill projects. While the
    submarket has some new commercial development, much of the existing
    commercial uses are old and cater to low- to moderate-income households.
    Some parts of this submarket have experienced decline in recent decades. In
    May 2010, Anne Arundel County announced a revitalization effort for Brooklyn
    Park, led by the Anne Arundel Economic Development Corporation (AAEDC)
    and the Department of Planning and Zoning.
•   Severna Park-Mountain Road. Encompassing the north-eastern section of
    the county, three Small Planning Areas are included in the submarket: Lake
    Shore, Severna Park, and the eastern part of Crownsville. The submarket
    boundaries are Mountain Road and Stoney Creek to the north, the Patapsco
    River to the east, the Magothy and Severn Rivers to the south, and Route 97
    and Route 3 to the west. The eastern part of the submarket includes several
    upscale neighborhoods with single family homes on large lots, some of them
    waterfront properties. Route 2 is the principal commercial corridor in this
    submarket. The western section of the submarket offers a large number of
    multifamily rental properties.
•   Annapolis. Comprised of the eastern part of the county, this submarket
    includes three Small Planning Areas: Broadneck, Annapolis Neck, and
    Edgewater/Mayo. The rough boundaries of the submarket are the Severn
    River to the north, the Chesapeake Bay to the east, Route 214/Central
    Avenue to the south, and General’s Highway to the west. Three distinct land
    areas are separated by the Severn River and the South River. These two
    rivers and the Chesapeake Bay create a large amount of waterfront acreage in
    the submarket. The City of Annapolis, the state capitol and the home of the
    US Naval Academy, is located here. Route 50/301, a major arterial in the
    county, bisects the submarket. The western part of the submarket includes
    historic neighborhoods, and in general the submarket includes the two
    extremes of very high income households/housing values and low income
    households/subsidized rental housing. The eastern part of the submarket,
    east of the Severn River, is lower in density and has a much smaller
    proportion of conventional rental properties than the Annapolis area.
•   Odenton-Crofton. Comprised of the western part of the county, this
    submarket includes five Small Planning Areas: Jessup-Maryland City,
    Odenton, Crofton, Severn, and the western part of Crownsville. The
    boundaries are roughly Route 100 to the north, Howard County to the
    northwest, Prince George’s County to the southwest, Governor Bridge Road to
    the south (south of Route 50/301), and Generals Highway and the South River
    to the east. As Fort Meade is located in this submarket, this section of the
    county is one of the key targets for new growth and development. Odenton-


                                32                           RealPropertyResearchGroup
       Crofton is the only submarket of the county that does not have extensive
       waterfront property. The South River Greenway, located in the southern
       section of the submarket, includes two of the largest forested tracts remaining
       in the county and offers extensive watershed protection for the South River
       and Chesapeake Bay. Efforts are underway to preserve the greenway,
       including a 630-acre conservation easement.




The southernmost section of the county is comprised of the South County and
Deale/Shadyside Small Planning Areas. Most of this area is located south of Route
214/Central Avenue.    As this part of the county does not offer multifamily rental
housing options, RPRG did not include the area in its submarket analysis. In fact, the
county is committed to keeping this area, known as South County, rural.
Conservation efforts include acquisition of forest and streams acreage using Maryland
Program Open Space funds, as well as reforestation efforts.


In the remainder of this report, we assess amenities, population and household
trends, demographic characteristics, competitive rental markets, and the balance of
supply and demand for rental housing in the context of the four designated
submarkets, and compare those submarkets with Anne Arundel County as a whole
(including South County) and the entire Baltimore Region.       For purposes of this
report, the Baltimore Region is defined as the counties and cities that are the member
jurisdiction of the Baltimore Metropolitan Council, including Anne Arundel, Baltimore,
Carroll, Harford, and Howard Counties and Baltimore City (see Map 1).




                                   33                            RealPropertyResearchGroup
IV.   AVAILABLE INFRASTRUCTURE AND AMENITIES

      A.      Anne Arundel County Overview
              1.      Road and Transit Infrastructure

      Anne Arundel County’s highway network is the primary mode of travel for residents
      and employees. The county’s 2009 General Development Plan states that Anne
      Arundel County is a suburban jurisdiction located between Washington, D.C. and
      Baltimore and that “transportation investments (both highways and transit) have been
      made to support travel between those areas through the County.” The plan further
      states that “highway facilities which carry travel within the County experience
      significant travel demand, and that the relatively low residential densities over much of
      the County make it difficult to support mass transit opportunities and tend to result in
      longer vehicle trips.”


      Primary arterials in the northern section of the county are State Highway 295
                                                                 -
      (Baltimore Washington Parkway), I-695 (Baltimore Beltway), I 97, and Route 100. In
                -
      addition, I 95, which serves all of the major cities on the eastern seaboard, is located
      in Howard County just west of the Anne Arundel County border. Both the Baltimore
      Washington Parkway and I-95 can be used to travel north to Baltimore City or
      southwest to Howard and Prince George’s County and eventually the District of
                -
      Columbia. I 695 connects Anne Arundel County to Baltimore County. Route 100
      facilitates east-west travel through the northern part of the county into Howard County
      and I-97 offers a direct route from the northern part of the county south to Annapolis.
      In the northeast section of the county Route 2 (Ritchie Highway) is a major north-
      south arterial and a primary commercial corridor, extending from Arnold at its
      southern terminus to Baltimore City to the north. State Route 3 (Crain Highway) runs
      parallel to I-97 in the northern part of the county and then veers southwest, continuing
      to Bowie in Prince George’s County.


      Route 50 is the principal east-west highway traveling through central Anne Arundel
      County. This is a major commuter road which connects to I-495 (Capitol Beltway) to
      the west and extends past Annapolis, across the Chesapeake Bay and leads to the
      Eastern Shore to the east. State Highway 214 (Central Avenue) also runs east-west


                                          34                             RealPropertyResearchGroup
          through central Anne Arundel County, south of Route 50. The primary arterial in the
          rural south county is State Highway 2 (Solomons Island Road), which begins in
          Annapolis and connects to Calvert County to the south.


          Public transportation in the county is available in the forms of rail and bus transit. Bus
          service is provided by the Maryland Transit Administration (MTA) and two local
          systems; City of Annapolis Transit (AT) and the Corridor Transportation Corporation
          (CTC). Rail service consists of the light rail and the MARC train. There are seven
          Light Rail stations in the northern section of the county with terminuses at Cromwell
          Station and BWI Airport. The Light Rail line provides service north to downtown
          Baltimore, the Johns Hopkins Hospital campus and Hunt Valley. Additionally, five
          MARC commuter rail stations operate in the county or just across the border in
          Howard County, providing service to Washington DC and Baltimore. The BWI and
          Odenton stations are on the Penn Line, and the Dorsey, Savage and Jessup stations
          are on the Camden line. Most MARC train riders travel to Washington, DC.8 The
          Odenton Station on the Penn Line has the highest volume of the five stations,
          accounting for more than half of the total ridership. 9


                  2.      Retail, Services, and Recreation

          Anne Arundel County is well served by a variety of retail and services. The largest
          concentration of retail stores are in Annapolis in the central part of the county, Glen
          Burnie in the northern part of the county, and Hanover in the northwest section of the
          county. The county’s two full service hospitals are located in Annapolis and Glen
          Burnie. In addition to these larger retail and service locations, a selection of smaller
          convenience retailers and grocery stores are scattered throughout the county,
          particularly in the areas of higher residential density.


          The major retail nodes in the county include:


              •   Westfield Annapolis Mall. This indoor mall is located in Annapolis that
                  recently underwent an expansion, and now offers more than 240 stores.


8
    2009 General Development Plan.
9
    Ibid.

                                                35                            RealPropertyResearchGroup
                   Center anchors include JCPenney, Lord & Taylor, Macy’s Nordstrom, Pottery
                   Barn and Sears.
               •   Downtown Annapolis. This historic city once served as a temporary capitol
                   for the nation and is now the state capitol. The charming atmosphere includes
                   narrow cobblestone streets and stately architecture as well as a City Dock with
                   picturesque views of the Severn River. Downtown Annapolis offers a large
                   number of sit down restaurants, many of them seafood restaurants, as well as
                   boutique stores, antique stores, ice cream and candy stores and other shops
                   that cater to tourists and locals.
               •   Marley Station Mall is an older indoor mall located on Route 2 in Glen Burnie,
                   and is currently suffering from high store vacancy rates. Losing Boscov’s as
                   one of its anchor stores , the three remaining anchors are JCPenney, Macy’s
                   and Sears. The mall also offers a Regal Cinema.
               •   Centre at Glen Burnie is a recently built retail center located on Route 2 in
                   Glen Burnie, north of the Marley Station Mall. Store anchors are Target,
                   Office Depot, Toys R Us, and Dick’s Sporting Goods. Smaller retail stores
                   and fast food restaurants are also located at the center.
               •   Arundel Mills Mall is a regional shopping center in Hanover that opened in
                   2000 and is reportedly the most popular tourist attraction in the Baltimore
                   area, based on 2009 attendance. 10 In addition to the more than 200 retail
                   stores, the mall’s main attractions include Medieval Times, Dave & Busters,
                   and the Cinemark Egyptian 24 Theaters. Many of the retail stores are factory
                   stores that offer brand name merchandise at a discount.
               •   Annapolis Towne Center at Parole. This new open air center is mixed use
                   upscale development, offering luxury multifamily residential living (one condo
                   building and one rental building), a Whole Foods grocery, retail anchors
                   Target and Bed, Bath and Beyond, and smaller stores and restaurants.


           In addition these regional shopping nodes, smaller, neighborhood-oriented shopping
           strips, freestanding retailers, and supermarket-anchored shopping centers are
           scattered throughout the four rental submarkets.


           Entertainment and cultural opportunities for Anne Arundel County residents include
           the venues of downtown Annapolis as well as the cities of Baltimore and Washington
           DC.     The county’s location on the Chesapeake Bay and some of its tributaries
           provides excellent sailing and boating opportunities. The City of Annapolis is known
           as a sailing and boating capitol. The county is also located within a day trip’s driving
           distance to Atlantic beaches such as Ocean City in Maryland and Bethany, Lewes
           and Rehoboth in Delaware.

10
     Baltimore Business Journal.

                                               36                            RealPropertyResearchGroup
         The two full-service hospitals in Anne Arundel County are located in Annapolis and
         Glen Burnie:


             Ø Anne Arundel Medical Center (AAMC) is located north of Route 50 and east
                of the Westfield Annapolis Mall. As the third largest private sector employee
                in the county, AAMC employs more than 3,000 full and part-time employees.
                Services include a Neonatal Intensive Care Unit, Women’s and Children’s
                Center, Cancer Institute, Brian Center and Spine Center. The seven-story
                Health Sciences Pavilion opened in July 2009. 11


             Ø Baltimore Washington Medical Center is located south of Route 100 and
                east of I-97 in Glen Burnie. The 321-bed hospital has 2,600 employees and
                650 physicians, and is affiliated with the University of Maryland Medical
                System. As part of a $117 million expansion project, an expanded emergency
                department opened in 2008, a 111-bed patient care building opened in
                January 2009, and a new women’s health center with obstetrics opened in
                October 2009.12


                3.      Schools

         School performance is often considered an indicator of community health as location
         decisions of families are often influenced by the perceived quality of local schools. To
         guide policy and improve school accountability, a wealth of data exists regarding test
         scores and student demographics that can be used to approximate relative school
         performance. RPRG has ranked schools in Anne Arundel County based on the
         percentage of students that were rated proficient or better on standardized tests.


         The Anne Arundel County Public Schools System (AACPSS) provides instruction to
         school age children in Anne Arundel County. The AACPSS includes 77 elementary
         schools, 21 middle schools and 15 high schools. The Maryland State Department of
         Education administers Maryland School Assessment (MSA) tests annually to students
         in the 3rd through 8th grades in reading and mathematics. Students in the 5th and 8th
         grades also take MSA tests in science. High school students take High School
11
     www.aahs.org.
12
     www.mybwmc.org.

                                             37                            RealPropertyResearchGroup
Assessment (HSA) tests in algebra, biology, government and English upon
completion of associated classes.         The results of these exams can be used to
compare the performance of students in any number of schools, and by extension the
performance of the schools themselves.          To construct this comparison, RPRG
compiled and analyzed data for the 2008-2009 school year on the percentage of
students in the 3rd, 4th, 5th, 7th, and 8th grades and in high school testing at the state-
defined ‘proficient’ level or ‘advanced’ level on the MSA and HSA tests.


Schools in Anne Arundel County are among the top third of public schools in
Maryland in terms of performance based upon RPRG’s analysis (Table 7). Anne
Arundel County schools rank 8th out of the state’s 24 public school systems, based on
a composite of 2008-2009 MSA test results for the 3rd, 5th, and 8th grades and HSA
test results.


Students receiving special services, particularly students with Limited English
Proficiency (LEP) and students eligible to receive Free and/or Reduced Meals
(FARMS) are often assumed to underperform students that otherwise come from
higher income households or households where English is spoken regularly. It stands
to reason then that schools with high concentrations of students that have LEP or that
qualify for FARMS, underperform schools with lower concentrations. In addition to
data on test scores, Table 7 shows the relative concentration of LEP and FARMS
students in each county. Considering the fact that the top four performing school
districts in the state happen to be those schools with the lowest concentrations of
students qualifying for FARMS and the four lowest performing school districts happen
to be those with the highest concentrations of FARMS students suggests a clear
inverse relationship between student income levels and student performance in
schools. Throughout the state, few counties have a significant concentration of LEP
students. The relationship between the concentration of LEP students and student
performance is not as clear.


It should be noted that FARM information is often under reported, particularly among
older students, due to a reluctance of some students to participate. Given magnet




                                     38                              RealPropertyResearchGroup
                            TABLE 7 School Achievement - Maryland Counties
                            Maryland School and High School Assessment Report, 2008-2009 School year

                                                                                                                                                                                                  % Students with
                                                                                                             % Students Achieving Proficient or Advanced
                                                                                                                                                                                                  Special Services
                                                                                Grade 3              Grade 5                       Grade 8                        High School        All Grades
                               Rank                 School                  Math    Reading   Math   Reading   Science    Math     Reading   Science       Math    Reading Science   Composite    LEP      FARMS
                                 1       Calvert                             93       91.7    90.4     95.4      80.8     82.3       89.5     83.6         96.1       95      92.7      90.0      1.1       15.6
                                 2       Howard                             89.5      91.2    87.4     94.3      76.4     84.6       90.9     85.6         96.8      93.9     93.1      89.4      3.7       13.1
                                 3       Carroll                            91.2      89.8    88.6     94.2      79.6     77.4        89      85.7         94.5      91.9      91       88.4      0.6       12.4
                                 4       Frederick                          89.2      89.5    86.1     94.5      79.3     74.9       86.8     77.6         92.1       92      89.5      86.5      3.3       17.6
                                 5       Worcester                          95.1       93     82.9     90.8      70.5     89.1       92.1     78.1         91.4      85.5     82.3      86.4      2.4       35.9
                                 6       Queen Anne's                       89.7      88.5    87.9     93.5      74.9      76        85.2     82.9         90.5      90.8     90.8      86.4      1.7       18.9
                                 7       Saint Mary's                       86.6      88.8    85.1      91       73.3     79.5       81.9     76.4         91.1      93.7     87.4      85.0      0.8       25.0
                                8        Anne Arundel                       89.5      89.4    87.4    93.6      73.3      74.5      83.3      71.2          92       87.8     88.4      84.6      2.5       22.4
                                 9       Montgomery                         87.2       89     85.5     93.1      70.8     74.5       87.4     74.1          90       90.7     87.2      84.5      10.4      27.9
                                10       Washington                         87.5      87.3    85.7     91.1      71.6     79.6       85.2     70.8         94.6      87.9     85.3      84.2      1.7       39.7
                                11       Harford                            87.2      87.4    86.4     92.1      72.7      68        85.7     77.4         92.1      89.2     86.1      84.0      1.2       23.5
                                12       Caroline                           85.8      82.8    86.1     90.3      77.7     75.5       80.3     68.8         89.4      89.4     82.5      82.6      2.2       45.7
                                13       Garrett                            80.3      84.7    82.5     94.3      71.8     71.1        76      77.6         88.5      88.5     87.1      82.0      0.0       41.5
                                14       Talbot                             84.3      88.7    76.5     86.2      67.8      71        81.3     68.1         88.4      85.4     82.6      80.0      4.1       32.1
                                15       Baltimore County                   85.7      87.5    80.8     90.3      60.3     65.8       82.1     71.3          85       83.1     83.7      79.6      2.9       38.0
                                16       Allegany                           86.7      80.9    81.9     87.5      68.1     68.3       80.8     70.5         80.8      83.9     79.5      79.0      0.4       47.7
                                17       Cecil                              78.7      84.1    76.6     88.6       59      65.2       75.1     69.2         91.8       89      85.6      78.4      0.7       30.8
                                18       Charles                             81        81     75.4     87.7      61.4     68.9       79.6     60.3         88.4      83.6     82.3      77.2      0.7       25.9
                                19       Kent                               86.6      87.9    77.6     88.9       58      51.3       76.1     61.4         83.6      88.7     83.4      76.7      2.2       41.9
 39




                                20       Wicomico                            83       84.1    79.3     88.4      52.8     59.6       76.1     58.6         78.3      75.7     77.9      74.0      2.3       49.3
                                21       Somerset                            81       80.4     80       91       62.4     45.8       67.6     55.6         81.9      70.8     74.4      71.9      3.8       57.9
                                22       Dorchester                          65        74     78.2     80.5      50.4     60.9       73.2     58.6         90.1      83.1     76.4      71.9      1.4       53.3
                                23       Prince George's                    74.2      74.3    68.7      81       49.8     43.2       67.3     39.8         69.2      63.4     75.3      64.2      8.4       48.7
                                24       Baltimore City                     78.1      76.7    74.6     82.3      36.6     39.2       61.6     32.1          66       59.1     67.9      61.3      1.7       73.6

                             Average                     Maryland           84.8     85.5     82.2    90.0       66.6      68.6     80.6      69.0         87.6     85.1     83.9      78.4        4.5      35.2
                            Sources: Maryland Department of Education; RPRG, Inc.

                            Note: LEP = Limited English Proficiency; FARMS = Free and Reduced Meals
RealPropertyResearchGroup
school and school choice programs that allow students to attend schools out of
district, FARMS data alone should not be used to estimate the number or
concentration of low income households in a particular school district


In Table 8, Table 9, and Table 10, we present the results of standardized tests on a
school by school basis for Anne Arundel County’s public elementary, middle, and high
schools. In the tables, we group the schools according to submarket, and rank the
schools based upon a composite measure of student performance as reflected in
MSA and HSA test results. As a whole, students in Anne Arundel County perform at
levels that are higher than statewide averages. Within the county, students attending
South County schools and Severna Park submarket schools had the highest
performance averages, Odenton-Crofton and Annapolis submarket students scored in
the mid-range, and Glen Burnie submarket schools had the lowest scores. There is
an inverse relationship between performance and proportion of FAR MS students.


South County and Rural West schools have the lowest proportion of FARMS
students, Annapolis and Odenton Crofton schools are in the mid-range in proportion
of FARMS students, and Glen Burnie schools have the highest proportion of FARMS
students.


For higher education opportunities, Anne Arundel Community College offers
associate degrees in arts and sciences, health professions, business, and other
fields. Additional services include GED courses, senior programs, and continuing
education curriculum. The college’s main campus is in Arnold, and additional facilities
are located in Glen Burnie Town Center in Glen Burnie and Arundel Mills in Hanover.
Two historic undergraduate colleges are located in downtown Annapolis; the United
States Naval Academy (established in 1845) and the Annapolis campus of St. John’s
College (chartered in 1784).


B.     Annapolis Submarket
This market area is divided into three parts by the Severn and South Rivers. Route
50 is the principal east-west arterial in the submarket, leading to the eastern shore to




                                    40                            RealPropertyResearchGroup
TABLE 8 Anne Arundel County Elementary Schools
Maryland School Assessment Report, 2008-2009 School year

                                                                                                                                             % Students with
                                                                        % Students Achieving Proficient or Advanced
                                                                                                                                             Special Services
County Market                                           Grade 3             Grade 4                         Grade 5             All Grades
 Rank     Rank               School                 Math      Reading   Math      Reading       Math       Reading    Science   Composite     LEP      FARMS
Annapolis
   4        1    West Annapolis Elementary          97.3       97.3      95.4        95.4       100.0       100.0      96.8       97.5         2.8      13.1
   7        2    Arnold Elementary                  97.4       96.2      98.6        97.3        98.8        97.4      91.0       96.7          *        6.9
   9        3    Mayo Elementary                    96.9       98.4      94.8        96.6        94.9       100.0      89.7       95.9          *        8.4
  14        4    Windsor Farm Elementary            98.8       97.4     100.0        98.8        93.2        98.1      78.6       95.0         2.8      14.9
  18        5    Rolling Knolls Elementary          91.8       96.7     100.0        93.1        95.0       100.0      84.7       94.5         6.7      21.2
  19        6    Cape St. Claire Elementary         91.8       94.5      96.0        95.2        94.4        96.3      91.6       94.3         1.3       8.9
  21        7    Central Elementary                 95.1       96.1      98.2        95.3        90.1        95.5      81.3       93.1         0.9       6.4
  22        8    Belvedere Elementary               88.9       94.5      96.0        97.4        93.4        96.0      85.2       93.1         1.9       9.6
  24        9    Broadneck Elementary               97.2       92.7      93.8        92.7        89.9        95.4      89.0       93.0          *        9.0
  37       10    Edgewater Elementary               95.5       96.9      94.5        89.2        85.9        92.2      76.6       90.1         7.4      20.4
  61       11    Eastport Elementary                93.1       81.5      85.1        80.7        84.4        96.7      53.1       82.1        16.2      80.2
  67       12    Annapolis Elementary               75.0       86.2      91.6        95.9        75.0        81.3      56.3       80.2         6.1      46.7
  71       13    Hillsmere Elementary               85.5       87.3      78.7        83.6        70.5        85.2      55.0       78.0         0.0      29.4
  73       14    Tyler Heights Elementary           72.6       84.4      87.2        76.6        74.4        85.1      34.1       73.5        30.2      80.7
  75       15    Germantown Elementary              49.3       53.6      78.7        75.4        81.3        84.8      50.0       67.6        28.2      63.2
  77       16    Georgetown East Elementary         71.2       53.3      71.4        65.2        76.1        88.9      45.7       67.4        11.2      73.3
Average                               Annapolis     87.3       87.9     91.3         89.3       87.3        93.3       72.4       87.0        8.9       30.8

Glen Burnie
   20       1    Linthicum Elementary                98.5      95.5      98.4        96.9       86.3         95.5      86.4       93.9        1.2       15.5
   35       2    Overlook Elementary                100.0      93.3      96.9        96.9       89.1         92.7      66.7       90.8        4.7       24.9
   39       3    George T. Cromwell Elementary       90.8      89.1      94.2        86.6       93.5         97.8      73.4       89.3        8.2       36.9
   43       4    Richard Henry Lee Elementary        90.8      85.5      98.7        96.0       91.2         89.0      63.0       87.7        4.7       38.8
   44       5    Solley Elementary                   91.4      92.4      92.9        95.3       80.7         90.3      69.1       87.4        3.7       21.1
   48       6    Woodside Elementary                 85.7      93.9      90.9        90.9       87.5         97.5      56.4       86.1        8.6       48.0
   51       7    Brooklyn Park Elementary            92.1      88.9      91.0        89.7       88.7         84.1      60.0       84.9        4.1       54.6
   55       8    Marley Elementary                   85.5      88.4      86.1        83.4       85.0         97.0      61.8       83.9        9.6       50.0
   57       9    Glendale Elementary                 78.2      88.4      95.1        87.5       83.0         88.5      65.9       83.8        4.8       39.3
   58      10    Oakwood Elementary                  79.5      86.4     100.0        93.8       79.4         82.4      59.4       83.0        8.4       32.8
   60      11    Freetown Elementary                 84.9      78.8      97.9        93.9       81.7         91.8      51.0       82.9        7.0       60.0
   63      12    North Glen Elementary               81.1      70.3      90.0        86.7       88.9         94.5      60.0       81.6        5.7       43.3
   64      13    Hilltop Elementary                  91.3      84.3      90.5        88.6       80.6         89.3      46.2       81.5        9.8       54.5
   68      14    Point Pleasant Elementary           74.7      80.1      92.7        87.9       66.7         94.2      63.9       80.0        2.7       35.7
   72      15    Park Elementary                     78.4      73.9      96.2        73.6       78.5         84.4      46.2       75.9        2.7       65.4
   76      16    Belle Grove Elementary              73.7      68.4      72.2        61.1       79.3         75.8      41.3       67.4        0.0       72.7
Average                             Glen Burnie     86.0       84.9     92.7         88.1       83.8         90.3      60.7       83.8        5.4       43.3

Odenton Crofton
   8       1    South Shore Elementary               97.4      94.9     100.0        100.0      100.0       100.0       82.4      96.4          *       10.2
  11       2    Crofton Meadows Elementary           96.0      97.3      98.4         98.4       93.0       100.0       84.7      95.4         3.5      15.3
  12       3    Piney Orchard Elementary             98.8      97.6      98.9         94.5       91.5        96.9       89.4      95.4         2.9      10.8
  15       4    Pershing Hill Elementary            100.0      83.4      93.4         93.3      100.0        94.1      100.0      94.9          *       26.1
  17       5    Crofton Woods Elementary             93.3      96.7      99.0         95.9       92.6        96.8       87.1      94.5         1.9       3.0
  25       6    Crofton Elementary                   91.1      93.8      95.3         95.3       91.8        98.2       83.7      92.7         1.6       4.7
  26       7    West Meade Elementary                90.7      98.2     100.0        100.0       89.4        89.3       77.8      92.2         1.5      21.0
  27       8    Ridgeway Elementary                  93.1      95.4      91.2         94.5       94.7        95.7       80.6      92.2         2.9      17.6
  28       9    Millersville Elementary              94.9      93.2      90.1         93.0       94.2        95.6       83.9      92.1          *       11.7
  29      10    Four Seasons Elementary              91.4      88.6      94.0         95.1       91.8       100.0       81.3      91.7         1.1      14.7
  30      11    Severn Elementary                    94.2      87.3      93.6         88.7       93.3       100.0       84.7      91.7         5.3      23.8
  33      12    Nantucket Elementary                 93.0      95.6      94.7         94.7       86.7        94.7       78.6      91.1         5.1       8.6
  42      13    Manor View Elementary                89.1      88.1      95.9         89.6       93.8        92.6       66.3      87.9         2.6      34.9
  46      14    Seven Oaks Elementary                89.0      87.0      95.6         86.8       81.7        91.6       77.8      87.1         1.6      18.8
  47      15    Waugh Chapel Elementary              87.1      86.1      92.4         92.6       88.7        90.4       69.8      86.7         3.3      22.3
  50      16    Quarterfield Elementary              84.8      86.6      87.3         86.1       83.6        95.1       77.4      85.8         3.6      32.8
  53      17    Meade Heights Elementary             88.9      88.9      95.1         87.5       74.4        92.3       64.1      84.5         2.2      52.6
  56      18    Jessup Elementary                    91.4      81.0      90.8         89.5       84.5        89.6       60.0      83.8         5.2      27.8
  59      19    Glen Burnie Park Elementary          75.4      85.0      98.0         81.3       79.0        94.7       67.2      82.9         7.2      45.8
  66      20    Brock Bridge Elementary              83.2      82.4      94.7         85.3       83.0        89.3       52.1      81.4        11.4      27.0
  69      21    Maryland City Elementary             73.7      80.7      82.8         87.1       79.4        91.1       61.2      79.4        16.9      51.4
  70      22    Odenton Elementary                   73.6      83.0      88.1         86.3       70.3        86.4       63.6      78.8         4.8      30.9
  74      23    Van Bokkelen Elementary              85.4      80.5      88.4         80.0       62.3        73.8       27.7      71.2         4.2      76.9
Average                        Odenton Crofton      89.4       89.2     93.8         91.1       86.9        93.4       74.0       88.3        4.4       25.6

Severna Park
   1       1     Benfield Elementary                100.0      100.0    100.0         98.4      100.0       100.0      98.8       99.6         *         2.3
   2       2     Shipley's Choice Elementary        100.0      100.0     96.1         94.7       97.6        98.8      98.7       98.0        0.0        1.5
   3       3     Severna Park Elementary            100.0       98.1    100.0        100.0       95.6        97.7      91.1       97.5         *         6.2
   5       4     Folger McKinsey Elementary          96.1       98.0     98.0         99.0       98.1        99.0      92.5       97.2        1.3        4.7
   6       5     Jones Elementary                    98.1       98.1     97.5         95.1       98.4        98.4      93.6       97.0        1.8        5.1
  13       6     Bodkin Elementary                   92.8       98.0     97.8         97.8       95.7        97.9      85.4       95.1         *         6.4
  16       7     Oak Hill Elementary                 93.4       93.4     97.6         97.5       96.6        96.6      86.5       94.5        0.0        6.9
  23       8     Lake Shore Elementary at Chesape    92.2       89.1     95.8         93.8       98.3        98.2      83.9       93.0         *        14.2
  36       9     Sunset Elementary                   92.3       93.6     91.8         90.5       91.2        97.5      77.6       90.6        1.6       16.1
  38      10     Southgate Elementary                92.5       94.9     90.7         92.0       93.8        98.8      64.2       89.6        5.3       35.6
  41      11     Jacobsville Elementary              88.1       86.9     93.2         92.1       83.4        96.1      78.2       88.3        0.9       20.6
  45      12     Pasadena Elementary                 91.2       96.5     93.8         92.2       80.8        86.5      68.7       87.1        1.9       18.9
  49      13     Riviera Beach Elementary            87.2       92.5     96.9         84.4       79.4        94.1      67.6       86.0        0.0       30.5
  52      14     Fort Smallwood Elementary           83.0       89.2     92.3         96.9       74.6        92.6      62.7       84.5        1.4       14.0
  54      15     High Point Elementary               88.5       84.6     94.6         85.1       82.7        94.2      60.0       84.2        5.2       25.5
  62      16     Rippling Woods Elementary           81.1       83.8     86.5         86.5       77.6        90.5      67.8       82.0        4.5       36.7
  65      17     Hebron - Harman Elementary          91.0       81.0     92.6         90.1       79.2        86.1      50.4       81.5        8.3       46.2
Average                           Severna Park      92.2       92.8     95.0         93.3       89.6        95.5       78.1       90.9        2.5       17.1




                                                                                41                                        RealPropertyResearchGroup
TABLE 8 Anne Arundel County Elementary Schools
Maryland School Assessment Report, 2008-2009 School year

                                                                                                                                                 % Students with
                                                                            % Students Achieving Proficient or Advanced
                                                                                                                                                 Special Services
County Market                                               Grade 3             Grade 4                         Grade 5             All Grades
 Rank   Rank                          School            Math      Reading   Math      Reading       Math       Reading    Science   Composite     LEP      FARMS

TABLE 8 (cont.) Anne Arundel County Elementary Schools
Maryland School Assessment Report, 2008-2009 School year

                                                                                                                                                 % Students with
                                                                            % Students Achieving Proficient or Advanced
                                                                                                                                                 Special Services
County Market                                               Grade 3             Grade 4                         Grade 5             All Grades
 Rank    Rank                         School            Math      Reading   Math      Reading       Math       Reading    Science   Composite     LEP      FARMS
South County
  10       1          Davidsonville Elementary          97.7         95.3   93.7         93.7       97.1         98.2      92.6       95.5        0.0        2.9
  31       2          Deale Elementary                  92.7         97.6   89.1         93.5       89.5        100.0      78.4       91.5        0.0       10.7
  32       3          Traceys Elementary                95.5        100.0   92.2         96.1       86.3         90.9      77.8       91.3         *        25.4
  34       4          Shady Side Elementary             91.3         90.1   95.9         94.5       88.9         94.4      82.2       91.0         *        17.6
  40       5          Lothian Elementary                90.2         89.2   93.3         93.3       86.1         92.4      75.6       88.6         *        34.5
Average                                South County     93.5        94.4    92.8         94.2       89.6        95.2       81.3       91.6        0.0       18.2

Average                        Anne Arundel County      89.1        89.2    93.3         90.8       87.1         93.3      72.3       87.9        5.0       28.0
Average                                  Maryland       84.3        84.9    89.2         86.7       81.2         89.5      63.7       82.8        8.2       41.3
Sources: Maryland Department of Education; RPRG, Inc.

Note: LEP = Limited English Proficiency; FARMS = Free and Reduced Meals




                                                                                    42                                        RealPropertyResearchGroup
TABLE 9 Anne Arundel County Middle Schools
Maryland School Assessment Report, 2008-2009 School yea

                                                                                                                                          % Students with
                                                                               % Students Achieving Proficient or Advanced
                                                                                                                                          Special Services
County Market                                                             Grade 7                     Grade 8                All Grades
 Rank    Rank                             School                      Math     Reading     Math       Reading     Science    Composite     LEP     FARMS
Annapolis
   3       1          Magothy River Middle                            93.1      96.4        92.6        91.8        87.4        92.3         *       9.0
   5       2          Central Middle                                  92.9      91.8        88.0        90.3        81.5        88.9        0.8      8.0
   6       3          Severn River Middle                             90.6      93.4        84.9        90.2        82.5        88.3        0.6     10.6
  18       4          Annapolis Middle                                77.7      80.9        66.4        65.4        35.2        65.1        9.6     46.3
  20       5          Wiley H. Bates Middle                           60.4      64.8        64.7        78.2        56.7        65.0        7.2     52.0
  21       6          Phoenix CENTER - Annapolis                      14.3      14.3        12.5        37.5        14.3        18.6        0.0     50.0
Average                                                  Annapolis    71.5      73.6        68.2        75.6        59.6        69.7        3.6     29.3

Glen Burnie
   12       1         Brooklyn Park Middle                            89.5      79.1        65.7        84.0        62.2        76.1        1.8     51.8
   13       2         Lindale Middle                                  79.3      83.6        70.4        70.9        63.9        73.6        2.3     35.9
   17       3         Corkran Middle School                           67.4      78.4        58.7        72.8        55.5        66.6        5.5     34.3
   19       4         Marley Middle                                   65.0      81.8        55.6        72.0        50.5        65.0        0.0     42.0
Average                                                 Glen Burnie   75.3      80.7        62.6        74.9        58.0        70.3        2.4     41.0

Odenton Crofton
   4      1     Crofton Middle                                        92.2      92.2        84.1        91.8        87.7        89.6        1.6      9.3
  10      2     Arundel Middle                                        78.5      80.2        77.5        88.4        75.2        80.0        1.5     17.6
  15      3     MacArthur Middle                                      69.2      83.4        55.7        80.7        64.9        70.8        0.0     34.8
  16      4     Meade Middle                                          62.5      76.4        67.9        77.2        60.0        68.8        4.5     34.8
Average                                         Odenton Crofton       75.6      83.1        71.3        84.5        72.0        77.3        1.9     24.1

Severna Park
   1       1          Chesapeake Science Point                        98.6      98.7        100.0       96.2        84.9        95.7        0.0     13.1
   2       2          Severna Park Middle                             94.7      96.4        92.4        95.2        90.4        93.8        0.5      4.2
   7       3          Chesapeake Bay Middle                           87.9      86.6        79.0        87.0        77.1        83.5         *      14.7
   8       4          Old Mill Middle South                           84.8      83.0        90.1        85.8        73.6        83.5        1.9     22.2
  11       5          George Fox Middle                               83.5      82.0        65.0        81.8        68.7        76.2         *      21.8
  14       6          Old Mill Middle North                           75.1      85.1        61.5        79.5        61.2        72.5        1.6     30.7
Average                                             Severna Park      87.4      88.6        81.3        87.6        76.0        84.2        1.0     17.8

South County
   9                  Southern Middle                                 83.3      85.8        77.2        83.4        70.7        80.1         *      20.9
Average                                             South County      83.3      85.8        77.2        83.4        70.7        80.1         *      20.9

Average                                   Anne Arundel County         78.1      81.6        71.9        81.0        66.9        75.9        2.3     26.9
Average                                             Maryland          72.0      81.8        65.7        80.2        65.3        73.0        2.7     36.3
Sources: Maryland Department of Education; RPRG, Inc.

Note: LEP = Limited English Proficiency; FARMS = Free and Reduced Meals




                                                                                  43                                  RealPropertyResearchGroup
TABLE 10 Anne Arundel County County High Schools
Maryland High School Assessment Report, 2008-2009 School year

                                                                                                          % Students with
                                                        % Students Achieving Proficient or Advanced
                                                                                                          Special Services
County Market                                                    High School              All Grades
 Rank     Rank                    School                 Math     Reading      Science    Composite       LEP         FARMS
Annapolis
   2       1          South River High                    98.9          95.4     93.8        96.0         0.0           4.9
   6       2          Broadneck High                      95.9          92.2     93.2        93.8         0.0           6.4
   7       3          Phoenix CENTER - Annapolis         100.0         100.0     80.0        93.3         0.0          47.1
  11       4          Annapolis High                      92.4          85.6     80.2        86.1         11.6         32.5
  14       5          South River Evening High            87.6          81.3     70.6        79.8         0.0          10.0
Average                               Annapolis          95.0          90.9      83.6        89.8         2.3          20.2

Glen Burnie
   10       1         North County High                  92.1          83.3      83.2        86.2          0.0         26.4
   12       2         Glen Burnie High                   88.3          83.0      82.0        84.4          3.7         27.7
   15       3         Glen Burnie Evening High           66.7          83.3      66.7        72.2          0.0         15.2
Average                             Glen Burnie          82.4          83.2      77.3        81.0          1.2         23.1

Odenton Crofton
   4      1     Arundel High                             97.4          94.5      91.4        94.4          0.0         10.8
  13      2     Meade High                               82.7          84.2      80.6        82.5          2.2         28.9
Average                 Odenton Crofton                  90.1          89.4      86.0        88.5          1.1         19.9

Severna Park
   1       1          Severna Park High                  98.2          96.5      96.8        97.2          0.0          3.2
   5       2          Chesapeake High                    96.4          91.5      93.9        93.9          0.0          9.3
   8       3          Northeast High                     95.9          87.8      91.8        91.8          0.0         18.1
   9       4          Old Mill High                      91.4          89.3      87.6        89.4          1.6         18.4
Average                            Severna Park          95.5          91.3      92.5        93.1          0.4         12.3

South County
   3                  Southern High                      98.9          95.4      93.2        95.8          0.0         14.3
Average                          South County            98.9          95.4      93.2        95.8          0.0         14.3

Average                   Anne Arundel County            86.4          84.0      80.3        83.6          1.2         17.1
Average                             Maryland             85.1          83.5      82.6        83.7          2.7         36.3
Sources: Maryland Department of Education; RPRG, Inc.

Note: LEP = Limited English Proficiency; FARMS = Free and Reduced Meals




                                                                  44                            RealPropertyResearchGroup
the east and Washington, D.C. to the west. State Highway 2 (Solomons Island Road)
is the main north-south arterial in the submarket, and connects Annapolis to
Edgewater via a bridge over the South River.


The Annapolis submarket offers the largest number of amenities in the county. The
main campus of Anne Arundel Community College is located in Arnold, in the
northeast section of the submarket.       Downtown Annapolis offers a selection of
upscale restaurants and retail, and is home to both the US Naval Academy and the
historic St. John’s College. Anne Arundel Medical Center, a full service hospital, is
located in this submarket. Westfield Mall in Annapolis is an upscale regional mall
anchored by department stores, and recently completed an expansion.                  This
submarket also boasts a new mixed-use development, Annapolis Towne Center. The
center offers two luxury multi-family developments, restaurants, and retail, with the
anchors Whole Foods and Bed, Bath and Beyond. Map 4 highlights the primary
amenities offered in the Annapolis market area.


The Annapolis submarket’s rental housing stock is composed primarily of low-end and
high-end rental properties, with a dearth of options in the moderate rent category.
Historically, public housing and other deeply subsidized rental housing in the county
have been concentrated in this submarket.         At the same time, the area has a
significant proportion of affluent households, and achievable rents at luxury rental
properties in this submarket are the highest in the county.


C.     Glen Burnie-Marley Neck Submarket
The Glen Burnie-Marley Neck Submarket is the northernmost section of the county,
and can be characterized as an extension of Baltimore City, particularly at the
northern edge of the submarket. This area has suffered decline in recent decades,
and new development has been limited in the recent past.


Route 2 is the major commercial corridor in the submarket, consisting of older,
modest retail establishments that generally cater to low- and middle-income
households. In May 2010, the county announced a revitalization initiative for Brooklyn




                                    45                           RealPropertyResearchGroup
                                                                                       %
                                                                                       &
                                                                                       177




                      Severna Park-Mountain Rd
         3
         497


                                                  "
                                                  !  2




                                                                       Anne Arundel Community College


               %
               &
               178

                                                                                Route 2 Corridor


    Odenton-Crofton
                                                                                                         &
                                                                                                         % 179




                                                                                %
                                                                                &450

                                         Anne Arundel Medical Center


                                                             #
                                                             $ 70
                                                                                                                 ,
                                                                                                                 +
                                                                                                                 50

%
&
                                Westfield Mall
0                                                                        St. Johns College


                                 .
                                 - 301
                                                  ,
                                                  +50

                                                                               %
                                                                               &436
                                                                                             US Naval Academy
                             Annapolis Towne Center
                                                          %
                                                          &665
                                                                            Downtown Annapolis



%
&
4

                                                                 Annapolis
                                          "
                                          !  2




                                           &
                                           %214




               "
               !2

                                 &
                                 % 255

                                                         Map 4
                                                  Location of Amenities
                                                  Annapolis Submarket
                                              Anne Arundel County, Maryland
           Park in the northern part of this submarket. Some of the goals of the efforts are to
           “invigorate economic development, facilitate physical improvements along the
           commercial corridor, establish a renewed sense of community, and enhance the role
           of the Chesapeake Arts Center.”13 There are also some infill development projects in
           the planning stages, the largest of which is the Cedar Hill PUD, which at build out
           could introduce up to 1,600 new residential units to the submarket.


           The BWI-Thurgood Marshall Airport, the county’s third largest employer, is located in
           the Glen Burnie submarket. The two largest retail concentrations are the recently
           built Centre at Glen Burnie and the Marley Station Mall, a struggling indoor mall.
           These centers are both located on the Route 2 corridor, which includes several
           additional retail shopping venues. Map 5 highlights the primary amenities offered in
           the Glen Burnie-Marley Neck submarket.


           D.      Severna Park-Mountain Road Submarket
           The Severna Park submarket is located in the central section of the county and with
           significant frontage on various creeks and bays. Most of the submarket land is
           developed with residential uses, though there are some limited commercial
           improvements on Route 2. The submarket is fairly diverse with respect to household
           incomes. A combination of high-end single family homes on large lots and small,
           older single-family homes line the coastline in the eastern section of the submarket,
           and a concentration of multifamily rental housing is located in the northwest quadrant
           of the market. This rental housing is generally more expensive than rentals in the
           Glen Burnie submarket to the north, but less expensive than the high end properties
           in the Odenton-Crofton and Annapolis submarkets.


           The only sizeable amenity in this submarket is the Baltimore-Washington Medical
           Center, one of the county’s two full service medical facilities (Map 6). North-south
           travel is facilitated by Route 2 in the central section of the submarket and Route 97 at
           the western edge.       Route 100 and State Highway 177 (Mountain Road) are the
           principal east-west arterials.


13
     “Anne Arundel County Executive John Leopold Announces Brooklyn Park Revitalization Effort.” Anne Arundel
     County Press Release, 29 May 2010.

                                                    47                                RealPropertyResearchGroup
           Baltimore County

                                                                                                         Baltimore City




                                                     %
                                                     & 168
                                                                                  !
                                                                                  "  2

Howard County


                              %
                              &
                              295                             6
                                                              5
                                                              695




                                5
                                6   195
                                                                                     Centre at Glen Burnie




                                                                                                                Glen Burnie-Marley Neck
                              BWI-Thurgood Marshall Airport
       %
       &   100
                                                                                         %
                                                                                         &    270
                                           %
                                           &176
                                                                                          Route 2 Corridor



                              %
                              &170
                                                                                                #
                                                                                                $   10
                                                        %
                                                        & 174           Marley Station Mall


    %
    &713



                                                                                                              %
                                                                                                              &100


                                                                !
                                                                "   3                                                                %
                                                                                                                                     &
                                                                                                                                     607



                              Odenton-Crofton                                                                             %
                                                                                                                          &
                                                                                                                          648


                                                                                      Severna Park-Mountain Rd



                               #
                               $    32

                                                                         3
                                                                         4 97



                                          %
                                          &
                                          175                                                                                   !
                                                                                                                                "
                                                                                                                                2




                                                          Map 5
                                                  Location of Amenities
                                            Glen Burnie-Marley Neck Submarket
                                              Anne Arundel County, Maryland
                         !
                         "
       5
       6695                                         Baltimore City




                   Glen Burnie-Marley Neck




                                %
                                &270




      %
      &
      174                           #
                                    $  10
                                                                                             &
                                                                                             %173



                                                                                   Severna Park-Mountain Rd
        Baltimore-Washington Medical Center
                                              %
                                              &
                                              100


            !
            " 3                                                             &
                                                                            %607



                                                       %
                                                       &648


                                                                                                  %
                                                                                                  &
                                                                                                  177

                                                              Route 2 Corridor




                  3
                  497



                                                                 "
                                                                 ! 2




                        %
                        & 178
                                                                                         Annapolis



      Odenton-Crofton
                                                                                                              &
                                                                                                              %
                                                                                                              179




                                                                                           %
                                                                                           &450




                                                                           #
                                                                           $ 70

&
%
450

                                                            Map 6
                                                     Location of Amenities
                                              Severna Park-Mountain Rd Submarket
                                                 Anne Arundel County, Maryland
E.     Odenton-Crofton Submarket
The Odenton-Crofton submarket is a large geographic area encompassing the
western section of the county. The prominent land use in the submarket is the Fort
Meade military installation. Most of the county’s recent development has occurred in
this submarket, especially in three residential PUDs (Seven Oaks, Piney Orchard and
Russett Center). This submarket is projected to continue to grow with the BRAC-
related development at Fort Meade and the National Security Agency (NSA)
expansion.


Route 97 follows the eastern edge of this market and provides north-south travel
through the submarket. Route 50 travels from Annapolis through the southern edge
of the submarket and continues west to Washington, D.C.         Route 32 is another
primary east-west arterial in the submarket, passing through Fort Meade and on to
Howard County.


The principal retail establishment in the submarket is the Arundel Mills Mall, a large,
recently built shopping and entertainment destination. This popular development is
located in the northern part of the submarket, near Route 100 and the B-W Parkway
(Map 7).




                                    50                           RealPropertyResearchGroup
                                                                5
                                                                6195




                                                                Glen Burnie-Marley Neck
                                             &
                                             %100
                                                                                                          %
                                                                                                          &
                                                                                                          270

Howard County
                                                                        &
                                                                        %176

                                     Arundel Mills Mall


                                                                &
                                                                %
                                                                170
                                                                                 &
                                                                                 %   174                   $
                                                                                                           #10


                                         &
                                         % 713


                                                                                                                  %
                                                                                                                  &
                                                                                                                  100

                                                                                           "
                                                                                           !
                                                                                           3


                                                                                                                             %
                                                                                                                             &
                                                                                                                             648

                                                                                               Severna Park-Mountain Rd


       &
       %            &
                    %198
        295
                                                                $
                                                                #32

                                                                                               4
                                                                                               3
                                                                                               97



                                                                       &
                                                                       %
                           Fort George G Meade
                           Fort George G Meade
                                                                       175




                                                          Odenton-Crofton
                                                                                                    %
                                                                                                    &
                                                                                                    178




                                                          "
                                                          ! 3


                                                                                                                 Annapolis
         Prince George's County
                                                                               %
                                                                               &
                                                                               450


                                                                                                                        .
                                                                                                                        -
                                                                                                                        50




                                                                               %
                                                                               &
                                                                               424


                                                                                                                             "
                                                                                                                             !2




                                                                                                                             %
                                                                                                                             &214

                                                  Map 7
                                           Location of Amenities
                                        Odenton-Crofton Submarket
                                       Anne Arundel County, Maryland
V.   POPULATION AND HOUSEHOLD CHARACTERISTICS


     A.     Growth Trends
     RPRG analyzed trends in population and households between 2000 and 2015 for
     Anne Arundel County as a whole and for the county’s four component submarkets.
     We further compared the Anne Arundel County trends to trends for the Baltimore
     Region as a whole.


     The 2000 US Census serves as a baseline of population and household data. To
     gauge trends since the year 2000, we evaluated small area estimates and projections
     of population and households developed by two entities – Nielsen Claritas, Inc. and
     the Baltimore Metropolitan Council (BMC). Nielsen Claritas is a national data vendor
     that provides estimates and projections of population and households at the
     geographic level of census tracts.       The most recently issued Nielsen Claritas
     estimates and projections are for the years 2009 and 2014 respectively. In 2009,
     BMC released its round 7b Cooperative forecasts developed jointly between BMC
     and BMC’s member jurisdictions.


     In considering both Nielsen Claritas and BMC estimates and projections, we elected
     to base our analysis on the 2010 estimates and 2015 projections issued by BMC. On
     the whole, BMC estimates and projections for Anne Arundel County indicate
     somewhat higher rates of growth than what is shown by Nielsen Claritas. We utilize
     BMC’s figures due primarily to the local entity’s close familiarity with the region and
     given that BMC projections reflect the expected impact from BRAC.


     As of the 2000 Census, Anne Arundel County had a population base of 489,656
     persons.   According to BMC, the county’s population expanded by 0.8 percent
     annually between 2000 and 2010, growing to 532,600 persons (Table 11). BMC
     estimates that over this same period, the Odenton-Crofton submarket had the
     strongest growth rate of the four submarkets, increasing in population by an annual
     average rate of 1.8 percent. The remaining three submarkets had minimal growth
     rates, all less than one percent annually. The Annapolis submarket increased in

                                         52                            RealPropertyResearchGroup
                            TABLE 11 Population & Households

                                                                                                              Annapolis                  Glen Burnie              Severna Park           Odenton Crofton       Anne Arundel County       Baltimore Region

                            Population
                              2000 Population                                                                   127,618                    86,941                      109,804               132,034                 489,656                  2,512,431
                              2010 Population                                                                   135,063                    91,508                      113,725               157,246                 532,600                  2,716,603
                              2015 Population                                                                   136,447                    94,661                      114,730               165,646                 546,300                  2,803,238
                            Population Change 2000-2010
                              Total Change                                                                7,445                        4,567                     3,921                   25,212                  42,944                 204,172
                              Annual Change # / %                                                         745             0.6%          457           0.5%        392            0.4%    2,521          1.8%     4,294           0.8%   20,417           0.8%
                            Population Change 2010-2015
                              Total Change                                                                1,384                        3,154                     1,005                   8,400                   13,700                 86,635
                              Annual Change # / %                                                         277             0.2%          631           0.7%        201            0.2%    1,680          1.0%     2,740           0.5%   17,327           0.6%
                            2010 Population Density (persons/acre)                                                 2.7                         3.0                        3.5                     2.1                     2.0                      1.9
                            Group Quarters
                              2010 Group Quarters                                                                 2,623                        708                        687                    8,499                15,925                      73,641
                            Households
                              2000 Households                                                                    50,556                    33,543                        39,439                  44,297               178,670                  958,756
                              2010 Households                                                                    55,334                    36,678                        42,379                  55,713               202,300                 1,056,330
                              2015 Households                                                                    56,581                    38,678                        43,362                  59,744               210,900                 1,105,715
                            Household Change 2000-2010
                              Total Change                                                                4,778                        3,135                     2,940                   11,416                  23,630                  97,574
                              Annual Change # / %                                                         478             0.9%          313           0.9%        294            0.7%    1,142          2.3%     2,363           1.2%    9,757           1.0%
                            Household Change 2010-2015
                              Total Change                                                                1,247                        2,000                     983                     4,031                   8,600                   49,385
                              Annual Change # / %                                                         249             0.4%          400           1.1%       197             0.5%     806           1.4%     1,720           0.8%    9,877          0.9%
 53




                            2010 Household Density (households/acre)                                               1.1                          1.2                        1.3                     0.7                     0.8                      0.7
                            2010 Average Household Size                                                            2.39                        2.48                       2.67                    2.67                    2.55                     2.50



                              Annual Household % Change
                                     2.5%


                                                                                                                                                  2.3%
                                     2.0%
                                                                                                                                                                          2000 to 2010
                                                                                                                                                                          2010 to 2015

                                     1.5%
RealPropertyResearch




                                                                                                                                                             1.4%
                                                                                                                                                                                                          1.2%
                                     1.0%
                                                                                                 1.1%
                                                                                                                                                                                                                                    1.0%      0.9%
                                                    0.9%                            0.9%
                                                                                                                                                                                                                   0.8%
                                                                                                                    0.7%
                                     0.5%
                                                                 0.4%                                                             0.5%
                    Group




                                     0.0%
                                                        Annapolis                          Glen                              Severna                   Odenton                                             Anne Arundel             Baltimore Region
                                                                                          Burnie                              Park                     Crofton                                               County

                            Sources: Nielsen Claritas; Baltimore Metropolitan Commission, Round 7b Projections; RPRG, Inc.
population at an average annual rate of 0.6 percent, the Glen Burnie submarket
increased in population by 0.5 percent annually, and the Severna Park submarket
increased in population by 0.4 percent annually. The Baltimore region as a whole
increased in population at a modest 0.8 percent annual growth since 2000.


As of 2010, the Odenton-Crofton submarket has the largest population of the four
submarkets, accounting for nearly 30 percent of the total Anne Arundel County
population, or an estimated 157,200 persons. The Annapolis submarket, with an
estimated 2010 population of 135,100, accounts for one quarter of the county’s
population.    The Severna Park (113,700) and Glen Burnie (91,500) submarkets
account for 21 and 17 percent of the county population, respectively. The remaining
seven percent of the Anne Arundel County population resides in the rural South
County area.


BMC projects a slowing of population growth in three of the four submarkets over the
next five years.   The Odenton-Crofton submarket is projected to experience the
fastest growth in the county, with the population growing by 1.0 percent annually,
followed by Glen Burnie with projected increases of 0.7 percent annually.             The
Annapolis and Severna Park submarkets are projected to remain stable in population,
with average annual increases of 0.2 percent. As a whole, Anne Arundel County’s
population base is projected to grow by 0.5 percent annually, reaching 546,300 in
2015. The Baltimore region is expected to grow at a similar annual rate of 0.6 percent
over the same period.


Overall, Anne Arundel County increased its household base by an average annual
rate of 1.2 percent, over the last 10 years, slightly higher than the 1.0 percent growth
rate for the Baltimore region. Household growth in both the county and the region is
projected to slow over the next decade to 0.8 percent in the county and 0.9 percent in
the region.


The Odenton-Crofton submarket was the fastest growing area of the county between
2000 and 2010 in terms of households, with an annual average increase of 2.3
percent or 1,142 households. Odenton-Crofton submarket will continue to be the
fastest growing of the four submarkets over the next five years, but that growth will

                                    54                            RealPropertyResearchGroup
slow to an annual average rate of 1.4 percent or 806 households. The household
base of the Glen Burnie submarket is projected to increase at an annual rate of 1.1
percent or 400 households a year, reaching a total of 94,700 in 2015. The Severna
Park household base is projected to increase at an annual pace of 0.5 percent or
fewer than 200 households a year. The Annapolis household base is projected to
grow by 249 households a year or an annual rate of 0.4 percent, the slowest
submarket of the county.


The 2010 average population and household densities for Anne Arundel County were
similar to that of the Baltimore Region as a whole. The county’s population density as
of 2010 was 2.0 persons per acre, in line with the region’s population density of 1.9
persons per acre. The household density of the county is 0.8 households per acre,
also in line with the regional average of 0.7 persons per acre.             Among the four
submarkets, Severna Park has the highest population and household densities, and
Odenton-Crofton has the lowest densities, in part due to the overwhelming presence
of Ft. Meade.


Building permit activity validates BMC’s growth estimates.             Overall, the county
reported 21,183 new units permitted between 2000 and 2009, while BMC estimates a
total increase of 23,630 households between 2000 and 2010 (Table 12). A natural
effect of the diminishing amount of developable land in the county, building permit
activity between 2000 and 2009 was one third less than permits recorded between
1990 and 1999. Over the past ten years, the county saw on average of 2,118 units
per year permitted, compared with an annual average of 3,323 during the 1990’s. As
the housing market began its decline and the national economy worsened, permit
activity in the county slowed significantly. The lowest annual total since 1990 was in
2008, when the county permitted 974 units. Permits rebounded slightly in 2009 with a
total of 1,175 units, mostly on the strength of multifamily permits.


Overall, one quarter of the households in the county included a householder age 62
and older in 2010, a similar proportion as the Baltimore region (Table 13). The




                                     55                                RealPropertyResearchGroup
                            TABLE 12 Anne Arundel County Building Permits by Structure Type


                            Housing Units Permitted
                                                                                                                                                           1990 -1999                                                                                                        2000-2009
                                                        1990       1991       1992        1993     1994    1995    1996      1997       1998     1999                          2000       2001     2002    2003    2004      2005       2006     2007     2008    2009
                                                                                                                                                         Total    Average                                                                                                  Total     Average
                            Single Family               2,160      2,292      3,435       3,309    2,913   2,512   2,429     2,093      1,674    2,727   25,544    2,554       2,470      2,013    2,026   2,164   1,769     1,565      1,108     1,041   824      822     15,802     1,580
                            Two Family                    0          0          0           0        0       0       0         4          14      42       60        6           58         18       0       0       18        2          2         0      0        0        98        10
                            3 - 4 Family                  0          0         24           0        0       0       0        16         115       0      155        16          0          0        4       0       0         0          0         4      0       16        24         2
                            5 or more Family           1,751        172        156         421      344     776     654       493       1,835     864    7,466      747         550        461      329     837     577       928        304      786     150      337     5,259       526
                            Total                      3,911       2,464      3,615       3,730    3,257   3,288   3,083     2,606      3,638    3,633   33,225    3,323       3,078      2,492    2,359   3,001   2,364     2,495      1,414    1,831    974     1,175    21,183     2,118




                                 Total Housing Units Permitted
                                 1990 - 2009
                             4,500

                             4,000
                                            3,911
                             3,500                                                     3,730                                                    3,638    3,633
                                                                      3,615
                             3,000                                                                3,257    3,288
                                                                                                                     3,083                                           3,078                                 3,001
                             2,500
                                                                                                                                     2,606
                                                        2,464                                                                                                                          2,492                                         2,495
                                                                                                                                                                                                  2,359              2,364
                             2,000
                                                                                                                                                                                                                                                          1,831
                             1,500
                                                                                                                                                                                                                                                1,414
                             1,000                                                                                                                                                                                                                                             1,175
                                                                                                                                                                                                                                                                     974
 56




                               500

                                   0
                                            1990         1991          1992            1993       1994     1995       1996           1997       1998      1999          2000           2001       2002     2003       2004           2005       2006      2007      2008           2009




                            Source: U.S. Census Bureau, C-40 Building Permit Reports
RealPropertyResearchGroup
                            TABLE 13 Senior Household Trends

                                                                                                              Annapolis                  Glen Burnie              Severna Park   Odenton Crofton   Anne Arundel County      Baltimore Region

                            2010 Senior Householders
                             2010 Total Households                                                       55,334                        36,678                 42,379             55,713             202,300               1,056,330
                               Householders 55 to 61                                                      8,225         14.9%           4,355   11.9%          6,041     14.3%    6,868   12.3%      27,450     13.6%       137,225        13.0%
                                Householders 62 to 64                                                     3,123          5.6%           1,780    4.9%          2,272      5.4%    2,551    4.6%      10,469      5.2%       51,271          4.9%
                                Householders 65 to 74                                                     7,284         13.2%           4,801   13.1%          4,980     11.8%    4,854    8.7%      23,562     11.6%       118,102        11.2%
                                Householders 75 to 84                                                     4,337          7.8%           3,079    8.4%          2,304      5.4%    1,915    3.4%      12,481      6.2%       74,501          7.1%
                                Householders 85 and older                                                 1,245          2.3%            958     2.6%           567       1.3%     453     0.8%       3,459      1.7%        26,642         2.5%
                             Householders 62 and older                                                   15,989         28.9%          10,618   29.0%         10,123     23.9%    9,773   17.5%      49,971     24.7%      270,516         25.6%
                            2015 Senior Householders
                             2015 Total Households                                                       56,581                        38,678                 43,362             59,744             210,900               1,105,715
                               Householders 55 to 61                                                      8,667            0            5,028      0           6,660        0     8,293      0       30,830        0        156,953           0
                                Householders 62 to 64                                                     3,567          6.3%           1,888    4.9%          2,546      5.9%    2,957    4.9%      11,848      5.6%        61,332         5.5%
                                Householders 65 to 74                                                     9,117         16.1%           5,803   15.0%          6,325     14.6%    6,767   11.3%      30,080     14.3%       147,350        13.3%
                                Householders 75 to 84                                                     4,704          8.3%           3,198    8.3%          2,557      5.9%    2,448    4.1%      13,810      6.5%        76,872         7.0%
                                Householders 85 and older                                                 1,476          2.6%           1,195    3.1%           682       1.6%     601     1.0%       4,227      2.0%        30,363         2.7%
                               Householders 62 and older                                                 18,863         33.3%          12,085   31.2%         12,109     27.9%   12,773   21.4%      59,965     28.4%      315,917         28.6%
                            Change 2010-2015
                             Sr HH 62+ Total Change                                                        2,874                       1,466                     1,986           2,999               9,994                  45,401
                             Annual Change # / %                                                           575           3.4%          293       2.6%             397     3.6%   600      5.5%       1,999      3.7%        9,080          3.2%



                              2010-2015 Annual Household % Change - Senior Households 62 and Older
 57




                                     6.0%


                                                                                                                                                       5.5%
                                     5.0%


                                     4.0%

                                                                                                                             3.6%                                                                   3.7%
                                     3.0%                  3.4%
                                                                                                                                                                                                                             3.2%
                                                                                           2.6%
                                     2.0%
RealPropertyResearch




                                     1.0%


                                     0.0%
                                                         Annapolis                          Glen                             Severna                   Odenton                                   Anne Arundel           Baltimore Region
                                                                                           Burnie                             Park                     Crofton                                     County


                            Sources: Nielsen Claritas; Baltimore Metropolitan Commission, Round 7b Projections; RPRG, Inc.
                    Group
Annapolis and Glen Burnie submarkets have the greatest proportion of senior
households in the county at 29 percent. The Severna Park submarket followed with
24 percent of its households headed by a senior householder. As a newly developed
area attractive to young families, the Odenton-Crofton had the smallest proportion of
senior householders, accounting for less than 18 percent of the total household base.


Over the next five years, the number of householders 62 and older in Anne Arundel
County will increase by nearly 2,000 households annually, or an annual increase of
3.7 percent. This growth rate will surpass than of the Baltimore Region as a whole,
which is 3.2 percent.    The Odenton-Crofton submarket, which has the smallest
proportion of senior households in the county, will have the highest growth rate of 5.5
percent or 600 new senior households a year. The Glen Burnie submarket will have
the slowest growth rate of 2.6 percent adding just under 300 senior households a
year.


B.      Demographic Characteristics
The age distribution of the county as a whole is generally in line with that of the
Baltimore Region, with median ages of 37 and 36 respectively. With a median age of
34, the Odenton-Crofton submarket age distribution trends younger than that of the
other three submarkets. In comparison, the Severna Park median age is 37; the Glen
Burnie median age is 38 and the Annapolis median age is 39 (Table 14). Nearly 27
percent of the Odenton Crofton submarket population is children under the age of
eighteen, while the proportion of children in the three other submarkets ranges from
less than 23 to less than 25 percent. Less than 8 percent of the Odenton-Crofton
population is age 65 and older, compared to 11 percent in the Severna Park
submarket, and nearly 15 percent in the Glen Burnie and Annapolis submarkets.


Married couples, with or without children, comprise at least half of all households in
each of the four submarkets. The Glen Burnie submarket has the lowest proportion of
married households at 50 percent, and the Severna Park submarket has the highest
                                                          h
proportion at 63 percent. Reflecting an older population, t e Annapolis and Glen
Burnie submarkets have the highest proportion of single person households, at 27




                                    58                            RealPropertyResearchGroup
                            TABLE 14 Age and Household Type

                                                                                            Annapolis              Glen Burnie          Severna Park              Odenton Crofton         Anne Arundel County            Baltimore Region

                            Age (2010)
                            Total Population                                          135,063                   91,508                113,725                    157,246                  532,600                     2,716,603
                             under 18                                                  30,501        22.6%      20,833        22.8%    28,063         24.7%       41,619        26.5%      128,487        24.1%         648,498            23.9%
                              18-34                                                    25,250        18.7%      19,044        20.8%    23,571         20.7%       36,934        23.5%      114,229        21.4%         604,686            22.3%
                              35-64                                                    59,866        44.3%      37,972        41.5%    49,085         43.2%       66,716        42.4%      227,775        42.8%        1,123,037           41.3%
                              65 and over                                              19,445        14.4%      13,659        14.9%    13,006         11.4%       11,977         7.6%      62,109         11.7%         340,382            12.5%
                             Median Age                                                         39                       38                     37                         34                        37                            36
                            Household Type (2009)
                            Total Households                                           55,334                   36,678                42,379                     55,713                   202,300                     1,056,330
                             Married                                                   29,683        53.6%      18,396        50.2%   26,540          62.6%      33,335         59.8%      115,639        57.2%         514,661            48.7%
                                  Married with children                                12,250        22.1%       7,675        20.9%   12,898          30.4%      17,489         31.4%      53,745         26.6%         234,551            22.2%
                                  Married without children                             17,434        31.5%      10,721        29.2%   13,642          32.2%      15,847         28.4%      61,895         30.6%         280,111            26.5%
                             Not Married                                               10,698        19.3%       8,762        23.9%    7,810          18.4%      11,540         20.7%      40,886         20.2%         259,496            24.6%
                                  Not married with children                             4,177         7.5%       3,501         9.5%    3,343           7.9%       5,313          9.5%       17,177         8.5%         107,002            10.1%
                                  Not married without children                          6,521        11.8%       5,262        14.3%    4,467          10.5%       6,227         11.2%      23,709         11.7%         152,494            14.4%
                             Living Alone                                              14,953        27.0%       9,519        26.0%    8,029          18.9%      10,838         19.5%      45,775         22.6%         282,172            26.7%
                             Householders without children                             38,907        70.3%      25,502        69.5%   26,139          61.7%      32,912         59.1%      131,378        64.9%         714,777            67.7%
                             Householders with children                                16,427        29.7%      11,176        30.5%   16,240          38.3%      22,802         40.9%       70,922        35.1%         341,553            32.3%



                                2010 Age Distribution                                                                                  2009 Household Type                                                                Married w/Kids
                                                                                              % <18                                                                                                                       Married w/o Kids
 59




                                  50%                                                         18-34
                                                                                                                                        35%                                                                               Not Married w/Kids

                                                                                                                                                                                                                          Not Married w/o Kids
                                  45%                                                         35-64
                                                                                                                                        30%                                                                               Living Alone
                                                                                              % 65>
                                  40%                                                                                                                                                                                     dummy
                                                                                              dummy
                                  35%                                                                                                   25%

                                  30%
                                                                                                                                        20%
                                  25%
                                                                                                                                        15%
                                  20%

                                  15%                                                                                                   10%

                                  10%
RealPropertyResearch




                                                                                                                                         5%
                                    5%

                                    0%                                                                                                   0%
                                             Annapolis          Glen    Severna   Odenton               Anne Arundel   Baltimore                     Annapolis     Glen         Severna   Odenton                 Anne Arundel   Baltimore
                                                               Burnie    Park     Crofton                 County        Region                                    Burnie         Park     Crofton                   County        Region
                    Group




                            Sources: Nielsen Claritas; RPRG, Inc.
and 26 percent, respectively.     The Odenton-Crofton submarket has the highest
proportion of households with children at 41 percent. Compared to the Baltimore
Region as a whole, Anne Arundel County has a higher proportion of married
households (57 percent compared to 49 percent in the region) and a lower proportion
of households living alone (23 percent compared to 27 percent in the region).


C.     Renter Household Characteristics
At 76 percent, Anne Arundel County has a higher homeownership rate than in the
Baltimore Region (67.6 percent homeowners) (Table 15).             Considering rental
households, the Glen Burnie submarket has the highest renter proportion in the
county at 29 percent, followed by the Odenton-Crofton submarket at 27 percent and
the Annapolis submarket at 25 percent.       The Severna Park submarket has the
smallest renter proportion of 20 percent.


Anne Arundel County has a lower proportion of senior renter householders than the
Baltimore Region. Fifteen percent of renter households in Anne Arundel County are
age 62 and older, compared to twenty percent in the region. Within the county, the
Annapolis submarket has the highest proportion of senior renter householders at 21
percent of all rental householders, followed by the Glen Burnie submarket with less
than 18 percent, and the Severna Park submarket with 13 percent. The Odenton-
Crofton submarket has a relatively small portion of senior renter householders at 8
percent. Young renters age 25 to 34 account for 31 percent of renters in Odenton-
Crofton and nearly 26 percent of renter households in Glen Burnie. The Annapolis
submarket has the lowest proportion of this age group with 24 percent. Overall, the
25-34 age group comprises 27 percent of the renter households in the county and 25
percent of the renter households in the region.


Single person households comprising one third of all county renter households
compared to 44 percent of all renter households in the region. Thirty percent of renter
households in the county contain three or four persons, and 28 percent are two-
person households. Among the four submarkets, single person households are the
predominant household type in all submarkets except Odenton-Crofton, where
households of three or four persons are the predominant type.


                                    60                           RealPropertyResearchGroup
                            TABLE 15 Renter Household Characteristics

                                                                                       Annapolis           Glen Burnie            Severna Park           Odenton Crofton             Anne Arundel County          Baltimore Region

                            Household Tenure (2010)
                            Total Households                                       55,334                36,678                  42,379                55,713                        202,300                   1,056,330
                             % Renters                                             13,684     24.7%      10,520       28.7%       8,387     19.8%      15,032            27.0%        49,056     24.2%          342,110          32.4%
                             % Owners                                              41,651     75.3%      26,158       71.3%      33,992     80.2%      40,682            73.0%       153,244     75.8%          714,220          67.6%
                            Senior Households 62+                                  15,989                10,618                  10,123                 9,773                        49,971                     270,516
                             % Renters                                              2,906     18.2%       1,837       17.3%       1,080     10.7%       1,234            12.6%        7,429      14.9%           67,715          25.0%
                             % Owners                                              13,084     81.8%       8,781       82.7%       9,043     89.3%       8,539            87.4%        42,542     85.1%          202,801          75.0%
                            Renter Householders by Age (2010)
                            Total Renter Households                                13,684                10,520                  8,387                 15,032                        49,056                     342,110
                             % under 24                                             1,273     9.3%        1,229       11.7%      1,086      12.9%       1,869            12.4%        5,556      11.3%           40,207          11.8%
                             % 25-34                                                3,308     24.2%       2,684       25.5%      2,413      28.8%       4,668            31.1%       13,436      27.4%           84,660          24.7%
                             % 35-61                                                6,198     45.3%       4,769       45.3%      3,808      45.4%       7,261            48.3%       22,636      46.1%          149,528          43.7%
                             % 62 and over                                          2,906     21.2%       1,837       17.5%      1,080      12.9%       1,234             8.2%        7,429      15.1%           67,715          19.8%
                            Renter Households by Size (2010)
                             % 1 person                                             5,474     40.0%       4,055       38.5%      2,962      35.3%       3,502            23.3%        16,469     33.6%          149,769          43.8%
                             % 2 person                                             4,013     29.3%       2,794       26.6%      2,382      28.4%       4,303            28.6%        13,855     28.2%          99,989           29.2%
                             % 3 or 4 person                                        3,364     24.6%       2,860       27.2%      2,514      30.0%       5,523            36.7%        14,772     30.1%          73,063           21.4%
                             % 5 person+                                             833      6.1%         811        7.7%        528       6.3%        1,703            11.3%        3,960      8.1%           19,289           5.6%



                               2010 Renters as % of all Households                                                                        2010 Renter Households by Size
                                  35%                                                                                                      50%                                                   1 person
 61




                                                                                                                                                                                                 2 person
                                                                                                                                           45%
                                  30%                                                                                 32%                                                                        3-4 person
                                                                                                                                           40%                                                   5 person+
                                                               29%
                                  25%                                             27%                                                                                                            dummy
                                                                                                                                           35%
                                               25%                                                      24%
                                                                                                                                           30%
                                  20%
                                                                        20%                                                                25%
                                  15%
                                                                                                                                           20%

                                  10%                                                                                                      15%

                                                                                                                                           10%
                                   5%
RealPropertyResearch




                                                                                                                                           5%

                                   0%                                                                                                      0%
                                             Annapolis          Glen    Severna   Odenton             Anne Arundel   Baltimore                   Annapolis       Glen      Severna     Odenton              Anne Arundel   Baltimore
                                                               Burnie    Park     Crofton               County        Region                                    Burnie      Park       Crofton                County        Region



                            Sources: Nielsen Claritas; RPRG, Inc.
                    Group
D.     Educational Attainment and Income Characteristics
Educational attainment is a key indicator of an individual’s current and future earning
potential.   As of the 2000 Census, nearly 37 percent of Anne Arundel County
residents aged 25 years and older possessed an associate’s degree, bachelor’s
degree, and/or post-graduate degree (Table 16). This is in line with the proportion in
the Baltimore Region, which is nearly 35 percent.       Among the four submarkets,
Annapolis has the highest level of education attainment, as 48 percent of the
population age 25 and older has at least an associate’s degree. Odenton-Crofton
follows with 39 percent, and then Severna Park with 36 percent. Glen Burnie has the
lowest level of educational attainment with 18 percent of its adult population
possessing at least an associate’s degree.


Incomes in Anne Arundel County are higher than in the Baltimore Region as a whole.
The 2010 median household income in Anne Arundel County is $83,573 or 27
percent greater than the Baltimore Region median income of $65,646.                  The
Annapolis, Severna Park, and Odenton-Crofton submarkets all have similar median
incomes ranging from $86,000 to $90,000, while the Glen Burnie median income is
lower at $62,318. Glen Burnie also has the lowest level of educational attainment of
the four submarkets.


Driven by relatively affluent Annapolis and Odenton-Crofton, the median household
income of Anne Arundel renter households is $47,075, The county’s renter median is
33 percent higher than the region renter median income of $35,318. Odenton-Crofton
has the highest median renter income of $53,172 in part due to high income renters
associated with Fort Meade. Glen Burnie supports the lowest rental median income at
$39,410. Nearly 30 percent of renter households in the Glen Burnie submarket earn
less than $25,000, compared to 24 percent of renter households in the Annapolis
submarket.    The Severna Park and Odenton-Crofton have smaller proportions of
households earning less than $25,000, at 18 and 16 percent, respectively.


As of the 2000 Census, the poverty rate in Anne Arundel County was 5.1 percent or
approximately half the Baltimore Region’s poverty rate of 9.9 percent (Table 17).




                                    62                           RealPropertyResearchGroup
                            TABLE 16 Household Income

                                                                                                                                Annapolis                         Glen Burnie               Severna Park       Odenton Crofton     Anne Arundel County        Baltimore Region

                            Educational Attainment (2000)
                             % Without HS diploma or equiv.                                                                      11.0%                              22.7%                       12.5%                 10.5%                 13.6%                   18.1%
                             % W/ HS diploma or equiv.                                                                           21.0%                              38.3%                       29.1%                 25.8%                 27.9%                   27.1%
                             % W/ some college, no degree                                                                        20.0%                              20.7%                       22. 4%                24.2%                 21.9%                   20.1%
                             % W/ AA or BA                                                                                       30.6%                              14.0%                       25.6%                 27.6%                 25.1%                   22.7%
                             % W/ post-graduate degree                                                                           17.4%                              4.3%                        10.3%                 11.8%                 11.5%                   11.9%
                            Household Income
                             Total Households                                                                         55,334                            36,678                            42,379              55,713                202,300                1,056,330
                               % < $25K                                                                                5,244     9.5%                    5,439     14.8%                   3,062     7.2%      3,555     6.4%        18,368       9.1%       179,806     17.0%
                               % $25 - $50K                                                                            8,354     15.1%                   8,792     24.0%                   6,612     15.6%     7,723    13.9%        32,952      16.3%       222,067     21.0%
                               % $50 - $100K                                                                          18,311     33.1%                  14,372     39.2%                  15,613     36.8%    20,575    36.9%        72,877      36.0%       351,474     33.3%
                               % $100K >                                                                              23,425     42.3%                   8,073     22.0%                  17,092     40.3%    23,861    42.8%        78,104      38.6%       302,983     28.7%
                             2010 Median Income                                                                            $88,124                           $62,318                           $86,191             $90,317                $83,573                 $65,646
                            Renter Household Income
                             Total Renter Households                                                                  13,684                            10,520                            8,387               15,032                49,056                  342,110
                               % < $25K                                                                                3,341     24.4%                   3,007     28.6%                  1,478     17.6%      2,445    16.3%       10,686      21.8%        120,499     35.2%
                               % $25 - $50K                                                                            3,745     27.4%                   3,633     34.5%                  3,120     37.2%      4,638    30.9%       15,470      31.5%        110,723     32.4%
                               % $50 - $100K                                                                           4,055     29.6%                   2,833     26.9%                  2,589     30.9%      5,382    35.8%       15,305      31.2%        79,753      23.3%
                               % $100K >                                                                               2,543     18.6%                   1,046     9.9%                   1,199     14.3%      2,567    17.1%        7,595      15.5%         31,136      9.1%
                             2010 Median Income                                                                            $47,754                           $39,410                          $46,615              $53,172               $47,075                  $35,318



                               2010 Median Household Income                                                                                                                              2010 Renter Household Income
 63




                                                                                                                                     All                                                                                                       % < $25K
                                                                                                                                     Households                                                                                                % $25 - $50K
                               $100 000
                               $100,000                                                                                                                                                   40%
                                                                                                                                     Renter                                                                                                    % $50 - $100K
                                $90,000                                                                                              Households
                                                                                                                                                                                          35%                                                  % $100K >
                                                                                                            $90,317
                                                $88,124




                                                                                        $86,191




                                $80,000
                                                                                                                                              $83,573




                                                                                                                                                                                          30%
                                $70,000
                                                                                                                                                                                          25%
                                                                                                                                                                     $65,646




                                $60,000
                                                                    $62,318




                                $50,000                                                                                                                                                   20%
                                                                                                                      $53,172
                                                          $47,754




                                                                                                                                                        $47,075
                                                                                                  $46,615




                                $40,000
                                                                                                                                                                                          15%
                                                                              $39,410




                                                                                                                                                                               $35,318




                                $30,000
RealPropertyResearch




                                                                                                                                                                                          10%
                                $20,000
                                                                                                                                                                                          5%
                                $10,000

                                       $0                                                                                                                                                 0%
                                               Annapolis              Glen              Severna             Odenton                         Anne Arundel             Baltimore                   Annapolis    Glen      Severna   Odenton            Anne Arundel   Baltimore
                                                                     Burnie              Park               Crofton                           County                  Region                                 Burnie      Park     Crofton              County        Region
                    Group




                            Sources: US Census Bureau, 2000 Census of Population and Households; Nielsen Claritas; RPRG, Inc.
                            TABLE 17 Indicators of Economic Distress
                                                                                                                                                                                                                                           Anne Arundel
                                                                                                                          Annapolis                        Glen Burnie             Severna Park              Odenton Crofton                                        Baltimore Region
                                                                                                                                                                                                                                             County

                            Poverty and Unemployment
                            Poverty Rate(2000)                                                                                5.7%                            7.2%                        3.6%                           4.6%                  5.1%                          9.9%
                            Unemployment Rate (2000)                                                                          2.9%                            3.5%                        2.9%                           3.4%                  3.1%                          5.0%
                            School Achievement and Special Services
                            % Students Achieving Proficient or Advanced                                                                                                                                                                                                     Maryland
                               Elementary School                                                                            87.0%                            83.8%                        90.9%                          88.3%                 87.9%                         82.8%
                               Middle School                                                                                69.7%                            70.3%                        84.2%                          77.3%                 75.9%                         73.0%
                               High School                                                                                  89.8%                            81.0%                        93.1%                          88.5%                 83.6%                         83.7%
                            % Elementary Students with Special Services
                               Free and Reduced Meals                                                                       30.8%                            43.3%                        17.1%                          25.6%                 28.0%                         41.3%
                               Limited English Proficiency                                                                   8.9%                            5.4%                         2.5%                           4.4%                  5.0%                          8.2%



                               Student Achievement & Special Services Elementary                                                                                  2000 Poverty and Unemployment Rates
                               Schools, 2008-2009 SY
                                                                                                            Proficient                                               12%
                               100%
                                                                                                            or                                                                                                                      Poverty Rate
                                 90%                                                                        Advanced
                                                                                                                                                                     10%                                                            Unemployment Rate
                                                                            90.9%




                                                                                                            Free and
                                                                                            88.3%




                                                                                                                           87.9%
                                            87.0%




                                 80%




                                                                                                                                                                                                                                                                     9.9%
                                                            83.8%




                                                                                                            Reduced




                                                                                                                                           82.8%
                                                                                                            Meals
                                 70%                                                                                                                                 8%
 64




                                 60%




                                                                                                                                                                                             7.2%
                                                                                                                                                                                               2%
                                 50%                                                                                                                                 6%




                                                                                                                                                                            5.7%
                                 40%




                                                                                                                                                                                                                                                      5.1%




                                                                                                                                                                                                                                                                            5.0%
                                                                    43.3%




                                                                                                                                                   41.3%
                                                                                                                                                                     4%




                                                                                                                                                                                                                            4.6%
                                 30%




                                                                                                                                                                                                           3.6%
                                                    30.8%




                                                                                                                                                                                                    3.5%




                                                                                                                                                                                                                                   3.4%
                                                                                                                                   28.0%




                                                                                                                                                                                                                                                             3.1%
                                                                                                    25.6%




                                 20%




                                                                                                                                                                                                                  2.9%
                                                                                                                                                                                   2.9%
                                                                                                                                                                     2%
                                                                                    17.1%




                                 10%

                                  0%                                                                                                                                 0%
                                           Annapolis          Glen          Severna         Odenton                      Anne Arundel      Baltimore                       Annapolis          Glen         Severna          Odenton                Anne Arundel     Baltimore
                                                             Burnie          Park           Crofton                        County           Region                                           Burnie         Park            Crofton                  County          Region
RealPropertyResearch




                            Sources: US Census Bureau, 2000 Census of Population and Households; Maryland Department of Education; RPRG, Inc.
                    Group
Severna Park had the lowest poverty rate of 3.6 percent while Glen Burnie had the
highest at 7.2 percent. Anne Arundel County’s 2000 unemployment rate was a low
3.1 percent, nearly two percentage points less than the Baltimore Region’s rate of 5.0
percent. Unemployment rates among the four submarkets ranged from 2.9 percent in
Severna Park and Annapolis to 3.4 and 3.5 percent in Odenton-Crofton and Glen
Burnie, respectively.


Another measure of the social impacts of poverty on a community is a comparison of
student achievement and current school-based poverty indicators. Anne Arundel
County elementary and middle school performance is slightly higher than the
statewide average, while high school performance is in line with the statewide
average. Among the four submarkets, students in Severna Park have the highest
performance and Glen Burnie students have the lowest performance.


The county has a lower proportion of students eligible for free and reduced meals
(FARMS), an indicator of poverty. Twenty-eight percent of public elementary school
students in the county are eligible for FARMS compared to 41 percent statewide.
Glen Burnie has the highest proportion of students eligible for FARMS at 43 percent,
while Severna Park has the lowest at 17 percent. The county elementary schools
also have a lower proportion of Limited English Proficiency (LEP) students than the
state as a whole. Five percent of students are LEP compared to 8 percent statewide.
Annapolis has the highest proportion of LEP students at 9 percent while Severna Park
has the lowest at 2.5 percent.




                                   65                            RealPropertyResearchGroup
VI.   RENTAL HOUSING ANALYSIS


      A.     Existing Rental Housing Stock Characteristics
      The rental stock of both Anne Arundel County and the Baltimore region are fairly
      diverse. As measured by the US Census Bureau in the 2000 Census, 46 percent of
      renter-occupied units in the county and 49 percent in the region were in multifamily
      buildings (Table 18). Twenty-one percent of rental units in the county and 25 percent
      in the region were single family attached homes. Nearly one fourth of rental units in
      the county were single-family detached homes, more than double the regional
      proportion of ten percent.


      Multifamily units were the prominent rental unit type in each of the Anne Arundel
      County submarkets in 2000. Odenton-Crofton had the smallest proportion of single-
      family detached rental units at 15 percent, and Severna Park had the highest at 27
      percent.   In contrast, Odenton-Crofton had the highest proportion of single-family
      attached rental units at 36 percent, while Glen Burnie had the lowest at 12 percent.


      The rental stock in Anne Arundel County is more recently constructed on the whole
      than that of the Baltimore region. The median year built for the county’s rental stock
      as of 2000 was 1972, or six years younger than the Baltimore region median of 1966.
      The Annapolis and Glen Burnie submarkets have the largest portion of rental units
      pre-dating 1960, both at 29 percent. The largest proportion of rental units in all four
      submarkets was built in the 1960s and 1970s. The Odenton Crofton submarket has
      the largest proportion of recent rental development, with 23 percent of all rental units
      constructed in the 1990s. In contrast, only 6 percent of the Glen Burnie rental units
      were built in the 1990s.


      B.     Comprehensive Multifamily Rental Survey, Overview
      As part of our scope of work for this project, RPRG sought to inventory and survey all
      multifamily rental communities in Anne Arundel County with 20 or more living units.
      To identify the existing inventory of multifamily housing in Anne Arundel County,
      RPRG relied on a variety of sources, including our own proprietary database of


                                          66                            RealPropertyResearchGroup
                            TABLE 18 Rental Housing Stock
                                                                                                                                                                                                          Anne Arundel
                                                                                                          Annapolis                   Glen Burnie           Severna Park         Odenton Crofton                                Baltimore Region
                                                                                                                                                                                                            County

                            Rental Housing Stock
                            Total Rental Stock (2000)                                                 12,468                        9,597                  7,917                 12,355                  43,748                319,811
                             Structure Type (2000)
                               % Single Family Detached                                                 3,087          24.8%        2,303          24.0%   2,120       26.8%     1,870       15.1%       10,375       23.7%    32,684        10.2%
                               % Single Family Attached                                                 2,191          17.6%        1,132          11.8%   1,382       17.5%     4,465       36.1%       9,231        21.1%    81,126        25.4%
                               % Two, Three or Four Family                                              1,273          10.2%        1,036          10.8%    494        6.2%       802        6.5%        3,711        8.5%     47,863        15.0%
                               % Multifamily (5 or more Units)                                          5,867          47.1%        5,061          52.7%   3,891       49.1%     5,105       41.3%       20,046       45.8%    156,545       48.9%
                               % Other (including Mobile Homes)                                           50           0.4%          65            0.7%      30        0.4%       113        0.9%         385         0.9%      1,593        0.5%
                             Year Built (2000)
                               Median Year Built                                                                1972                        1968                   1975                  1974                     1972                1966
                               % built pre 1960                                                         3,626          29.1%        2,784          29.0%   1,301       16.4%     2,336      18.9%        10,848       24.8%    125,377   39.2%
                               % built in 1970s and 1960s                                               5,094          40.9%        4,785          49.9%   3,685       46.5%     5,482      44.4%        19,347       44.2%    117,447   36.7%
                               % built in 1980s                                                         2,301          18.5%        1,435          15.0%   2,019       25.5%     1,652      13.4%        7,526        17.2%    45,093    14.1%
                               % built in 1990s                                                         1,447          11.6%         593           6.2%     912        11.5%     2,885      23.4%        6,027        13.8%    31,894    10.0%



                              Structure Type (2000)                                                                                                 Year Built (2000)                                     %pre 1960
                                60%                                                               %SFD                                               60%                                                  %1960s-70s
                                                                                                  %SFA
                                                                                                                                                                                                          %1980s
                                                                                                  %2, 3 or 4 Fam
                                50%                                                                                                                  50%
                                                                                                  %MF                                                                                                     %1990s
 67




                                40%                                                                                                                  40%



                                30%                                                                                                                  30%



                                20%                                                                                                                  20%



                                10%                                                                                                                  10%



                                  0%                                                                                                                  0%
                                           Annapolis        Glen         Severna        Odenton             Anne Arundel       Baltimore                   Annapolis     Glen      Severna     Odenton                 Anne Arundel   Baltimore
                                                           Burnie         Park          Crofton               County            Region                                  Burnie      Park       Crofton                   County        Region
RealPropertyResearch




                            Source: US Census Bureau, 2000 Census of Population and Households
                    Group
multifamily communities in Maryland built from more than 20 years of market research
experience in the region. Other sources included assessment records, online listings
and field surveys. We surveyed a total 114 multifamily communities in Anne Arundel
County in August and September 2010. Surveys were conducted both in the field as
well as by phone. Profiles with detailed information on each of the 114 surveyed
communities are attached to this report as Appendix 3.


Our comprehensive survey included all communities with 20 or more units without
regard to rent, ownership, and income or age restrictions. In addition to the typical
market-rate rental communities where residents are responsible for payment of the
full contract rent, we also surveyed rental communities offering varying levels of rental
assistance or subsidies.     Given the variety of local, state and federal housing
programs, we classified the inventory into three broad categories: market; affordable
and subsidized.


Market rate properties are those properties where residents are expected to pay the
full rent and where rent ceilings or income qualifications are not required. Affordable
properties are those properties where either the rent is restricted or where occupancy
is limited by a tenant’s income, or both, by some type of housing program, such as
the Low Income Housing Tax Credit (LIHTC) program, Section 236, Section 221(d)(3)
or other such similar program. At these affordable properties, despite income or rent
restrictions, residents are expected to pay the full contract rent. Subsidized properties
offer some type of rental assistance to low income residents that cannot afford to pay
the full contract rent. Programs such as Section 8, Section 202, and Public Housing
provide a subsidy to cover the difference between the amount a tenant can pay and
the cost of the unit.   Generally, a tenant’s out-of-pocket housing costs, including
shelter and utilities, are limited to 30 percent of the family’s income. Under a contract
with the housing unit owner, the federal government agrees to reimburse the owner
for the difference between what the tenant pays and the actual rent for the unit.


Of the 114 communities in Anne Arundel County, some are exclusively market rate,
affordable or subsidized. Others offer a combination of unit types. Within the rental
inventory, the following types of communities are available (mixed income
communities are counted in all categories of unit offerings):

                                     68                            RealPropertyResearchGroup
   •   Market Rate – 80 communities total including
           o   79 general occupancy market-rate properties
           o   1 market-rate property restricted to senior citizens
   •   Affordable – 9 communities total including
           o   5 general occupancy affordable properties, including LIHTC and
               Section 236
           o   4 affordable properties age-restricted to senior households
   •   Subsidized – 29 communities total including
           o   17 general occupancy communities offering project based rental
               assistance, including public housing, Section 8 and other programs
           o   12 senior age-restricted communities offering project based rental
               assistance


Of these units, four general occupancy communities are mixed income, offering a
combination of units with project-based rental assistance as well as market rate or
affordable units.


For comparison purposes, we elected to group the market and affordable units
together in one analysis. From the perspective of the users of rental housing, the
underlying financing of a particular community is only relevant with respect to the
actual cost of the housing. At both market and affordable properties, the resident is
expected to make a minimum rent payment, regardless of income.                   Subsidized
properties are analyzed separately as the cost of housing for a resident qualifying for
rental assistance is the same at any subsidized community: 30 percent of household
income. Where deep subsidy units and market or affordable units are present in the
same community, we segmented the units at the community, analyzing the subsidized
units with other subsidized communities and the market/affordable units with other
market/affordable communities.


The market/affordable communities were further divided into two clusters, an upper
tier and the rest of the market/affordable stock. We did not employ a standardized
formula in this classification; rather, we evaluated each individual community in the
context of its submarket, and classified the community according to competitive
market forces. On the whole, upper tier communities offer the highest-quality (and
often more modern) products targeting higher-income households compared to

                                    69                                RealPropertyResearchGroup
market/affordable communities which offer a range of quality of product, but still
require tenants to pay the full rent charged. The rents charged for market/affordable
units range from just below the top of the market/upper tier rents to market/affordable
more modest (and often older) products serving lower-income households. More than
any other factor, RPRG relied upon monthly unit rent to distinguish upper tier
communities from market/affordable communities.         The average upper tier rent
represents the ‘top of the market’ in terms of price, while the average
market/affordable rent represents the typical rent charged in the market.


As shown in the summary Table 19, RPRG identified a total of 13 multifamily rental
communities classified as upper tier, 75 communities classified as market/affordable,
and 29 communities offering rental assistance. There is some overlap among these
categories, as the three mixed income communities are counted as both
market/affordable and as subsidized.       The 114 multifamily communities in the
inventory include 26,803 rental units. The largest rental submarket in Anne Arundel
County is Odenton-Crofton, where 32 percent of the county inventory of rental units is
located.   The Annapolis submarket closely follows with 27 percent of the rental
inventory, while the Glen Burnie submarket contains 22 percent of the rental units.
Severna Park has the smallest proportion of rental units at 19 percent.


                                4
RPRG clustered 3,846 units, or 1 percent of the inventory, as upper tier.              The
market/affordable rental units includes 72 percent of the inventory or 19,353 units. A
total of 3,604 units with project based subsidies were identified, representing 13
percent of the Anne Arundel County inventory. The Annapolis submarket has the
largest number of subsidized units with 2,355 units, comprising 65 percent of the
county’s subsidized inventory.                          Non-Subsidized        Vacancy
With less than two percent of                          Rental Inventory        Rate

the   county    inventory,    the       Annapolis        4,968     21.4%         2.4%
Severna Park submarket has             Glen Burnie       5,156     22.2%         5.6%
                                      Severna Park       4,948     21.3%         3.2%
the least number of subsidized       Odenton Crofton     8,127     35.0%         3.3%
units: 58. Looking at the non-       Anne Arundel
subsidized rental inventory, 35         County          23,199     100%          3.6%

percent of units are in Odenton Crofton, and the three remaining submarkets each
have between 21 and 22 percent of the inventory.

                                    70                            RealPropertyResearchGroup
                            TABLE 19 Sum of Rental Inventory by Market

                                                                                                       Annapolis                       Glen Burnie               Severna Park            Odenton Crofton         Anne Arundel County


                            Residential Rental Market Statistics
                            Multifamily Communities
                             Total Communities (1)                                                         42                              25                            16                       31                       114
                               Upper Tier Communities                                                       4                               2                             3                        4                        13
                               Market/Affordable Communities                                               22                              17                            13                       23                        75
                               Subsidized Communities                                                      17                               6                             1                        5                        29
                            Rental Inventory                                                       #               %              #                  %          #                %        #               %        #                %
                             Total Rental Inventory                                                       7,323                          5,933                          5,006                    8,541                    26,803
                             % of Total Inventory                                                         27.3%                          22.1%                          18.7%                    31.9%                    100.0%
                               Total Upper Tier Units                                             842             11.5%          781              13.2%        919              18.4%   1,304            15.3%   3,846             14.3%
                               Total Market/Affordable Units                                     4,126            56.3%         4,375             73.7%       4,029             80.5%   6,823            79.9%   19,353            72.2%
                               Total Subsidized Units                                            2,355            32.2%          777              13.1%         58               1.2%    414              4.8%    3,604            13.4%
                            Stabilized Market Vacancy Rate                                                2.4%                           5.6%                           3.2%                     3.3%                     3.6%
                                 Upper Tier Communities                                                    3.6%                           2.4%                           2.1%                     2.8%                     2.7%
                                 Market/Affordable Communities                                             2.1%                           6.3%                           3.5%                     3.5%                     3.8%
                             % Upper & Market/Afford Communities w/ Rental Incentives                     15.0%                          37.0%                          18.0%                    37.0%                    27.0%
                            Subsidized Communities Vacancy Rate                                           0.7%                            0.0%                           0.0%                    0.7%                      0.5%
                            Upper Tier Communities
                            Total Upper Tier Units                                                         842                            781                            919                     1,304                    3,846
                            Known Unit Distribution                                                        634                            781                            919                     1,304                    3,638
                             One Bedroom Units
                               # of Units / % of Stock                                            318             50.2%           --                 --        248              27.0%    412             31.6%    978              26.9%
                               Average Effective Rent / Square Footage                           $1,747            901            --                 --       $1,284             891    $1,430            842    $1,496             874
                               Average Effective Rent/SqFoot                                              $1.94                            --                           $1.44                    $1.70                     $1.71
                             Two Bedroom Units
                               # of Units / % of Stock                                            286             45.1%         477               61.1%        532              57.9%    763             58.5%   2,058             56.6%
 71




                               Average Effective Rent / Square Footage                           $2,094           1,157        $1,250              914        $1,494            1,048   $1,755           1,191   $1,617            1,085
                               Average Effective Rent/SqFoot                                              $1.81                           $1.37                         $1.43                    $1.47                     $1.49
                             Three Bedroom Units
                               # of Units / % of Stock                                             30             4.7%          304               38.9%        139              15.1%    129             9.9%     602              16.5%
                               Average Effective Rent / Square Footage                           $2,361           1,430        $1,416             1,134       $1,585            1,193   $2,034           1,416   $1,635            1,223
                               Average Effective Rent/SqFoot                                              $1.65                           $1.25                         $1.33                    $1.44                     $1.34
                            Market/Affordable Communities
                            Total Market/Affordable Units                                                 4,126                          4,375                          4,029                    6,823                    19,353
                            Known Unit Distribution                                                       2,650                          2,617                          3,681                    5,348                    14,296
                             One Bedroom Units
                               # of Units / % of Stock                                           1,057            39.9%         1,100             42.0%       1,755             47.7%   1,504            28.1%   5,416             37.9%
                               Average Effective Rent / Square Footage                           $1,109            710          $843               644        $884               688    $1,065            760    $970               703
                               Average Effective Rent/SqFoot                                              $1.56                           $1.31                         $1.28                    $1.40                     $1.38
                             Two Bedroom Units
                               # of Units / % of Stock                                           1,451            54.8%         1,377             52.6%       1,761             47.8%   2,936            54.9%   7,525             52.6%
                               Average Effective Rent / Square Footage                           $1,311            947          $986               826        $1,028             869    $1,221            961    $1,150             912
                               Average Effective Rent/SqFoot                                              $1.38                           $1.19                         $1.18                    $1.27                     $1.26
RealPropertyResearch




                             Three Bedroom Units
                               # of Units / % of Stock                                            142             5.4%          140               5.3%         165              4.5%     908             17.0%   1,355             9.5%
                               Average Effective Rent / Square Footage                           $1,526           1,162        $1,168              954        $1,253            1,046   $1,486           1,216   $1,429            1,163
                               Average Effective Rent/SqFoot                                              $1.31                           $1.22                         $1.20                    $1.22                     $1.23
                            Weighted Average Rents
                             Weighted Average Market Rent (2)                                   $1,375                         $1,023                        $1,065                     $1,272                   $1,205
                               Upper Tier Weighted Avg Rent                                     $1,933                         $1,314                        $1,451                     $1,680                   $1,588
                               Market/Affordable Weighted Avg Rent                              $1,242                          $936                          $969                      $1,222                   $1,108
                             Variance Between Upper and Market/Afford (3) $ / %                  $691             64.2%         $379              71.2%       $482              66.8%    $458            72.7%    $479             69.8%
                    Group




                            Source: RPRG, Inc.


                                Note: (1) Mixed-income communities are categorized as both Upper Tier or Market/Affordable Communities and as Subsidized Communities.
                                      (2) Weighted Avg Rent is average rent for all units weighted by bedroom unit distribution
                                      (3) Variance % is expressed as Market/Affordable as a percent of Upper Tier
An overall market vacancy rate of 5.0 percent is generally considered an indicator of a
stable and healthy rental market. Based upon our surveys, the overall stabilized
vacancy rate for non-subsidized communities in Anne Arundel County is 3.6 percent.
Annapolis had the lowest vacancy rate of 2.4 percent. Severna Park and Odenton
Crofton also had low average vacancy rates of 3.2 and 3.3 percent, respectively.
Glen Burnie had the highest average vacancy rate of 5.6 percent, but this is only
slightly higher than the standard 5.0 percent benchmark for a market that is healthy
and in balance.


The combined vacancy rate for Anne Arundel County upper tier communities is 2.7
percent. Among the market/affordable communities, the countywide vacancy rate is
3.8 percent. Typically, subsidized communities are full and operate from waiting lists.
In Anne Arundel County, the stabilized vacancy rate among subsidized communities
is a low 0.5 percent.


Rental incentives are offered at 27 percent of the communities in Anne Arundel
County.    The Odenton-Crofton and Glen Burnie submarkets have the largest
proportion of communities offering incentives, each with 37 percent. Eighteen percent
of Severna Park communities and 15 percent of Annapolis communities are offering
incentives. Communities offer incentives for a variety of reasons, including as a
marketing strategy to create a sense of value among prospective tenants as well as to
increase the volume of new tenants during a period of high turnover.


More than half of the upper tier units (57 percent) in Anne Arundel County are two-
bedroom units.     Only in the Annapolis submarket are one-bedroom units the
predominant unit type. The Annapolis submarket also has the smallest proportion of
three-bedroom units among upper tier communities, with less than five percent. One-
bedroom units account for 27 percent of the upper tier inventory and three-bedroom
units are the most limited offering, accounting for nearly 17 percent of upper tier units.


Among the market/affordable inventory, 53 percent are two bedroom units, 38 percent
are one bedroom units and 10 percent are three bedroom units. Two-bedrooms are
the most common unit type of the market/affordable inventory in three of the
submarkets, while the distribution of one- and two-bedroom units is evenly divided in

                                     72                             RealPropertyResearchGroup
the Severna Park submarket. Only the Odenton-Crofton submarket has a relatively
large proportion of three-bedroom units, with 17 percent, while in the three remaining
submarkets, three-bedroom units account for approximately 5 percent of the
inventory.


In our analysis of multifamily rental markets, we distinguish between the published
rents reported by management (also known as street or advertised rents) and net or
effective rents.    It is difficult to compare published rents across any number of
communities because:           a) certain communities are offering rental incentives or
specials at any given time, while others are not, and b) different communities handle
utility costs/bills differently.   Net or effective rents facilitate an “apples to apples”
comparison of true housing costs across communities.


RPRG effective rents control for current rental incentives by applying downward
adjustments to published rents at communities offering incentives. The downward
adjustments are factored over the course of 12 months (a one-year lease) as
appropriate. RPRG net or effective rents also reflect adjustments that equalize the
impact of utility expenses across all communities.            Specifically, our net rents
represent the hypothetical situation where only trash removal, water, and sewer utility
costs are included in monthly rents, with tenants responsible for other utility costs
(those associated with electricity, heat, hot water, and cooking fuel). Published rents
for communities that include utilities in addition to water, sewer, and trash removal in
monthly rents are adjusted downward, while published rents for communities that do
not include water, sewer, and/or trash removal are adjusted upward to arrive at net
effective rents.


For Anne Arundel County, our                                   Weighted Average Rent

adjustments     were      based    on                                                   Mkt/
                                                             Total     Upper Tier
                                                                                     Affordable
utility   allowances     for   garden
apartment units used by the                  Annapolis       $1,375      $1,933         $1,242
Housing Commission of Anne                  Glen Burnie      $1,023      $1,314          $936
                                           Severna Park      $1,065      $1,451          $969
Arundel County (HCAAC) in                 Odenton Crofton    $1,272      $1,680         $1,222
administering      HUD     programs       Anne Arundel
                                             County          $1,205      $1,588         $1,108


                                        73                            RealPropertyResearchGroup
such as the Housing Choice Voucher program. Public housing authority (PHA) utility
allowances are estimates of utility usage and may be higher than actual tenant utility
expenses. However, because the utility allowances are generated locally, and take
into account differences in utility tariffs, the number of heating and cooling days, and
to a lesser extent, the age of the local rental housing stock, PHA utility allowances are
used for a variety of housing programs to estimate total housing costs for tenants.


Overall, the countywide average net rent for all market and affordable communities is
$1,205 (weighted by bedrooms). The weighted average upper tier rent is $1,588,
while the weighted average market/affordable rent is $1,108, a variance of $479. This
variance helps to illustrate the disparity between the top of the market and the
standard rents at typical communities in the market.          The greater the disparity
between upper tier and market/affordable rent, the greater the incentive for owners of
market/affordable properties to reinvest and reposition their properties at higher rents.


Annapolis and Odenton-Crofton have the highest upper tier and market/affordable
rents, while Severna Park and Glen Burnie have lower average rents. The Annapolis
average upper tier rent is $1,933, compared to the lowest average upper tier rent of
$1,314 in Glen Burnie. Market/affordable average rents in Annapolis and Odenton-
Crofton are $1,242 and $1,222, respectively, while Severna Park and Glen Burnie
have lower average rents of $969 and $936, respectively.


The average net effective rent for upper tier one-, two-, and three-bedroom units are
$1,496, $1,617, and $1,635, respectively (Table 19). Each of the four submarkets
holds a distinct price position in terms of its upper tier communities, with Annapolis
achieving the highest rents followed by the Odenton/Crofton market and Glen Burnie
as the most affordable. The Annapolis average rent is more than $300 higher than
the Odenton-Crofton average rent for each bedroom type. Severna Park has the third
highest rents; average rents by bedroom type are between approximately $150 and
$450 less than the corresponding Odenton-Crofton Rents.            Glen Burnie has the
lowest average rents in the upper tier, with rents between approximately $170 and
$250 lower than respective rents in the Severna Park upper tier. In fact, at present
there are no true “Class A” properties in Glen Burnie.         The properties that are
classified as upper tier were built in the 1980s and are not distinctly different from the

                                     74                             RealPropertyResearchGroup
market affordable properties. In contrast, the price leader in the Annapolis upper tier
group, Mariner Bay at Annapolis Towne Center, opened in 2009 as part of a mixed-
use development, and has high-end finishes such as granite countertops and
stainless steel appliances, and other luxury characteristics like 24-hour concierge
service.


Market/affordable net effective rents average $970 for one-bedroom units, $1,150 for
two-bedroom     units,   and   $1,429    for   three-bedroom    units.      Among       the
market/affordable properties, Annapolis and Odenton-Crofton have the highest
average one-bedroom rents at $1,109 and $1,065, respectively, while the Severna
Park and Glen Burnie average one-bedroom rents are lower at $884 and $843,
respectively. The same pattern holds for two- and three-bedroom average rents, with
Annapolis and Odenton Crofton at the higher end and Severna Park and Glen Burnie
at the lower end of the rent scale. The rent disparity between Annapolis, the highest-
rent submarket overall, and Glen Burnie, the lowest-rent submarket, is approximately
$270 for one-bedroom units, $325 for two-bedroom units, and $360 for three-bedroom
units. Annapolis and Odenton-Crofton, the two most expensive upper tier markets
have small rent disparities, ranging from $40 for a three-bedroom unit to $90 for a
two-bedroom unit. The disparities are much larger between the Odenton Crofton and
Severna Park submarkets, ranging from approximately $190 for a two-bedroom unit
to approximately $180 for a one-bedroom unit. Severna Park and Glen Burnie have
more similar average rents, with disparities ranging from approximately $40 for one-
and two-bedroom units to $85 for three-bedroom units.


As would be expected, the average upper tier unit sizes are larger than the average
unit sizes for market/affordable units. Across all four submarkets, the average upper
tier unit sizes are 874 square feet, 1,085 square feet and 1,223 square feet for one-,
two-   and    three-bedroom      units    respectively.   The    countywide       average
market/affordable unit sizes are 703 square feet, 912 square feet and 1,163 square
feet for one-, two- and three-bedroom units respectively, 80 to 95 percent of the upper
tier unit sizes. Among upper tier communities, Annapolis and Odenton-Crofton have
the largest average unit sizes, and Severna Park and Glen Burnie have the smallest
average sizes. The same pattern holds for the market/affordable communities.



                                    75                             RealPropertyResearchGroup
The average rents per square foot of upper tier communities in Anne Arundel County
are $1.71 per square foot, $1.49 per square foot and $1.34 per square foot for one-,
two-   and   three-bedroom     units     respectively.   The    countywide      average
market/affordable rents per square foot range from $0.11 to $0.33 per square foot
less than the upper tier rents. The relatively small difference in rent per square foot
demonstrates that overall, there is not a substantially large difference in achievable
rents for top tier properties compared to average properties in Anne Arundel County,
likely due to a relative scarcity of new, larger high-end luxury rental product in the
market. At present, the new Mariner Bay at Annapolis Towne Center is the only
property that meets this criterion.      Additionally, we suggest that there are few
submarkets within the county that have a large locational advantage for which high
rent premiums can be charged.            Some of these dynamics will shift as new
development moves ahead in response to the BRAC expansion.


C.     Multifamily Rental Survey, Submarket Detail
In this section, we step back from the summary information presented in the matrix in
Table 19 to provide additional detail at the submarket level. This section focuses on
upper tier and market/affordable communities, while a more detailed discussion of
subsidized communities is reserved for the subsequent section.         The discussion
provides a window into the competitive positioning of specific communities in terms of
salient factors such as structure type, community age, vacancy, rents, and unit square
footages.


       1.     Annapolis Submarket

We identified and surveyed a total of 26 upper and market/affordable multifamily
rental communities with twenty or more units in the Annapolis submarket. Twenty-
three of the communities are general occupancy, while the remaining three
communities are restricted to senior tenants at least 55 or 62 years old (Table 20,
Map 8). Twenty-two communities are market rate properties, while four properties are
affordable, either through the LIHTC program or some other program that restricts
maximum rents and maximum allowable incomes. One property, Admiral Oaks, is




                                    76                           RealPropertyResearchGroup
                            TABLE 20 Multifamily Rental Communities Summary
                            Annapolis

                                                                                                Community Data                     Availablity                        Published Rent (1)
                                                                                Year         Year          Structure     Total   Vacant   Vacancy   Average      Average
                            Map ID/ Community                                   Built       Rehab            Type        Units    Units    Rate     1BR Rent     2BR Rent                   Incentive
                            Upper Tier Communities
                            1   /   Mariner Bay at Annapolis Towne Center        2009                       Mid Rise      208      2       1.0%      $2,434        $2,649       Reduced rents on all units (details
                            3   /   Gardens of Annapolis--                       2002                       Mid Rise      106      17      16.0%     $1,513        $1,964                    None
                            2   /   Archstone Annapolis Bay                      2003                       Garden        216      5       2.3%      $1,446        $1,866                    None
                            4   /   Stone Point                                  2006                       Mid Rise      312      6       1.9%      $1,538        $1,815                    None
                                                          Subtotal/Average      2005                                     842                        $1,733        $2,074
                                                     Subtotal/Vacancies (2)                                              842      30       3.6%

                            Market/Affordable
                            6 / Regatta Bay                                      1999         2006          Mid Rise      245      1       0.4%      $1,332        $1,741           Reduced Rent on 2 BR: $1525
                            7 / 1901 West                                        2006                       Mid Rise      262      14      5.3%      $1,510        $1,735                  1 month free
                            5 / Contre Lubrano                                   2004                       Low-Rise       70      1       1.4%      $1,265        $1,734                      None
                            8 / Watergate Village                                1961         2005         Mix/Garden     608      12      2.0%      $1,291        $1,570                      None
                            11 / Spa Cove Apartments                             1963         2001           Garden       242      3       1.2%      $1,316        $1,563                      None
                            10 / North Green                                     1978                        Garden        84      0       0.0%      $1,344        $1,528                      none
                            9 / Harbour Gates                                    1991         2000           Garden       486      11      2.3%      $1,232        $1,497                      None
                            13 / Westwinds Apartments                            1986                        Garden       210      6       2.9%      $1,184        $1,435                      None
                            12 / West Woods                                                   2009           Garden        57      4       7.0%      $1,170        $1,424                      None
                            14 / Oakland Hills                                   1972         2000           Garden       136      3       2.2%      $1,304        $1,404           Reduced Rates on Select Units
                            16 / Annapolis Roads                                 1973         1990           Garden       290      14      4.8%      $1,245        $1,400                      None
                            15 / Bayshore Landing                                1984                        Garden       158      7       4.4%      $1,153        $1,370                      None
 77




                            17 / Bay Hills                                       1970                        Garden       120      na        na      $1,159        $1,339                      None
                            20 / Admiral Farragut                                                            Garden       289      1       0.3%       $975         $1,250                      None
                            18 / Forest Hills                                    1963                        Garden       153      1       0.7%      $1,070        $1,242                      None
                            19 / Reserve at Quiet Waters                         1978         2007           Garden       237      0       0.0%       $949         $1,144                      None
                            22 / Bay Forest--**                                  1998                       Mid Rise      120      5       4.2%       $850         $1,025                      None
                            21 / The Enclave                                     1968         2007           Garden        20      0       0.0%        --           $975                       None
                            23 / Admiral Oaks%%++                                             2009         Garden / TH     79      17      21.5%       --           $933                       None
                            24 / Victoria Park at Edgewater**--                  2006                       Low-Rise      102      0       0.0%       $447          $921                       None
                            26 / Homes at the Glen**                                                                       56       0       0.0%      $682          $844                       None
                            25 / Allen Apartments                                1983         2006           Garden       102       0       0.0%      $715          $815                       None
                                                          Subtotal/Average      1982         2004                        4,126                      $1,110        $1,313
                                                    Subtotal/Vacancies (2)                                               4,006    100      2.5%
                                                    Stabilized Communities                                               3,927    83       2.1%

                                                                 Annapolis      1987         2004                        4,968                       $1,214       $1,430
RealPropertyResearch




                                                    Annapolis Vacancies (2)                                              4,848    130      3.3%
                                                    Stabilized Communities                                               4,769    113      2.4%

                            (++) Communities in Initial Lease-Up or under renovation (--) Age Restricted Senior Communities            (**) LIHTC or other Affordable Communities
                            (%%) Mixed Income Communities (Market/Affordable and Subsidized Units) - Only Affordable or Market units shown on this table

                            (1) Rent is street or advertised rent, and is not adjusted for utilities or incentives
                            (2) Vacancy rate for communities providing vacancy data
                    Group




                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
#      Subsidized                              #   Upper Tier

    27 Bates Heritage Park                      1 Mariner Bay at Annapolis Towne Center
    28 Bloomsbury Square                        2 Archstone Annapolis Bay
    29 Bay Ridge                                3 Gardens of Annapolis
    30 Woodside Garden                          4 Stone Point
                                                                                                                   #
                                                                                                                   #
                                                                                                                   14
    31 Timothy House & Gardens                                                                                #
                                                                                                              #
                                                                                                              17

    32 Claiborne Place
    33 Bywater Townhomes                                                                                                  #
                                                                                                                          #
                                                                                                                          34
    34 College Parkway Place
    35 Langton Green
    36 Annapolis Gardens / Bowman Court
    37 Obery Court and College Creek                                                                                                       %
                                                                                                                                           &179

    38 Eastport Terrace
    39 Harbour House
    40 Robinwood
    41 Newtowne
                                                              Annapolis
    42 Glenwood
    43 Admiral Oaks                                                                                     %
                                                                                                        &
                                                                                                        450




                                                                           #
                                                                           $
                                                                           70

                                                                #
                                                                #
                                                                9
                                           #
                                           #4
                                       6
                                       6
                                           #
                                           #
                                            #
                                            #5                        #
                                                                      #
                                                                      43

                               -
                               .301                     +
                                                        ,50

                                                                         #
                                                                         #
                                                                                36
                                                                                36
                                                                                                37 31
                                                                                                37 31


                                                                                                # %
                                                                                                 # &
                                                          #
                                                          #
                                                          1
                                                                         #
                                                                         #                     # ##
                                                                                                  #
                                                                                               # #28436
                                                                                               42
                                                    #
                                                    #
                                                    #
                                                    #
                                                    12
                                                                #
                                                                         7
                                                                #
                                                                25
                                                                              #
                                                                              #
                                                                              27
                                                   32
                                                   32
                                                                  % 13 # 15
                                                                  & 13 # 15
                                                                     665

                                                                              #
                                                                              ##
                                                                               #
                                                                                                                    #       Market/Affordable
                                                                  #
                                                                  #
                                                                  33           21

                                                                        2 #
                                                                      ## # # # #
                                                                      ## # # # #
                                                                          26                                             5 Contre Lubrano
                                                                         #     20   11 39   8
                                                                        #
                                                                        #              #
                                                                                       #                                 6 Regatta Bay
                                                                     41
                                                                     41   30
                                                                           30  ##10
                                                                                        38
                                                                                         38                              7 1901 West
                                                                                                                         8 Watergate Village
                                                                                      # #
                                                                                      # #
                                                                                        1840
                                                                                                    ##
                                                                                                    ##
                                                                                                     3
                                                                                                       16
                                                                                                                         9 Harbour Gates

                                           !
                                           "
                                           2                                               ##
                                                                                          ## 22
                                                                                           19 29
                                                                                                 ##
                                                                                                                        10 North Green
                                                                                                                        11 Spa Cove
                                                                                                                        12 West Woods
                                                                                                 #
                                                                                                 #
                                                                                                 35
                                                                                                                        13 Westwinds
                                                                                                                        14 Oakland Hills
                                                                                                                        15 Bayshore Landing
                               #
                               #
                               24
                                                                                                                        16 Annapolis Roads
                                                                                                                        17 Bay Hills
                                                                                                                        18 Forest Hills
                                                                                                                        19 Reserve at Quiet Waters
                                                                                                                        20 Admiral Farragut

                                           %
                                           &
                                           214                                                                          21 Enclave, The
                                                                                                                        22 Bay Forest
                                                                                                                        23 Admiral Oaks
                                                                                                                        24 Victoria Park at Edgewater
                                                                                                                        25 Allen Apartments
                                                                                                                        26 Homes at the Glen

                                                                     Map 8
                                                                Rental Inventory
                                                              Annapolis Submarket
                                                          Anne Arundel County, Maryland
mixed income, offering both affordable units as well as units with project based rental
assistance. The subsidized units at mixed-income properties are accounted for in the
analysis of subsidized units.


Four of the Annapolis communities are classified as upper tier. These upper tier
communities were placed in service between 2002 and 2009.               The upper tier
properties include Gardens of Annapolis, a senior market rate rental community. One
of the four properties is comprised of garden apartment units while the rest are in mid-
rise, elevator-served structures. Combined, the upper tier communities include 842
units or twenty percent of the Annapolis submarket inventory.


Overall, the four upper tier communities report a combined market average vacancy
rate of 3.6 percent. Only Gardens of Annapolis has an elevated vacancy rate of 16
percent. Based on previous RPRG surveys, that community had vacancy rates of
less than one percent in 2007 and early 2008. On the whole, market rate senior
properties in particular were hit especially hard in the recession as they are greatly
                                                                o
dependent on the ability of seniors to sell their homes to move t the community.
That process became increasingly difficult with the crash in the for sale housing
market.


The 22 market/affordable communities in the Annapolis submarket have an average
year built of 1982, or 23 years older than the average year built at upper tier
communities, which is 2005.        Major rehabilitations were reported at half of the
properties.   The average year of rehabilitation is 2004.       The market/affordable
communities offer units in a variety of configurations, including garden, townhouse,
low-rise and mid-rise buildings.


The stabilized vacancy rate for the market/affordable units in the Annapolis submarket
is 2.1 percent. One property, Admiral Oaks, is classified as unstabilized as it is
undergoing renovations and is keeping many units offline. The stabilized vacancy
rate for the submarket as a whole, including upper tier and market/affordable
communities, is a low 2.4 percent.        Only four of the 26 properties are offering
incentives, another sign of a strong, healthy rental market.



                                     79                           RealPropertyResearchGroup
One half of the Annapolis upper tier communities are one-bedroom units. Two-
bedroom units account for 45 percent of the upper tier inventory while three-bedroom
units account for just 5 percent (Table 21). The average effective rent for an upper
tier one-bedroom unit in the Annapolis submarket is $1,747 for an average 901
square feet or $1.94 per square foot. Upper tier two-bedroom units average $2,094
for an average 1,157 square feet or $1.81 per square foot. Three-bedroom units rent
for an average $2,361 (net) for 1,430 square feet or $1.65 per square foot.


Among market/affordable units in the Annapolis submarket, more than half are two-
bedroom units (55 percent), 40 percent are one-bedroom units and five percent are
three-bedroom units. The average effective rent for a market/affordable one-bedroom
unit in the Annapolis submarket is $1,109 or 63 percent of the average upper tier one
bedroom rent. The average one-bedroom unit size is 710 square feet, renting for an
average $1.56 per square foot. Market/affordable two-bedroom units rent for an
average $1,311, or 63 percent of upper tier average two-bedroom rent.
Market/affordable two-bedroom units are an average 947 square feet with an average
per square foot rent of $1.38. Three- bedroom units rent for an average $1,526 for
1,162 square feet at $1.31 per square foot.


Figure 7 presents a graphic comparison of the effective one-, two-, and three-
bedroom rents within the Annapolis submarket by community. The communities are
sorted based upon effective two-bedroom rents, with the community with the lowest-
rent two-bedroom unit, Homes at the Glen, at the bottom of the graph and the
community with the highest two-bedroom unit rent, Mariner Bay at Annapolis Towne
Center, at the top of the graph. The graph helps to further illustrate that aside from
Mariner Bay, the outlier price leader in the market, there is not a large distinction
between achievable rents at upper tier communities and the high end of the
market/affordable communities.


As shown by the red, vertical dotted lines on Figure 7, only four of the 26 properties
have average two-bedroom rents that are below the 60 percent AMI two-bedroom
maximum rent, and only one of these average two-bedroom rents is also below the 50
percent AMI maximum rent. On the opposite end of the rent spectrum, seventeen



                                    80                           RealPropertyResearchGroup
                            TABLE 21 Multifamily Rental Communities - Salient Characteristics
                            Annapolis

                                                                                          Community Data                     One Bedroom Units                             Two Bedroom Units                     Three Bedroom Units
                                                                                                                            Effective                                      Effective                             Effective
                                                                                         Type        Total Units   Units                    SF           Rent/SF   Units                SF     Rent/SF   Units                SF       Rent/SF
                            Map ID/ Community                                                                               Rent(1)                                        Rent(1)                               Rent(1)
                            Upper Tier Communities
                            1   /   Mariner Bay at Annapolis Towne Center               Mid Rise        208          na      $2,477        1,195          $2.07      na     $2,702     1,426    $1.90     na       $3,024    1,505      $2.01
                            2   /   Archstone Annapolis Bay                             Garden          216         126      $1,489         794           $1.87     70      $1,919     1,088    $1.76     20       $1,904    1,405      $1.35
                            3   /   Gardens of Annapolis--                              Mid Rise        106         40       $1,457         713           $2.04     66      $1,903      926     $2.06     --         --        --         --
                            4   /   Stone Point                                         Mid Rise        312         152      $1,566         904           $1.73     150     $1,853     1,190    $1.56     10       $2,154    1,381      $1.56
                                                                 Subtotal/Average                       842                  $1,747         901           $1.94             $2,094     1,157    $1.81              $2,361    1,430      $1.65
                                                                   Unit Distribution                    634         318                                             286                                   30
                                                                          % of Total                   75.3%       50.2%                                           45.1%                                 4.7%

                            Market/Affordable
                            5 / Contre Lubrano                                          Low-Rise         70          na      $1,293         656           $1.97      na     $1,772     1,317    $1.35     --        --         --         --
                            6 / Regatta Bay                                             Mid Rise        245         127      $1,360         646           $2.11     118     $1,641     1,005    $1.63     --        --         --         --
                            7 / 1901 West                                               Mid Rise        262         153      $1,413         780           $1.81     101     $1,629     1,174    $1.39      8      $2,131     1,300      $1.64
                            8 / Watergate Village                                      Mix/Garden       608          na      $1,274         662           $1.93      na     $1,547      857     $1.80     na      $1,831     1,054      $1.74
                            9 / Harbour Gates                                            Garden         486         208      $1,260         671           $1.88     220     $1,535      943     $1.63     32      $1,750     1,010      $1.73
                            10 / North Green                                             Garden          84         36       $1,318        1,002          $1.32     48      $1,505     1,240    $1.21     --        --         --         --
                            11 / Spa Cove Apartments                                     Garden         242          na      $1,261         853           $1.48      na     $1,494      993     $1.50     na      $1,718     1,349      $1.27
                            12 / West Woods                                              Garden          57          na      $1,213         820           $1.48      na     $1,477     1,211    $1.22     --        --         --         --
                            13 / Westwinds Apartments                                    Garden         210          51      $1,212         712           $1.70     159     $1,473      923     $1.60     --        --         --         --
                            14 / Oakland Hills                                           Garden         136         58       $1,332         840           $1.59     78      $1,442      950     $1.52     --        --         --         --
                            15 / Bayshore Landing                                        Garden         158          na      $1,196         657           $1.82      na     $1,423      871     $1.63     --        --         --         --
                            16 / Annapolis Roads                                         Garden         290         100      $1,227         800           $1.53     178     $1,381     1,080    $1.28     12      $1,590     1,325      $1.20
                            17 / Bay Hills                                               Garden         120         47       $1,187         873           $1.36     73      $1,377     1,024    $1.34     --        --         --         --
                            18 / Forest Hills                                            Garden         153         49       $1,058         747           $1.42     87      $1,226      886     $1.38     17      $1,405     1,030      $1.36
                            19 / Reserve at Quiet Waters                                 Garden         237          74       $977          516           $1.89     163     $1,182      785     $1.51     --        --         --         --
                            20 / Admiral Farragut                                        Garden         289          na       $920          600           $1.53      na     $1,182      780     $1.51     na      $1,263     1,000      $1.26
                            21 / Enclave, The                                            Garden          20          --        --            --             --      na      $1,028      660     $1.56     --        --         --         --
 81




                            22 / Bay Forest--**                                         Mid Rise        120         90        $795          556           $1.43     30       $957       815     $1.17     --        --         --         --
                            23 / Admiral Oaks%%                                        Garden / TH       79          --        --            --             --      52       $933       845     $1.10     21      $1,086     1,080      $1.01
                            24 / Victoria Park at Edgewater**--                         Low-Rise        102          28       $447          650           $0.69      74      $921       908     $1.01     --        --         --         --
                            25 / Allen Apartments                                        Garden         102          34       $758          500           $1.52      68      $868       800     $1.09     --        --         --         --
                            26 / Homes at the Glen**                                   Townhouse         56           2       $682          652           $1.05       2      $844       776     $1.09     52       $958      1,307      $0.73
                                                               Subtotal/Average                        4,126                 $1,109         710           $1.56             $1,311      947     $1.38             $1,526     1,162      $1.31
                                                                Unit Distribution                      2,650       1,057                                           1,451                                  142
                                                                      % of Total                       64.2%       39.9%                                           54.8%                                 5.4%

                                                                         Annapolis                     4,968                 $1,215         742           $1.64             $1,431     980      $1.46             $1,734     1,229      $1.41
                                                                  Unit Distribution                    3,284       1,375                                           1,737                                  172
                                                                        % of Total                     66.1%       41.9%                                           52.9%                                 5.2%

                            (--) Age Restricted Senior Communities      (**) LIHTC or other Affordable Communities
                            (%%) Mixed Income Communities (Subsidized and Affordable or Market Units) - Only Affordable or Market units shown on this table

                            (1) Rent is adjusted to include only water/sewer and trash removal utilities, and to account for current rental incentives
RealPropertyResearch




                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
                    Group
    FIGURE 7 Range of Net 1, 2, and 3 Bedroom Rents
    Annapolis
1 / Mariner Bay at Annapolis Towne Center

             2 / Archstone Annapolis Bay

               3 / Gardens of Annapolis--                                                                                                              Upper Tier
                          4 / Stone Point

                      5 / Contre Lubrano

                         6 / Regatta Bay                                                                                                            Market/Affordable
                          7 / 1901 West

                    8 / Watergate Village

                       9 / Harbour Gates

                        10 / North Green

               11 / Spa Cove Apartments

                        12 / West Woods

              13 / Westwinds Apartments

                       14 / Oakland Hills

                   15 / Bayshore Landing

                    16 / Annapolis Roads

                           17 / Bay Hills

                         18 / Forest Hills

             19 / Reserve at Quiet Waters

                   20 / Admiral Farragut                                                                                                                           1 to 2 Bedroom
                        21 / Enclave, The                                                                                                                          2 to 3 Bedroom
                                                                                                                                                                   Series4
                     22 / Bay Forest--**
                                                                                                                                                             Series5
                  23 / Admiral Oaks%%
                                                                                                                                              Market Rate Community
      24 / Victoria Park at Edgewater**--
                                                                                                                                              Affordable Community
                   25 / Allen Apartments
                                                                                                                                              Maximum Net Rent for 2 bedroom Unit at
                26 / Homes at the Glen**                                                                                                      AMI level


                                         $400   $600      $800        $1,000   $1,200   $1,400     $1,600     $1,800   $2,000   $2,200   $2,400     $2,600      $2,800       $3,000    $3,200

                                                                                                            Rent
   Source: Real Property Research Group, Inc. August-September 2010

   NOTE: (--) Age Restricted Senior Communities / (**) LIHTC Communities / (%%) Mixed Income Communities
properties have average two-bedroom rents that exceed the 80% AMI maximum two-
bedroom rent. That so few properties fall in the 60 to 80 percent AMI range illustrates
the dearth of moderate rent units in the Annapolis submarket.


       2.      Glen Burnie Submarket

Within the Glen Burnie submarket, 19 unsubsidized multifamily communities with 20
or more units were identified.      Eighteen of the communities serve a general
occupancy tenant base, while one is restricted to senior renter households (Table 22,
Map 9). The senior property, Park View at Furnace Branch, is also an affordable tax
credit community. Overall, seventeen properties are market rate and two are
affordable.


Only two properties, accounting for 18 percent of the market’s inventory, have been
classified as upper tier properties; Regency Club and Coves at Chesapeake. Both
properties were originally placed in service in the 1980s. The Coves at Chesapeake
is a townhouse property that began renovations in 2008 following a change in
ownership. Regency Club offers both townhouses and garden units.


The market/affordable inventory is dominated by garden apartment communities,
while two properties are mid-rise, elevator-served buildings. One of these is Park
View at Furnace Branch, the affordable age-restricted property. The second is Glen
Burnie Town Apartments, which is located in downtown Glen Burnie. While not age-
restricted, it naturally attracts a significant proportion of older households due to the
elevator service. These two elevator-served properties are the newest properties in
the submarket, built in 2000 and 2003. The remaining market/affordable communities
were built between 1954 and 1976. The average year built for the market/affordable
communities is 1970.      Nine properties reported major renovations taking place
between 1985 and 2007, for an average year renovated of 2000.


The market average vacancy rate for the Glen Burnie submarket is 5.6 percent. The
upper tier vacancy rate is a low 2.4 percent, while the vacancy rate for the
market/affordable communities is slightly elevated at 6.3 percent.          The highest




                                     83                            RealPropertyResearchGroup
                            TABLE 22 Multifamily Rental Communities Summary
                            Glen Burnie

                                                                                               Community Data                   Availablity                               Published Rent (1)
                                                                                Year         Year         Structure   Total   Vacant   Vacancy   Average      Average
                            Map ID/ Community                                   Built       Rehab           Type      Units    Units    Rate     1BR Rent     2BR Rent                       Incentive
                            Upper Tier Communities
                            2 / Regency Club                                    1986                      Garden/TH    316       5      1.6%         --         $1,233                          None
                            1 / Coves at Chesapeake                             1982         2008         Townhouse    465      14      3.0%         --         $1,228                          None
                                                     Subtotal/Average          1984                                   781                           --          $1,231
                                                Subtotal/Vacancies (2)                                                781      19       2.4%

                             Market/Affordable
                            3 / Lynn Hill Apartments                            1962         1995          Garden      240      na        na       $999         $1,231                          None
                            5 / Glen Burnie Town Apartments                     2000                       Mid Rise     54       5       9.3%     $1,105        $1,187                   1 month free rent.
                            8 / Gatewater Landing                               1971         2006          Garden      264      13       4.9%      $808         $1,107                          None
                            9 / Stagecoach                                      1965                       Garden      186     19       10.2%      $911         $1,081             1 month free if 13 month lease.
                            4 / Colonial Square                                 1967                       Garden      247      na        na       $911         $1,079                          None
                            7 / Americana Southdale                             1966                       Garden      506      35       6.9%      $944         $1,069                          None
                            13 / Oakridge Manor                                 1960         1987          Garden      165      7        4.2%      $901         $1,054               $150 off rent for 2 BR units
                            6 / Aquahart Manor                                  1961         1985          Garden      124      0        0.0%      $875         $1,050                          None
                            11 / Twin Coves                                     1976                       Garden      132      2       1.5%       $967         $1,024                          None
                            12 / Park View at Furnace Branch--**                2003                       Mid Rise    100       1       1.0%      $683          $997                           None
                            10 / Glen Ridge                                     1965         2007          Garden      286     14       4.9%       $859          $982                           None
                            14 / Crain Court                                    1966         2004          Garden      126      13      10.3%      $864          $949               Reduced rents on select units
                            15 / Cedar Creek                                    1975         2007          Garden      334      7       2.1%       $800          $938                       1 month free
                            19 / Woodcrest Apartments                           1965                       Garden      352      7        2.0%      $820          $923               1 mo. Free if 13 month lease.
                            17 / Country Club                                   1964                       Garden      150      4       2.7%       $784          $894                           None
                            18 / Willows Apartments                             1969         2008          Garden      352      11       3.1%      $810          $887                   $600 off Sept. rent.
                            16 / Villages at Marley Station**                   1954         1997          Garden      757     105      13.9%      $700          $887                           None
 84




                                                     Subtotal/Average          1970         2000                      4,375                        $867         $1,020
                                                Subtotal/Vacancies (2)                                                3,888    243      6.3%

                                                            Glen Burnie        1971         2000                      5,156                        $867        $1,042
                                                  Glen Burnie Vacancies                                               4,669    262      5.6%

                            (++) Communities in Initial Lease-Up or under renovation(--) Age Restricted Senior Communities           (**) LIHTC or other Affordable Communities
                            (%%) Mixed Income Communities (Market/Affordable and Subsidized Units) - Only Affordable or Market units shown on this table

                            (1) Rent is street or advertised rent, and is not adjusted for utilities or incentives
                            (2) Vacancy rate for communities providing vacancy data

                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
RealPropertyResearchGroup
                                                      #       Upper Tier                   #         Subsidized            #       Market/Affordable

                                                          1 Coves at Chesapeake                20 Arundel Woods Senior          3 Lynn Hill
                                                          2 Regency Club                       21 Oakleaf Village               4 Colonial Square
                                                                                               22 Freetown Village              5 Glen Burnie Town Apts
                  Baltimore County
                                                                                               23 Pinewood Village              6 Aquahart Manor
                                                                                                  Burwood Gardens
                                                                                               24 Baltimore City                7 Americana Southdale
                                                                                               25 Glen Square                   8 Gatewater Landing
                                                                                                                                9 Stagecoach

                           &
                           %168
                                                                                                                               10 Glen Ridge
                                                                                                                               11 Twin Coves
                                                                        "
                                                                        !   2
                                                                                                                               12 Park View at Furnace Branch
                                                                                                                               13 Oakridge Manor
                                                                                                                               14 Crain Court

                                        #
                                        #
                                        3                                                                                      15 Cedar Creek
                                                                                                                               16 Villages at Marley Station

%
&                                       6
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                                                                       18
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                                                                                                                               17 Country Club
                                                                                                                               18 Willows Apts
                                                           2#
                                                          ## 19
                                                          ## 19
                                                            #
                                                                                                                               19 Woodcrest Apts

                                                      #
                                                      #   1
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                                                            #
                                                                                                                      Glen Burnie-Marley Neck
                                                                  20
    5
    6 195
                                                                  20

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            Odenton-Crofton                                                                                        &
                                                                                                                   %100



                                            "
                                            ! 3               Severna Park-Mountain Rd



                                                                                                                                           %
                                                                                                                                           &  648




                                                                Map 9
                                                           Rental Inventory
                                                  Glen Burnie-Marley Neck Submarket
                                                    Anne Arundel County, Maryland
vacancy rate in this submarket is 13.9 percent at Villages at Marley Station, a
property that was renovated using tax credits. This is also the largest property in the
submarket with 757 units. Given the price position and the performance of the rest of
the market, it is reasonable to assume non-market issues are at play at this
community.    Seven of the seventeen market/affordable communities are offering
some type of rent special or concession.


Approximately 60 percent of the upper tier units in Glen Burnie are two-bedroom
units, while nearly 40 percent are three-bedroom units (there are no one-bedroom
units in the upper tier) (Table 23).     The average net rent for an upper tier two-
bedroom unit in the Glen Burnie submarket is $1,250 for an average 914 square feet
or $1.37 per square foot. Upper tier three-bedroom units average $1,416 for an
average 1,134 square feet or $1.25 per square foot.


Among market/affordable units in the Glen Burnie submarket, two-bedroom units
comprise 53 percent of the inventory, while one-bedroom units are 42 percent and
three-bedroom units make up five percent of the distribution. The average net rent for
a market/affordable one-bedroom unit in the Glen Burnie submarket is $843 for an
average 644 square feet, or an average $1.31 per square foot.           Market/affordable
two-bedroom units rent for an average $986, or 79 percent of the upper tier two-
bedroom average rent. Market/affordable two-bedroom units are an average 826
square feet with an average per square foot rent of $1.19. Three-bedroom units rent
for an average $1,168 for 954 square feet or $1.22 per square foot.


Figure 8 presents a graphic comparison of the effective one-, two-, and three-
bedroom rents within the Glen Burnie submarket by community. The communities
are sorted based upon effective two-bedroom rents, with the community with the
lowest-rent community, Woodcrest Apartments, at the bottom of the graph and the
community with the highest two-bedroom unit rent, Coves at Chesapeake, at the top
of the graph. As in the Annapolis submarket, there is no great distinction between the
upper tier rents and the high end of the market/affordable rents.


In the Glen Burnie submarket, eight properties have average two-bedroom rents that



                                    86                              RealPropertyResearchGroup
                            TABLE 23 Multifamily Rental Communities - Salient Characteristics
                            Glen Burnie

                                                                       Community Data                               One Bedroom Units                            Two Bedroom Units                     Three Bedroom Units
                                                                                                                   Effective                                     Effective                             Effective
                                                                      Type         Total Units       Units                      SF      Rent/SF          Units                SF     Rent/SF   Units                SF       Rent/SF
                            Map ID/ Community                                                                      Rent(1)                                       Rent(1)                               Rent(1)
                            Upper Tier Communities
                            1 / Coves at Chesapeake                 Townhouse          465             --             --        --         --             240     $1,266     927      $1.37     225     $1,347     1,053      $1.28
                            2 / Regency Club                        Garden/TH          316             --             --        --         --             237     $1,233     902      $1.37      79     $1,485     1,215      $1.22
                                              Subtotal/Average                         781             --             --        --         --                     $1,250     914      $1.37             $1,416     1,134      $1.25
                                               Unit Distribution                       781             --                                                 477                                   304
                                                     % of Total                      100.0%            --                                                61.1%                                 38.9%

                            Market/Affordable
                            3 / Lynn Hill Apartments                 Garden            240            121            $944      750       $1.26            119     $1,163      950     $1.22      --       --         --         --
                            4 / Colonial Square                      Garden            247            135            $939      600       $1.57            108     $1,117      805     $1.39      4      $1,326      932       $1.42
                            5 / Glen Burnie Town Apartments          Mid Rise           54             30           $1,013     702       $1.44             21     $1,089     1,012    $1.08      3      $1,205     1,021      $1.18
                            6 / Aquahart Manor                       Garden            124             68            $875      585       $1.50             32     $1,050      775     $1.35      --       --         --         --
                            7 / Americana Southdale                  Garden            506            126            $944      682       $1.38            279     $1,046      864     $1.21     101     $1,266     1,089      $1.16
                            8 / Gatewater Landing                    Garden            264            109            $753      703       $1.07            155     $1,039      893     $1.16      --       --         --         --
                            9 / Stagecoach                           Garden            186             90            $869      613       $1.42             96     $1,037      755     $1.37      --       --         --         --
                            10 / Glen Ridge                          Garden            286             na            $902      725       $1.24             na     $1,035      919     $1.13      --       --         --         --
                            11 / Twin Coves                          Garden            132             49            $937      662       $1.41             80     $1,024      800     $1.28      3      $1,224      880       $1.39
                            12 / Park View at Furnace Branch--**     Mid Rise          100             77            $694      697       $1.00             23      $997       907     $1.10      --       --         --         --
                            13 / Oakridge Manor                      Garden            165             45            $929      515       $1.80            106      $967       660     $1.47     14      $1,302      780       $1.67
                            14 / Crain Court                         Garden            126             63            $847      566       $1.50             63      $926       657     $1.41      --       --         --         --
                            15 / Cedar Creek                         Garden            334             na            $762      703       $1.08             na      $898       937     $0.96      --       --         --         --
                            16 / Villages at Marley Station**        Garden            757             na            $700      502       $1.39             na      $887       776     $1.14      na     $1,130      978       $1.16
                            17 / Country Club                        Garden            150             20            $767      650       $1.18            125      $871       750     $1.16      --       --         --         --
                            18 / Willows Apartments                  Garden            352             na            $760      664       $1.14             na      $837       761     $1.10      na     $1,007      917       $1.10
                            19 / Woodcrest Apartments                Garden            352            167            $703      626       $1.12            170      $784       817     $0.96     15       $883      1,035      $0.85
 87




                                               Subtotal/Average                       4,375                         $843       644       $1.31                    $986       826      $1.19             $1,168     954        $1.22
                                                Unit Distribution                     2,617         1,100                                                1,377                                  140
                                                       % of Total                     59.8%         42.0%                                                52.6%                                 5.3%

                                                    Glen Burnie                       5,156                          $843      644       $1.31                    $1,014     835      $1.22             $1,217      990       1.23
                                               Unit Distribution                      3,398         1,100                                                1,854                                  444
                                                     % of Total                       65.9%         32.4%                                                54.6%                                 13.1%

                            (--) Age Restricted Senior Commun(**) LIHTC or other Affordable Communities
                            (%%) Mixed Income Communities (Subsidized and Affordable or Market Units) - Only Affordable or Market units shown on this table

                            (1) Rent is adjusted to include only water/sewer and trash removal utilities, and to account for current rental incentives

                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
RealPropertyResearchGroup
FIGURE 8 Range of Net 1, 2, and 3 Bedroom Rents
Glen Burnie

              1 / Coves at Chesapeake

                                                                  Upper Tier
                       2 / Regency Club


               3 / Lynn Hill Apartments
                                                             Market/Affordable

                     4 / Colonial Square


     5 / Glen Burnie Town Apartments


                    6 / Aquahart Manor


              7 / Americana Southdale


                 8 / Gatewater Landing


                         9 / Stagecoach


                        10 / Glen Ridge


                        11 / Twin Coves


 12 / Park View at Furnace Branch--**


                   13 / Oakridge Manor                                                                                                                                      1 to 2 Bedroom

                                                                                                                                                                            2 to 3 Bedroom
                        14 / Crain Court


                       15 / Cedar Creek
                                                                                                                                                             Market Rate Community

     16 / Villages at Marley Station**                                                                                                                       Affordable Community

                                                                                                                                                     Maximum Net Rent for 2 bedroom Unit at
                      17 / Country Club                                                                                                              AMI level



              18 / Willows Apartments


           19 / Woodcrest Apartments


                                          $400             $500            $600           $700            $800   $900   $1,000   $1,100   $1,200   $1,300          $1,400           $1,500    $1,600
                                                                                                                          Rent

  Source: Real Property Research Group, Inc. August-September 2010

  NOTE: (--) Age Restricted Senior Communities / (**) LIHTC Communities / (%%) Mixed Income Communities
fall below the maximum two-bedroom rent limit for 60 percent AMI. Of these, only
one has a two-bedroom average rent below the 50 percent AMI limit. At the opposite
end of the spectrum, none of the properties has average two-bedroom rents that
exceed the 80 percent AMI limit, evidence that this submarket is comprised mainly of
moderate rent units.


       3.      Severna Park Submarket

Within the Severna Park submarket, we identified and surveyed a total of 16
unsubsidized      multifamily    communities      with    20     or     more        units.
Fifteen of the communities are general occupancy, while one is an age restricted, tax
credit community (Table 24, Map 10). One of the general occupancy properties,
Glenview Garden, is affordable under the Section 236 program, and also has some
subsidized units under the Section 8 program.


Three communities are classified as the upper tier of the Severna Park submarket.
The upper tier communities encompass 919 units or 19 percent of the total 4,948
units in the submarket. The newest community is The Islands of Fox Chase, which
was placed in service in 2004. The property originally opened as an age-restricted
property, but this restriction has been lifted and the property is now general
occupancy. Marley Run opened in 1991, and Berkshires at Harpers Mill was placed
in service in 1975 and was renovated in 2005. Of the three upper tier properties in
this submarket, Marley Run is garden style, Islands of Fox Chase is a mix of garden
style buildings and mid-rise, elevator-served buildings, and Berkshires at Harpers Mill
is a combination of garden and townhouse units.


Among the market/affordable communities, the general occupancy properties were
placed in service between 1965 and 1985, while the one senior property, Glen Forest
Senior, opened in 2000. Only one property reported undergoing major renovations
since opening. The average year built of the market/affordable properties in the
submarket is 1977. Most of these properties are garden style apartments, while two
offer a combination of garden and townhouse units, and the one senior property is a
mid-rise, elevator served building.




                                      89                         RealPropertyResearchGroup
                            TABLE 24 Multifamily Rental Communities Summary
                            Severna Park

                                                                                                Community Data                     Availablity                        Published Rent (1)
                                                                                  Year         Year    Structure        Total   Vacant Vacancy Average         Average
                            Map ID/ Community                                     Built       Rehab      Type           Units    Units     Rate 1BR Rent      2BR Rent                Incentive
                            Upper Tier Communities
                            1 / Marley Run                                        1991                       Garden      336     12      3.6%       $1,236      $1,526                      None
                            2 / Islands of Fox Chase, The                         2004                         Mix       223      4      1.8%       $1,405      $1,521                      None
                            3 / Berkshires at Harpers Mill                        1975         2005         Garden/TH    360      3      0.8%       $1,096      $1,291                      None
                                                        Subtotal/Average         1990                                   919                        $1,246       $1,446
                                                   Subtotal/Vacancies (2)                                               919      19      2.1%

                             Market/Affordable
                            4 / Chesapeake Glen                                   1979         2009          Garden      796     32      4.0%       $1,102      $1,272                       None
                            5 / Quail Hollow                                      1973                       Garden      336      2      0.6%        $915       $1,203                       None
                            6 / Glen Mar                                          1965                       Garden      176     3       1.7%        $889       $1,103                       None
                            10 / Southgate                                        1967                      Garden/TH    515     28      5.4%        $865       $1,063          1st month free on 2 BR gardens
                            8 / Mountain Ridge                                    1985                       Garden      240     na       na         $920       $1,050                    $25/mo off
                            7 / Mill Pond                                         1984                       Garden      240     5       2.1%        $989       $1,047                       None
                            9 / Hidden Woods                                      1974                       Garden      492     na       na         $863        $998                        None
                            14 / Tall Pines                                       1976                       Garden      276     na        na        $864        $995                   $50/month off.
                            11 / Village Square                                   1968                      Garden/TH    370     15      4.1%        $895        $983                        None
                            15 / Glen Forest Senior--**                           2000                       Mid Rise    100      0      0.0%        $794        $959                        None
                            12 / Windbrooke                                       1976                       Garden      186     na       na         $831        $955                        None
                            13 / Rainbow View                                     1978                       Garden      156     na        na        $844        $955                        None
                            16 / Glenview Garden%%                                1971                       Garden      146     10      6.8%        $583        $646                        None
                                                        Subtotal/Average         1977           na                      4,029                       $873        $1,018
                                                   Subtotal/Vacancies (2)                                               2,679    95      3.5%
 90




                                                           Severna Park          1979          2007                     4,948                       $943       $1,098
                                                  Severna Park Vacancies                                                3,598    114     3.2%

                            (++) Communities in Initial Lease-Up or under renovation (--) Age Restricted Senior Communities            (**) LIHTC or other Affordable Communities
                            (%%) Mixed Income Communities (Market/Affordable and Subsidized Units) - Only Affordable or Market units shown on this table


                            (1) Rent is street or advertised rent, and is not adjusted for utilities or incentives
                            (2) Vacancy rate for communities providing vacancy data

                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
RealPropertyResearchGroup
                                        #    Subsidized       #   Upper Tier                 #   Market/Affordable

                                        17 Glenview Garden    1 Marley Run                    4 Chesapeake Glen


                                        %
                                        &
                                                              2 Islands of Fox Chase, The     5 Quail Hollow
                                            270
                                                              3 Berkshires at Harpers Mill    6 Glen Mar
                                                                                              7 Mill Pond
                                                                                              8 Mountain Ridge
                                                                                              9 Hidden Woods
                  Glen Burnie-Marley Neck                                                    10 Southgate
                                                                                             11 Village Square
                                                                                             12 Windbrooke
                                                                                             13 Rainbow View


                                                  $
                                                  #
                                                                                             14 Tall Pines
                                                  10
                                                                                             15 Glen Forest Senior

&
%174                                                                                         16 Glenview Garden


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Odenton-Crofton                                    Severna Park-Mountain Rd




                  3
                  4   97




                                  Annapolis                                                                       !
                                                                                                                  "  2




                                         Map 10
                                     Rental Inventory
                           Severna Park-Mountain Rd Submarket
                              Anne Arundel County, Maryland
The average vacancy rate in the Severna Park submarket is 3.2 percent. The
average vacancy rate among upper tier communities is 2.1 percent, compared with
3.5 percent at market/affordable communities. Three of the thirteen market/affordable
communities are offering some type of rent special or concession; no specials are
offered at upper tier properties.


More than half of the upper tier units in Severna Park (58 percent) are two-bedroom
units, while one-bedroom units account for 27 percent of the stock. Three-bedroom
units comprise 15 percent of the upper tier units (Table 25). The average effective
rent for an upper tier one-bedroom unit in the Severna Park submarket is $1,284 for
an average 891 square feet or $1.44 per square foot. Upper tier two-bedroom units
average $1,494 for an average 1,048 square feet or $1.43 per square foot. Three-
bedroom units rent for an average $1,585 for 1,193 square feet or $1.33 per square
foot.


Among market/affordable units in the Severna Park submarket, one- and two-
bedroom units each comprise nearly 48 percent of the inventory, while three-bedroom
units comprise less than five percent of the distribution. The average effective rent for
a market/affordable one-bedroom unit in the Severna Park submarket is $884 or 69
percent of the average upper tier one-bedroom rent. The average one-bedroom unit
size is 688 square feet, renting for an average $1.28 per square foot.
Market/affordable two-bedroom units rent for an average $1,028, or 69 percent of
upper tier average two-bedroom rent. Market/affordable two-bedroom units are an
average 869 square feet with an average per square foot rent of $1.18. Three-
bedroom units rent for an average $1,253 for 1,046 square feet at $1.20 per square
foot.


Figure 9 presents a graphic comparison of the effective one-, two-, and three-
bedroom rents within the Severna Park submarket by community. The communities
are sorted based upon effective two-bedroom rents, with the community with the
lowest two-bedroom rent community, the affordable Glenview Garden, at the bottom
of the graph and the community with the highest two-bedroom unit rent, Marley Run,




                                    92                             RealPropertyResearchGroup
                            TABLE 25 Multifamily Rental Communities - Salient Characteristics
                            Severna Park

                                                                                Community Data                       One Bedroom Units                           Two Bedroom Units                     Three Bedroom Units
                                                                                                                     Effective                                   Effective                             Effective
                                                                               Type          Total Units     Units                 SF      Rent/SF       Units                SF     Rent/SF   Units                SF       Rent/SF
                            Map ID/ Community                                                                        Rent(1)                                     Rent(1)                               Rent(1)
                            Upper Tier Communities
                            1 / Marley Run                                    Garden              336          190    $1,279       702       $1.82        146     $1,579      977     $1.62     --         --        --         --
                            2 / Islands of Fox Chase, The                     Garden              223           20    $1,433      1,130      $1.27        142     $1,559     1,227    $1.27     61       $1,674    1,368      $1.22
                            3 / Berkshires at Harpers Mill                   Garden/TH            360           38    $1,139       840       $1.36        244     $1,344      940     $1.43     78       $1,496    1,019      $1.47
                                                       Subtotal/Average                          919                  $1,284      891        $1.44                $1,494     1,048    $1.43             $1,585     1,193      $1.33
                                                        Unit Distribution                        919          248                                         532                                   139
                                                              % of Total                       100.0%        27.0%                                       57.9%                                 15.1%

                            Market/Affordable
                            4 / Chesapeake Glen                               Garden             796           310    $1,145      825        $1.39        418     $1,325      930     $1.43     68      $1,484     1,075      $1.38
                            5 / Quail Hollow                                  Garden             336            na     $943       764        $1.23         na     $1,241     1,035    $1.20     --        --         --         --
                            6 / Glen Mar                                      Garden             176            80     $932       688        $1.36         96     $1,156      946     $1.22     --        --         --         --
                            7 / Mill Pond                                     Garden             240            88    $1,032      824        $1.25        128     $1,100      958     $1.15     24      $1,364     1,113      $1.23
                            8 / Mountain Ridge                                Garden             240           144     $923       648        $1.42         96     $1,063      795     $1.34     --        --         --         --
                            9 / Hidden Woods                                  Garden             492           276     $891       757        $1.18        216     $1,036      960     $1.08     --        --         --         --
                            10 / Southgate                                   Garden/TH           515           247     $893       615        $1.45        254     $1,026      862     $1.19     14      $1,311     1,020      $1.29
                            11 / Village Square                              Garden/TH           370           158     $923       600        $1.54        170     $1,021      847     $1.21     42      $1,559     1,190      $1.31
                            12 / Windbrooke                                   Garden             186           120     $859       624        $1.38         54      $993       742     $1.34     --        --         --         --
                            13 / Rainbow View                                 Garden             156            96     $872       625        $1.40         60      $993       742     $1.34     --        --         --         --
                            14 / Tall Pines                                   Garden             276           144     $842       759        $1.11        132      $983       960     $1.02     --        --         --         --
                            15 / Glen Forest Senior--**                       Mid Rise           100            50     $738       564        $1.31         50      $890       803     $1.11     --        --         --         --
                            16 / Glenview Garden%%                            Garden             146            42     $493       648        $0.76         87      $538       718     $0.75     17       $547       832       $0.66
                                                       Subtotal/Average                         4,029                  $884       688        $1.28                $1,028      869     $1.18             $1,253     1,046      $1.20
 93




                                                        Unit Distribution                       3,681        1,755                                       1,761                                  165
                                                              % of Total                        91.4%        47.7%                                       47.8%                                 4.5%

                                                           Severna Park                         4,948                  $959       726        $1.32                $1,115     902      $1.24             $1,348     1,088      $1.24
                                                        Unit Distribution                       4,600        2,003                                       2,293                                  304
                                                              % of Total                        93.0%        43.5%                                       49.8%                                 6.6%

                            (--) Age Restricted Senior Communities (**) LIHTC or other Affordable Communities
                            (%%) Mixed Income Communities (Subsidized and Affordable or Market Units) - Only Affordable or Market units shown on this table

                            (1) Rent is adjusted to include only water/sewer and trash removal utilities, and to account for current rental incentives

                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
RealPropertyResearchGroup
FIGURE 9 Range of Net 1, 2, and 3 Bedroom Rents
Severna Park

                    1 / Marley Run


    2 / Islands of Fox Chase, The
                                                     Upper Tier
    3 / Berkshires at Harpers Mill


              4 / Chesapeake Glen
                                                   Market/Affordable
                  5 / Quail Hollow


                       6 / Glen Mar


                      7 / Mill Pond


               8 / Mountain Ridge


                9 / Hidden Woods


                    10 / Southgate


               11 / Village Square


               13 / Rainbow View
                                                                                                                                                                                                 1 to 2 Bedroom

                  12 / Windbrooke                                                                                                                                                                2 to 3 Bedroom

                    14 / Tall Pines                                                                                                                                             Market Rate Community


      15 / Glen Forest Senior--**                                                                                                                                                Affordable Community
                                                                                                                                                                               Maximum Net Rent for 2 bedroom Unit at
                                                                                                                                                                               AMI level
      19 / Woodcrest Apartments


       16 / Glenview Garden%%

                                     $400   $450   $500   $550   $600   $650   $700   $750   $800   $850   $900   $950 $1,000 $1,050 $1,100 $1,150 $1,200 $1,250 $1,300 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700

                                                                                                                                      Rent

Source: Real Property Research Group, Inc. August-September 2010

NOTE: (--) Age Restricted Senior Communities / (**) LIHTC Communities / (%%) Mixed Income Communities
at the top of the graph. Six of the seventeen properties have average two-bedroom
rents that are below the 60 percent AMI limit, and only two properties have average
two-bedroom rents that are above the 80 percent AMI limit.


       4.      Odenton-Crofton Submarket

Within the Odenton-Crofton submarket, we identified and surveyed a total of 27
market-rate or affordable multifamily communities with 20 or more units (Table 26,
Map 11). Twenty-six properties are general occupancy, while Ashley Apartments is
mainly general occupancy but also offers eight age-restricted units. These units are
included in the subsidized unit analysis of the study. One property, The Groves at
Piney Orchard, offers both market rate and LIHTC units.


Four communities, accounting for 1,304 units or 16 percent of the 8,127 units in the
submarket are classified as upper tier.        These properties were placed in service
between 2005 and 2008. Three of the communities are garden style apartments, and
one is a mid-rise, elevator served building.


Twenty-three properties in the submarket are identified as market/affordable
properties. Fifteen of the communities were built between 1963 and 1979, six were
built between 1991 and 2000, and one was built in 2007 (year built information is not
available for Severn Square). The average year built of market/affordable units is
1978. Seven properties reported renovations taking place between 1995 and 2008.
Most of the market rate/affordable communities are exclusively garden apartments,
while three are exclusively townhouse units, one is a mix of garden and townhouse
units, one is a mid rise building, and one has a combination of walk up buildings and a
mid-rise, elevator served building.


The aggregate vacancy rate for the Odenton-Crofton submarket is 3.3 percent. The
average vacancy rate for upper tier communities is 2.8 percent, while the average
vacancy rate for market/affordable communities is slightly higher at 3.5 percent. Two
of the four upper tier properties are offering rent incentives, and eight of the 23
market/affordable properties have rent incentives.




                                      95                          RealPropertyResearchGroup
                             TABLE 26 Multifamily Rental Communities Summary
                             Odenton Crofton

                                                                              Community Data                            Availablity                            Published Rent (1)
                                                               Year         Year         Structure         Total      Vacant   Vacancy   Average    Average
                             Map ID/ Community                 Built       Rehab           Type            Units       Units    Rate     1BR Rent   2BR Rent                       Incentive
                             Upper Tier Communities
                                                                                                                                                                  $120 off/month on Auriga, Rigel, Pleiades & $60
                             1 / Concord Park at Russett       2005                       Mid Rise          335         24      7.2%      $1,411     $1,795
                                                                                                                                                                               off/month on Polaris
                             2 / Lodge at Seven Oaks           2007                        Garden           396         1       0.3%      $1,464     $1,768                  Discounts on select units
                             3 / Elms at Stoney Run Village    2008                        Garden           386         9       2.3%      $1,432     $1,658                           None
                             4 / Fieldstone Farm               2005                        Garden           187         2       1.1%      $1,390     $1,641                           None
                                    Subtotal/Average          2006                                         1,304                          $1,424     $1,715
                               Subtotal/Vacancies (2)         2006                                         1,304       36       2.8%

                              Market/Affordable
                             6 / Arbors at Arundel Preserve    2007                         Mix             496         10      2.0%      $1,412     $1,758                        1 mo. free
                             5 / Seven Oaks                    1991                        Garden           542         27      5.0%      $1,304     $1,623                 $100-275 off select units.
                             7 / Archstone Russett             2000                      Garden/TH          234          9      3.8%      $1,378     $1,554                           None
                             13 / Ashley Apartments%%          1970                        Garden           463         24      5.2%      $1,244     $1,500             $125 off/month - thru Sept 15 2010
                             9 / Riverscape                    1999                        Garden           280          4      1.4%      $1,310     $1,427                           None
                             8 / Camden Russett                1997                        Garden           426         21      4.9%      $1,312     $1,423                           None
                             10 / Keswick Park                 1991         2008           Garden           406         17      4.2%      $1,300     $1,364                           None
                             14 / Carlyle Apartments           1967                        Garden           100          0      0.0%      $1,070     $1,255                           None
                             11 / North Forest                 1970                        Garden           182         11      6.0%      $1,086     $1,253                           None
                             12 / Shelter Cove                 1970         1995           Garden           300          6      2.0%      $1,058     $1,220                     1 month free - 1BR
                             16 / Lake Village                 1975         2000         Townhouse          639         10      1.6%        --       $1,209                           None
 96




                             22 / Horizon Square               1967                       Mid Rise          254         10      3.9%       $883      $1,204                        1 mo. Free
                             15 / Crofton Village Apts.        1979         2006           Garden           258          5      1.9%      $1,041     $1,178                           None
                             20 / Woodside Apts.               1966                        Garden           366         na       na       $1,024     $1,134                           None
                             17 / The Groves at Piney
                                                               1996                        Garden           258         0       0.0%      $1,037     $1,127                           None
                             Orchard**
                             18 / Severn Square                                            Garden           60           3      5.0%       $899      $1,067                            None
                             21 / Old Stage                    1965                        Garden           55           3      5.5%       $911      $1,064                       1st month free
                             19 / Tall Oaks                    1965         2008           Garden           352         31      8.8%       $813      $1,033                            None
                             23 / Scotts Manor                 1964                        Garden           78           0      0.0%       $850       $950                             None
                             24 / Orchards at Severn           1974         2005         Townhouse          500         15      3.0%       $832       $922                             None
                             26 / Quarterfield Crossing        1964                        Garden           203         15      7.4%        --        $903                     $400 off 1st month.
                             25 / Park Glen                    1963                        Garden           171          0      0.0%       $750       $850                             None
                             27 / Somerset Woods               1972         2005         Townhouse          200          2      1.0%        --         --                     $50 prorate first month
                                    Subtotal/Average          1978         2004                            6,823                          $1,076     $1,228
                               Subtotal/Vacancies (2)                                                      6,457       223      3.5%
RealPropertyResearch




                                     Odenton Crofton          1982         2004                            8,127                          $1,134     $1,303
                            nton Crofton Vacancies (2)                                                     7,761       259      3.3%

                             (++) Communities in Initial Lease-Up or (--) Age Restricted Senior Communities          (**) LIHTC or other Affordable Communities
                             (%%) Mixed Income Communities (Market/Affordable and Subsidized Units) - Only Affordable or Market units shown on this table

                             (1) Rent is street or advertised rent, and is not adjusted for utilities or incentives
                             (2) Vacancy rate for communities providing vacancy data
                    Group




                             Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
                                                                                                 5
                                                                                                 6195




                                                                                                Glen Burnie-Marley Neck
                                                                  %
                                                                  &100
                                                                                                                                           %
                                                                                                                                           &
                                                                                                                                           270

        Howard County
                                                                                                         %
                                                                                                         &176


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                                                                                                                                                              &
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                                                                                                                                                              648
                 19
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             #
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                                                                                                        175
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                                                                                  #
                                                                                  #
                                                                                  4
                                                                                                   Odenton-Crofton                   &
                                                                                                                                     %
                                                                                                                                     178

_#     Market/Affordable

     5 Seven Oaks
     6 Arbors at Arundel Preserve                                                                  #
                                                                                                   #
                                                                                                   15

     7 Archstone Russett
     8 Camden Russett                                                                            10
                                                                                                 10
     9 Riverscape                                                                      !
                                                                                       "
                                                                                       #
                                                                                       ##
                                                                                        #
                                                                                        3
                                                                                        14
 10 Keswick Park
 11 North Forest                                                                                                                                  Annapolis
 12 Shelter Cove                                                                                   #
                                                                                                   #
                                                                                                   11
 13 Ashley Apartments
 14 Carlyle Apartments
                                                       Prince George's
                                                           County                                               &
                                                                                                                %
                                                                                                                450

 15 Crofton Village Apts.                                                                                                                                .
                                                                                                                                                         -
                                                                                                                                                         50

 16 Lake Village
 17 The Groves at Piney Orchard
 18 Severn Square
 19 Tall Oaks
 20 Woodside Apts.                                                                                              &
                                                                                                                %
                                                                                                                424

 21 Old Stage
 22 Horizon Square                        #      Subsidized
                                                                                                                                                              !
                                                                                                                                                              "2


 23 Scotts Manor                              28 Friendship Village Senior Housing          #    Upper Tier
 24 Orchards at Severn                        29 Friendship Station Senior                  1 Concord Park at Russett
 25 Park Glen                                 30 Meade Village                              2 Lodge at Seven Oaks
 26 Quarterfield Crossing                     31 Stoney Hill                                3 Elms at Stoney Run Village
 27 Somerset Woods                            32 Ashley Apartments                          4 Fieldstone Farm
                                                                                                                                                              %
                                                                                                                                                              &214

                                                                         Map 11
                                                                     Rental Inventory
                                                                Odenton-Crofton Submarket
                                                               Anne Arundel County, Maryland
More than half of the upper tier units in Odenton-Crofton (59 percent) are two-
bedroom units, while one-bedroom units account for 32 percent of the distribution.
Three-bedroom units comprise 10 percent of the upper tier inventory (Table 27). The
average net effective rent for an upper tier one-bedroom unit in the Odenton-Crofton
submarket is $1,430 for an average 842 square feet or $1.70 per square foot. Upper
tier two-bedroom units average $1,755 for an average 1,191 square feet or $1.47 per
square foot. Three-bedroom units average $2,034 for an average 1,416 square feet
or $1.44 per square foot.


Among market/affordable units in the Odenton-Crofton submarket, two-bedroom units
account for 55 percent of inventory, while one-bedroom units are 28 percent and
three-bedrooms are 17 percent. The average effective rent for a market/affordable
one-bedroom unit in the Odenton-Crofton submarket is $1,065 or 74 percent of the
average upper tier one-bedroom rent. The average one-bedroom unit size is 760
square feet, renting for an average $1.40 per square foot. Market/affordable two-
bedroom units rent for an average $1,221, or 70 percent of upper tier average rent.
Market/affordable two-bedroom units are an average 961 square feet with an average
per square foot rent of $1.27. Three-bedroom units rent for an average $1,486 for
1,216 square feet or $1.22 per square foot.


Figure 10 presents a graphic comparison of the effective one-, two-, and three-
bedroom rents within the Odenton-Crofton submarket by community. While we have
classified the communities so that only a few in each submarket are designated as
upper tier, in this submarket there is a break in achievable rents between the top ten
properties (Concord Park to Keswick Park) and the rest of the properties These top
ten properties are the ten that have average two-bedroom rents that exceed the 80
percent AMI limit, as shown by the red, vertical dotted line. Only four properties have
average two-bedroom rents that are below the 60 percent AMI limit.




                                    98                           RealPropertyResearchGroup
                            TABLE 27 Multifamily Rental Communities - Salient Characteristics
                            Odenton Crofton

                                                                                  Community Data                       One Bedroom Units                         Two Bedroom Units                     Three Bedroom Units
                                                                                                                      Effective                                  Effective                             Effective
                                                                                 Type           Total Units   Units                SF         Rent/SF    Units                SF     Rent/SF   Units                SF       Rent/SF
                            Map ID/ Community                                                                         Rent(1)                                    Rent(1)                               Rent(1)
                            Upper Tier Communities
                            1   /   Concord Park at Russett                 Mid Rise / Garden       335        88      $1,337      896          $1.49     211     $1,824     1,268    $1.44     36       $2,118    1,556      $1.36
                            2   /   Lodge at Seven Oaks                          Garden             396        204     $1,492      852          $1.75     156     $1,806     1,171    $1.54     36       $2,109    1,348      $1.56
                            3   /   Elms at Stoney Run Village                   Garden             386        78      $1,475      869          $1.70     285     $1,711     1,242    $1.38     23       $1,995    1,458      $1.37
                            4   /   Fieldstone Farm                              Garden             187        42      $1,418      750          $1.89     111     $1,679     1,082    $1.55     34       $1,914    1,303      $1.47
                                                       Subtotal/Average                           1,304                $1,430      842         $1.70              $1,755     1,191    $1.47             $2,034     1,416      $1.44
                                                        Unit Distribution                         1,304        412                                        763                                   129
                                                              % of Total                         100.0%       31.6%                                      58.5%                                 9.9%

                            Market/Affordable
                            5 / Seven Oaks                                       Garden            542         189     $1,347      818         $1.65      287     $1,676     1,133    $1.48      66     $1,771     1,152      $1.54
                            6 / Arbors at Arundel Preserve                        Mix              496         235     $1,337      738         $1.81      236     $1,665     1,063    $1.57      25     $1,903     1,316      $1.45
                            7 / Archstone Russett                              Garden/TH           234         42      $1,421      854         $1.66      108     $1,607     1,078    $1.49      84     $1,972     1,402      $1.41
                            8 / Camden Russett                                   Garden            426         202     $1,355      848         $1.60      163     $1,476     1,075    $1.37      61     $1,861     1,245      $1.50
                            9 / Riverscape                                       Garden            280         75      $1,338      744         $1.80      155     $1,465      966     $1.52     50      $1,779     1,246      $1.43
                            10 / Keswick Park                                    Garden            406         na      $1,343      731         $1.84       na     $1,417      987     $1.44      --       --         --         --
                            11 / North Forest                                    Garden            182         81      $1,129       na          na        101     $1,306      na       na        --       --         --         --
                            12 / Shelter Cove                                    Garden            300         84      $1,013      763         $1.33      186     $1,273      982     $1.30     30      $1,531     1,080      $1.42
                            13 / Ashley Apartments %%                            Garden            463         100     $1,029      887         $1.16      363     $1,266     1,080    $1.17      --       --         --         --
                            14 / Carlyle Apartments                              Garden            100         10      $1,056      840         $1.26      70      $1,226     1,030    $1.19      20     $1,526     1,620      $0.94
                            15 / Crofton Village Apts.                           Garden            258         56      $1,069      748         $1.43      155     $1,216      866     $1.40      47     $1,479     1,008      $1.47
                            16 / Lake Village                                  Townhouse           639          --       --         --           --       na      $1,209      978     $1.24      na     $1,362     1,028      $1.32
                            17 / The Groves at Piney Orchard**                   Garden            258         64      $1,065      744         $1.43      158     $1,165      972     $1.20      36     $1,471     1,246      $1.18
                            18 / Severn Square                                   Garden             60         na       $942       600         $1.57      na      $1,120      600     $1.87      --       --         --         --
                            19 / Tall Oaks                                       Garden            352         117      $842       844         $1.00      166     $1,071     1,110    $0.97      69     $1,464     1,234      $1.19
 99




                            20 / Woodside Apts.                                  Garden            366         na       $969       700         $1.38      na      $1,066      884     $1.21     na      $1,275     1,236      $1.03
                            21 / Old Stage                                       Garden             55         35       $864       613         $1.41      20      $1,014      730     $1.39      --       --         --         --
                            22 / Horizon Square                                 Mid Rise           254         134      $723       883         $0.82      96       $996      1,204    $0.83      24     $1,349     1,618      $0.83
                            23 / Scotts Manor                                    Garden             78         15       $848        na          na        63       $942       na       na        --       --         --         --
                            24 / Orchards at Severn                            Townhouse           500         40       $832       690         $1.21      276      $922       952     $0.97     180      $990      1,105      $0.90
                            25 / Park Glen                                       Garden            171         25       $778       630         $1.23      130      $888       720     $1.23     16      $1,059      800       $1.32
                            26 / Quarterfield Crossing                           Garden            203          --       --         --           --       203      $870       800     $1.09      --       --         --         --
                            27 / Somerset Woods                                Townhouse           200          --       --         --           --        --       --         --       --      200      $989      1,125      $0.88
                                                    Subtotal/Average                              6,823                $1,065      760         $1.40              $1,221     961      $1.27             $1,486     1,216      $1.22
                                                      Unit Distribution                           5,348       1,504                                      2,936                                  908
                                                            % of Total                            78.4%       28.1%                                      54.9%                                 17.0%

                                                        Odenton Crofton                           8,127                $1,126      775         $1.45              $1,303     999      $1.30             $1,596     1,256      $1.27
                                                        Unit Distribution                         6,652       1,916                                      3,699                                 1,037
                                                              % of Total                          81.9%       28.8%                                      55.6%                                 15.6%

                            (--) Age Restricted Senior Communities (**) LIHTC or other Affordable Communities
RealPropertyResearch




                            (%%) Mixed Income Communities (Subsidized and Affordable or Market Units) - Only Affordable or Market units shown on this table

                            (1) Rent is adjusted to include only water/sewer and trash removal utilities, and to account for current rental incentives

                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
                    Group
  FIGURE 10 Range of Net 1, 2, and 3 Bedroom Rents
  Odenton Crofton
  1 / Concord Park at Russett

     2 / Lodge at Seven Oaks

3 / Elms at Stoney Run Village
                                              Upper Tier
          4 / Fieldstone Farm

              5 / Seven Oaks

6 / Arbors at Arundel Preserve
                                            Market/Affordable

        7 / Archstone Russett

          8 / Camden Russett

               9 / Riverscape

           10 / Keswick Park

            11 / North Forest

            12 / Shelter Cove

 13 / Ashley Apartments %%

      14 / Carlyle Apartments

    15 / Crofton Village Apts.

             16 / Lake Village

     17 / The Groves at Piney
            Orchard**

          18 / Severn Square

               19 / Tall Oaks
                                                                                                                                                                           1 to 2 Bedroom
         20 / Woodside Apts.
                                                                                                                                                                           2 to 3 Bedroom
               21 / Old Stage

         22 / Horizon Square
                                                                                                                                                                Market Rate Community
            23 / Scotts Manor

      24 / Orchards at Severn                                                                                                                                   Affordable Community

               25 / Park Glen                                                                                                                               Maximum Net Rent for 2 bedroom Unit at
                                                                                                                                                            AMI level

    26 / Quarterfield Crossing

        27 / Somerset Woods


                             $400    $500      $600      $700        $800   $900    $1,000    $1,100      $1,200   $1,300   $1,400   $1,500   $1,600   $1,700     $1,800     $1,900   $2,000     $2,100   $2,200

                                                                                                                   Rent
  Source: Real Property Research Group, Inc. August-September 2010

  NOTE: (--) Age Restricted Senior Communities / (**) LIHTC Communities / (%%) Mixed Income Communities
D.       Age-Restricted Multifamily Rental Communities
Of the 88 non-subsidized communities in Anne Arundel County, five are age-
restricted communities, comprising 528 units (Table 28).        Only one of the five
communities, Gardens of Annapolis, is a senior market rate rental community, and is
classified as an upper tier community in the Annapolis submarket. The other four are
tax credit communities with income restrictions. Overall, 28 units were vacant and
available at the time of our survey, for an aggregate vacancy rate of 5.3 percent.


The senior properties in the Severna Park and Glen Burnie submarkets were fully
occupied at the time of our survey. The highest vacancy rate was 16 percent at the
one market rate property, Gardens of Annapolis. Given that this project targets former
homeowners, this have vacancy rate is likely due to the difficulty potential tenants
have in selling their current homes in the existing economic environment. There are
no unsubsidized senior properties in the Odenton-Crofton submarket. The senior
rental units are fairly evenly split between one- and two-bedroom units; 54 percent of
the units are one-bedroom units and 46 percent are two-bedroom units.


E.       Subsidized Rental Communities
In addition to the market and affordable units presented in the previous section,
RPRG inventoried and surveyed communities offering project-based rent subsidies.
At these subsidized communities, some or all of the units are supported by rental
assistance payments made by the federal government to supplement the limited rent
that can be charged to the tenant. The tenant is generally responsible to pay only 30
percent of his/her income for rent, less an allowance to compensate for tenant-paid
utilities.


RPRG identified 29 subsidized multifamily rental communities in Anne Arundel
County (Table 29). Combined, the Anne Arundel County subsidized communities
offer 3,604 subsidized units, of which 65 percent are located in the Annapolis
submarket. Another 22 percent of the subsidized units are in the Glen Burnie
submarket and 11 percent are in the Odenton-Crofton submarket. Less than two
percent of the subsidized units in the county are in the Severna Park submarket.



                                   101                            RealPropertyResearchGroup
                            TABLE 28 Senior Non-Subsidized Rental Communities - Salient Characteristics
                            Anne Arundel County

                                                                                       Community Data                              One Bedroom Units                        Two Bedroom Units
                                                                                            Total     Vacant Vacancy               Effective                               Effective
                                                                             Type                                          Units                   SF    Rent/SF   Units               SF       Rent/SF
                            Map ID/ Community                                               Units      Units  Rate                 Rent(1)                                 Rent(1)
                            Annapolis
                            3 / Gardens of Annapolis--                     Mid Rise          106         17        16.0%    40       $1,457       713     $2.04     66      $1,903     926       $2.06
                            22 / Bay Forest--**                            Mid Rise          120          5        4.2%     90        $795        556     $1.43     30       $957      815       $1.17
                            24 / Victoria Park at Edgewater**--            Low-Rise          102          6        5.9%     28        $447        650     $0.69     74       $921      908       $1.01
                                                      Subtotal/Average                       328         28        8.5%               $900        640     $1.41             $1,260     883       $1.43
                                                       Unit Distribution                     328                            158                                     170
                                                             % of Total                    100.0%                          48.2%                                   51.8%

                            Glen Burnie
                            12 / Park View at Furnace Branch--**            Mid Rise         100          0        0.0%     77        $694        697     $1.00     23       $997      907       $1.10
                                                    Subtotal/Average                         100          0        0.0%               $694        697     $1.00              $997      907       $1.10
                                                      Unit Distribution                      100                             77                                      23
                                                            % of Total                     100.0%                          77.0%                                   23.0%

                            Severna Park
                            15 / Glen Forest Senior--**                     Mid Rise         100          0        0.0%     50        $738        564     $1.31     50       $890      803       $1.11
                                                     Subtotal/Average                        100          0        0.0%               $738        564     $1.31              $890      803       $1.11
                                                      Unit Distribution                      100                             50                                      50
                                                            % of Total                     100.0%                          50.0%                                   50.0%
 102




                            Odenton Crofton
                            No Senior Non-Subsidized Properties

                                                 Anne Arundel County                         528         28        5.3%               $688        530     $1.24              $945      727       $0.91
                                                    Unit Distribution                        528                            285                                     243
                                                          % of Total                       100.0%                          54.0%                                   46.0%

                            (++) Communities in Initial Lease-Up or under renovatio (--) Age Restricted Senior Communities (**) LIHTC or other Affordable Communities
                            (%%) Mixed Income Communities (Subsidized and Affordable or Market Units) - Only Affordable or Market units shown on this table

                            (1) Rent is adjusted to include only water/sewer and trash removal utilities, and to account for current rental incentives
RealPropertyResearch




                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
                    Group
                            TABLE 29 Subsidized Multifamily Rental Communities
                            Anne Arundel County

                                                                                            Community Data                                    Availability                                 Unit Mix              Subsidy
                                                                              Year     Year    Structure                                  Vacancy
                                                                                                                   Total Units   Vacant             Waiting List Length     Eff or 1 Bed    2 Bed     3+ Bed    Program
                            Map ID/ Community                                 Built   Rehab      Type                                      Rate
                            Annapolis
                            27   /   Bates Heritage Park--                    1930     2006   Adaptive Reuse           71          2       2.8%                                 71            0          0       Section 8
                            28   /   Bloomsbury Square                        2003               Low-Rise              51          0        0.0%            1 year               14          18         19     Public Housing
                            29   /   Bay Ridge                                1964     1993       Garden              198           0       0.0%                                  0          101         97      Section 8
                            30   /   Woodside Garden                          1969                Garden              144           0       0.0%      45 to 70 households        0           52         92       Section 8
                            31   /   Timothy House & Gardens--                1980              Midrise&TH             81          1        1.2%             1 year             60            0         21       Section 8
                            32   /   Claiborne Place--                        1980               Highrise             175           0       0.0%          2 to 3 years          141          34          0       Section 8
                            33   /   Bywater Townhomes                        1970                  TH                308          12       3.9%             1 year              0           90         218      Section 8
                            34   /   College Parkway Place                    1981     2003      Mid-Rise             170          0        0.0%             2 years                                             Section 8
                            35   /   Langton Green                            1984                Garden               24           0       0.0%                                 25           25        120      Section 8
                            36   /   Annapolis Gardens / Bowman Court++       1974     2010         TH                150         120      80.0%            1 year               10           24        116    Public Housing
                            37   /   Obery Court and College Creek                                Garden              164          0        0.0%                                 58           68         38    Public Housing
                            38   /   Eastport Terrace                                            Low-Rise              84           0       0.0%                                 17           43         24    Public Housing
                            39   /   Harbour House                            1964                Garden              273           0       0.0%          15 months              81          176         16    Public Housing
                            40   /   Robinwood                                1970                  TH                150           0       0.0%          34 months               0            0        150    Public Housing
                            41   /   Newtowne                                 1971                  TH                 78           0       0.0%           2 years                0            0         78    Public Housing
                            42   /   Glenwood--                               1976               High-Rise            154           0       0.0%          21 months             148            6          0    Public Housing
                            43   /   Admiral Oaks%%++                                  2009    Garden / TH             80          16      20.0%                                  0           52         28      Section 8
                                                                 Annapolis    1973                                   2,355                                                      625          689       1,017
                                                    Subtotal/Vacancy (1)                                             2,355        151      6.4%
                                                           Stabilized Units                                          2,125        15       0.7%
                                          % of Total Unit Distribution (2)                                           2,331                                                    26.8%         29.6%     43.6%

                            Glen Burnie
                            20   /   Arundel Woods Senior--                   1971               Mid-Rise              72          0       0.0%          3 to 4 years            72           0          0       Section 8
                            21   /   Oakleaf Village                          1984                Garden               24          0       0.0%            1 year +              0           24         0      Public Housing
                            22   /   Freetown Village                                               TH                154          0       0.0%                                  24          50         80     Public Housing
                            23   /   Pinewood Village--                       1971               Mid-Rise             200          0       0.0%           18 months             200           0          0     Public Housing
                            24   /   Burwood Gardens--                                           Low-Rise             200          0       0.0%             1 year              200           0          0     Public Housing
 103




                            25   /   Glen Square--                            1992               Mid-Rise             127          0       0.0%             1 year              127           0          0     Public Housing
                                                             Glen Burnie      1980      --                            777                                                       623          74         80
                                                  Subtotal/Vacancy (1)                                                777          0       0.0%
                                         % of Total Unit Distribution (2)                                             777                                                     80.2%         9.5%      10.3%

                            Severna Park
                            17 / Glenview Garden%%                            1971                Garden               58          0       0.0%            6 months              18          37         3        Section 8
                                                           Severna Park       1971                                     58                                                        18          37         3
                                                  Subtotal/Vacancy (1)                                                 58          0       0.0%
                                         % of Total Unit Distribution (2)                                              58                                                     31.0%         63.8%      5.2%

                            Odenton Crofton
                            28   /   Friendship Village Senior Housing--      1992               Low-Rise              63          1       1.6%             2 years              63           0         0       Section 202
                            29   /   Friendship Station Senior--              2000               Mid-Rise              88          2       2.3%             2 years              88           0         0       Section 202
                            30   /   Meade Village                            1971                  TH                200          0       0.0%             2 years              40          60        100     Public Housing
                            31   /   Stoney Hill--                            1986                Garden               55          0       0.0%                                  55           0         0      Public Housing
                            32   /   Ashley Apartments%%--                    1970                Garden                8          0       0.0%                                   8           0         0        Section 8
                                                          Odenton Crofton     1984                                    414                                                       254          60        100
                                                     Subtotal/Vacancy (1)                                             414          3       0.7%
                                         % of Total Unit Distribution (2)                                             414                                                     61.4%         14.5%     24.2%
RealPropertyResearch




                                                  Anne Arundel County         1976    2004                           3,604                                                     1,520         860       1,200
                                                  Subtotal/Vacancy (1)                                               3,604        154      4.3%
                                                Stabilized Communities                                               3,374        18       0.5%
                                         % of Total Unit Distribution (2)                                            3,580                                                    42.5%         24.0%     33.5%

                            (--) Age Restricted Senior Communities
                            (%%) Mixed Income Communities (Market/Affordable and Subsidized Units) - Only Subsidized units shown on this table
                            (++) Communities in Initial Lease-Up or under renovation
                    Group




                            (1) Vacancy rate for communities providing vacancy data
                            (2) Unit Distribution for communities where unit mix data was available


                            Source: Phone/Field Survey, Real Property Research Group, Inc. August-September 2010
Twenty-six of the 29 communities are fully subsidized and three are mixed-income
communities.    In addition to the subsidized units at these three mixed-income
properties, one offers LIHTC units, one has Section 236 units, and one has market
rate units. Anne Arundel County's subsidized communities offer rental assistance
through a variety of sources, including public housing (both City of Annapolis and
Housing Commission of Anne Arundel County), Section 8 and Section 202.


The average year built of subsidized housing communities in Anne Arundel County is
1976. Five properties reported renovations occurring since 1993. One of these is
Bates Heritage Park, an adaptive reuse of a historic school that was converted to
senior housing. Two others, Annapolis Gardens/Bowman Court and Admiral Oaks,
are currently undergoing renovations. Overall, twelve of the twenty-nine properties
are age-restricted. Nearly 43 percent of the subsidized units are efficiency or one-
bedroom units, while two-bedroom units account for one fourth of the units. One third
of the units are three-bedrooms or more.


Most of the subsidized communities report full or nearly full occupancy, and most
reported waiting times of at least one year. The only properties with high vacancy
rates are the two that are undergoing renovations, and as such have a large number
of units that are currently offline.       These two properties are Annapolis
Gardens/Bowman Court and Admiral Oaks, both of which are in the Annapolis
submarket.


F.     Tenant-Based Rent Subsidies
While multifamily rental communities are the focus of this market assessment, rental
assistance not attached to specific rental units is also available in Anne Arundel
County. Two entities administer housing programs; The Housing Authority of the City
of Annapolis (HACA) and the Housing Commission of Anne Arundel County
(HCAAC).     In addition to each entity’s public housing communities, individual
assistance is offered through the Housing Choice Voucher (HCV) program. This
program provides tenant-based rent subsidies, supplementing the project-based rent
subsidies discussed in the previous section. HCVs are portable, in that the deep rent
subsidy travels with the tenant voucher holder from unit to unit, rather than being


                                  104                           RealPropertyResearchGroup
permanently applied to a particular unit. As with project-based Section 8, out-of-
pocket housing cost contributions under the voucher program are income-based and
are typically limited to 30 percent of household income. In addition, HACA currently
offers relocation vouchers as four of its communities are either under renovation
(Annapolis Gardens and Bowman Court) or redevelopment (Obery Court and College
Creek Terrace).      The following provides summary information on tenant-based
assistance offered by each entity:


City of Annapolis:

       HACA has been allocated 220 Housing Choice Vouchers, of which 196 are
       currently in use. In addition, HACA currently has 144 relocation vouchers, of
       which 12 are in use. According to Miranda Wingate, Director of Affordable
       Housing Programs at HACA, residents under relocation have the option of
       using the relocation vouchers, relocating to another public housing
       development and/or returning to the redeveloped property.


       HACA’s waiting list for vouchers is currently 138 applicants. There are also
       approximately 300 applications requiring data entry, as HACA opened its
       waiting list between July 12th and August 13th, 2010.


       There are 201 applicants on HACA’s waiting list for public housing, and an
       additional 300 applications requiring data entry, as this waiting list was opened
       during the same time period as the voucher waiting list. HACA manages a
       site based waiting list for six of its properties, while four developments are
       under private management and have separate waiting lists. The waiting list
       time is between six months to one year for HACA’s senior property,
       Glenwood. Waiting times for family developments range from an average of
       one to eight years (eight years for a six-bedroom unit).


Anne Arundel County:

                                                                  h
       At present, 1,756 Housing Choice vouchers are allocated to t e Housing
       Commission of Anne Arundel County (HCAAC), and about 1,500 vouchers are
       in use. According to Caroline Ensey, Chief Housing Officer for HCAAC, the


                                     105                          RealPropertyResearchGroup
       Commission has been inviting clients in from the waitlist to be deemed eligible
       since April. The reason the voucher program is not fully used is because the
       agency was given additional funds for the program. There are 6,000 families
       on the waiting list for vouchers. Depending on funding, the wait time is from
       three to five years.


       Diane Hayslip, Director of Property Management at the Housing Commission
       of Anne Arundel County (HCAAC), informed RPRG that there are currently
       4,473 applications for public housing. While waiting times are very difficult to
       estimate, the waiting time for elderly applicants could be from 6 to 12 months,
       while the waiting time for families could range between 18 and 24 months.
       The most demand is for one-bedroom units (senior households) and two-
       bedroom units (families).


G.     Pipeline Multifamily Communities
Multifamily rental residential projects in the construction or planning phases represent
the potential short-range future supply of rental units that, if built, will compete with
existing multifamily rental communities in the market (Map 12). RPRG reviewed a
variety of sources to estimate the upcoming supply of new multifamily rental units in
the pipeline for Anne Arundel County and the four individual submarkets.                We
interviewed county planning and economic development officials and reviewed data
on residential development projects under review by the Anne Arundel County
Department of Planning and Zoning. We also considered recent allocations of Low-
Income Housing Tax Credits, TCAP funds, and Section 1602 Monetization funds by
the Maryland Department of Housing and Community Development. In-person field
observations contributed to the process, as did our firm's past work in the county.


Table 30 lists 27 development projects accounting for over 5,500 units that we
identified that are proposed, approved, and/or under construction in the county and
include a multifamily residential component. We have classified the units into two
main categories of rental or condominium, resulting in almost 3,500 proposed rental
units and 2,200 for sale units.    Within each of these categories, we divided the




                                    106                            RealPropertyResearchGroup
                                                                                                      #     Name                                  Type

                                                                                                          1 Obery Court/College Creek Terrace     Rental Pipeline
                                   Baltimore County                                                       2 Hammarlee House                       Rental Pipeline
                                                                          Baltimore City                  3 Greens at Hammonds Lane               Rental Pipeline

                                             &
                                             %168
                                                               "
                                                               !      2
                                                                                                          4 Preston Commons
                                                                                                          5 Patapsco Place
                                                                                                                                                  Condo & Rental
                                                                                                                                                  Rental Pipeline

                                                             ##
                                                             ##
                                                               5
Howard County                                                3                                            6 Cedar Hill PUD                        Condo & Rental


                       &
                       %   295                     6
                                                   5
                                                   #
                                                   # 9                                                    7 Red Oak Crossing
                                                                                                          8 Symphony Village at Tanyard Cove
                                                                                                                                                  Condo & Rental
                                                                                                                                                  Condo Pipeline

     Glen Burnie-Marley Neck                                                                              9 Pine Ridge Crossing Condo             Condo Pipeline
                                                                                                      10 Park View at Severna Park                Rental Pipeline
                            5
                            6195
                                                                      #
                                                                      #
                                                                      7                               11 Cromwell Apartments
                                                                                                      12 The Reserve at Stoney Creek
                                                                                                                                                  Rental Pipeline
                                                                                                                                                  Rental Pipeline

                                                                          #
                                                                          #
                                                                          2                           13 Gateway Village                          Condo Pipeline


      &
      %#
       #
       100       4
                 4
                                                                          &
                                                                          %
                                                                          270
                                                                                     #
                                                                                     #8
                                                                                                      14 Town Center at Arundel Preserve          Rental Pipeline


                                       &
                                       %
                                                                                                      15 Village at Odenton Station               Rental Pipeline
                                       176
                                                              #
                                                              #   6                                   16 Town Center Commons                      Condo Pipeline

     #
     #
                                                                                                      17 Village at Waugh Chapel South            Condo Pipeline
     14

                           &
                           %170
                                               &
                                               %   174                     $
                                                                           #  10
                                                                                                      18 Odenton Gateway
                                                                                                      19 Nevamar Properties             &
                                                                                                                                        %
                                                                                                                                        173
                                                                                                                                                  Rental Pipeline
                                                                                                                                                  Condo & Rental

    &
    %713                                                                              #
                                                                                      #
                                                                                      12              20 Odenton Town Square
                                                                                                      21 Meade Heights
                                                                                                                                                  Rental Pipeline
                                                                                                                                                  Rental Pipeline

                                                                                   #
                                                                                   11
                                                                                     &
                                                                                     %
                                                                                   # 100              22 Broadstone at Odenton Town Center

                                                                                                                   &
                                                                                                                   %
                                                                                                                                                  Rental Pipeline

                                                     "
                                                     !   3                                            23 Parkside607
                                                                                                      24 Alta at Town Center
                                                                                                                                                  Condo Pipeline
                                                                                                                                                  Condo Pipeline

       #
       #
       21
                                                                                             &
                                                                                             %   648 25 Seven Oaks                                Rental Pipeline


           22
           22    #
                 #
                 25
                      18
                      18
                            19
                            19
                              23
                              23
                                                                                                      26 Berger Square
                                                                                                      27 Odenton Town Center
                                                                                                                                            &
                                                                                                                                            %
                                                                                                                                            177   Condo Pipeline
                                                                                                                                                  Condo Pipeline

                 #
                 #
                 ##
                  #
                  #                                                                        #
                                                                                           #10
       26
       26        #
                 #
                 ##
                 ##
                 #
                 ##
                  #
                                  27
                                  27
           24
           24    #
                 #          $
                            #32                                   #
                                                                  #
                                                                  13
                                                                                     Severna Park-Mountain Rd
            20
            20
                 15
                 15
                      16
                      16
                                                             3
                                                             4
                                                             97


                                   &
                                   %
                                   175                                                                    "
                                                                                                          ! 2



  Odenton-Crofton
                                                                  &
                                                                  %
                                                                  178


                                   #
                                   #
                                   17


                                                                                                   Annapolis                                             &
                                                                                                                                                         %
                                                                                                                                                         179


                      "
                      !3

                                                                                                                                    &
                                                                                                                                    % 450



                                                                                                                   $
                                                                                                                   #70

                                             &
                                             %
                                             450

     Prince
    George's
                                                                                           . ,
                                                                                           - +
                                                                                           301            50
                                                                                                                                   &
                                                                                                                                   %  436

     County
                                                                                                                &
                                                                                                                %665

                                                                                                                                  #
                                                                                                                                  #
                                                                                                                                  1

                                             &
                                             %
                                             424


                                                                                                 "
                                                                                                 !2




                                                              Map 12
                                                         Pipeline Projects
                                                   Anne Arundel County, Maryland
TABLE 30 Multifamily Residential Development Pipeline Anne Arundel County


                                                                                                                                                                         Rental Units By Estimated Placed in            Condo Units by Estimated Placed in
                                                                                               Project Details
                                                                                                                                                                                    Service Date                                  Service Date
                                                                                                                                                             Project     Within    3 to 5 Beyond                        Within   3 to 5 Beyond
  Project                                        Location                Developer/Builder                        Description/Status                          Type       3 Years   Years    5 Years   Total             3 Years  Years    5 Years   Total
Annapolis
                                                                           Pennrose/Housing           Replacement public housing units. Phase I of 50
   Obery Court/College Creek                                                                                                                                  Public
                                      1217 Madison Street, Annapolis     Authority of the City of   units completed, Phase II of 63 units received LIHTC                    63          61                     124                                              0
   Terrace                                                                                                                                                   Housing
                                                                               Annapolis                    allocation, Phase III will be 61 units.
                      Total Pipeline Annapolis                                                                                                                              63          61           0         124          0           0           0           0

Glen Burnie
                                        7264 E. Furnace Branch Rd.,             Rellim
   Hammarlee House                                                                                      Affordable senior project under construction         Senior         55                                  55                                              0
                                                Glen Burnie             Development/Stavrou Co
                                       600 Hammonds Lane, Brooklyn         Enterprise Housing         Affordable senior project on waiting list for TCAP
   Greens at Hammonds Lane                                                                                                                                   Senior                     90                      90                                              0
                                                 Park                         Corporation                                  funds.
                                                                                                      Developer hopes to have final plat approval by
                                        South side of Dorsey Road
   Preston Commons                                                          Preston Partners        spring 2011. 26 acre parcel, total of 561 residential                                          281         281                                 280         280
                                      between Ridge Rd & Wright Rd
                                                                                                             units to be developed in phases.
                                          Hammonds Lane west of                                      Originally planned as for sale project, developer is
   Patapsco Place                                                            Grayson Homes                                                                                             135                     135                                              0
                                         Ritchie Hwy, Brooklyn Park                                 currently pursuing financing for a rental community.
                                                                                                       Commercial revitalization project including 144
                                       West of Crain Hwy & north of
   Red Oak Crossing                                                           Wynword LLC           condo-apartment units and a medical office building.                                72                      72                      72                      72
                                                Route 100
                                                                                                                  Approved March 2010.
                                                                                                      408 condos have sketch approval. Caruso Homes
   Symphony Village at Tanyard
                                             Marley Neck Road                 Caruso Homes           filed for bankruptcy in 2008, but has been working                                                                                200         208         408
   Cove
                                                                                                                          through it.
                                                                                                       91-unit project of townhouse condos received
   Pine Ridge Crossing Condo                north of I-695 & I-97        Pro Development Group                                                                                                                  0           91                                  91
                                                                                                           subdivision approval in August 2009.
                                                                                                 Phase One is 328 multifamily units, Phase Two is
                                                                                               355 units. Both have been approved. Total buildout
                                        Northeast corner of I-695 &    Cherrywood Development,
   Cedar Hill PUD                                                                                could be up to 1,600 residential units. $24 million                                   328                     328                                              0
                                               Ritchie Hwy                       LLC
                                                                                                infrastructure financing package recently approved
                                                                                                                     by county.
                      Total Pipeline Glen Burnie                                                                                                                            55         297         281         633          91         272         488         851

Severna Park
                                     180 Ritchie Highway, Severna
   Park View at Severna Park                                         Shelter Development       Affordable senior project under construction                  Senior         103                                103                                              0
                                                  Park
                                     Southeast corner of Mountain
   The Reserve at Stoney Creek                                         MRP Residential        Phase One (88 units) now under construction.                                  88          92                     180                                              0
                                      Road & New Freetown Road
                                     South of Mountain Road, west                          Seeking financing for Phase One of 193 rental units,
   Cromwell Apartments                  of Jumpers Hole Road,       Mum Development, LLC    Phase Two will consist of 110 rental units and 210                                         193         110         303                                              0
                                               Pasadena                                                    for sale townhomes
                                    East of Veterans Hwy, north of
   Gateway Village                                                 SP Gateway Condos 1 LLC 90 unit condominium project, sketch plan approved.                                                                   0           90                                  90
                                              Benfield Rd
                     Total Pipeline Severna Park                                                                                                                           191         285         110         586          90          0           0           90


Odenton Crofton
                                          Arundel Mills Boulevard,       Southern Management            242 unit luxury rental community now under
   Town Center at Arundel Preserve                                                                                                                                          242                                242                                              0
                                                 Hanover                      Corporation                                construction

                                        across from Odenton MARC                                    235 luxury apartments plus retail, groundbreaking
   Village at Odenton Station                                                Dolben Co. Inc.                                                                                235                                235                                              0
                                                  station                                                  July 2010, initial site work underway.
                                                                                                       106-room hotel & 108 over/under TH. Permits
                                                                        Odenton Investments Inc.
   Town Center Commons                     Odenton Town Center                                      issued, site is being graded, infrastructure is being                                                                  108                                 108
                                                                                  LLC
                                                                                                                           installed.
                                                                                                       Phase One includes 540K sf retail (Wegmans &
                                      Waugh Chapel Rd & Crain Hwy,         Greenberg Gibbons
   Village at Waugh Chapel South                                                                    Target), 50K sf office building & 300 age restricted,    Senior                                                        300                                 300
                                               Gambrills                    Commercial Corp.
                                                                                                          mf units. Groundbreaking August 2010.
                                                                                                      18-acre site, 252 res. apts, medical offic & retail.
   Odenton Gateway (Otto-Baldwin                                        Odenton Gateway, LLC &
                                           Odenton Town Center                                      Final plan approved, infrastructure work will begin                     252                                252                                              0
   property)                                                            Elm Street Development
                                                                                                                             soon.
                                                                                                    54-acre site, office, retail and residential. 350-400
                                                                                                     apts/TH to deliver 2011-2013, 150-200 apts/TH to
   Nevamar Properties                      Odenton Town Center           StonebridgeCarras, LLC                                                                                        350                                                         200         200
                                                                                                    deliver 2013-2015. Preparing submission of garden
                                                                                                                          apts-Ph 1.
   Odenton Town Square                     Odenton Town Center                   Bozzuto                       457 apts, 250 TH, 74K sf retail.                                        457                     457                                              0
                                       Annapolis Rd, south of Reece                                 24-acre parcel can accommodate up to 312 units of
   Meade Heights                                                         Picerne Military Housing                                                                                      312                     312                                              0
                                                   Rd                                                               multifamily housing.
   Broadstone at Odenton Town
                                           Odenton Town Center                                      212 luxury apts, additional retail and office to come.                                         212         212                                              0
   Center
                                                                                                     Mixed-use development with Class A office space,
                                                                            Land Design and
   Parkside                                Odenton Town Center                                        residential and retail. 92 townhouses and 208                                                                                    208                     208
                                                                              Development
                                                                                                                   condos, under review.
                                                                                                      6.6 acre development with 202 condos & 15K sf
                                          Nevada Ave. & Hale Rd,        Hogan Property Company
   Alta at Town Center                                                                                retail. Sketch plan approved in 2008, no recent                                                                                  202                     202
                                                Odenton                          LLC.
                                                                                                                       communication.
                                                                                                      96 units in final sketch plan stage as of October
   Seven Oaks                            Blue Water Blvd., Odenton                                                                                                                      48                      48                      48                      48
                                                                                                                             2009

                                                                                                      48 condos plus retail are approved, developer is
   Berger Square                      1474-1484 Berger St., Odenton       Usterra Odenton LLC                                                                                                                                           48                      48
                                                                                                        considering a change to 34-38 townhomes.
                                       north & south sides of Hale Rd,                                  144 condos plus 106-room hotel. Site plan
   Odenton Town Center                                                 Odenton Investments, LLC                                                                                                                            144                                 144
                                             west of Lokus Rd.                                                         approved.
                      Total Pipeline Odenton Crofton                                                                                                                       729        1167         212        2108         552         506         200        1258


                      Total Pipeline Anne Arundel County                                                                                                                  1,038       1810         603        3,451        733         778         688        2,199



(1) For projects where the product type is not specified, we assume one-half of units as rentals and one-half as condos.

Source: Compiled by Real Property Research Group in August 2010 from various sources, including interviews with public planning representatives, official public sector websites, developers' websites, newspaper and journal articles, field work observations, and pas




                                                                                                                                 108                                                                     RealPropertyResearchGroup
planned units into three time periods.     The first period includes projects that we
anticipate will deliver within three years, accounting for just over 1,000 units. Within
the second time period, defined as units delivered between three to five years from
now, we identified 1,810 rental units. Projects with an additional 600 units have been
estimated to come on line beyond a five year time frame.


Only one multifamily project was identified in the Annapolis submarket. Pennrose
Properties and the Housing Authority of the City of Annapolis (HACA) are
redeveloping the Obery Court and College Creek Terrace public housing
communities. The first phase of 50 units has been completed, tax credits have been
allocated for a second phase of 63 units, and a third phase of 61 units is planned.
Mark Ford, Project Manager at HACA, expects that all development will be completed
by 2013 for a total of 174 new public housing replacement units.


Eight development projects that include a multifamily component were identified in the
Glen Burnie submarket. Two are age-restricted, affordable rental projects. One of
these, Hammarlee House, is under construction and will include 55 units, and the
second, Greens at Hammonds Lane, is seeking financing and would include 90 tax
credit units. The six additional projects are all general occupancy and market rate.
Patapsco Place is a 135-unit multifamily project that is seeking financing as a rental
community. Three projects appear to be planned as for sale condo developments.
The first, Red Oak Crossing, has been approved for 144 condo units. The second is
Symphony Village at Tanyard Cove, which includes 408 condos that have received
sketch approval. The third is Pine Ridge Crossing Condo, a 91-unit condo-townhouse
project that has received subdivision approval. The largest planned project is the
Cedar Hill PUD, which on build out could deliver as many as 1,600 residential units.
The county recently approved a $24 million infrastructure financing package for the
project. The first two phases of Cedar Hill have been approved. Phase One is 328
multifamily units and Phase Two is 355 units. As this project will build out over
several years and the details on later phases are to be determined, we have
estimated that 328 rental units will deliver in the next three to five years. We expect
that the majority of the residential development in the PUD will be for sale product,
and that this development will move slowly since the for sale market is still weak.



                                    109                            RealPropertyResearchGroup
We identified four multifamily projects in the Severna Park submarket. One is an age-
restricted affordable project, and three are general occupancy and market rate. The
senior project, Park View at Severna Park, is under construction and will deliver 103
rental units. The Reserve at Stoney Creek is also under construction for a first phase
of 88 rental units.   A second phase of 92 rental units is planned.            Cromwell
Apartments is planned as a first phase of 193 rental units and a second phase of 110
rental units and 210 for sale townhomes. The developer is seeking financing for
phase one. Finally, Gateway Village is a 90-unit condo project for which the sketch
plan has been approved.


Among the numerous development projects planned in the Odenton-Crofton
submarket, RPRG identified fourteen that include a multifamily residential component.
One project is under construction. Town Center at Arundel Preserve is a 242-unit
luxury rental community located in Hanover, near Arundel Mills.                Southern
Management Corporation is the developer of the apartments, which are one
component of a mixed-use development that also includes a hotel and office building.


In general, the largest amount of planned development in the county at present is part
of the Odenton Town Center, a mixed-use, transit oriented development proximate to
the Odenton MARC station. The project is spurred by the anticipated growth from the
BRAC related expansions at Fort Meade. However, due to the recession and the
associated difficulty to obtain financing for development projects, much of this
planned development has been stalled. In August 2010, the Anne Arundel County
Council approved several agreements to move forward infrastructure improvements
for Odenton Town Center.       While a few projects are not dependent on these
improvements, most of the Odenton Town Center development sites need major
roads to be built and water and sewer service to be installed. Given these conditions,
there is a great deal of uncertainty and lack of detailed information available on the
number of residential units planned for each project, whether they are multifamily or
single-family, for sale or rental, and the estimated time frame for development. RPRG
summarized the information we obtained and made estimates in some areas, so the
total number of planned multifamily units, unit type and timing should be taken as a
very general estimate and not as exact figures.



                                   110                           RealPropertyResearchGroup
Initial site work is underway for two projects in the Odenton-Crofton submarket. One
is the Village at Odenton Station, which is located across from the Odenton MARC
station and is part of Odenton Town Center. Dolben Co. Inc. is the developer of this
235-unit luxury apartment development with retail space. Additionally, grading and
infrastructure work is underway for Town Center Commons, also located in Odenton
Town Center. The development consists of a 106-room hotel and 108 over/under
townhouses.     We have assumed that the townhouses will be for sale. Odenton
Gateway, another Town Center project, has been approved with infrastructure work
scheduled to begin soon. This 18-acre site will include 252 apartments, medical
offices and retail space.


Another of the larger projects in Odenton Town Center is Nevamar Properties, a 54-
acre site. StonebridgeCarras LLC is preparing to submit plans for the first phase of
garden apartments. Current estimates are that 350-400 apartments and townhouses
could deliver between 2011 and 2013, and an additional 150-200 apartments and
townhouses could deliver between 2013 and 2015. Bozzuto Development is also
planning a mixed use development of 457 apartments, 250 townhouses, and 74,000
square feet of retail.


Outside of Odenton Town Center, a groundbreaking ceremony was held in August
2010 for Village at Waugh Chapel South, a mixed use development located in
Gambrills. Phase one will include a large retail component anchored by Target and
Wegmans, an office building, and 300 age-restricted condo units.




                                  111                          RealPropertyResearchGroup
VII. FINDINGS AND CONCLUSIONS


    A.       Overall Findings
    Based upon the preceding assessment of the development and land use patterns,
    economic and demographic trends, and multifamily rental housing stocks of Anne
    Arundel County and its component submarkets, we offer the following key findings:


         •   Over the past 20 years, Anne Arundel County has evolved from a bedroom
             community to an employment center in its own right. The job base in the
             county doubled between 1992 and 2008. While at place employment
             contracted in 2009, the total employment as of third quarter 2009 was still
             above the 2006 level. Unemployment rates remained below four percent from
             the mid 1990s to 2008, but rose above six percent in 2009 in the wake of the
             recession.
         •   Anne Arundel County will directly benefit from the BRAC and NSA expansions
             at Fort Meade, which is located in the northwestern section of the county.
             These expansions will create economic stimulus that will have region-wide
             impacts.
         •   The largest concentration of retail stores and other services in the county is in
             the Annapolis submarket, with large retail centers also operating in Gen
             Burnie and the Hanover section of Odenton-Crofton. The county’s two full
             service hospitals are located in Annapolis and Glen Burnie, and smaller
             neighborhood retail centers are scattered throughout the four submarkets.
             North-south travel through the county is facilitated by Route 2, Interstate-97,
             and the Baltimore-Washington Parkway. The primary east-west arterials are
             Route 50 and Route 100.
         •   Over the next five years, the household base of the Annapolis and Severna
             Park submarkets is projected to remain stable, while modest annual growth
             rates of 1.1 and 1.4 percent are expected for the Glen Burnie and Odenton-
             Crofton submarkets, respectively. The Odenton-Crofton submarket has the
             largest amount of planned development projects. Most of the projects are part
             of the transit-oriented Odenton Town Center, a mixed use development near
             the Odenton MARC train station.
         •   Incomes in Anne Arundel County are higher than in the Baltimore Region as a
             whole. The 2010 median household income in Anne Arundel County is
             $83,573, 1.3 times greater than the Baltimore Region median income of
             $65,646. The Annapolis, Severna Park, and Odenton-Crofton submarkets all
             have similar median incomes ranging from $86,000 to $90,000, while the Glen
             Burnie median income is much lower at $62,318.
         •   Anne Arundel County as a whole has a high homeownership rate; nearly 76
             percent of housing units are owner-occupied compared to nearly 68 percent in
             the Baltimore Region. Considering renter households, the Glen Burnie


                                         112                            RealPropertyResearchGroup
       submarket has the highest renter proportion of 29 percent, and Severna Park
       submarket has the smallest renter proportion of 20 percent.
   •   Of the approximately 26,800 multifamily rental units in Anne Arundel County,
       32 percent are located in the Odenton-Crofton submarket, closely followed by
       the Annapolis submarket with 27 percent of the rental inventory. The Glen
       Burnie submarket contains 22 percent of the rental units, while the Severna
       Park submarket has 19 percent.
   •   The unsubsidized rental market in Anne Arundel County is performing well in
       general with an overall market vacancy rate of 3.6 percent. Three submarkets
       have low vacancy rates ranging from 2.4 to 3.3 percent, and Glen Burnie’s
       vacancy rate is only slightly elevated at 5.6 percent.
   •   The weighted average market rent in Anne Arundel County is $1,214, with a
       disparity of 70 percent between average upper tier and market/affordable
       units. On the whole, achievable rents of upper tier properties are not
       significantly higher than the top of the market/affordable inventory. In general,
       a limited number of rental properties have opened in the county over the last
       two decades, and there is no particular rental market or markets that have a
       strong locational advantage for which a high premium can be charged. These
       dynamics could shift as development near Ft. Meade comes to fruition.
   •   The deeply subsidized multifamily rental stock of Anne Arundel County
       includes 29 communities and 3,604 total units, of which 65 percent are located
       in the Annapolis submarket. Another 22 percent are located in the Glen
       Burnie submarket and 11 percent are in the Odenton-Crofton submarket.
       Less than two percent of the subsidized units in the county are located in the
       Severna Park Submarket. The overall stabilized vacancy rate for subsidized
       units in the county is a scant 0.5 percent.
   •   Based on information available to RPRG, the development pipeline for
       multifamily residential communities in Anne Arundel County includes 27
       properties of over 5,000 units.       Of those units, RPRG projects that
       approximately 1,000 rental units could deliver in the county in the next three
       years, with an additional 1,800 rental units could deliver within three to five
       years.


With these key findings in mind and with the analysis of supply and demand, housing
affordability and penetration rates below, RPRG will identify market trends that are
affecting the affordability of the existing housing supply in Anne Arundel County. Our
conclusions are based on the premise that housing prices are affected by imbalances
in supply and demand.       Generally, where demand exceeds supply, prices are
expected to increase.    However, housing markets do not operate freely, but are
constrained by a variety of factors, including, but not limited to, location, housing
programs, long-term debt obligations and physical obsolescence. These factors and
others often prevent market equilibrium from occurring and often prevent owners from


                                   113                            RealPropertyResearchGroup
making rational economic decisions.          Each analysis below generates market
indicators that, independent of these other factors, suggest whether housing
affordability is threatened in any specific submarket.


B.     Balance of Supply and Demand
The balance of supply and demand for rental units is a factor considered by
underwriters, developers, and investors in evaluating opportunities to construct,
rehabilitate, reposition, or purchase multifamily rental communities in a given area. A
significant excess of demand over supply during a relatively short-term future period –
typically spanning three years – is considered an indicator of strength in the overall
rental market.    Excess demand suggests a comparatively large pool of potential
renters competing for a comparatively small number of multifamily rental units. As
such, the availability of excess demand helps to bolster the case for new investment
in existing multifamily rental properties as well as the construction of new units.
Excess demand for rental units in a market area often results in upward pressure on
overall rent levels in a given market and indicates a threat to housing affordability in a
market.


Given that the job shifts associated with BRAC are scheduled to be implemented by
the fall of 2011, we use 2011 as the base year in constructing a derivation of demand
analysis. For each of Anne Arundel County’s submarkets, we calculated a short-term
derivation of demand that shows the balance of supply and demand for the three-year
period between 2011 and 2014 (Table 31). We also tested the impact of long-term
pipeline with an additional two years of household growth, measuring the balance of
supply and demand for a five-year period, from 2011 to 2016 (Table 32).


The derivation of demand analysis considers net new demand from three primary
sources: a) net household change (positive or negative), b) demand for new units
generated by the removal of existing units from the stock due to demolitions,
disasters, and other factors, and c) an adjustment for the absorption of excess vacant
units in the supply or, inversely, an adjustment to reflect a preferred market vacancy
rate in tight markets.    Demand from these sources is balanced against potential
supply contained in the pipeline rental communities identified earlier in this report.


                                     114                            RealPropertyResearchGroup
TABLE 31 Balance of Supply and Demand - Short term (2011 - 2014)

                                                                 Annapolis                 Glen Burnie               Severna Park      Odenton Crofton       Anne Arundel County


Demand from Projected Household Growth
     2011 Households                                                      55,582                      37,069                 42,574               56,497                  203,991
     2014 Households                                                      56,330                      38,269                 43,164               58,915                  209,151
    Net Change in Households                                               748                        1,200                   590                 2,418                    5,160
Demand from Removal of Housing Units from Stock
 Annual Rate of Unit Removal                                0.48%                       0.48%                    0.48%                 0.48%                    0.48%
                                                           Estimated       Units       Estimated       Units    Estimated     Units   Estimated     Units     Estimated     Units
                                                             Stock       Removed         Stock       Removed      Stock     Removed     Stock     Removed        Stock    Removed
      2011 Housing Stock                                    58,248         280          35,279         169       43,077       207      56,549       271        205,894      988
      2012 Housing Stock                                    58,618         281          35,264         169       43,223       207      57,372       275        207,302      995
      2013 Housing Stock                                    58,991         283          35,250         169       43,369       208      58,208       279        208,720     1,002
     Total Estimated Loss of Housing Units                                 844                         508                    622                   826                    2,985
   Net New Demand for Housing Units                                       1,592                       1,708                  1,212                 3,244                   8,145
New Demand for Renter Units
 Average Rentership Rate (2011 - 2013)                         24.7%                     28.7%                      19.8%              26.8%                   24.2%
Net New Demand for Renter Units                                            393                         489                    239                   871                    1,970
Absorption of Existing Multifamily Vacancies
                                                           Inventory      Vacant       Inventory      Vacant    Inventory    Vacant   Inventory   Vacant      Inventory    Vacant
       Upper Tier Communities                                 842           30            781           19         919         19       1,304       36          3,846       104
       Market/Affordable Communities                         4,126         100           4,375         243        4,029        95       6,823      223         19,353       661
       Subsidized Communities                                2,355         151            777            0          58          0        414         3          3,604       154
     Total Inventory of Existing Communities                 7,323         281           5,933         262        5,006       114       8,541      262         26,803       919
   Vacant Units at 5% Market Vacancy Rate                                  366                         297                    250                  427                     1,340
 Increase/(Decrease) in Vacant Units Required to                            85                          35                    136                  165                      421
 Reach 5% Market Vacancy
Total Renter Demand
   Net New Demand for Renter Units                                         393                         489                    239                   871                    1,970
   Market Absorption Adjustment                                             85                          35                    136                   165                     421
 Total Renter Demand                                                       478                         524                    376                  1,036                   2,392
                                                                                                                             @95%
                                                           Total Units   @95% Occ      Total Units   @95% Occ Total Units     Occ     Total Units @95% Occ Total Units    @95% Occ
    Short-term Planned Additions to Supply                     63           60             55           52       191          181        729        693      1,038          986
Excess Demand for Rental Housing                                           419                         472                    194                   343                    1,405


   Short-term Balance of Supply and Demand for Rental Units
   2011 to 2014
           3,000
                                                                                        Total Rental Demand

                                                                                        Planned Additions to Supply
           2,500

                                                                                                                                                      2,392
           2,000



           1,500



           1,000
                                                                                                      1,036                                                       986

             500                                                                                                693
                        478                    524                                  181
                                 60                       52             376
               0
                          Annapolis               Glen                       Severna                      Odenton                                         Anne Arundel
                                                 Burnie                       Park                        Crofton                                           County




                                                                                        115                                             RealPropertyResearchGroup
TABLE 32 Balance of Supply and Demand - Long term (2011 - 2016)

                                                                Annapolis                 Glen Burnie               Severna Park        Odenton Crofton        Anne Arundel County


Demand from Projected Household Growth
     2011 Households                                                     55,582                      37,069                  42,574                 56,497                  203,991
     2016 Households                                                     56,827                      38,961                  43,583                 60,290                  212,262
    Net Change in Households                                             1,245                       1,891                   1,009                  3,792                    8,271
Demand from Removal of Housing Units from Stock
 Annual Rate of Unit Removal                               0.48%                       0.48%                      0.48%                 0.48%                     0.48%
                                                          Estimated       Units       Estimated       Units      Estimated     Units   Estimated     Units      Estimated     Units
                                                            Stock       Removed         Stock       Removed        Stock     Removed     Stock     Removed         Stock    Removed
      2011 Housing Stock                                   58,248         280          35,279         169         43,077       207      56,549       271         205,894       988
      2012 Housing Stock                                   58,618         281          35,264         169         43,223       207      57,372       275         207,302       995
      2013 Housing Stock                                   58,991         283          35,250         169         43,369       208      58,208       279         208,720      1,002
      2014 Housing Stock                                   59,367         285          35,236         169         43,515       209      59,055       283         210,147      1,009
      2015 Housing Stock                                   59,745         287          35,222         169         43,662       210      59,915       288         211,584      1,016
     Total Estimated Loss of Housing Units                               1,416                        846                     1,041                 1,397                    5,010
   Net New Demand for Housing Units                                      2,661                       2,737                    2,050                 5,190                    13,280
New Demand for Renter Units
 Average Rentership Rate (2011 - 2015)                      24.7%                       28.6%                      19.7%                26.8%                    24.2%
Net New Demand for Renter Units                                           657                         784                      405                  1,389                    3,209
Absorption of Existing Multifamily Vacancies
                                                          Inventory      Vacant       Inventory      Vacant      Inventory    Vacant   Inventory    Vacant      Inventory    Vacant
       Upper Tier Communities                                842           30            781           19           919         19       1,304        36          3,846       104
       Market/Affordable Communities                        4,126         100           4,375         243          4,029        95       6,823       223         19,353       661
       Subsidized Communities                               2,355         151            777            0            58          0        414          3          3,604       154
     Total Inventory of Existing Communities                7,323         281           5,933         262          5,006       114       8,541       262         26,803       919
   Vacant Units at 5% Market Vacancy Rate                                 366                         297                      250                   427                     1,340
 Increase/(Decrease) in Vacant Units Required to                           85                          35                      136                   165                      421
 Reach 5% Market Vacancy
Total Renter Demand
   Net New Demand for Renter Units                                        657                         784                      405                  1,389                    3,209
   Market Absorption Adjustment                                            85                          35                      136                   165                      421
 Total Renter Demand                                                      742                         819                      541                  1,554                    3,630
                                                                                                                              @95%
                                                          Total Units   @95% Occ      Total Units   @95% Occ Total Units       Occ     Total Units @95% Occ Total Units     @95% Occ
    Short-term Planned Additions to Supply                    63           60             55           52       191            181        729        693      1,038           986
    Mid-term Planned Additions to Supply                      61           58            297          282       285            271       1,167      1,109     1,810          1,720
    Total Planned Additions to Supply                                     118                         334                      452                  1,801                    2,706
Excess Demand for Rental Housing                                          624                         484                      89                    -247                     925


   Long-term Balance of Supply and Demand for Rental Units
   2011 to 2016
           4,000
                                                                                                              Total Rental Demand

           3,500                                                                                              Planned Additions to Supply              3,630

           3,000


           2,500                                                                                                                                                   2,706

           2,000


           1,500                                                                                                1,801
                                                                                                     1,554
           1,000


             500        742                    819
                                 118                                    541        452
                                                      334
               0
                          Annapolis               Glen                      Severna                      Odenton                                            Anne Arundel
                                                 Burnie                      Park                        Crofton                                              County




                                                                                       116                                                  RealPropertyResearchGroup
            This discussion of our methodology is based on the Short Term estimates for the
            Annapolis submarket, but can be applied to all four submarkets and the county as
            whole. The steps in the demand analysis are as follows:


                •    As shown on Table 11, BMC estimates that there are 55,334 households in
                     the Annapolis submarket in 2010 and projects that the market area will grow to
                     accommodate 56,581 households by 2015. Based on BMC’s estimate and
                     projection, we interpolated household numbers for 2011 and 2014. Through
                     this analysis, RPRG projects that the Annapolis submarket will be home to
                     55,582 households in 2011 and 56,330 households in 2014, a net gain of 748
                     households over the three-year study period. This projected increase in the
                     number of households represents housing demand from household growth.
                     Another source of housing demand relates to the continual removal of housing
                     units from the supply of housing. A number of factors contribute to the
                     removal of housing units. While disasters, such as fires and floods, occur
                     somewhat randomly, physical and economic obsolescence is a root cause of
                     most housing demolitions.14 The decision whether to repair or demolish a unit
                     is based on the economic value of the property in its current condition or its
                     potential economic value in different condition.
                •    Based on American Housing Survey data, researchers have analyzed
                     Components of Inventory Change (CINCH). CINCH data indicated that renter-
                     occupied or vacant units were far more likely to be demolished than owner-
                     occupied units while among renter-occupied and vacant units, single-family
                     detached units were more likely to be demolished than multi-family units.
                     Based on four years of statistical observations (1997-2001), a period which,
                     according to CINCH researchers, reflects improvements in the data collection
                     starting at that time, the average housing stock loss was computed at 0.48
                     percent per year.
                •    We projected the size of the housing stock in the Annapolis submarket for
                     each of the three years of the study period, 2011, 2012, and 2013, via
                     interpolation of housing stock projections for 2010 and 2015. Applying the
                     annual removal rate of 0.48 percent for each year in the study period, we
                     estimate that a total of 844 housing units are likely to be lost.
                •    Adding demand from projected household growth and removal of housing
                     units, the net new demand for housing units in the Annapolis submarket
                     between 2011 and 2014 is estimated to be 1,592 units.
                •    Based on Nielsen Claritas estimated tenure rates for 2009 and 2014, RPRG
                     imputed an average rentership rate of 24.7 percent of all households in the
                     Annapolis submarket between 2011 and 2014, indicating that 393 units of net
                     new demand for rental housing.



14
     Data and analysis for this section is derived from “The Destruction of Housing Capital: A Preliminary Exploration
     into Demolitions and Disasters”. ICF Consulting and Econometrica Inc. performed under the AHS Analytical
     Support Contract. November 30, 2003.

                                                       117                                  RealPropertyResearchGroup
   •   As rental housing markets serve households that are more transient than
       owner households, there must be some amount of quality vacant units
       available at any given time to provide choice among units to accommodate
       households seeking housing. Typically, a five percent vacancy rate is
       assumed to provide sufficient elasticity in the market. Our supply analysis is
       limited to the stock of multi-family units. The scattered market in single-family
       homes, condominium buildings, and other properties is extremely fluid and
       cannot be relied upon to consistently serve renter households, since the
       inventory can convert to homeownership very quickly.
   •   Based on our survey of existing upper tier, market/affordable, and subsidized
       communities in the Annapolis submarket, the current supply of multifamily
       rental units consists of 7,323 units. Of these units, 281 were reported vacant,
       including those units offline for rehabilitation, resulting in an overall vacancy
       rate of 3.8 percent. To reach the preferred market vacancy rate of five
       percent, the market would need an additional 85 units to reach a supply of 366
       vacant units.
   •   Total renter demand as estimated includes the 393 units of net demand for
       renter units and 85 needed vacant units. Over the short-term three-year
       analysis period, RPRG estimates that the Annapolis submarket could support
       an additional 478 rental units.
   •   Total rental demand must be balanced against the potential supply of new
       rental stock likely to be added between 2011 and 2014. Based upon the data
       presented in Table 30, we have identified only 63 units in the rental pipeline
       for Annapolis, all of which are public housing replacement units. Assuming a
       five percent vacancy rate for these new rental units, we arrive at a total excess
       demand for rental housing of 419 units in the Annapolis submarket through
       2014.


The excess demand in the Annapolis submarket suggests that the current supply of
multifamily rental units and the potential supply of new units will not be sufficient to
accommodate the anticipated household growth. This methodology can be followed
for each of the four Anne Arundel County submarkets and for the combined Anne
Arundel County market.


As in the Annapolis submarket, RPRG projects excess demand for each of the other
three rental housing submarkets over the next three years.           The Glen Burnie
submarket has the highest excess demand of 472 rental units, followed by the
Annapolis submarket with 472 units, the Odenton-Crofton submarket with 343 units,
and the Severna Park submarket with 194 units. Countywide, we estimate that there
will be excess demand for 1,405 additional rental units over the three-year period, or
approximately 468 units per year.


                                    118                           RealPropertyResearchGroup
Long-term pipeline projects, or those expected to be completed at least three to five
years out, will add an estimated 1,810 rental units to the countywide market (Table
32). Taking into account these long-term units and two additional years of household
growth and housing unit removal, we estimate that county will have 925 units of
excess demand over the five-year period, or approximately 185 units per year.


The Sage Policy Group report “BRAC Impacts on Fort Meade Area Housing” dated
October 2009, estimates that the expansion of Fort Meade will generate a net
increase in housing demand for 3,451 units in Anne Arundel County through 2015.
Sage further estimates that demand for rental housing will account for 535 units or 16
percent of the total demand.       Blending this assumption with RPRG’s demand
methodology suggests that Fort Meade related job growth will account for 17 percent
of Net New Demand for Rental Units in Anne Arundel County over the long term,
2011 through 2016.


On an individual submarket basis, the addition of long-term projects to the analysis
suggests that through 2016, the Odenton-Crofton submarket will be oversupplied by
247 rental units. This estimate is based on the five-year estimates of proposed rental
projects in the submarket and assumes that all of those projects will proceed. Given
current economic conditions, it is quite likely that some of those projects will not reach
completion. With a limited supply of new rental units in the pipeline, excess demand
for rental housing in Annapolis is expected to increase to 624 units through 2016. In
Glen Burnie, excess demand over five years will be similar to the excess demand
calculated for the short-term, while in Odenton-Crofton, excess demand will decrease
from short-term to long-term.


Despite the apparent oversupply in the Odenton-Crofton submarket over the long
term, we expect demand in the submarket will continue to build over the next decade
due to ongoing BRAC and NSA expansions. It is also likely that excess demand in
submarkets such as Annapolis and Glen Burnie will be addressed by the excess
supply in Odenton-Crofton. Renter households are mobile, and are not restricted to a
particular submarket or even a particular county. For example, if an individual is
relocating to the area for a high-paying job at Fort Meade or an associated defense
contractor position, and his/her preference is to move to a luxury unit in the Annapolis

                                    119                             RealPropertyResearchGroup
submarket but none are available, he/she could alternatively consider a unit in the
Odenton-Crofton submarket, where there will likely be more availability.


C.     Rental Unit Affordability
The concept of affordability balances the costs of living in a rental unit against a
household’s annual income. A housing unit is considered ‘affordable’ to a household
that expends no more than a specific percentage, usually 30 percent, of its annual
income on the expenses related to living in that unit. In the case of rental units, these
expenses are generally monthly rent paid to the unit owner and payment for utilities
for which the tenant is responsible. The sum of the out-of-pocket rent and utility
expenses are referred to as a household’s ‘gross rent’.        In this analysis, RPRG
considered a unit to be affordable when gross rent is less than 30 percent of
household income.


As part of our comprehensive survey of multifamily rental communities with at least 20
units in Anne Arundel County, we obtained information regarding current rents at
each community for each type of unit offered. Using this information, we were able to
gauge the overall affordability of units in the rental housing stock in each submarket
as well as throughout the county.


In considering affordability, we elected to classify surveyed rental units according to
the income cohorts of households that those units could serve given a maximum 30
percent gross rent burden. We establish the income cohorts by reference to data on
2010 median family income by household size issued by the US Department of
Housing and Urban Development (HUD) for the Baltimore-Towson, MD HUD Metro
FMR Area, which includes Anne Arundel County. A separate analysis of affordability
and penetration rates using county median income is presented in Appendix 3.




                                    120                            RealPropertyResearchGroup
           We chose to group rental units according to six income cohorts drawn from a paper
           prepared for HUD in June 2009 by Econometrica.15                    The unit classifications,
           highlighted in Table 33, are as follows:


               •   Extremely Low Rent and Subsidized. Includes those units serving
                   households with incomes between 0 and 30 percent of area median income
                   (AMI) based upon gross rents or those units with deep rent subsidies
                   attached.
               •   Very Low Rent. Units serving households with incomes greater than 30
                   percent of AMI and less than or equal to 50 percent of AMI.
               •   Low Rent. Units serving households with incomes greater than 50 percent of
                   AMI and less than or equal to 60 percent of AMI.
               •   Moderate Rent. Units serving households with incomes greater than 60
                   percent of AMI and less than or equal to 80 percent of AMI.
               •   High Rent. Units serving households with incomes greater than 80 percent of
                   AMI and less than or equal to 100 percent of AMI.
               •   Very High and Extremely High Rent.                  Units serving households with
                   incomes above 100 percent of AMI.


           Within each income cohort, income limits are adjusted by household size. Larger
           households, with larger living expenses, have higher income levels relative to smaller
           households.     This relationship between household size and household income is
           reflected in the differing maximum rents for units by number of bedrooms within each
           cohort. The maximum rents are set based on the adjusted median income for the
           imputed household size assumed for each unit type. An efficiency and one-bedroom
           unit is assumed to have just a one person household, while all larger units are
           assumed to have 1.5 persons per bedroom.                For example, under the HUD area
           median income classification, one-bedroom units with a gross rent below $432 are
           considered an Extremely Low Rent (<30%) unit, while the threshold for a two
           bedroom unit is $555 dollars.


           Based on imputed gross rent, we classified each unit surveyed using the bin ranges
           for each unit bedroom count as shown on Table 33 under the area median income


15
      American Housing Survey Rental Market Dynamics: 2005-2007. Prepared for the U.S. Department of Housing
     and Urban Development Office of Policy Development and Research. Prepared by Frederick J. Eggers and
     Fouad Moumen of Econometrica, Inc. June 2009.

                                                  121                               RealPropertyResearchGroup
                            TABLE 33 Classification of Affordable Units                                           Anne Arundel County


                                 HUD 2010 Median Household Income           $82,200      Baltimore-Towson, MD HUD Metro FMR Area




                                                                              % of AMI Range                      Maximum Rent by Bedroom                                        Maximum Income by Bedroom
                             Unit Classification                               Min           Max         0 BR       1 BR      2 BR       3 BR      4 BR          0 BR           1 BR            2 BR            3 BR             4 BR
                               Extremely Low Rent and Subsidized               0%             30%         $432      $432       $555      $641       $716       $17,280         $17,280         $22,200         $25,650          $28,620
                               Very Low Rent                                   30%            50%         $720      $720       $925     $1,069     $1,193      $28,800         $28,800         $37,000         $42,750          $47,700
                               Low Rent                                        50%           60%          $864      $864      $1,110    $1,283     $1,431      $34,560         $34,560         $44,400         $51,300          $57,240
                               Moderate Rent                                   60%            80%        $1,152    $1,152     $1,480    $1,710     $1,908      $46,080         $46,080         $59,200         $68,400          $76,320
                               High Rent                                       80%           100%        $1,440    $1,440     $1,850    $2,138     $2,385      $57,600         $57,600         $74,000         $85,500          $95,400
                               Very High and Extremely High Rent              100%             +            +         +          +         +          +            +               +               +              +                +


                            NOTE: Incomes are adjusted assuming 1 person per household for Efficiency and 1 BR units and 1.5 persons per unit for all other unit sizes. Maximum rents assume a maximum 30% gross rent burden.
 122
RealPropertyResearchGroup
classification. The gross rents reflect two types of adjustments to a particular unit’s
published rent: a) an upward adjustment to add in the costs of any utilities not
included in the published rent, and b) a downward adjustment to account for the
impact of any rental incentive or special.


Our detailed calculations of gross rent for each unit type offered at surveyed
communities are presented in Appendix 2 by submarket. As with the analysis of net
effective rent, the gross rent analysis uses the utility allowances used by the Housing
Commission of Anne Arundel County (HCAAC) in administering HUD programs such
as the Housing Choice Voucher program.


In interpreting Table 33, note that the rent levels are exclusive within a particular unit
type (number of bedrooms). For example, any one-bedroom unit with a rent between
$0 and $432 is classified as ‘Extremely Low Rent and Subsidized’, any one-bedroom
unit with a rent higher than $432 but less than or equal to $720 is classified as ‘Very
Low Rent’, any one-bedroom unit with a rent higher than $720 but less than or equal
to $864 is classified as ‘Low Rent’, and so forth.


Overall, 67 percent of the Anne Arundel County stock of multifamily rental units could
                                           Table 34). Glen Burnie is the most
be considered moderate rent (80%) or lower (
moderate rent market, with all units at moderate rent or lower. Severna Park follows
with 76 percent of units at moderate rent or lower. In Odenton-Crofton, nearly 54
percent of units are at moderate rent or lower. Though the Annapolis submarket has
a high proportion of deep subsidy units, it also has a high number of high and very
rent units, and overall less than half of the market’s units (49 percent) are at moderate
rent or lower.


Under the HUD area median income classification, half of the units in the Annapolis
submarket (51 percent) are considered either “high rent” or “very high and extremely
high rent” units. On the opposite end of the rent spectrum, one third of the Annapolis
submarket’s units are classified as “extremely low rent” and “subsidized” units. The
Glen Burnie submarket has the opposite rental composition of the Annapolis
submarket, with most of its units in the moderate and low rent classifications, at 44



                                    123                             RealPropertyResearchGroup
                            TABLE 34 Inventory of Affordable Rental Units

                                                                                                                Annapolis       Glen Burnie      Severna Park    Odenton Crofton    Anne Arundel County

                            Inventory of Affordable Rental Units

                            Total Number of Multifamily Rental Units                                         7,323             5,933            5,006            8,541               26,803
                                                                                          Maximum Rent         #         %       #        %       #         %      #           %        #         %
                                 <30% Extremely Low Rent and Subsidized Units                                2,355    32.2%     777    13.1%      58     1.2%     414       4.8%      3,604    13.4%
                                    Efficiency and One Bedroom Units                          $432            676      28.7%    343    44.1%      17     29.3%    239       57.7%     1,275     35.4%
                                    Two Bedroom Units                                         $555            812      34.5%    354    45.6%      35     60.3%     25        6.0%     1,226     34.0%
                                    Three Bedroom Units                                       $641            699      29.7%     80    10.3%       6     10.3%     50       12.1%      835      23.2%
                                    Four+ Bedroom Units                                       $716            168      7.1%       0     0.0%       0      0.0%    100       24.2%      268      7.4%
                                  Units with Subsidy                                                         2,355    100.0%    777    100.0%     58    100.0%    414      100.0%     3,604    100.0%
                                  Units with Program Rent Restrictions                                         0       0.0%      0      0.0%      0      0.0%      0        0.0%        0       0.0%
                                 30-50% Very Low Rent Units                                                    88      1.2%     304     5.1%     166     3.3%      88       1.0%       646     2.4%
                                    Efficiency and One Bedroom Units                          $720             28      31.8%     15     4.9%      53     31.9%     21       23.9%      117      18.1%
                                    Two Bedroom Units                                         $925              8      9.1%     274    90.1%      99     59.6%     57       64.8%      438      67.8%
                                    Three Bedroom Units                                      $1,069            52      59.1%     15     4.9%      14      8.4%     10       11.4%       91      14.1%
                                    Four+ Bedroom Units                                      $1,193             0      0.0%       0     0.0%       0      0.0%      0       0.0%        0       0.0%
                                  Units with Program Rent Restrictions                                         88     100.0%     9      3.0%     166    100.0%     88      100.0%      351      54.3%
                                 50-60% Low Rent Units                                                        237      3.2%    2,271   38.3%     516    10.3%    1,347     15.8%      4,371    16.3%
                                    Efficiency and One Bedroom Units                          $864             36      15.2%    917    40.4%      40      7.8%    159       11.8%     1,152     26.4%
                                    Two Bedroom Units                                        $1,110           146      61.6%   1,302   57.3%     476     92.2%    788       58.5%     2,712     62.0%
                                    Three Bedroom Units                                      $1,283            42      17.7%     52     2.3%       0      0.0%    396       29.4%      490      11.2%
                                    Four+ Bedroom Units                                      $1,431            13      5.5%       0     0.0%       0      0.0%      4       0.3%        17      0.4%
                                  Units with Program Rent Restrictions                                        135     57.0%     782    34.4%      80     15.5%     0        0.0%       997      22.8%
 124




                                 60-80% Moderate Rent Units                                                   907     12.4%    2,581   43.5%    3,064   61.2%    2,767     32.4%      9,319    34.8%
                                    Efficiency and One Bedroom Units                         $1,152           281      31.0%    858    33.2%    1,501    49.0%    553       20.0%     3,193     34.3%
                                    Two Bedroom Units                                        $1,480           599      66.0%   1,340   51.9%    1,305    42.6%   1,940      70.1%     5,184     55.6%
                                    Three Bedroom Units                                      $1,710            27      3.0%     383    14.8%     258      8.4%    274        9.9%      942      10.1%
                                    Four+ Bedroom Units                                      $1,908             0      0.0%       0     0.0%       0      0.0%      0       0.0%        0       0.0%
                                  Units with Program Rent Restrictions                                        134     14.8%      66     2.6%      0      0.0%      0        0.0%       200      2.1%
                                 80-100% High Rent Units                                                     2,535    34.6%       0     0.0%    1,128   22.5%    2,765     32.4%      6,428    24.0%
                                    Efficiency and One Bedroom Units                         $1,440           945      37.3%      0       --     484     42.9%    875       31.6%     2,304     35.8%
                                    Two Bedroom Units                                        $1,850          1,479     58.3%      0       --     615     54.5%   1,490      53.9%     3,584     55.8%
                                    Three Bedroom Units                                      $2,138            99      3.9%       0       --      29      2.6%    400       14.5%      528      8.2%
                                    Four+ Bedroom Units                                      $2,385            12      0.5%       0       --       0      0.0%      0       0.0%        12      0.2%
                                  Units with Program Rent Restrictions                                         0       0.0%      0        --      0      0.0%      0        0.0%        0       0.0%
                                 100-120% Very High and Extremely High Rent Units                            1,201    16.4%       0     0.0%      74     1.5%    1,160     13.6%      2,435    9.1%
                                    Efficiency and One Bedroom Units                            +             747      62.2%      0       --      74    100.0%    696       60.0%     1,517     62.3%
                                    Two Bedroom Units                                           +             413      34.4%      0       --       0      0.0%    402       34.7%      815      33.5%
RealPropertyResearch




                                    Three Bedroom Units                                         +              41      3.4%       0       --       0      0.0%     62       5.3%       103      4.2%
                                    Four+ Bedroom Units                                         +               0      0.0%       0       --       0      0.0%      0       0.0%        0       0.0%
                                  Units with Program Rent Restrictions                                         0       0.0%      0        --      0      0.0%      0        0.0%        0       0.0%

                             All Units with Moderate Rent or Lower                                           3,587    49.0%    5,933   100.0%   3,804   76.0%    4,616     54.0%     17,940    66.9%
                               Units with Subsidy                                                            2,355    65.7%     777    13.1%      58    1.5%      414      9.0%      3,604     20.1%
                               Units with Program Rent Restrictions                                           357     10.0%     857    14.4%     246    6.5%      88       1.9%      1,548     8.6%
                               Units with Market-Rate Rent                                                    875     24.4%    4,299   72.5%    3,500   92.0%    4,114     89.1%     9,288     51.8%
                    Group




                            Sources: Field/Phone Surveys, Real Property Research Group, Inc. August/September 2010.
percent and 38 percent, respectively. The most common unit type in the Severna
Park submarket is moderate rent units, which comprise 61 percent of the inventory.
In the Odenton-Crofton submarket, moderate rent and high rent units each make up
one third of the total inventory. In all four submarkets, most if not all units in the
extremely low rent and subsidized units classification are units with subsidies. In all
submarkets except Glen Burnie, all units in the “very low rent” classification are units
with program rent restrictions, such as LIHTC units.


The same inventory analysis, classified under the county median income, is provided
in Appendix 3. Using the higher median income for Anne Arundel County to inventory
the units, nearly 87 percent of units in the county are moderate rent or lower. All units
in the Glen Burnie submarket and nearly all units in the Severna Park submarkets
would be considered moderate rent or lower, compared to nearly 80 percent of units
for both the Annapolis and Odenton-Crofton submarkets.


D.     Penetration Rate Analysis
While the analysis in Section VII.B measures the balance of supply and demand
based on the pipeline of proposed multifamily units and anticipated household growth,
it does not address housing affordability. The analysis in Section VII.C addresses
housing affordability by grouping the existing supply of multifamily rental units by
affordability classification, but does not consider income levels of renter households.
The penetration rate analysis presented below addresses both housing affordability
and local household income. By dividing the number of units in a specific affordability
classification by the number of renter households that can afford, or qualify, for that
price point, the penetration rate can tell us the extent to which renter households
within particular income bands are adequately served by the existing supply.


From a market perspective, a low penetration rate identifies submarkets and income
bands where demand exceeds supply, suggesting that, independent of other factors,
vacancy rates will be low and rents are likely to rise consistently over time. From a
policy perspective, in these underserved markets, preservation of the existing stock is
particularly important to maintain the supply of affordable units.      However, a low
penetration rate does not imply that any specific property is at risk of losing


                                    125                            RealPropertyResearchGroup
affordability. Generally, owners of units in low penetration rate markets enjoy stable
occupancy and rising rents.


In submarkets and income bands where penetration rates are high, the opposite is
true. In these markets, there is an oversupply of units targeting renter households
that can afford rents at that level. Submarkets with high penetration rates may also
enjoy high occupancy rates, but only because households with excessive rent
burdens are occupying the supply. But in a crowded field of similarly priced units,
owners in high penetration rate markets often need to differentiate themselves from
other properties by offering incentives or discounting rents. Owners of older, tired
properties in these submarkets face the prospect of a continuing decline in rents.
This prospect may motivate some owners to consider upgrading and recapitalizing a
property in order to move the property into a higher rent affordability classification,
particularly if a higher classification has a low penetration rate. Another alternative is
that a property in this situation may be neglected, furthering a spiral of deflating rents
and increasing vacancy. It is this situation, an oversaturated market at a specific
price point (particularly where the next highest price point is undersupplied) that we
believe indicates a threat to housing affordability in a specific market.


The penetration rate is calculated by dividing the total number of units targeting a
particular income band by the number of renter households with incomes that fall
within that band. A penetration rate of 100 percent would indicate that the number of
multifamily units in an affordability classification and the number of renter households
with income sufficient to afford rents at that level are equal. A penetration rate over
100 percent would indicate an oversupply of units, while a penetration rate of less
than 100 percent would indicate an inadequate supply of units relative to the number
of renter households in that income band. We calculated the penetration rate for
each affordability classification using the HUD area median income (AMI) as the basis
for determining income levels (Table 35). An analysis using county median income
from the American Community Survey is presented in Appendix 3.


At the top of Table 35, we recap the distribution of surveyed multifamily rental units by
affordability classification for each submarket in summary of Table 34.               Those



                                     126                             RealPropertyResearchGroup
                            TABLE 35 Penetration Rate Analysis
                                                                                                                                                                                           Anne Arundel
                                                                                               Annapolis             Glen Burnie            Severna Park          Odenton Crofton
                                                                                                                                                                                             County

                            Inventory of Affordable Rental Units

                            Total Number of Multifamily Rental Units                     7,323                     5,933                   5,006                  8,541                  26,803
                                                                                           #               %         #            %          #            %         #           %          #           %
                                   Extremely Low Rent and Subsidized Units (<30%)        2,355         32.2%         777       13.1%        58         1.2%        414        4.8%        3,604      13.4%
                                   Very Low Rent Units (30-50%)                            88           1.2%         304        5.1%        166        3.3%         88        1.0%         646        2.4%
                                   Low Rent Units (50-60%)                                237           3.2%        2,271      38.3%        516       10.3%       1,347      15.8%        4,371      16.3%
                                   Moderate Rent Units (60-80%)                           907          12.4%        2,581      43.5%       3,064      61.2%       2,767      32.4%        9,319      34.8%
                                   High Rent Units (80-100%)                             2,535         34.6%          --          --       1,128      22.5%       2,765      32.4%        6,428      24.0%
                                   Very High and Extremely High Rent Units (>100%)       1,201         16.4%          --          --        74         1.5%       1,160      13.6%        2,435       9.1%

                            2011 Renter Households by Affordability Band

                               Income Bands                                            Min Income    Max Income
                                  Extremely Low Rent and Subsidized Units (<30%)          $0          $25,650
                                  Very Low Rent Units (30-50%)                          $17,280        $42,750
                                  Low Rent Units (50-60%)                               $28,800        $51,300
                                  Moderate Rent Units (60-80%)                          $34,560       $68,400
                                  High Rent Units (80-100%)                             $46,080        $85,500
                                  Very High and Extremely High Rent Units (>100%)       $57,600       $128,250

                            2011 Total Renter Households                                13,738                     10,627                 8,417                   15,202                 47,985
 127




                            Estimated Multifamily Renters                                7,323                      5,933                 5,006                    8,541                 26,803
                             Allocation of Renters to Multifamily Rental Stock          53 3%
                                                                                        53.3%                      55 8%
                                                                                                                   55.8%                  59 5%
                                                                                                                                          59.5%                   56.2%
                                                                                                                                                                  56 2%                  55 9%
                                                                                                                                                                                         55.9%
                                                                                                                                                                   # of
                                                                                       # of Renter   % of Renter # of Renter    % of    # of Renter % of Renter   Renter   % of Renter # of Renter % of Renter
                                                                                          HHs           HHs         HHs      Renter HHs    HHs         HHs         HHs        HHs         HHs         HHs
                                   Extremely Low Income (<30%)                           1,861         25.4%        1,685      28.4%        792       15.8%       1,307      15.3%        5,645      21.1%
                                   Very Low Income Hhlds (30-50%)                        2,043         27.9%        2,019      34.0%       1,551      31.0%       2,154      25.2%       7,767       29.0%
                                   Low Income Hhlds (50-60%)                             1,807         24.7%        1,748      29.5%       1,578      31.5%       2,362      27.7%        7,495      28.0%
                                   Moderate Income Hhlds (60-80%)                        2,390         32.6%        2,145      36.1%       2,115      42.2%       3,384      39.6%       10,034      37.4%
                                   High Income Hhlds (80-100%)                           2,184         29.8%        1,750      29.5%       1,761      35.2%       3,001      35.1%        8,696      32.4%
                                   Very High and Extremely High Income Hhlds (>100%)     2,199         30.0%        1,557      26.2%       1,630      32.6%       3,213      37.6%       8,600       32.1%

                            Penetration Rate (Units / Qualified HHs)

                                   Extremely Low Rent and Subsidized Units (<30%)              126.6%                    46.1%                    7.3%                  31.7%                  63.8%
RealPropertyResearch




                                   Very Low Rent Units (30-50%)                                  4.3%                     15.1%                   10.7%                  4.1%                   8.3%
                                   Low Rent Units (50-60%)                                      13.1%                    129.9%                   32.7%                 57.0%                  58.3%
                                   Moderate Rent Units (60-80%)                                 37.9%                    120.3%                  144.9%                 81.8%                  92.9%
                                   High Rent Units (80-100%)                                   116.1%                       --                    64.1%                 92.1%                  73.9%
                                   Very High and Extremely High Rent Units (>100%)              54.6%                       --                    4.5%                  36.1%                  28.3%
                    Group
affordability classifications relate to equivalent income bands, in which we grouped
renter households in each submarket. The minimum income for any income band is
the income necessary to afford the maximum one-bedroom rent for the next lower
affordability classification with a 30 percent rent burden (see Table 33). For example,
the maximum one-bedroom rent for a Very Low Rent (30-50%) unit in Anne Arundel
County is $720, requiring an annual income of $28,800. Any household earning more
than this amount is considered to be in the next highest category, the Low Income
(50-60%) band. The maximum income for any band is the income required to afford
the maximum three-bedroom rent for that affordability classification. For example, the
maximum three-bedroom rent for a Low Rent unit is $1,283, requiring an annual
income of $51,300. Therefore, any household earning between $28,800 and $51,300
would be considered to be in the Low Income band.


As the number of renter households requiring larger units is limited, we did not include
the higher income limit associated with units with four or more bedrooms. We also
capped the maximum income limit for the top income band, Very High and Extremely
High Income (>100%) households, at 150 percent of AMI. By limiting top incomes in
this way, we are attempting to create a more realistic estimate of the number of
multifamily renter households within each income band. It is important to note that
due to the differing income levels required for units of different sizes, there is
                                                             n
considerable overlap among the households within the various i come bands. A
household earning $51,300 would be counted in the Low Income band, the Moderate
Income (60-80%) band and the High Income (80-100%) band.


The penetration rates in Table 35 are calculated for 2011, the expected date of the
final implementation of BRAC. Given that our survey of the rental market in Anne
Arundel County was limited to just multifamily rental communities with 20 or more
units, we cannot account for the supply of rental units in the scattered site market or
at smaller multifamily properties.    To adjust for this, we reduced the number of
anticipated renter households to equal the total number of surveyed multifamily rental
units for each submarket. For example, in the Annapolis submarket, the 7,323
surveyed multifamily rental units represent 53 percent of the 13,738 estimated renter
households for 2011. It is this group of renters, those represented by the surveyed



                                     128                          RealPropertyResearchGroup
multifamily rental units, that we grouped by income band for the penetration rate
analysis.


Dividing the number of units in each affordability classification by the number of renter
households in the corresponding income band, results in the penetration rate for that
affordability classification. The highest penetration rates in Anne Arundel County are
for Moderate Rent units and High Rent units:            93 percent and 74 percent,
respectively. This means that, overall, even in these most crowded rental markets in
Anne Arundel County, the rental market is somewhat undersupplied relative to the
number of multifamily renter households in those income bands. There are fewer
units in the market then there are renter households at any given income band. At
the low end of the price spectrum, the penetration rates for Extremely Low Rent and
Subsidized (<30%) units and Very Low Rent units vary drastically. Countywide, 63
percent of renter households under 30 percent of AMI are served by the existing
supply of Extremely Low Rent and Subsidized units while only eight percent of renter
households with incomes between 30 percent and 50 percent of AMI are served by
the existing supply of Very Low Rent units. Low Rent units in Anne Arundel County
have a penetration rate of 58 percent while Very High and Extremely High Rent units
have a penetration rate of 28 percent.


The graphic representation of the penetration rate analysis as shown in Figure 11
illustrates the extent of imbalance at the various affordability classifications in each
submarket. Relative to each other, a submarket with a shallower curve suggests a
market where supply and demand are more balanced across the price spectrum,
while a submarket with a steeper curve suggests that market imbalance is
concentrated at specific price levels.


Each submarket presents its own unique risk profile with respect to the potential for
loss of affordable housing.        The Annapolis submarket is unique with two
oversaturated markets at opposite extremes of the price spectrum. Both Extremely
Low Rent and Subsidized units and High Rent units in Annapolis have penetration
rates well above 100 percent, while income categories in between these two
extremes are particularly underserved, with penetration rates ranging from just four
percent for Very Low Rent units to 38 percent for Moderate Rent units. Although all of

                                    129                            RealPropertyResearchGroup
the Extremely Low Rent and Subsidized units in Annapolis are protected by program
restrictions, private owners may be tempted by the well established High Rent or Very
High and Extremely High Rent unit markets. Despite the apparent oversupply at the
High Rent level, owners may choose to opt-out of existing subsidy programs and take
advantage of underlying land value through demolition of existing units.


The Severna Park submarket also presents a high-risk profile due to an oversaturated
market at the Moderate Rent level and an undersupply of units at the High Rent level.
Moderate Rent units in Severna Park have a penetration rate of 145 percent,
compared to High Rent units, with a penetration rate of 64 percent, a variance of 80
points.


Figure 11 Submarket Penetration Rates

 Units/Qualified Multifamily Renter Households
                                                      Annapolis                  Glen Burnie

 160.0%                                               Severna Park               Odenton Crofton
           Over Supply >




 140.0%

 120.0%

 100.0%
           < Under Supply




  80.0%

  60.0%

  40.0%

  20.0%

   0.0%
              <30%          30-50%      50-60%       60-80%          80-100%          100%>
          Ext Low Rent &      Very      Low Rent   Moderate Rent     High Rent      Very High and
            Subsidized      Low Rent                                                Ext High Rent




The Odenton-Crofton and Glen Burnie submarkets present lower risk profiles, but for
different reasons. The Odenton-Crofton submarket appears to be under supplied
across the entire price spectrum. The Odenton-Crofton line on Figure 11 shows a
broad plateau across Low Rent, Moderate Rent and High Rent classifications, with
penetration rates ranging from 57 percent to 92 percent. A variance of 56 percent
between High Rent units and Very High and Extremely High Rent units presents a


                                       130                              RealPropertyResearchGroup
potential risk of High Rent units repositioning to Very High and Extremely High Rent
units. However, those units at risk are already unaffordable and not a target for
preservation.


In Glen Burnie, the two highest-priced affordability classifications serving the
submarket also have the highest penetration rates.             Low Rent units have a
penetration rate of 130 percent and Moderate Rent units have a penetration rate of
120 percent. While both classifications are oversaturated, there is no existing market
for units at higher rents in this submarket. Until such a market exists, it is unlikely that
owners will speculate by repositioning units into these untested price levels.


The graph of the penetration rate analysis also highlights the countywide shortage of
units serving Very Low Income (30-50%) households and the shortage of units
serving Low Income households (50-60%) in three submarkets.               The penetration
rates for Very Low Rent units range from four percent in Odenton-Crofton and
Annapolis to just 15 percent in Glen Burnie. The penetration rates for Low Rent units
are also low, particularly in Annapolis with a penetration rate of 13 percent and
Severna Park with a penetration rate of 33 percent. Only in Glen Burnie, with a
penetration rate of 130 percent, are Low Income households served sufficiently by the
existing stock of Low Rent units.


This penetration rate analysis measures the extent of a potential market-based threat
                                                                             t
to housing affordability in Anne Arundel County. Oversaturation of a market a a
specific price point may lead to rent deflation and potentially higher vacancy rates, or
the potential for a property to be repositioned to serve households at higher income
levels. Independent of other risk factors, we find that properties serving the Moderate
Income band in Severna Park, with a penetration rate of 145 percent, are particularly
at risk.   Extremely Low Rent and Subsidized units in Annapolis are also at risk,
although not from product repositioning. Rather, the properties at greatest risk in
Annapolis are those privately owned subsidized properties where owners have an
opportunity to opt-out of subsidy programs and take advantage of high land values by
demolishing existing units.




                                     131                             RealPropertyResearchGroup
The next phase of our assignment is to perform a risk assessment using the property-
specific characteristics and market trends identified in this report for each rental
property in Anne Arundel County and throughout the eight Preservation Compact
counties. We hope the information provided by this analysis will assist the Maryland
Department of Housing and Community Development and the Preservation Compact
in their efforts to target affordable housing preservation resources effectively.




                                     132                            RealPropertyResearchGroup
APPENDIX 1 UNDERLYING ASSUMPTIONS AND LIMITING
CONDITIONS

     In conducting the analysis, we will make the following assumptions, except as otherwise
     noted in our report:

1.   There are no zoning, building, safety, environmental or other federal, state or local laws,
     regulations or codes which would prohibit or impair the development, marketing or
     operation of the subject project in the manner contemplated in our report, and the
     subject project will be developed, marketed and operated in compliance with all
     applicable laws, regulations and codes.

2.   No material changes will occur in (a) any federal, state or local law, regulation or code
     (including, without limitation, the Internal Revenue Code) affecting the subject project, or
     (b) any federal, state or local grant, financing or other program which is to be utilized in
     connection with the s ubject project.

3.   The local, national and international economies will not deteriorate, and there will be no
     significant changes in interest rates or in rates of inflation or deflation.

4.   The subject project will be served by adequate transportation, utilities and governmental
     facilities.

5.   The subject project will not be subjected to any war, energy crisis, embargo, strike,
     earthquake, flood, fire or other casualty or act of God.

6.   The subject project will be on the market at the time and with the product anticipated in
     our report, and at the price position specified in our report.

7.   The subject project will be developed, marketed and operated in a highly professional
     manner.

8.   No projects will be developed which will be in competition with the subject project,
     except as set forth in our report.

9.   There are no existing judgments nor any pending or threatened litigation, which could
     hinder the development, marketing or operation of the subject project.




                                          133                             RealPropertyResearchGroup
     The analysis will be subject to the following limiting conditions, except as otherwise
     noted in our report:

1.   The analysis contained in this report necessarily incorporates numerous estimates and
     assumptions with respect to property performance, general and local business and
     economic conditions, the absence of material changes in the competitive environment
     and other matters. Some estimates or assumptions, however, inevitably will not
     materialize, and unanticipated events and circumstances may occur; therefore, actual
     results achieved during the period covered by our analysis will vary from our estimates
     and the variations may be material.

2.   Our absorption estimates are based on the assumption that the product
     recommendations set forth in our report will be followed without material deviation.

3.   All estimates of future dollar amounts are based on the current value of the dollar,
     without any allowance for inflation or deflation.

4.   We have no responsibility for considerations requiring expertise in other fields. Such
     considerations include, but are not limited to, legal matters, environmental matters,
     architectural matters, geologic considerations, such as soils and seismic stability, and
     civil, mechanical, electrical, structural and other engineering matters.

5.   Information, estimates and opinions contained in or referred to in our report, which we
     have obtained from sources outside of this office, are assumed to be reliable and have
     not been independently verified.

6.   The conclusions and recommendations in our report are subject to these Underlying
     Assumptions and Limiting Conditions and to any additional assumptions or conditions
     set forth in the body of our report.




                                        134                            RealPropertyResearchGroup
APPENDIX 2 GROSS RENT ANALYSIS




                        135      RealPropertyResearchGroup
    Table A2-1 Multifamily Rental Communities Gross Rent Detail by Community
    Annapolis

    Affordability Class                            % AMI
      Extremely Low Rent and Subsidized     EL      30%
      Very Low Rent                         VL      50%
      Low Rent                               L      60%
      Moderate Rent                         M       80%
      High Rent                             H      100%
      Very High and Extremely High Rent     VH       +



                                                             Floorplan Detail                                           Utilities Included in Rent                              Gross Rent Calculation                Classification

                                           Total                                                                            Hot             Other    Water           Published      Utility   Incentive   Gross      Area     County
        Community                          Units   Beds    Baths     SqFt        Program         Heat Source       Heat    Water   Cook      Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income    Income

      1901 West                              21      1       1        567          Market         Natural   Gas                                               ⌧       $1,275         $101       -$106     $1,270       H         M
      1901 West                             105      1       1        784          Market         Natural   Gas                                               ⌧       $1,508         $101       -$125     $1,484      VH         H
      1901 West                              27      1       1        932          Market         Natural   Gas                                               ⌧       $1,705         $101       -$142     $1,664      VH         H
      1901 West                              95      2       1       1,163         Market         Natural   Gas                                               ⌧       $1,725         $123       -$143     $1,705       H         M
      1901 West                               6      2       2       1,342         Market         Natural   Gas                                               ⌧       $1,890         $123       -$157     $1,856      VH         H
      1901 West                               8      3       2       1,300         Market         Natural   Gas                                               ⌧       $2,260         $161       -$188     $2,233      VH         H
      Admiral Farragut                       70      1       1        600          Market         Natural   Gas     ⌧        ⌧       ⌧                ⌧       ⌧        $975           $35         $0      $1,010      M          L
      Admiral Farragut                      100      2       1        710          Market         Natural Gas       ⌧        ⌧       ⌧                ⌧       ⌧       $1,225         $40         $0       $1,265      M           L
      Admiral Farragut                      100      2       1        850          Market         Natural Gas       ⌧        ⌧       ⌧                ⌧       ⌧       $1,275          $40        $0       $1,315      M           L
      Admiral Farragut                       10      3       2       1,000         Market         Natural Gas       ⌧        ⌧       ⌧                ⌧       ⌧       $1,350          $47        $0       $1,397      M           L
      Admiral Farragut                        9     Eff      1        450          Market         Natural Gas       ⌧        ⌧       ⌧                ⌧       ⌧        $900           $62        $0        $962       M           L
      Admiral Oaks                            8      2       1        803           LIHTC           Electric                                          ⌧       ⌧        $900          $132        $0       $1,032       L         VL
      Admiral Oaks                            8      2       1        850           LIHTC           Electric                                          ⌧       ⌧        $925          $132        $0       $1,057       L         VL
      Admiral Oaks                            8      2       1        850           LIHTC           Electric                                          ⌧       ⌧        $960          $132        $0       $1,092       L         VL
      Admiral Oaks                           21      3       1       1,080          LIHTC           Electric                                          ⌧       ⌧       $1,050         $166        $0       $1,216       L         VL
      Admiral Oaks                           21      3       1       1,080          LIHTC           Electric                                          ⌧       ⌧       $1,100         $166        $0       $1,266       L         VL
      Admiral Oaks                           13      4       2       1,238          LIHTC           Electric                                          ⌧       ⌧       $1,200         $202        $0       $1,402       L         VL
      Admiral Oaks                           80      2       1        850         Section 8         Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Allen Apartments                       34      1       1        500          Market         Natural Gas                                                          $715          $116        $0        $831        L         VL
      Allen Apartments                       68      2       1        800          Market         Natural Gas                                                          $815          $138        $0        $953        L         VL
      Annapolis Gardens / Bowman   Court     10      1       1        563       Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Annapolis Gardens / Bowman   Court     24      2       1        743       Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Annapolis Gardens / Bowman   Court     56      3       1       1,212      Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Annapolis Gardens / Bowman   Court     40      4       2       1,458      Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Annapolis Gardens / Bowman   Court     20     5+       2       1,500      Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Annapolis Roads                       100      1       1        800          Market         Natural Gas       ⌧        ⌧                                ⌧       $1,245          $69        $0       $1,314       H         M
      Annapolis Roads                       178      2       2       1,080         Market         Natural Gas       ⌧        ⌧                                ⌧       $1,400          $85        $0       $1,485       H         M
      Annapolis Roads                        12      3       2       1,325         Market         Natural Gas       ⌧        ⌧                                ⌧       $1,605         $114        $0       $1,719       H         M
      Archstone Annapolis Bay                48      1       1        852          Market           Electric                                                          $1,340         $151        $0       $1,491      VH          H
      Archstone Annapolis Bay                58      1       1        782          Market           Electric                                                          $1,450         $151        $0       $1,601      VH          H
      Archstone Annapolis Bay                20      1       1        692          Market           Electric                                                          $1,690         $151        $0       $1,841      VH         VH
      Archstone Annapolis Bay                32      2       2       1,046         Market           Electric                                                          $1,833         $185        $0       $2,018      VH          H
      Archstone Annapolis Bay                38      2       2       1,124         Market           Electric                                                          $1,895         $185        $0       $2,080      VH          H
      Archstone Annapolis Bay                12      3       2       1,417         Market           Electric                                                          $1,830         $240        $0       $2,070       H         M
      Archstone Annapolis Bay                 8      3       2       1,388         Market           Electric                                                          $1,830         $240        $0       $2,070       H         M
      Bates Heritage Park                    35      1       1        675         Section 8         Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bates Heritage Park                    36      1       1        675         Section 8         Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bay Forest                             90      1       1        556           LIHTC         Natural Gas       ⌧        ⌧       ⌧                ⌧       ⌧        $850           $35        $0        $885       M           L
      Bay Forest                             30      2       1        815           LIHTC         Natural Gas       ⌧        ⌧       ⌧                ⌧       ⌧       $1,025          $40        $0       $1,065       L         VL
      Bay Hills                              47      1       1        873          Market         Natural Gas                                                 ⌧       $1,159         $101        $0       $1,260       H         M
      Bay Hills                              73      2       1       1,024         Market         Natural Gas                                                 ⌧       $1,339         $123        $0       $1,462      M          M
      Bay Ridge                             101      2       1        627          Sect 8"        Natural Gas       ⌧        ⌧                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bay Ridge                              97      3       1        802          Sect 8"        Natural Gas       ⌧        ⌧                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bayshore Landing                       30      1       1        470          Market           Electric                                                          $1,040         $151        $0       $1,191       H         M
      Bayshore Landing                       30      1       1        640          Market           Electric                                                          $1,175         $151        $0       $1,326       H         M
      Bayshore Landing                       40      1       1        860          Market           Electric                                                          $1,243         $151        $0       $1,394       H         M
      Bayshore Landing                       18      2       1        867          Market           Electric                                                          $1,318         $185        $0       $1,503       H         M
      Bayshore Landing                       20      2       2        857          Market           Electric                                                          $1,388         $185        $0       $1,573       H         M
      Bayshore Landing                       20      2       2        890          Market           Electric                                                          $1,405         $185        $0       $1,590       H         M
      Bloomsbury Square                      14      1       1         --       Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bloomsbury Square                      18      2       1         --       Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bloomsbury Square                      19      3       1         --       Public Housing      Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bywater Townhomes                     100      2       1         --          Sect 8"          Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bywater Townhomes                     150      3       1         --          Sect 8"          Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Bywater Townhomes                      58      4      1.5        --          Sect 8"          Electric                                          ⌧       ⌧       no rent          --        --       no rent     EL         EL


Gross Rent Detail by Community                                                                               Annapolis Submarket                                                                                                  Page 1 of 4
    Table A2-1 Multifamily Rental Communities Gross Rent Detail by Community
    Annapolis

    Affordability Class                                   % AMI
      Extremely Low Rent and Subsidized            EL      30%
      Very Low Rent                                VL      50%
      Low Rent                                      L      60%
      Moderate Rent                                M       80%
      High Rent                                    H      100%
      Very High and Extremely High Rent            VH       +



                                                                    Floorplan Detail                                         Utilities Included in Rent                              Gross Rent Calculation                Classification

                                                  Total                                                                          Hot             Other    Water           Published      Utility   Incentive   Gross      Area     County
        Community                                 Units   Beds    Baths     SqFt        Program         Heat Source     Heat    Water   Cook      Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income    Income

      Claiborne Place                              141      1       1        565          Sect 8"          electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Claiborne Place                               34      2       1        795          Sect 8"          electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      College Parkway Place                         70      1       1         --          Sect 8"          Electric                                                ⌧       no rent          --        --       no rent     EL         EL
      College Parkway Place                        100      2       1         --          Sect 8"          Electric                                                ⌧       no rent          --        --       no rent     EL         EL
      Contre Lubrano                                10      1       1        619          Market           Electric                                                ⌧       $1,225         $136        $0       $1,361       H         M
      Contre Lubrano                                10      1       1        658          Market           Electric                                                ⌧       $1,275         $136        $0       $1,411       H          H
      Contre Lubrano                                10      1       1        692          Market           Electric                                                ⌧       $1,295         $136        $0       $1,431       H          H
      Contre Lubrano                                11      2       2       1,099         Market           Electric                                                ⌧       $1,551         $170        $0       $1,721       H         M
      Contre Lubrano                                11      2       2       1,262         Market           Electric                                                ⌧       $1,650         $170        $0       $1,820       H          H
      Contre Lubrano                                11      2       2       1,590         Market           Electric                                                ⌧       $2,000         $170        $0       $2,170      VH          H
      Contre Lubrano                                 7     Eff      1        440          Market           Electric                                                ⌧       $1,000         $340        $0       $1,340       H         M
      Eastport Terrace                              17      1       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Eastport Terrace                              43      2       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Eastport Terrace                              13      3       2         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Eastport Terrace                              11      4       2         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Forest Hills                                  38      1       1        726          Market         Natural Gas     ⌧        ⌧       ⌧                                $1,060          $78        $0       $1,138      M          M
      Forest Hills                                  11      1       1        820          Market         Natural Gas     ⌧        ⌧       ⌧                                $1,105          $78        $0       $1,183       H         M
      Forest Hills                                   8      2       1        971          Market         Natural Gas     ⌧        ⌧       ⌧                                $1,178          $93        $0       $1,271      M           L
      Forest Hills                                  79      2       1        877          Market         Natural Gas     ⌧        ⌧       ⌧                                $1,248          $93        $0       $1,341      M           L
      Forest Hills                                  17      3      2.5      1,030         Market         Natural Gas     ⌧        ⌧       ⌧                                $1,418         $121        $0       $1,539      M           L
      Gardens of Annapolis                          35      1       1        699          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,500          $35        $0       $1,535      VH          H
      Gardens of Annapolis                           5      1       1        808          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,600          $35        $0       $1,635      VH          H
      Gardens of Annapolis                          35      2       1        845          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,900          $40        $0       $1,940      VH          H
      Gardens of Annapolis                          23      2       2        973          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $2,000          $40        $0       $2,040      VH          H
      Gardens of Annapolis                           8      2       2       1,142         Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $2,200          $40        $0       $2,240      VH          H
      Glenwood                                      56      1       1         --       Public Housing      Electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Glenwood                                       6      2       1         --       Public Housing      Electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Glenwood                                      92     Eff      1         --       Public Housing      Electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Harbour Gates                                166      1       1        645          Market           Electric                                                ⌧       $1,198         $136        $0       $1,334       H         M
      Harbour Gates                                 42      1       1        775          Market           Electric                                                ⌧       $1,366         $136        $0       $1,502      VH          H
      Harbour Gates                                 64      2       1        840          Market           Electric                                                ⌧       $1,431         $170        $0       $1,601       H         M
      Harbour Gates                                124      2       2        958          Market           Electric                                                ⌧       $1,481         $170        $0       $1,651       H         M
      Harbour Gates                                 32      2       2       1,095         Market           Electric                                                ⌧       $1,691         $170        $0       $1,861      VH          H
      Harbour Gates                                 32      3       2       1,010         Market           Electric                                                ⌧       $1,691         $225        $0       $1,916       H         M
      Harbour Gates                                 26     Eff      1        547          Market           Electric                                                ⌧       $1,100         $340        $0       $1,440       H          H
      Harbour House                                 81      1       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Harbour House                                176      2       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Harbour House                                 16      3       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Homes at the Glen                              2      1       1         --           LIHTC           Electric                                        ⌧       ⌧        $682          $108        $0        $790        L         VL
      Homes at the Glen                              2      2       1         --           LIHTC           Electric                                        ⌧       ⌧        $844          $132        $0        $976        L         VL
      Homes at the Glen                             52      3      1.5        --           LIHTC           Electric                                        ⌧       ⌧        $898          $166        $0       $1,064      VL         VL
      Langton Green                                  6      1       1         --          Sect 8"        Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Langton Green                                 10      2       1         --          Sect 8"        Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Langton Green                                  8      3       1         --          Sect 8"        Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL         EL
      Mariner Bay at Annapolis   Towne   Center     16      1       1        780          Market           Electric                                                        $1,625         $151        $0       $1,776      VH         VH
      Mariner Bay at Annapolis   Towne   Center     16      1       1        989          Market           Electric                                                        $1,849         $151        $0       $2,000      VH         VH
      Mariner Bay at Annapolis   Towne   Center     16      1       2       1,115         Market           Electric                                                        $2,599         $151        $0       $2,750      VH         VH
      Mariner Bay at Annapolis   Towne   Center     16      1       2       1,394         Market           Electric                                                        $2,799         $151        $0       $2,950      VH         VH
      Mariner Bay at Annapolis   Towne   Center     16      1      2.5      1,698         Market           Electric                                                        $3,299         $151        $0       $3,450      VH         VH
      Mariner Bay at Annapolis   Towne   Center     30      2       2       1,239         Market           Electric                                                        $1,999         $185        $0       $2,184      VH          H
      Mariner Bay at Annapolis   Towne   Center     30      2       2       1,263         Market           Electric                                                        $2,249         $185        $0       $2,434      VH         VH
      Mariner Bay at Annapolis   Towne   Center     30      2       2       1,353         Market           Electric                                                        $2,899         $185        $0       $3,084      VH         VH
      Mariner Bay at Annapolis   Towne   Center     30      2       3       1,847         Market           Electric                                                        $3,449         $185        $0       $3,634      VH         VH
      Mariner Bay at Annapolis   Towne   Center      8      3       2       1,505         Market           Electric                                                        $2,950         $240        $0       $3,190      VH         VH
      Newtowne                                      78      3       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --        --       no rent     EL         EL
      North Green                                   32      1       1        957          Market           Electric               ⌧                        ⌧       ⌧       $1,324          $86        $0       $1,410       H          H
      North Green                                    4      1       1       1,360         Market           Electric               ⌧                        ⌧       ⌧       $1,424          $86        $0       $1,510      VH          H


Gross Rent Detail by Community                                                                                    Annapolis Submarket                                                                                                  Page 2 of 4
    Table A2-1 Multifamily Rental Communities Gross Rent Detail by Community
    Annapolis

    Affordability Class                           % AMI
      Extremely Low Rent and Subsidized    EL      30%
      Very Low Rent                        VL      50%
      Low Rent                              L      60%
      Moderate Rent                        M       80%
      High Rent                            H      100%
      Very High and Extremely High Rent    VH       +



                                                            Floorplan Detail                                         Utilities Included in Rent                              Gross Rent Calculation                Classification

                                          Total                                                                          Hot             Other    Water           Published      Utility   Incentive   Gross      Area     County
        Community                         Units   Beds    Baths     SqFt        Program         Heat Source     Heat    Water   Cook      Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income    Income

      North Green                           43      2      1.5      1,214         Market           Electric               ⌧                        ⌧       ⌧       $1,499         $101         $0      $1,600       H         M
      North Green                            5      2      1.5      1,460         Market           Electric               ⌧                        ⌧       ⌧       $1,774         $101         $0      $1,875      VH          H
      Oakland Hills                         58      1       1        840          Market         Natural Gas                                               ⌧       $1,304         $101         $0      $1,405       H          H
      Oakland Hills                         78      2       1        950          Market         Natural Gas                                               ⌧       $1,404         $123         $0      $1,527       H         M
      Obery Court and College Creek         58      1       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Obery Court and College Creek         68      2       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Obery Court and College Creek         24      3       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Obery Court and College Creek         14      4       2         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Regatta Bay                           71      1       1        577          Market         Natural Gas                                               ⌧       $1,295         $101         $0      $1,396       H          H
      Regatta Bay                           56      1       1        733          Market         Natural Gas                                               ⌧       $1,380         $101         $0      $1,481      VH          H
      Regatta Bay                           90      2       2        948          Market         Natural Gas                                               ⌧       $1,705         $123       -$180     $1,648       H         M
      Regatta Bay                           28      2       2       1,188         Market         Natural Gas                                               ⌧       $1,855         $123         $0      $1,978      VH          H
      Reserve at Quiet Waters               74      1       1        516          Market         Natural Gas                                               ⌧        $949          $101         $0      $1,050      M          M
      Reserve at Quiet Waters              163      2       1        785          Market         Natural Gas                                               ⌧       $1,144         $123         $0      $1,267      M           L
      Robinwood                            125      3       1         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Robinwood                             25      4       2         --       Public Housing      Electric                                        ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Spa Cove Apartments                   45      1       1        780          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,225          $35         $0      $1,260       H         M
      Spa Cove Apartments                   45      1       1        926          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,408          $35         $0      $1,443      VH          H
      Spa Cove Apartments                  120      2       2        993          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,563          $40         $0      $1,603       H         M
      Spa Cove Apartments                   20      3       2       1,349         Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,805          $47         $0      $1,852       H         M
      Spa Cove Apartments                   12      4       3       1,551         Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,928          $52         $0      $1,980       H         M
      Stone Point                           77      1       1        766          Market         Natural Gas                                               ⌧       $1,390         $101         $0      $1,491      VH          H
      Stone Point                           75      1       1       1,045         Market         Natural Gas                                               ⌧       $1,690         $101         $0      $1,791      VH         VH
      Stone Point                           75      2       2       1,110         Market         Natural Gas                                               ⌧       $1,720         $123         $0      $1,843       H          H
      Stone Point                           75      2       2       1,269         Market         Natural Gas                                               ⌧       $1,910         $123         $0      $2,033      VH          H
      Stone Point                           10      3       2       1,381         Market         Natural Gas                                               ⌧       $2,095         $161         $0      $2,256      VH          H
      The Enclave                           20      2       1        660          Market         Natural Gas                                                        $975          $138         $0      $1,113      M          VL
      Timothy House & Gardens               60      1       1        419          Sect 8"          Electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Timothy House & Gardens               21      3      1.5       896          Sect 8"          Electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --         --      no rent     EL         EL
      Victoria Park at Edgewater            18      1       1        650           LIHTC           Electric                                        ⌧       ⌧        $392          $108         $0       $500       VL         EL
      Victoria Park at Edgewater            10      1       1        650           LIHTC           Electric                                        ⌧       ⌧        $546          $108         $0       $654       VL         VL
      Victoria Park at Edgewater             8      2       1        881           LIHTC           Electric                                        ⌧       ⌧        $657          $132         $0       $789       VL         VL
      Victoria Park at Edgewater            22      2       1        881           LIHTC           Electric                                        ⌧       ⌧        $842          $132         $0       $974        L         VL
      Victoria Park at Edgewater            22      2       1        881           LIHTC           Electric                                        ⌧       ⌧        $995          $132         $0      $1,127      M           L
      Victoria Park at Edgewater             8      2       2        934           LIHTC           Electric                                        ⌧       ⌧       $1,015         $132         $0      $1,147      M           L
      Victoria Park at Edgewater            14      2       2        996           LIHTC           Electric                                        ⌧       ⌧       $1,027         $132         $0      $1,159      M           L
      Watergate Village                      8     Eff      1        502          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,059         $104         $0      $1,163       H         M
      Watergate Village                     70      1       1        630          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,214          $61         $0      $1,275       H         M
      Watergate Village                     61      1       1        722          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,268          $61         $0      $1,329       H         M
      Watergate Village                     70      1       1        633          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,391          $61         $0      $1,452      VH          H
      Watergate Village                     87      2       1        782          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,425          $70         $0      $1,495       H         M
      Watergate Village                     87      2       1        890          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,525          $70         $0      $1,595       H         M
      Watergate Village                     88      2       1        878          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,617          $70         $0      $1,687       H         M
      Watergate Village                     87      2      1.5       878          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,713          $70         $0      $1,783       H         M
      Watergate Village                     15      3       1        960          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,670          $81         $0      $1,751       H         M
      Watergate Village                     15      3       2       1,148         Market         Natural Gas              ⌧                        ⌧       ⌧       $2,062          $81         $0      $2,143      VH          H
      Watergate Village                     20     Eff      1        487          Market         Natural Gas              ⌧                        ⌧       ⌧       $1,152         $104         $0      $1,256       H         M
      West Woods                             7      1       1        704          Market           Electric                                                        $1,059         $151         $0      $1,210       H         M
      West Woods                             7      1       1        814          Market           Electric                                                        $1,210         $151         $0      $1,361       H         M
      West Woods                             7      1       1        943          Market           Electric                                                        $1,240         $151         $0      $1,391       H         M
      West Woods                            12      2       2       1,127         Market           Electric                                                        $1,243         $185         $0      $1,428      M          M
      West Woods                            12      2       2       1,193         Market           Electric                                                        $1,435         $185         $0      $1,620       H         M
      West Woods                            12      2       2       1,312         Market           Electric                                                        $1,595         $185         $0      $1,780       H         M
      Westwinds Apartments                  35      1       1        670          Market           Electric                                                ⌧       $1,159         $136         $0      $1,295       H         M
      Westwinds Apartments                  10      1       1        750          Market           Electric                                                ⌧       $1,199         $136         $0      $1,335       H         M
      Westwinds Apartments                   6      1       1        895          Market           Electric                                                ⌧       $1,304         $136         $0      $1,440       H          H
      Westwinds Apartments                 106      2       2        870          Market           Electric                                                ⌧       $1,389         $170         $0      $1,559       H         M


Gross Rent Detail by Community                                                                            Annapolis Submarket                                                                                                  Page 3 of 4
    Table A2-1 Multifamily Rental Communities Gross Rent Detail by Community
    Annapolis

    Affordability Class                                  % AMI
      Extremely Low Rent and Subsidized          EL        30%
      Very Low Rent                              VL        50%
      Low Rent                                    L        60%
      Moderate Rent                              M         80%
      High Rent                                  H        100%
      Very High and Extremely High Rent          VH         +



                                                                       Floorplan Detail                                                      Utilities Included in Rent                                   Gross Rent Calculation                Classification

                                               Total                                                                                             Hot                   Other   Water           Published      Utility   Incentive   Gross      Area     County
        Community                              Units      Beds      Baths        SqFt             Program            Heat Source        Heat    Water      Cook         Elec   Sewer   Trash     Rent         Adjust     Adjust     Rent      Income    Income

      Westwinds Apartments                       20          2         2          975               Market               Electric                                                       ⌧       $1,419         $170        $0       $1,589      H          M
      Westwinds Apartments                       13          2         2         1,000              Market               Electric                                                       ⌧       $1,499         $170        $0       $1,669      H          M
      Westwinds Apartments                       20          2         2         1,100              Market               Electric                                                       ⌧       $1,654         $170        $0       $1,824      H          H
      Woodside Garden                            26          2         1          740               Sect 8"            Natural Gas       ⌧         ⌧         ⌧          ⌧       ⌧       ⌧       no rent         --         --       no rent     EL         EL
      Woodside Garden                            26          2         1          740               Sect 8"            Natural Gas       ⌧         ⌧         ⌧          ⌧       ⌧       ⌧       no rent         --         --       no rent     EL         EL
      Woodside Garden                            46          3         1          742               Sect 8"            Natural Gas       ⌧         ⌧         ⌧          ⌧       ⌧       ⌧       no rent         --         --       no rent     EL         EL
      Woodside Garden                            46          3         1          742               Sect 8"            Natural Gas       ⌧         ⌧         ⌧          ⌧       ⌧       ⌧       no rent         --         --       no rent     EL         EL
    Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


    NOTE:            Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Community                                                                                                   Annapolis Submarket                                                                                                        Page 4 of 4
     Table A2-2 Multifamily Rental Communities Gross Rent Detail by Classification
     Annapolis

     Affordability Class                           % AMI
       Extremely Low Rent and Subsidized    EL      30%
       Very Low Rent                        VL      50%
       Low Rent                              L      60%
       Moderate Rent                        M       80%
       High Rent                            H      100%
       Very High and Extremely High Rent    VH       +



                                                             Floorplan Detail                                             Utilities Included in Rent                                Gross Rent Calculation                Classification

                                           Total                                                                              Hot             Other    Water           Published        Utility   Incentive   Gross      Area     County
         Community                         Units   Beds    Baths     SqFt        Program         Heat Source         Heat    Water   Cook      Elec    Sewer   Trash     Rent           Adjust     Adjust     Rent      Income    Income

       Annapolis Gardens / Bowman Court      10      1       1        563       Public Housing      Electric                                            ⌧       ⌧       no   rent         --         --       no rent     EL         EL
       Bates Heritage Park                  35       1       1        675         Section 8         Electric                                            ⌧       ⌧       no   rent         --         --       no rent     EL         EL
       Bates Heritage Park                  36       1       1        675         Section 8         Electric                                            ⌧       ⌧       no   rent         --         --       no rent     EL         EL
       Bloomsbury Square                     14      1       1         --       Public Housing      Electric                                            ⌧       ⌧       no   rent         --         --       no rent     EL         EL
       Claiborne Place                      141      1       1        565          Sect 8"          electric          ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no   rent         --         --       no rent     EL         EL
       College Parkway Place                 70      1       1         --          Sect 8"          Electric                                                    ⌧       no   rent         --         --       no rent     EL         EL
       Eastport Terrace                     17       1       1         --       Public Housing      Electric                                            ⌧       ⌧       no   rent         --         --       no rent     EL         EL
       Glenwood                             56       1       1         --       Public Housing      Electric          ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent           --         --       no rent     EL         EL
       Harbour House                         81      1       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Langton Green                          6      1       1         --          Sect 8"        Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Obery Court and College Creek         58      1       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Timothy House & Gardens               60      1       1        419          Sect 8"          Electric          ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Admiral Oaks                          80      2       1        850         Section 8         Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Annapolis Gardens / Bowman Court      24      2       1        743       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Bay Ridge                            101      2       1        627          Sect 8"        Natural Gas         ⌧        ⌧                        ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Bloomsbury Square                     18      2       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Bywater Townhomes                    100      2       1         --          Sect 8"          Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Claiborne Place                       34      2       1        795          Sect 8"          electric          ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       College Parkway Place                100      2       1         --          Sect 8"          Electric                                                    ⌧       no rent            --        --       no rent     EL         EL
       Eastport Terrace                      43      2       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Glenwood                               6      2       1         --       Public Housing      Electric          ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Harbour House                        176      2       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Langton Green                         10      2       1         --          Sect 8"        Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Obery Court and College Creek         68      2       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Woodside Garden                       26      2       1        740          Sect 8"        Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Woodside Garden                       26      2       1        740          Sect 8"        Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Annapolis Gardens / Bowman Court      56      3       1       1,212      Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Bay Ridge                             97      3       1        802          Sect 8"        Natural Gas         ⌧        ⌧                        ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Bloomsbury Square                     19      3       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Bywater Townhomes                    150      3       1         --          Sect 8"          Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Eastport Terrace                      13      3       2         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Harbour House                         16      3       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Langton Green                          8      3       1         --          Sect 8"        Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Newtowne                              78      3       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Obery Court and College Creek         24      3       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Robinwood                            125      3       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Timothy House & Gardens               21      3      1.5       896          Sect 8"          Electric          ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Woodside Garden                       46      3       1        742          Sect 8"        Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Woodside Garden                       46      3       1        742          Sect 8"        Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Annapolis Gardens / Bowman Court      40      4       2       1,458      Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Bywater Townhomes                     58      4      1.5        --          Sect 8"          Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Eastport Terrace                      11      4       2         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Obery Court and College Creek         14      4       2         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Robinwood                             25      4       2         --       Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Annapolis Gardens / Bowman Court      20     5+       2       1,500      Public Housing      Electric                                            ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Glenwood                              92     Eff      1         --       Public Housing      Electric          ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --        --       no rent     EL         EL
       Homes at the Glen                      2      1       1         --           LIHTC           Electric                                            ⌧       ⌧        $682            $108        $0        $790        L         VL
       Allen Apartments                      34      1       1        500          Market         Natural Gas                                                            $715            $116        $0        $831        L         VL
       Allen Apartments                      68      2       1        800          Market         Natural Gas                                                            $815            $138        $0        $953        L         VL
       Victoria Park at Edgewater            22      2       1        881           LIHTC           Electric                                            ⌧       ⌧        $842            $132        $0        $974        L         VL
       Homes at the Glen                      2      2       1         --           LIHTC           Electric                                            ⌧       ⌧        $844            $132        $0        $976        L         VL
       Admiral Oaks                           8      2       1        803           LIHTC           Electric                                            ⌧       ⌧        $900            $132        $0       $1,032       L         VL
       Admiral Oaks                           8      2       1        850           LIHTC           Electric                                            ⌧       ⌧        $925            $132        $0       $1,057       L         VL
       Bay Forest                            30      2       1        815           LIHTC         Natural Gas         ⌧        ⌧       ⌧                ⌧       ⌧       $1,025            $40        $0       $1,065       L         VL
       Admiral Oaks                           8      2       1        850           LIHTC           Electric                                            ⌧       ⌧        $960            $132        $0       $1,092       L         VL


Gross Rent Detail by Classification                                                                            Annapolis Submarket                                                                                                    Page 1 of 4
     Table A2-2 Multifamily Rental Communities Gross Rent Detail by Classification
     Annapolis

     Affordability Class                           % AMI
       Extremely Low Rent and Subsidized    EL      30%
       Very Low Rent                        VL      50%
       Low Rent                              L      60%
       Moderate Rent                        M       80%
       High Rent                            H      100%
       Very High and Extremely High Rent    VH       +



                                                             Floorplan Detail                                  Utilities Included in Rent                             Gross Rent Calculation               Classification

                                           Total                                                                   Hot             Other    Water           Published     Utility   Incentive   Gross     Area     County
         Community                         Units   Beds    Baths     SqFt       Program   Heat Source     Heat    Water   Cook      Elec    Sewer   Trash     Rent        Adjust     Adjust     Rent     Income    Income

       Admiral Oaks                          21      3       1       1,080       LIHTC       Electric                                        ⌧       ⌧       $1,050        $166         $0      $1,216      L         VL
       Admiral Oaks                          21      3       1       1,080       LIHTC       Electric                                        ⌧       ⌧       $1,100        $166         $0      $1,266      L         VL
       Admiral Oaks                          13      4       2       1,238       LIHTC       Electric                                        ⌧       ⌧       $1,200        $202         $0      $1,402      L         VL
       Victoria Park at Edgewater            18      1       1        650        LIHTC       Electric                                        ⌧       ⌧        $392         $108         $0       $500      VL         EL
       Victoria Park at Edgewater            10      1       1        650        LIHTC       Electric                                        ⌧       ⌧        $546         $108         $0       $654      VL         VL
       Victoria Park at Edgewater             8      2       1        881        LIHTC       Electric                                        ⌧       ⌧        $657         $132         $0       $789      VL         VL
       Homes at the Glen                     52      3      1.5        --        LIHTC       Electric                                        ⌧       ⌧        $898         $166         $0      $1,064     VL         VL
       Bay Forest                            90      1       1        556        LIHTC     Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧        $850          $35         $0       $885      M           L
       Admiral Farragut                       9     Eff      1        450        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧        $900          $62         $0       $962      M           L
       Admiral Farragut                      70      1       1        600        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧        $975          $35         $0      $1,010     M           L
       Reserve at Quiet Waters               74      1       1        516        Market    Natural Gas                                               ⌧        $949         $101         $0      $1,050     M          M
       The Enclave                           20      2       1        660        Market    Natural Gas                                                        $975         $138         $0      $1,113     M          VL
       Victoria Park at Edgewater            22      2       1        881        LIHTC       Electric                                        ⌧       ⌧        $995         $132         $0      $1,127     M           L
       Forest Hills                          38      1       1        726        Market    Natural Gas     ⌧        ⌧       ⌧                                $1,060         $78         $0      $1,138     M          M
       Victoria Park at Edgewater             8      2       2        934        LIHTC       Electric                                        ⌧       ⌧       $1,015        $132         $0      $1,147     M           L
       Victoria Park at Edgewater            14      2       2        996        LIHTC       Electric                                        ⌧       ⌧       $1,027        $132         $0      $1,159     M           L
       Admiral Farragut                     100      2       1        710        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,225         $40         $0      $1,265     M           L
       Reserve at Quiet Waters              163      2       1        785        Market    Natural Gas                                               ⌧       $1,144        $123         $0      $1,267     M           L
       Forest Hills                           8      2       1        971        Market    Natural Gas     ⌧        ⌧       ⌧                                $1,178         $93         $0      $1,271     M           L
       Admiral Farragut                     100      2       1        850        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,275         $40         $0      $1,315     M           L
       Forest Hills                          79      2       1        877        Market    Natural Gas     ⌧        ⌧       ⌧                                $1,248         $93         $0      $1,341     M           L
       Admiral Farragut                      10      3       2       1,000       Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,350         $47         $0      $1,397     M           L
       West Woods                            12      2       2       1,127       Market      Electric                                                        $1,243        $185         $0      $1,428     M          M
       Bay Hills                             73      2       1       1,024       Market    Natural Gas                                               ⌧       $1,339        $123         $0      $1,462     M          M
       Forest Hills                          17      3      2.5      1,030       Market    Natural Gas     ⌧        ⌧       ⌧                                $1,418        $121         $0      $1,539     M           L
       Watergate Village                      8     Eff      1        502        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,059        $104         $0      $1,163     H          M
       Forest Hills                          11      1       1        820        Market    Natural Gas     ⌧        ⌧       ⌧                                $1,105         $78         $0      $1,183     H          M
       Bayshore Landing                      30      1       1        470        Market      Electric                                                        $1,040        $151         $0      $1,191     H          M
       West Woods                             7      1       1        704        Market      Electric                                                        $1,059        $151         $0      $1,210     H          M
       Watergate Village                     20     Eff      1        487        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,152        $104         $0      $1,256     H          M
       Bay Hills                             47      1       1        873        Market    Natural Gas                                               ⌧       $1,159        $101         $0      $1,260     H          M
       Spa Cove Apartments                   45      1       1        780        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,225         $35         $0      $1,260     H          M
       1901 West                             21      1       1        567        Market    Natural Gas                                               ⌧       $1,275        $101       -$106     $1,270     H          M
       Watergate Village                     70      1       1        630        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,214         $61         $0      $1,275     H          M
       Westwinds Apartments                  35      1       1        670        Market      Electric                                                ⌧       $1,159        $136         $0      $1,295     H          M
       Annapolis Roads                      100      1       1        800        Market    Natural Gas     ⌧        ⌧                                ⌧       $1,245         $69         $0      $1,314     H          M
       Bayshore Landing                      30      1       1        640        Market      Electric                                                        $1,175        $151         $0      $1,326     H          M
       Watergate Village                     61      1       1        722        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,268         $61         $0      $1,329     H          M
       Harbour Gates                        166      1       1        645        Market      Electric                                                ⌧       $1,198        $136         $0      $1,334     H          M
       Westwinds Apartments                  10      1       1        750        Market      Electric                                                ⌧       $1,199        $136         $0      $1,335     H          M
       Contre Lubrano                         7     Eff      1        440        Market      Electric                                                ⌧       $1,000        $340         $0      $1,340     H          M
       Contre Lubrano                        10      1       1        619        Market      Electric                                                ⌧       $1,225        $136         $0      $1,361     H          M
       West Woods                             7      1       1        814        Market      Electric                                                        $1,210        $151         $0      $1,361     H          M
       West Woods                             7      1       1        943        Market      Electric                                                        $1,240        $151         $0      $1,391     H          M
       Bayshore Landing                      40      1       1        860        Market      Electric                                                        $1,243        $151         $0      $1,394     H          M
       Regatta Bay                           71      1       1        577        Market    Natural Gas                                               ⌧       $1,295        $101         $0      $1,396     H          H
       Oakland Hills                         58      1       1        840        Market    Natural Gas                                               ⌧       $1,304        $101         $0      $1,405     H          H
       North Green                           32      1       1        957        Market      Electric               ⌧                        ⌧       ⌧       $1,324         $86         $0      $1,410     H          H
       Contre Lubrano                        10      1       1        658        Market      Electric                                                ⌧       $1,275        $136         $0      $1,411     H          H
       Contre Lubrano                        10      1       1        692        Market      Electric                                                ⌧       $1,295        $136         $0      $1,431     H          H
       Harbour Gates                         26     Eff      1        547        Market      Electric                                                ⌧       $1,100        $340         $0      $1,440     H          H
       Westwinds Apartments                   6      1       1        895        Market      Electric                                                ⌧       $1,304        $136         $0      $1,440     H          H
       Annapolis Roads                      178      2       2       1,080       Market    Natural Gas     ⌧        ⌧                                ⌧       $1,400         $85         $0      $1,485     H          M
       Watergate Village                     87      2       1        782        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,425         $70         $0      $1,495     H          M
       Bayshore Landing                      18      2       1        867        Market      Electric                                                        $1,318        $185         $0      $1,503     H          M
       Oakland Hills                         78      2       1        950        Market    Natural Gas                                               ⌧       $1,404        $123         $0      $1,527     H          M
       Westwinds Apartments                 106      2       2        870        Market      Electric                                                ⌧       $1,389        $170         $0      $1,559     H          M


Gross Rent Detail by Classification                                                                 Annapolis Submarket                                                                                                Page 2 of 4
     Table A2-2 Multifamily Rental Communities Gross Rent Detail by Classification
     Annapolis

     Affordability Class                               % AMI
       Extremely Low Rent and Subsidized        EL      30%
       Very Low Rent                            VL      50%
       Low Rent                                  L      60%
       Moderate Rent                            M       80%
       High Rent                                H      100%
       Very High and Extremely High Rent        VH       +



                                                                 Floorplan Detail                                  Utilities Included in Rent                             Gross Rent Calculation               Classification

                                               Total                                                                   Hot             Other    Water           Published     Utility   Incentive   Gross     Area     County
         Community                             Units   Beds    Baths     SqFt       Program   Heat Source     Heat    Water   Cook      Elec    Sewer   Trash     Rent        Adjust     Adjust     Rent     Income    Income

       Bayshore Landing                          20      2       2        857        Market      Electric                                                        $1,388        $185         $0      $1,573      H         M
       Westwinds Apartments                      20      2       2        975        Market      Electric                                                ⌧       $1,419        $170         $0      $1,589      H         M
       Bayshore Landing                          20      2       2        890        Market      Electric                                                        $1,405        $185         $0      $1,590      H         M
       Watergate Village                         87      2       1        890        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,525         $70         $0      $1,595      H         M
       North Green                               43      2      1.5      1,214       Market      Electric               ⌧                        ⌧       ⌧       $1,499        $101         $0      $1,600      H         M
       Harbour Gates                             64      2       1        840        Market      Electric                                                ⌧       $1,431        $170         $0      $1,601      H         M
       Spa Cove Apartments                      120      2       2        993        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,563         $40         $0      $1,603      H         M
       West Woods                                12      2       2       1,193       Market      Electric                                                        $1,435        $185         $0      $1,620      H         M
       Regatta Bay                               90      2       2        948        Market    Natural Gas                                               ⌧       $1,705        $123       -$180     $1,648      H         M
       Harbour Gates                            124      2       2        958        Market      Electric                                                ⌧       $1,481        $170         $0      $1,651      H         M
       Westwinds Apartments                      13      2       2       1,000       Market      Electric                                                ⌧       $1,499        $170         $0      $1,669      H         M
       Watergate Village                         88      2       1        878        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,617         $70         $0      $1,687      H         M
       1901 West                                 95      2       1       1,163       Market    Natural Gas                                               ⌧       $1,725        $123       -$143     $1,705      H         M
       Annapolis Roads                           12      3       2       1,325       Market    Natural Gas     ⌧        ⌧                                ⌧       $1,605        $114         $0      $1,719      H         M
       Contre Lubrano                            11      2       2       1,099       Market      Electric                                                ⌧       $1,551        $170         $0      $1,721      H         M
       Watergate Village                         15      3       1        960        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,670         $81         $0      $1,751      H         M
       West Woods                                12      2       2       1,312       Market      Electric                                                        $1,595        $185         $0      $1,780      H         M
       Watergate Village                         87      2      1.5       878        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,713         $70         $0      $1,783      H         M
       Contre Lubrano                            11      2       2       1,262       Market      Electric                                                ⌧       $1,650        $170         $0      $1,820      H          H
       Westwinds Apartments                      20      2       2       1,100       Market      Electric                                                ⌧       $1,654        $170         $0      $1,824      H          H
       Stone Point                               75      2       2       1,110       Market    Natural Gas                                               ⌧       $1,720        $123         $0      $1,843      H          H
       Spa Cove Apartments                       20      3       2       1,349       Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,805         $47         $0      $1,852      H         M
       Harbour Gates                             32      3       2       1,010       Market      Electric                                                ⌧       $1,691        $225         $0      $1,916      H         M
       Spa Cove Apartments                       12      4       3       1,551       Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,928         $52         $0      $1,980      H         M
       Archstone Annapolis Bay                   12      3       2       1,417       Market      Electric                                                        $1,830        $240         $0      $2,070      H         M
       Archstone Annapolis Bay                    8      3       2       1,388       Market      Electric                                                        $1,830        $240         $0      $2,070      H         M
       Spa Cove Apartments                       45      1       1        926        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,408         $35         $0      $1,443     VH          H
       Watergate Village                         70      1       1        633        Market    Natural Gas              ⌧                        ⌧       ⌧       $1,391         $61         $0      $1,452     VH          H
       Regatta Bay                               56      1       1        733        Market    Natural Gas                                               ⌧       $1,380        $101         $0      $1,481     VH          H
       1901 West                                105      1       1        784        Market    Natural Gas                                               ⌧       $1,508        $101       -$125     $1,484     VH          H
       Archstone Annapolis Bay                   48      1       1        852        Market      Electric                                                        $1,340        $151         $0      $1,491     VH          H
       Stone Point                               77      1       1        766        Market    Natural Gas                                               ⌧       $1,390        $101         $0      $1,491     VH          H
       Harbour Gates                             42      1       1        775        Market      Electric                                                ⌧       $1,366        $136         $0      $1,502     VH          H
       North Green                                4      1       1       1,360       Market      Electric               ⌧                        ⌧       ⌧       $1,424         $86         $0      $1,510     VH          H
       Gardens of Annapolis                      35      1       1        699        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,500         $35         $0      $1,535     VH          H
       Archstone Annapolis Bay                   58      1       1        782        Market      Electric                                                        $1,450        $151         $0      $1,601     VH          H
       Gardens of Annapolis                       5      1       1        808        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,600         $35         $0      $1,635     VH          H
       1901 West                                 27      1       1        932        Market    Natural Gas                                               ⌧       $1,705        $101       -$142     $1,664     VH          H
       Mariner Bay at Annapolis Towne Center     16      1       1        780        Market      Electric                                                        $1,625        $151         $0      $1,776     VH         VH
       Stone Point                               75      1       1       1,045       Market    Natural Gas                                               ⌧       $1,690        $101         $0      $1,791     VH         VH
       Archstone Annapolis Bay                   20      1       1        692        Market      Electric                                                        $1,690        $151         $0      $1,841     VH         VH
       1901 West                                  6      2       2       1,342       Market    Natural Gas                                               ⌧       $1,890        $123       -$157     $1,856     VH          H
       Harbour Gates                             32      2       2       1,095       Market      Electric                                                ⌧       $1,691        $170         $0      $1,861     VH          H
       North Green                                5      2      1.5      1,460       Market      Electric               ⌧                        ⌧       ⌧       $1,774        $101         $0      $1,875     VH          H
       Gardens of Annapolis                      35      2       1        845        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,900         $40         $0      $1,940     VH          H
       Regatta Bay                               28      2       2       1,188       Market    Natural Gas                                               ⌧       $1,855        $123         $0      $1,978     VH          H
       Mariner Bay at Annapolis Towne Center     16      1       1        989        Market      Electric                                                        $1,849        $151         $0      $2,000     VH         VH
       Archstone Annapolis Bay                   32      2       2       1,046       Market      Electric                                                        $1,833        $185         $0      $2,018     VH          H
       Stone Point                               75      2       2       1,269       Market    Natural Gas                                               ⌧       $1,910        $123         $0      $2,033     VH          H
       Gardens of Annapolis                      23      2       2        973        Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $2,000         $40         $0      $2,040     VH          H
       Archstone Annapolis Bay                   38      2       2       1,124       Market      Electric                                                        $1,895        $185         $0      $2,080     VH          H
       Watergate Village                         15      3       2       1,148       Market    Natural Gas              ⌧                        ⌧       ⌧       $2,062         $81         $0      $2,143     VH          H
       Contre Lubrano                            11      2       2       1,590       Market      Electric                                                ⌧       $2,000        $170         $0      $2,170     VH          H
       Mariner Bay at Annapolis Towne Center     30      2       2       1,239       Market      Electric                                                        $1,999        $185         $0      $2,184     VH          H
       1901 West                                  8      3       2       1,300       Market    Natural Gas                                               ⌧       $2,260        $161       -$188     $2,233     VH          H
       Gardens of Annapolis                       8      2       2       1,142       Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $2,200         $40         $0      $2,240     VH          H
       Stone Point                               10      3       2       1,381       Market    Natural Gas                                               ⌧       $2,095        $161         $0      $2,256     VH          H


Gross Rent Detail by Classification                                                                     Annapolis Submarket                                                                                                Page 3 of 4
     Table A2-2 Multifamily Rental Communities Gross Rent Detail by Classification
     Annapolis

     Affordability Class                                         % AMI
       Extremely Low Rent and Subsidized                  EL       30%
       Very Low Rent                                      VL       50%
       Low Rent                                            L       60%
       Moderate Rent                                      M        80%
       High Rent                                          H       100%
       Very High and Extremely High Rent                  VH        +



                                                                               Floorplan Detail                                                        Utilities Included in Rent                                Gross Rent Calculation               Classification

                                                         Total                                                                                             Hot                 Other   Water           Published     Utility   Incentive   Gross     Area     County
         Community                                       Units    Beds      Baths        SqFt             Program            Heat Source          Heat    Water    Cook         Elec   Sewer   Trash     Rent        Adjust     Adjust     Rent     Income    Income

       Mariner   Bay   at   Annapolis   Towne   Center    30         2         2         1,263              Market               Electric                                                               $2,249        $185        $0       $2,434     VH         VH
       Mariner   Bay   at   Annapolis   Towne   Center    16         1         2         1,115              Market               Electric                                                               $2,599        $151        $0       $2,750     VH         VH
       Mariner   Bay   at   Annapolis   Towne   Center    16         1         2         1,394              Market               Electric                                                               $2,799        $151        $0       $2,950     VH         VH
       Mariner   Bay   at   Annapolis   Towne   Center    30         2         2         1,353              Market               Electric                                                               $2,899        $185        $0       $3,084     VH         VH
       Mariner   Bay   at   Annapolis   Towne   Center     8         3         2         1,505              Market               Electric                                                               $2,950        $240        $0       $3,190     VH         VH
       Mariner   Bay   at   Annapolis   Towne   Center    16         1        2.5        1,698              Market               Electric                                                               $3,299        $151        $0       $3,450     VH         VH
       Mariner   Bay   at   Annapolis   Towne   Center    30         2         3         1,847              Market               Electric                                                               $3,449        $185        $0       $3,634     VH         VH
     Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


     NOTE:                   Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Classification                                                                                                         Annapolis Submarket                                                                                                   Page 4 of 4
 Table A2-3 Multifamily Rental Communities Gross Rent Detail by Community
 Glen Burnie

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                             Utilities Included in Rent                              Gross Rent Calculation               Classification

                                       Total                                                                              Hot             Other    Water           Published      Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt        Program         Heat Source         Heat    Water   Cook      Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income Income

   Americana Southdale                  126      1       1        682          Market         Natural   Gas                ⌧                        ⌧       ⌧         $944          $61        $0       $1,005      M        L
   Americana Southdale                   54      2       1        702          Market         Natural   Gas                ⌧                        ⌧       ⌧        $1,027         $70        $0       $1,097      L        VL
   Americana Southdale                  225      2       1        903          Market         Natural   Gas                ⌧                        ⌧       ⌧        $1,079         $70        $0       $1,149      M        L
   Americana Southdale                   51      3      1.5      1,101         Market         Natural   Gas                ⌧                        ⌧       ⌧        $1,209         $81        $0       $1,290      M        VL
   Americana Southdale                   50      3      1.5      1,077         Market         Natural   Gas                ⌧                        ⌧       ⌧        $1,394         $81        $0       $1,475      M        L
   Aquahart Manor                        68      1       1        585          Market         Natural   Gas                                         ⌧       ⌧         $875          $73        $0        $948       M        L
   Aquahart Manor                        32      2       1        775          Market         Natural   Gas                                         ⌧       ⌧        $1,050         $85        $0       $1,135      M        L
   Aquahart Manor                       24      Eff      1        355          Market         Natural Gas                                           ⌧       ⌧        $765          $138        $0        $903       M         L
   Arundel Woods Senior                  72      1       1        590          Sect 8"          Electric                                                    ⌧       no rent          --         --      no rent     EL       EL
   Burwood Gardens                       80      1       1        576       Public Housing    Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Burwood Gardens                      100      2       1        735       Public Housing    Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Burwood Gardens                       20     Eff      1        395       Public Housing    Natural Gas         ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Cedar Creek                           50      1       1        659          Market         Natural Gas                                                   ⌧        $775          $101        -$64      $812        L       VL
   Cedar Creek                           50      1       1        686          Market         Natural Gas                                                   ⌧        $800          $101        -$66      $835        L       VL
   Cedar Creek                           50      1       1        763          Market         Natural Gas                                                   ⌧        $825          $101        -$68      $858        L       VL
   Cedar Creek                           92      2       1        898          Market         Natural Gas                                                   ⌧        $925          $123        -$77      $971        L       VL
   Cedar Creek                           92      2       1        975          Market         Natural Gas                                                   ⌧        $950          $123        -$79      $994        L       VL
   Colonial Square                      135      1       1        600          Market         Natural Gas                                                   ⌧        $911          $101         $0      $1,012      M         L
   Colonial Square                       96      2       1        800          Market         Natural Gas                                                   ⌧       $1,064         $123         $0      $1,187      M         L
   Colonial Square                       12      2       1        846          Market         Natural Gas                                                   ⌧       $1,203         $123         $0      $1,326      M         L
   Colonial Square                       4       3       2        932          Market         Natural Gas                                                   ⌧       $1,267         $161         $0      $1,428      M         L
   Country Club                          20      1       1        650          Market         Natural Gas                  ⌧                        ⌧       ⌧        $784           $61         $0       $845       L        VL
   Country Club                         125      2       1        750          Market         Natural Gas                  ⌧                        ⌧       ⌧        $894           $70         $0       $964       L        VL
   Country Club                          5      Eff      1        600          Market         Natural Gas                  ⌧                        ⌧       ⌧        $605          $104         $0       $709       VL       VL
   Coves at Chesapeake                   85      2       1        930          Market           Electric                                                    ⌧       $1,186         $170         $0      $1,356      M        M
   Coves at Chesapeake                   85      2      1.5       910          Market           Electric                                                    ⌧       $1,238         $170         $0      $1,408      M        M
   Coves at Chesapeake                   85      2       1        940          Market           Electric                                                    ⌧       $1,261         $170         $0      $1,431      M        M
   Coves at Chesapeake                   70      3      1.5      1,050         Market           Electric                                                    ⌧       $1,250         $225         $0      $1,475      M         L
   Coves at Chesapeake                   70      3      1.5      1,030         Market           Electric                                                    ⌧       $1,255         $225         $0      $1,480      M         L
   Coves at Chesapeake                   70      3      1.5      1,080         Market           Electric                                                    ⌧       $1,360         $225         $0      $1,585      M        M
   Crain Court                           63      1       1        566          Market         Natural Gas                  ⌧                        ⌧       ⌧        $864           $61         $0       $925       M         L
   Crain Court                           63      2       1        657          Market         Natural Gas                  ⌧                        ⌧       ⌧        $949           $70         $0      $1,019       L       VL
   Freetown Village                      24      1       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Freetown Village                      50      2       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Freetown Village                      80      3      1.5        --       Public Housing      Electric                                            ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Gatewater Landing                    109      1       1        703          Market         Natural Gas         ⌧        ⌧       ⌧                ⌧       ⌧        $808           $35         $0       $843       L        VL
   Gatewater Landing                    155      2       1        893          Market         Natural Gas         ⌧        ⌧       ⌧                ⌧       ⌧       $1,107          $40         $0      $1,147      M         L
   Glen Burnie Town Apartments           30      1       1        702          Market           Electric                                            ⌧       ⌧       $1,105         $108        -$92     $1,121      M        M
   Glen Burnie Town Apartments           21      2       2       1,012         Market           Electric                                            ⌧       ⌧       $1,187         $132        -$98     $1,221      M         L
   Glen Burnie Town Apartments           3       3       2       1,021         Market           Electric                                            ⌧       ⌧       $1,315         $166       -$110     $1,371      M         L
   Glen Ridge                            43      1       1        681          Market         Natural Gas                                                            $819          $116         $0       $935       M         L
   Glen Ridge                            43      1       1        769          Market         Natural Gas                                                            $898          $116         $0      $1,014      M        L
   Glen Ridge                           100      2       1        907          Market         Natural Gas                                                            $904          $138         $0      $1,042       L       VL
   Glen Ridge                           100      2       1        931          Market         Natural Gas                                                           $1,060         $138         $0      $1,198      M         L
   Glen Square                           47      1       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Glen Square                           80      2       1         --       Public Housing      Electric                                            ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Lynn Hill Apartments                 121      1       1        750          Market         Natural Gas         ⌧        ⌧       ⌧                ⌧       ⌧        $999           $35         $0      $1,034      M        L
   Lynn Hill Apartments                  4       2      1.5       950          Market         Natural Gas         ⌧        ⌧       ⌧                ⌧       ⌧       $1,149          $40         $0      $1,189      M         L
   Lynn Hill Apartments                 115      2       1        950          Market         Natural Gas         ⌧        ⌧       ⌧                ⌧       ⌧       $1,234          $40         $0      $1,274      M        L
   Oakleaf Village                       24      2                 --       Public Housing      Electric                                                    ⌧       no rent          --         --      no rent     EL       EL
   Oakridge Manor                        45      1       1        515          Market         Natural Gas                                                   ⌧        $901          $101         $0      $1,002      M         L


Gross Rent Detail by Community                                                                          Glen Burnie Submarket                                                                                             Page 1 of 2
 Table A2-3 Multifamily Rental Communities Gross Rent Detail by Community
 Glen Burnie

 Affordability Class                                  % AMI
   Extremely Low Rent and Subsidized          EL        30%
   Very Low Rent                              VL        50%
   Low Rent                                    L        60%
   Moderate Rent                              M         80%
   High Rent                                  H        100%
   Very High and Extremely High Rent          VH         +



                                                                    Floorplan Detail                                                      Utilities Included in Rent                                   Gross Rent Calculation               Classification

                                            Total                                                                                             Hot                   Other   Water           Published      Utility   Incentive   Gross      Area  County
     Community                              Units      Beds      Baths        SqFt             Program            Heat Source        Heat    Water      Cook         Elec   Sewer   Trash     Rent         Adjust     Adjust     Rent      Income Income

   Oakridge Manor                             106         2         1          660              Market              Natural Gas                                                      ⌧       $1,079         $123       -$150     $1,052       L       VL
   Oakridge Manor                              14         3         1          780              Market              Natural Gas                                                      ⌧       $1,243         $161         $0      $1,404      M        L
   Park View at Furnace Branch                 5          1         1          592               LIHTC                Electric                                               ⌧       ⌧        $509          $108         $0       $617       VL       VL
   Park View at Furnace Branch                 10         1         1          603               LIHTC                Electric                                               ⌧       ⌧        $617          $108         $0       $725        L       VL
   Park View at Furnace Branch                 41         1         1          731               LIHTC                Electric                                               ⌧       ⌧        $617          $108         $0       $725        L       VL
   Park View at Furnace Branch                 21         1         1          700               LIHTC                Electric                                               ⌧       ⌧        $925          $108         $0      $1,033      M         L
   Park View at Furnace Branch                 4          2         1          903               LIHTC                Electric                                               ⌧       ⌧        $740          $132         $0       $872       VL       VL
   Park View at Furnace Branch                 6          2         1          906               LIHTC                Electric                                               ⌧       ⌧        $925          $132         $0      $1,057       L       VL
   Park View at Furnace Branch                 8          2         1          909               LIHTC                Electric                                               ⌧       ⌧       $1,110         $132         $0      $1,242      M         L
   Park View at Furnace Branch                 5          2         2          909               LIHTC                Electric                                               ⌧       ⌧       $1,110         $132         $0      $1,242      M         L
   Pinewood Village                            80         1         1           --           Public Housing           Electric                                               ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Pinewood Village                           100         2         1           --           Public Housing           Electric                                               ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Pinewood Village                            20        Eff        1           --           Public Housing           Electric                                               ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Regency Club                               100         2        1.5         810              Market                Electric                                               ⌧       ⌧       $1,150         $132         $0      $1,282      M         L
   Regency Club                               100         2        1.5         932              Market                Electric                                               ⌧       ⌧       $1,274         $132         $0      $1,406      M        M
   Regency Club                               100         2        1.5         964              Market                Electric                                               ⌧       ⌧       $1,274         $132         $0      $1,406      M        M
   Regency Club                                16         3        2.5        1,215             Market                Electric                                               ⌧       ⌧       $1,485         $166         $0      $1,651      M        M
   Stagecoach                                  90         1         1          613              Market              Natural Gas                                                      ⌧        $911          $101        -$70      $942       M         L
   Stagecoach                                  84         2         1          730              Market              Natural Gas                                                      ⌧       $1,064         $123        -$81     $1,106       L       VL
   Stagecoach                                  12         2         1          928              Market              Natural Gas                                                      ⌧       $1,203         $123        -$93     $1,233      M         L
   Twin Coves                                  41         1         1          650              Market              Natural Gas                                              ⌧       ⌧        $922           $73         $0       $995       M         L
   Twin Coves                                  8          1         1          725              Market              Natural Gas                                              ⌧       ⌧       $1,012          $73         $0      $1,085      M        M
   Twin Coves                                  80         2         1          800              Market              Natural Gas                                              ⌧       ⌧       $1,024          $85         $0      $1,109       L       VL
   Twin Coves                                  3          3         1          880              Market              Natural Gas                                              ⌧       ⌧       $1,224         $102         $0      $1,326      M         L
   Villages at Marley Station                 100         1         1          381               LIHTC                Electric                                               ⌧       ⌧        $650          $108         $0       $758       L        VL
   Villages at Marley Station                 100         1         1          524               LIHTC                Electric                                               ⌧       ⌧        $725          $108         $0       $833       L        VL
   Villages at Marley Station                 100         1         1          600               LIHTC                Electric                                               ⌧       ⌧        $725          $108         $0       $833       L        VL
   Villages at Marley Station                 400         2         1          776               LIHTC                Electric                                               ⌧       ⌧        $887          $132         $0      $1,019       L       VL
   Villages at Marley Station                  32         3         1          978               LIHTC                Electric                                               ⌧       ⌧       $1,130         $166         $0      $1,296      M        VL
   Villages at Marley Station                  25        Eff        1          300               LIHTC                Electric                                               ⌧       ⌧        $625          $238         $0       $863       L        VL
   Willows Apartments                         100         1         1          664              Market              Natural Gas                                              ⌧       ⌧        $810           $73        -$50      $833       L        VL
   Willows Apartments                         100         2         1          731              Market              Natural Gas                                              ⌧       ⌧        $874           $85        -$50      $909       VL       VL
   Willows Apartments                         100         2         1          791              Market              Natural Gas                                              ⌧       ⌧        $899           $85        -$50      $934       L        VL
   Willows Apartments                          26         3         1          898              Market              Natural Gas                                              ⌧       ⌧       $1,032         $102        -$50     $1,084      L        VL
   Willows Apartments                          26         3        1.5         936              Market              Natural Gas                                              ⌧       ⌧       $1,082         $102        -$50     $1,134      L        VL
   Woodcrest Apartments                        5          1         1           --              Market              Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $740           $35        -$56      $719       VL       VL
   Woodcrest Apartments                       126         1         1          614              Market              Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $810           $35        -$60      $785        L       VL
   Woodcrest Apartments                        36         1         1          753              Market              Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $865           $35        -$66      $834        L       VL
   Woodcrest Apartments                       130         2         1          779              Market              Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $915           $40        -$70      $885       VL       VL
   Woodcrest Apartments                        5          2        1.5         827              Market              Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $925           $40        -$70      $895       VL       VL
   Woodcrest Apartments                        35         2        1.5         957              Market              Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $950           $40        -$70      $920       VL       VL
   Woodcrest Apartments                        15         3         2         1,035             Market              Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧       $1,050          $47        -$80     $1,017      VL       VL
 Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


 NOTE:            Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Community                                                                                             Glen Burnie Submarket                                                                                                   Page 2 of 2
 Table A2-4 Multifamily Rental Communities Gross Rent Detail by Classification
 Glen Burnie

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                          Utilities Included in Rent                                Gross Rent Calculation               Classification

                                       Total                                                                           Hot             Other    Water           Published        Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt        Program         Heat Source      Heat    Water   Cook      Elec    Sewer   Trash     Rent           Adjust     Adjust     Rent      Income Income

   Arundel Woods Senior                  72      1       1        590          Sect 8"          Electric                                                 ⌧       no   rent         --         --       no rent     EL       EL
   Burwood Gardens                       80      1       1        576       Public Housing    Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Freetown Village                      24      1       1         --       Public Housing      Electric                                         ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Glen Square                           47      1       1         --       Public Housing      Electric                                         ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Pinewood Village                      80      1       1         --       Public Housing      Electric                                         ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Burwood Gardens                      100      2       1        735       Public Housing    Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Freetown Village                      50      2       1         --       Public Housing      Electric                                         ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Glen Square                          80       2       1        --        Public Housing      Electric                                         ⌧       ⌧       no rent           --         --       no rent     EL       EL
   Oakleaf Village                       24      2                 --       Public Housing      Electric                                                 ⌧       no rent            --         --      no rent     EL       EL
   Pinewood Village                     100      2       1         --       Public Housing      Electric                                         ⌧       ⌧       no rent            --         --      no rent     EL       EL
   Freetown Village                      80      3      1.5        --       Public Housing      Electric                                         ⌧       ⌧       no rent            --         --      no rent     EL       EL
   Burwood Gardens                       20     Eff      1        395       Public Housing    Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent            --         --      no rent     EL       EL
   Pinewood Village                      20     Eff      1         --       Public Housing      Electric                                         ⌧       ⌧       no rent            --         --      no rent     EL       EL
   Park View at Furnace Branch           5       1       1        592           LIHTC           Electric                                         ⌧       ⌧        $509            $108         $0       $617       VL       VL
   Country Club                          5      Eff      1        600          Market         Natural Gas               ⌧                        ⌧       ⌧        $605            $104         $0       $709       VL       VL
   Woodcrest Apartments                  5       1       1         --          Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $740             $35        -$56      $719       VL       VL
   Park View at Furnace Branch           4       2       1        903           LIHTC           Electric                                         ⌧       ⌧        $740            $132         $0       $872       VL       VL
   Woodcrest Apartments                 130      2       1        779          Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $915             $40        -$70      $885       VL       VL
   Woodcrest Apartments                  5       2      1.5       827          Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $925             $40        -$70      $895       VL       VL
   Willows Apartments                   100      2       1        731          Market         Natural Gas                                        ⌧       ⌧        $874             $85        -$50      $909       VL       VL
   Woodcrest Apartments                  35      2      1.5       957          Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $950             $40        -$70      $920       VL       VL
   Woodcrest Apartments                  15      3       2       1,035         Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧       $1,050            $47        -$80     $1,017      VL       VL
   Park View at Furnace Branch           10      1       1        603           LIHTC           Electric                                         ⌧       ⌧        $617            $108         $0       $725       L        VL
   Park View at Furnace Branch           41      1       1        731           LIHTC           Electric                                         ⌧       ⌧        $617            $108         $0       $725       L        VL
   Villages at Marley Station           100      1       1        381           LIHTC           Electric                                         ⌧       ⌧        $650            $108         $0       $758       L        VL
   Woodcrest Apartments                 126      1       1        614          Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $810             $35        -$60      $785       L        VL
   Cedar Creek                           50      1       1        659          Market         Natural Gas                                                ⌧        $775            $101        -$64      $812       L        VL
   Villages at Marley Station           100      1       1        524           LIHTC           Electric                                         ⌧       ⌧        $725            $108         $0       $833       L        VL
   Villages at Marley Station           100      1       1        600           LIHTC           Electric                                         ⌧       ⌧        $725            $108         $0       $833       L        VL
   Willows Apartments                   100      1       1        664          Market         Natural Gas                                        ⌧       ⌧        $810             $73        -$50      $833       L        VL
   Woodcrest Apartments                  36      1       1        753          Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $865             $35        -$66      $834       L        VL
   Cedar Creek                           50      1       1        686          Market         Natural Gas                                                ⌧        $800            $101        -$66      $835       L        VL
   Gatewater Landing                    109      1       1        703          Market         Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $808             $35         $0       $843       L        VL
   Country Club                          20      1       1        650          Market         Natural Gas               ⌧                        ⌧       ⌧        $784             $61         $0       $845       L        VL
   Cedar Creek                           50      1       1        763          Market         Natural Gas                                                ⌧        $825            $101        -$68      $858       L        VL
   Villages at Marley Station            25     Eff      1        300           LIHTC           Electric                                         ⌧       ⌧        $625            $238         $0       $863       L        VL
   Willows Apartments                   100      2       1        791          Market         Natural Gas                                        ⌧       ⌧        $899             $85        -$50      $934       L        VL
   Country Club                         125      2       1        750          Market         Natural Gas               ⌧                        ⌧       ⌧        $894             $70         $0       $964       L        VL
   Cedar Creek                           92      2       1        898          Market         Natural Gas                                                ⌧        $925            $123        -$77      $971       L        VL
   Cedar Creek                           92      2       1        975          Market         Natural Gas                                                ⌧        $950            $123        -$79      $994       L        VL
   Villages at Marley Station           400      2       1        776           LIHTC           Electric                                         ⌧       ⌧        $887            $132         $0      $1,019      L        VL
   Crain Court                           63      2       1        657          Market         Natural Gas               ⌧                        ⌧       ⌧        $949             $70         $0      $1,019      L        VL
   Glen Ridge                           100      2       1        907          Market         Natural Gas                                                         $904            $138         $0      $1,042      L        VL
   Oakridge Manor                       106      2       1        660          Market         Natural Gas                                                ⌧       $1,079           $123       -$150     $1,052      L        VL
   Park View at Furnace Branch           6       2       1        906           LIHTC           Electric                                         ⌧       ⌧        $925            $132         $0      $1,057      L        VL
   Willows Apartments                    26      3       1        898          Market         Natural Gas                                        ⌧       ⌧       $1,032           $102        -$50     $1,084      L        VL
   Americana Southdale                   54      2       1        702          Market         Natural Gas               ⌧                        ⌧       ⌧       $1,027            $70         $0      $1,097      L        VL
   Stagecoach                            84      2       1        730          Market         Natural Gas                                                ⌧       $1,064           $123        -$81     $1,106      L        VL
   Twin Coves                            80      2       1        800          Market         Natural Gas                                        ⌧       ⌧       $1,024            $85         $0      $1,109      L        VL
   Willows Apartments                    26      3      1.5       936          Market         Natural Gas                                        ⌧       ⌧       $1,082           $102        -$50     $1,134      L        VL
   Aquahart Manor                        24     Eff      1        355          Market         Natural Gas                                        ⌧       ⌧        $765            $138         $0       $903       M        L


Gross Rent Detail by Classification                                                                  Glen Burnie Submarket                                                                                               Page 1 of 2
 Table A2-4 Multifamily Rental Communities Gross Rent Detail by Classification
 Glen Burnie

 Affordability Class                                    % AMI
   Extremely Low Rent and Subsidized            EL        30%
   Very Low Rent                                VL        50%
   Low Rent                                      L        60%
   Moderate Rent                                M         80%
   High Rent                                    H        100%
   Very High and Extremely High Rent            VH         +



                                                                      Floorplan Detail                                                      Utilities Included in Rent                                   Gross Rent Calculation              Classification

                                              Total                                                                                             Hot                   Other   Water           Published      Utility   Incentive   Gross     Area  County
     Community                                Units      Beds      Baths        SqFt             Program            Heat Source        Heat    Water      Cook         Elec   Sewer   Trash     Rent         Adjust     Adjust     Rent     Income Income

   Crain Court                                   63         1         1          566               Market             Natural Gas                 ⌧                            ⌧       ⌧         $864          $61         $0       $925      M        L
   Glen Ridge                                    43         1         1          681               Market             Natural Gas                                                                $819         $116         $0       $935      M        L
   Stagecoach                                    90         1         1          613               Market             Natural Gas                                                      ⌧         $911         $101        -$70      $942      M        L
   Aquahart Manor                                68         1         1          585               Market             Natural Gas                                              ⌧       ⌧         $875          $73         $0       $948      M        L
   Twin Coves                                    41         1         1          650               Market             Natural Gas                                              ⌧       ⌧         $922          $73         $0       $995      M        L
   Oakridge Manor                                45         1         1          515               Market             Natural Gas                                                      ⌧         $901         $101         $0      $1,002     M        L
   Americana Southdale                          126         1         1          682               Market             Natural Gas                 ⌧                            ⌧       ⌧         $944          $61         $0      $1,005     M        L
   Colonial Square                              135         1         1          600               Market             Natural Gas                                                      ⌧         $911         $101         $0      $1,012     M        L
   Glen Ridge                                    43         1         1          769               Market             Natural Gas                                                                $898         $116         $0      $1,014     M        L
   Park View at Furnace Branch                   21         1         1          700               LIHTC                Electric                                               ⌧       ⌧         $925         $108         $0      $1,033     M        L
   Lynn Hill Apartments                         121         1         1          750               Market             Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧         $999          $35         $0      $1,034     M        L
   Twin Coves                                    8          1         1          725               Market             Natural Gas                                              ⌧       ⌧        $1,012         $73         $0      $1,085     M        M
   Glen Burnie Town Apartments                   30         1         1          702               Market               Electric                                               ⌧       ⌧        $1,105        $108        -$92     $1,121     M        M
   Aquahart Manor                                32         2         1          775               Market             Natural Gas                                              ⌧       ⌧        $1,050         $85         $0      $1,135     M        L
   Gatewater Landing                            155         2         1          893               Market             Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $1,107         $40         $0      $1,147     M        L
   Americana Southdale                          225         2         1          903               Market             Natural Gas                 ⌧                            ⌧       ⌧        $1,079         $70         $0      $1,149     M        L
   Colonial Square                               96         2         1          800               Market             Natural Gas                                                      ⌧        $1,064        $123         $0      $1,187     M        L
   Lynn Hill Apartments                          4          2        1.5         950               Market             Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $1,149         $40         $0      $1,189     M        L
   Glen Ridge                                   100         2         1          931               Market             Natural Gas                                                               $1,060        $138         $0      $1,198     M        L
   Glen Burnie Town Apartments                   21         2         2         1,012              Market               Electric                                               ⌧       ⌧        $1,187        $132        -$98     $1,221     M        L
   Stagecoach                                    12         2         1          928               Market             Natural Gas                                                      ⌧        $1,203        $123        -$93     $1,233     M        L
   Park View at Furnace Branch                   8          2         1          909               LIHTC                Electric                                               ⌧       ⌧        $1,110        $132         $0      $1,242     M        L
   Park View at Furnace Branch                   5          2         2          909               LIHTC                Electric                                               ⌧       ⌧        $1,110        $132         $0      $1,242     M        L
   Lynn Hill Apartments                         115         2         1          950               Market             Natural Gas       ⌧         ⌧        ⌧                   ⌧       ⌧        $1,234         $40         $0      $1,274     M        L
   Regency Club                                 100         2        1.5         810               Market               Electric                                               ⌧       ⌧        $1,150        $132         $0      $1,282     M        L
   Americana Southdale                           51         3        1.5        1,101              Market             Natural Gas                 ⌧                            ⌧       ⌧        $1,209         $81         $0      $1,290     M        VL
   Villages at Marley Station                    32         3         1          978               LIHTC                Electric                                               ⌧       ⌧        $1,130        $166         $0      $1,296     M        VL
   Colonial Square                               12         2         1          846               Market             Natural Gas                                                      ⌧        $1,203        $123         $0      $1,326     M        L
   Twin Coves                                    3          3         1          880               Market             Natural Gas                                              ⌧       ⌧        $1,224        $102         $0      $1,326     M        L
   Coves at Chesapeake                           85         2         1          930               Market               Electric                                                       ⌧        $1,186        $170         $0      $1,356     M        M
   Glen Burnie Town Apartments                   3          3         2         1,021              Market               Electric                                               ⌧       ⌧        $1,315        $166       -$110     $1,371     M        L
   Oakridge Manor                                14         3         1          780               Market             Natural Gas                                                      ⌧        $1,243        $161         $0      $1,404     M        L
   Regency Club                                 100         2        1.5         932               Market               Electric                                               ⌧       ⌧        $1,274        $132         $0      $1,406     M        M
   Regency Club                                 100         2        1.5         964               Market               Electric                                               ⌧       ⌧        $1,274        $132         $0      $1,406     M        M
   Coves at Chesapeake                           85         2        1.5         910               Market               Electric                                                       ⌧        $1,238        $170         $0      $1,408     M        M
   Colonial Square                               4          3         2          932               Market             Natural Gas                                                      ⌧        $1,267        $161         $0      $1,428     M        L
   Coves at Chesapeake                           85         2         1          940               Market               Electric                                                       ⌧        $1,261        $170         $0      $1,431     M        M
   Americana Southdale                           50         3        1.5        1,077              Market             Natural Gas                 ⌧                            ⌧       ⌧        $1,394         $81         $0      $1,475     M        L
   Coves at Chesapeake                           70         3        1.5        1,050              Market               Electric                                                       ⌧        $1,250        $225         $0      $1,475     M        L
   Coves at Chesapeake                           70         3        1.5        1,030              Market               Electric                                                       ⌧        $1,255        $225         $0      $1,480     M        L
   Coves at Chesapeake                           70         3        1.5        1,080              Market               Electric                                                       ⌧        $1,360        $225         $0      $1,585     M        M
   Regency Club                                  16         3        2.5        1,215              Market               Electric                                               ⌧       ⌧        $1,485        $166         $0      $1,651     M        M
 Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


 NOTE:              Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Classification                                                                                          Glen Burnie Submarket                                                                                                  Page 2 of 2
 Table A2-5 Multifamily Rental Communities Gross Rent Detail by Community
 Severna Park

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                       Utilities Included in Rent                              Gross Rent Calculation               Classification

                                       Total                                                                        Hot             Other    Water           Published      Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt       Program       Heat Source      Heat    Water   Cook      Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income Income

   Berkshires at Harpers   Mill          38      1       1        840         Market       Natural   Gas                                                       $1,096        $116        $0       $1,212      H        M
   Berkshires at Harpers   Mill          56      2       1        933         Market       Natural   Gas                                                       $1,094        $138        $0       $1,232      M        L
   Berkshires at Harpers   Mill          31      2       1        952         Market       Natural   Gas                                                       $1,344        $138        $0       $1,482      H        M
   Berkshires at Harpers   Mill         157      2       1        940         Market       Natural   Gas                                                       $1,351        $138        $0       $1,489      H        M
   Berkshires at Harpers   Mill          21      3       1       1,044        Market       Natural   Gas                                                       $1,372        $176        $0       $1,548      M        L
   Berkshires at Harpers   Mill          57      3      1.5      1,010        Market       Natural   Gas                                                       $1,440        $176        $0       $1,616      M        M
   Chesapeake Glen                      103      1       1        714         Market       Natural   Gas                                                       $1,075        $116        $0       $1,191      H        M
   Chesapeake Glen                      207      1       1        880         Market       Natural Gas                                                         $1,115        $116        $0       $1,231      H        M
   Chesapeake Glen                      139      2       1        898         Market       Natural Gas                                                        $1,169         $138        $0       $1,307      M         L
   Chesapeake Glen                      140      2      1.5       927         Market       Natural Gas                                                        $1,248         $138        $0       $1,386      M        M
   Chesapeake Glen                      139      2       1        964         Market       Natural Gas                                                        $1,400         $138        $0       $1,538       H       M
   Chesapeake Glen                       68      3      1.5      1,075        Market       Natural Gas                                                        $1,410         $176        $0       $1,586      M        M
   Glen Forest Senior                    10      1       1        564         LIHTC        Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $672           $35        $0        $707       VL       VL
   Glen Forest Senior                    40      1       1        564         LIHTC        Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $824           $35        $0        $859        L       VL
   Glen Forest Senior                    10      2       1        803         LIHTC        Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $818           $40        $0        $858       VL       VL
   Glen Forest Senior                    40      2       1        803         LIHTC        Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $994           $40        $0       $1,034       L       VL
   Glen Mar                              74      1       1        681         Market       Natural Gas                                                         $885          $116        $0       $1,001      M         L
   Glen Mar                              6       1       1        769         Market       Natural Gas                                                         $943          $116        $0       $1,059      M        M
   Glen Mar                              54      2       1        907         Market       Natural Gas                                                        $1,066         $138        $0       $1,204      M        L
   Glen Mar                              42      2       1        995         Market       Natural Gas                                                        $1,152         $138        $0       $1,290      M         L
   Glenview Garden                       43      1       1        648       Section 236    Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $583           $0         $0        $583       VL       VL
   Glenview Garden                       89      2       1        718       Section 236    Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $646           $0         $0        $646       VL       EL
   Glenview Garden                       14      3      1.5       832       Section 236    Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $681           $0         $0        $681       VL       EL
   Glenview Garden                       17      1       1        648         Sect 8"      Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Glenview Garden                       35      2       1        718         Sect 8"      Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Glenview Garden                       6       3      1.5       832         Sect 8"      Natural Gas      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Hidden Woods                         235      1       1        741         Market       Natural Gas                                                ⌧        $850          $101        $0        $951       M         L
   Hidden Woods                          41      1       1        852         Market       Natural Gas                                                ⌧        $935          $101        $0       $1,036      M         L
   Hidden Woods                         216      2       1        960         Market       Natural Gas                                                ⌧        $998          $123        $0       $1,121      M        VL
   Islands of Fox Chase,   The           20      1       2       1,130        Market       Natural Gas                                                ⌧       $1,405         $101        $0       $1,506      VH       H
   Islands of Fox Chase,   The           47      2       2       1,171        Market       Natural Gas                                                ⌧       $1,512         $123        $0       $1,635       H       M
   Islands of Fox Chase,   The           47      2       2       1,255        Market       Natural Gas                                                ⌧       $1,526         $123        $0       $1,649       H       M
   Islands of Fox Chase,   The           48      2       2       1,255        Market       Natural Gas                                                ⌧       $1,526         $123        $0       $1,649       H       M
   Islands of Fox Chase,   The           32      3       2       1,352        Market       Natural Gas                                                ⌧       $1,547         $161        $0       $1,708      M        M
   Islands of Fox Chase,   The           16      3       2       1,352        Market       Natural Gas                                                ⌧       $1,647         $161        $0       $1,808       H       M
   Islands of Fox Chase,   The           13      3       2       1,425        Market       Natural Gas                                                ⌧       $1,742         $161        $0       $1,903       H       M
   Marley Run                            40      1       1        730         Market         Electric                                                         $1,175         $151        $0       $1,326       H       M
   Marley Run                            96      1       1        654         Market         Electric                                                         $1,218         $151        $0       $1,369       H       M
   Marley Run                            54      1       1        767         Market         Electric                                                         $1,313         $151        $0       $1,464      VH       H
   Marley Run                           110      2       2        945         Market         Electric                                                         $1,519         $185        $0       $1,704       H       M
   Marley Run                            36      2       2       1,073        Market         Electric                                                         $1,547         $185        $0       $1,732       H       M
   Mill Pond                             50      1       1        862         Market       Natural Gas                                                         $970          $116        $0       $1,086      M        M
   Mill Pond                             38      1       1        773         Market       Natural Gas                                                        $1,015         $116        $0       $1,131      M        M
   Mill Pond                            103      2       1        940         Market       Natural Gas                                                        $1,035         $138        $0       $1,173      M         L
   Mill Pond                             25      2       1       1,030        Market       Natural Gas                                                        $1,095         $138        $0       $1,233      M         L
   Mill Pond                             24      3      1.5      1,113        Market       Natural Gas                                                        $1,290         $176        $0       $1,466      M         L
   Mountain Ridge                       144      1       1        648         Market         Electric                                                 ⌧        $920          $136       -$25      $1,031      M         L
   Mountain Ridge                        96      2       1        795         Market         Electric                                                 ⌧       $1,050         $170       -$25      $1,195      M         L
   Quail Hollow                          22      1       1        659         Market       Natural Gas                                                ⌧        $850          $101        $0        $951       M         L
   Quail Hollow                          22      1       1        659         Market       Natural Gas                                                ⌧        $850          $101        $0        $951       M         L
   Quail Hollow                          22      1       1        741         Market       Natural Gas                                                ⌧        $880          $101        $0        $981       M         L


Gross Rent Detail by Community                                                                   Severna Park Submarket                                                                                             Page 1 of 2
 Table A2-5 Multifamily Rental Communities Gross Rent Detail by Community
 Severna Park

 Affordability Class                                    % AMI
   Extremely Low Rent and Subsidized            EL        30%
   Very Low Rent                                VL        50%
   Low Rent                                      L        60%
   Moderate Rent                                M         80%
   High Rent                                    H        100%
   Very High and Extremely High Rent            VH         +



                                                                      Floorplan Detail                                                      Utilities Included in Rent                                   Gross Rent Calculation              Classification

                                              Total                                                                                             Hot                   Other   Water           Published      Utility   Incentive   Gross     Area  County
     Community                                Units      Beds      Baths        SqFt             Program            Heat Source        Heat    Water      Cook         Elec   Sewer   Trash     Rent         Adjust     Adjust     Rent     Income Income

   Quail Hollow                                  22         1         1          770               Market             Natural Gas                                                      ⌧         $910         $101        $0       $1,011     M        L
   Quail Hollow                                  22         1         1          829               Market             Natural Gas                                                      ⌧         $975         $101        $0       $1,076     M        M
   Quail Hollow                                  26         1         1          924               Market             Natural Gas                                                      ⌧        $1,025        $101        $0       $1,126     M        M
   Quail Hollow                                 100         2         1          985               Market             Natural Gas                                                      ⌧        $1,125        $123        $0       $1,248     M        L
   Quail Hollow                                 100         2         2         1,084              Market             Natural Gas                                                      ⌧        $1,280        $123        $0       $1,403     M        M
   Rainbow View                                  83         1         1          613               Market               Electric                                                       ⌧         $835         $136        $0        $971      M        L
   Rainbow View                                  13         1         1          704               Market               Electric                                                       ⌧         $905         $136        $0       $1,041     M        L
   Rainbow View                                  60         2         1          742               Market               Electric                                                       ⌧         $955         $170        $0       $1,125     M        L
   Southgate                                    247         1         1          615               Market             Natural Gas                                                      ⌧         $865         $101        $0        $966      M        L
   Southgate                                    160         2         1          833               Market             Natural Gas                                                      ⌧        $1,004        $123       -$83      $1,044     L        VL
   Southgate                                     62         2         1          901               Market             Natural Gas                                                      ⌧        $1,150        $123       -$95      $1,178     M        L
   Southgate                                     32         2        1.5         930               Market             Natural Gas                                                      ⌧        $1,193        $123        $0       $1,316     M        L
   Southgate                                     14         3        1.5        1,020              Market             Natural Gas                                                      ⌧        $1,252        $161        $0       $1,413     M        L
   Tall Pines                                   121         1         1          741               Market             Natural Gas                                                      ⌧         $850         $101       -$50       $901      M        L
   Tall Pines                                    23         1         1          852               Market             Natural Gas                                                      ⌧         $940         $101       -$50       $991      M        L
   Tall Pines                                   132         2         1          960               Market             Natural Gas                                                      ⌧         $995         $123       -$50      $1,068     L        VL
   Village Square                               158         1         1          600               Market             Natural Gas                                                      ⌧         $895         $101        $0        $996      M        L
   Village Square                               144         2         1          795               Market             Natural Gas                                                      ⌧         $925         $123        $0       $1,048     L        VL
   Village Square                                26         2        1.5        1,135              Market             Natural Gas                                                      ⌧        $1,304        $123        $0       $1,427     M        M
   Village Square                                42         3        2.5        1,190              Market             Natural Gas                                                      ⌧        $1,500        $161        $0       $1,661     M        M
   Windbrooke                                   105         1         1          613               Market               Electric                                                       ⌧         $820         $136        $0        $956      M        L
   Windbrooke                                    15         1         1          704               Market               Electric                                                       ⌧         $905         $136        $0       $1,041     M        L
   Windbrooke                                    54         2         1          742               Market               Electric                                                       ⌧         $955         $170        $0       $1,125     M        L
   Windbrooke                                    12        Eff        1          347               Market               Electric                                                       ⌧         $735         $340        $0       $1,075     M        M
 Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


 NOTE:              Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Community                                                                                              Severna Park Submarket                                                                                                  Page 2 of 2
 Table A2-6 Multifamily Rental Communities Gross Rent Detail by Classification
 Severna Park

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                       Utilities Included in Rent                              Gross Rent Calculation               Classification

                                       Total                                                                        Hot             Other    Water           Published      Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt       Program       Heat Source      Heat    Water   Cook      Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income Income

   Glenview Garden                      17       1       1        648         Sect 8"      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Glenview Garden                      35       2       1        718         Sect 8"      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Glenview Garden                      6        3      1.5       832         Sect 8"      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Glenview Garden                      43       1       1        648       Section 236    Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $583           $0         $0        $583       VL       VL
   Glenview Garden                      89       2       1        718       Section 236    Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $646           $0         $0        $646       VL       EL
   Glenview Garden                      14       3      1.5       832       Section 236    Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $681           $0         $0        $681       VL       EL
   Glen Forest Senior                   10       1       1        564         LIHTC        Natural   Gas    ⌧        ⌧       ⌧                ⌧       ⌧        $672           $35        $0        $707       VL       VL
   Glen Forest Senior                   10       2       1        803         LIHTC        Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧        $818           $40        $0        $858       VL       VL
   Glen Forest Senior                    40      1       1        564         LIHTC        Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧         $824          $35        $0        $859       L        VL
   Glen Forest Senior                    40      2       1        803         LIHTC        Natural Gas      ⌧        ⌧       ⌧                ⌧       ⌧         $994          $40        $0       $1,034      L        VL
   Southgate                            160      2       1        833         Market       Natural Gas                                                ⌧        $1,004        $123       -$83      $1,044      L        VL
   Village Square                       144      2       1        795         Market       Natural Gas                                                ⌧         $925         $123        $0       $1,048      L        VL
   Tall Pines                           132      2       1        960         Market       Natural Gas                                                ⌧         $995         $123       -$50      $1,068      L        VL
   Tall Pines                           121      1       1        741         Market       Natural Gas                                                ⌧         $850         $101       -$50       $901       M        L
   Hidden Woods                         235      1       1        741         Market       Natural Gas                                                ⌧         $850         $101        $0        $951       M        L
   Quail Hollow                          22      1       1        659         Market       Natural Gas                                                ⌧         $850         $101        $0        $951       M        L
   Quail Hollow                          22      1       1        659         Market       Natural Gas                                                ⌧         $850         $101        $0        $951       M        L
   Windbrooke                           105      1       1        613         Market         Electric                                                 ⌧         $820         $136        $0        $956       M        L
   Southgate                            247      1       1        615         Market       Natural Gas                                                ⌧         $865         $101        $0        $966       M        L
   Rainbow View                          83      1       1        613         Market         Electric                                                 ⌧         $835         $136        $0        $971       M        L
   Quail Hollow                          22      1       1        741         Market       Natural Gas                                                ⌧         $880         $101        $0        $981       M        L
   Tall Pines                            23      1       1        852         Market       Natural Gas                                                ⌧         $940         $101       -$50       $991       M        L
   Village Square                       158      1       1        600         Market       Natural Gas                                                ⌧         $895         $101        $0        $996       M        L
   Glen Mar                              74      1       1        681         Market       Natural Gas                                                          $885         $116        $0       $1,001      M        L
   Quail Hollow                          22      1       1        770         Market       Natural Gas                                                ⌧         $910         $101        $0       $1,011      M        L
   Mountain Ridge                       144      1       1        648         Market         Electric                                                 ⌧         $920         $136       -$25      $1,031      M        L
   Hidden Woods                          41      1       1        852         Market       Natural Gas                                                ⌧         $935         $101        $0       $1,036      M        L
   Rainbow View                          13      1       1        704         Market         Electric                                                 ⌧         $905         $136        $0       $1,041      M        L
   Windbrooke                            15      1       1        704         Market         Electric                                                 ⌧         $905         $136        $0       $1,041      M        L
   Glen Mar                              6       1       1        769         Market       Natural Gas                                                          $943         $116        $0       $1,059      M        M
   Windbrooke                            12     Eff      1        347         Market         Electric                                                 ⌧         $735         $340        $0       $1,075      M        M
   Quail Hollow                          22      1       1        829         Market       Natural Gas                                                ⌧         $975         $101        $0       $1,076      M        M
   Mill Pond                             50      1       1        862         Market       Natural Gas                                                          $970         $116        $0       $1,086      M        M
   Hidden Woods                         216      2       1        960         Market       Natural Gas                                                ⌧         $998         $123        $0       $1,121      M        VL
   Rainbow View                          60      2       1        742         Market         Electric                                                 ⌧         $955         $170        $0       $1,125      M        L
   Windbrooke                            54      2       1        742         Market         Electric                                                 ⌧         $955         $170        $0       $1,125      M        L
   Quail Hollow                          26      1       1        924         Market       Natural Gas                                                ⌧        $1,025        $101        $0       $1,126      M        M
   Mill Pond                             38      1       1        773         Market       Natural Gas                                                         $1,015        $116        $0       $1,131      M        M
   Mill Pond                            103      2       1        940         Market       Natural Gas                                                         $1,035        $138        $0       $1,173      M        L
   Southgate                             62      2       1        901         Market       Natural Gas                                                ⌧        $1,150        $123       -$95      $1,178      M        L
   Mountain Ridge                        96      2       1        795         Market         Electric                                                 ⌧        $1,050        $170       -$25      $1,195      M        L
   Glen Mar                              54      2       1        907         Market       Natural Gas                                                         $1,066        $138        $0       $1,204      M        L
   Berkshires at Harpers Mill            56      2       1        933         Market       Natural Gas                                                         $1,094        $138        $0       $1,232      M        L
   Mill Pond                             25      2       1       1,030        Market       Natural Gas                                                         $1,095        $138        $0       $1,233      M        L
   Quail Hollow                         100      2       1        985         Market       Natural Gas                                                ⌧        $1,125        $123        $0       $1,248      M        L
   Glen Mar                              42      2       1        995         Market       Natural Gas                                                         $1,152        $138        $0       $1,290      M        L
   Chesapeake Glen                      139      2       1        898         Market       Natural Gas                                                         $1,169        $138        $0       $1,307      M        L
   Southgate                             32      2      1.5       930         Market       Natural Gas                                                ⌧        $1,193        $123        $0       $1,316      M        L
   Chesapeake Glen                      140      2      1.5       927         Market       Natural Gas                                                         $1,248        $138        $0       $1,386      M        M
   Quail Hollow                         100      2       2       1,084        Market       Natural Gas                                                ⌧        $1,280        $123        $0       $1,403      M        M
   Southgate                             14      3      1.5      1,020        Market       Natural Gas                                                ⌧        $1,252        $161        $0       $1,413      M        L


Gross Rent Detail by Classification                                                              Severna Park Submarket                                                                                             Page 1 of 2
 Table A2-6 Multifamily Rental Communities Gross Rent Detail by Classification
 Severna Park

 Affordability Class                                    % AMI
   Extremely Low Rent and Subsidized            EL        30%
   Very Low Rent                                VL        50%
   Low Rent                                      L        60%
   Moderate Rent                                M         80%
   High Rent                                    H        100%
   Very High and Extremely High Rent            VH         +



                                                                      Floorplan Detail                                                      Utilities Included in Rent                                   Gross Rent Calculation              Classification

                                              Total                                                                                             Hot                   Other   Water           Published      Utility   Incentive   Gross     Area  County
     Community                                Units      Beds      Baths        SqFt             Program            Heat Source        Heat    Water      Cook         Elec   Sewer   Trash     Rent         Adjust     Adjust     Rent     Income Income

   Village Square                                26         2        1.5        1,135              Market             Natural Gas                                                      ⌧        $1,304        $123        $0       $1,427     M        M
   Mill Pond                                     24         3        1.5        1,113              Market             Natural Gas                                                               $1,290        $176        $0       $1,466     M        L
   Berkshires at Harpers Mill                    21         3         1         1,044              Market             Natural Gas                                                               $1,372        $176        $0       $1,548     M        L
   Chesapeake Glen                               68         3        1.5        1,075              Market             Natural Gas                                                               $1,410        $176        $0       $1,586     M        M
   Berkshires at Harpers Mill                    57         3        1.5        1,010              Market             Natural Gas                                                               $1,440        $176        $0       $1,616     M        M
   Village Square                                42         3        2.5        1,190              Market             Natural Gas                                                      ⌧        $1,500        $161        $0       $1,661     M        M
   Islands of Fox Chase, The                     32         3         2         1,352              Market             Natural Gas                                                      ⌧        $1,547        $161        $0       $1,708     M        M
   Chesapeake Glen                              103         1         1          714               Market             Natural Gas                                                               $1,075        $116        $0       $1,191      H       M
   Berkshires at Harpers Mill                    38         1         1          840               Market             Natural Gas                                                               $1,096        $116        $0       $1,212      H       M
   Chesapeake Glen                              207         1         1          880               Market             Natural Gas                                                               $1,115        $116        $0       $1,231      H       M
   Marley Run                                    40         1         1          730               Market               Electric                                                                $1,175        $151        $0       $1,326      H       M
   Marley Run                                    96         1         1          654               Market               Electric                                                                $1,218        $151        $0       $1,369      H       M
   Berkshires at Harpers Mill                    31         2         1          952               Market             Natural Gas                                                               $1,344        $138        $0       $1,482      H       M
   Berkshires at Harpers Mill                   157         2         1          940               Market             Natural Gas                                                               $1,351        $138        $0       $1,489      H       M
   Chesapeake Glen                              139         2         1          964               Market             Natural Gas                                                               $1,400        $138        $0       $1,538      H       M
   Islands of Fox Chase, The                     47         2         2         1,171              Market             Natural Gas                                                      ⌧        $1,512        $123        $0       $1,635      H       M
   Islands of Fox Chase, The                     47         2         2         1,255              Market             Natural Gas                                                      ⌧        $1,526        $123        $0       $1,649      H       M
   Islands of Fox Chase, The                     48         2         2         1,255              Market             Natural Gas                                                      ⌧        $1,526        $123        $0       $1,649      H       M
   Marley Run                                   110         2         2          945               Market               Electric                                                                $1,519        $185        $0       $1,704      H       M
   Marley Run                                    36         2         2         1,073              Market               Electric                                                                $1,547        $185        $0       $1,732      H       M
   Islands of Fox Chase, The                     16         3         2         1,352              Market             Natural Gas                                                      ⌧        $1,647        $161        $0       $1,808      H       M
   Islands of Fox Chase, The                     13         3         2         1,425              Market             Natural Gas                                                      ⌧        $1,742        $161        $0       $1,903      H       M
   Marley Run                                    54         1         1          767               Market               Electric                                                                $1,313        $151        $0       $1,464     VH       H
   Islands of Fox Chase, The                     20         1         2         1,130              Market             Natural Gas                                                      ⌧        $1,405        $101        $0       $1,506     VH       H
 Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


 NOTE:              Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Classification                                                                                         Severna Park Submarket                                                                                                  Page 2 of 2
 Table A2-7 Multifamily Rental Communities Gross Rent Detail by Community
 Odenton Crofton

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                     Utilities Included in Rent                              Gross Rent Calculation               Classification

                                       Total                                                                      Hot             Other    Water           Published      Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt       Program     Heat Source      Heat    Water   Cook      Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income Income

   Arbors   at   Arundel   Preserve     44       1       1        635        Market      Natural   Gas                                                       $1,325        $116       -$110     $1,331       H       M
   Arbors   at   Arundel   Preserve     83       1       1        687        Market      Natural   Gas                                                       $1,375        $116       -$114     $1,377       H       M
   Arbors   at   Arundel   Preserve     61       1       1        746        Market      Natural   Gas                                                       $1,415        $116       -$118     $1,413       H       H
   Arbors   at   Arundel   Preserve     2        1       1        911        Market      Natural   Gas                                                       $1,495        $116       -$125     $1,486      VH       H
   Arbors   at   Arundel   Preserve     32       1       1        897        Market      Natural   Gas                                                       $1,525        $116       -$131     $1,510      VH       H
   Arbors   at   Arundel   Preserve     8        1       1        885        Market      Natural   Gas                                                       $1,575        $116       -$131     $1,560      VH       H
   Arbors   at   Arundel   Preserve     5        1      1.5      1,102       Market      Natural   Gas                                                       $1,725        $116       -$143     $1,698      VH       H
   Arbors at Arundel Preserve           44       2       2        964        Market      Natural Gas                                                         $1,625        $138       -$135     $1,628      H        M
   Arbors at Arundel Preserve            62      2       2        989        Market      Natural   Gas                                                      $1,695         $138       -$141     $1,692       H       M
   Arbors at Arundel Preserve            79      2       2       1,100       Market      Natural   Gas                                                      $1,775         $138       -$147     $1,766       H       M
   Arbors at Arundel Preserve            25      2       2       1,166       Market      Natural   Gas                                                      $1,900         $138       -$158     $1,880      VH       H
   Arbors at Arundel Preserve            17      2       2       1,141       Market      Natural   Gas                                                      $1,925         $138       -$160     $1,903      VH       H
   Arbors at Arundel Preserve            9       2       2       1,308       Market      Natural   Gas                                                      $1,995         $138       -$166     $1,967      VH       H
   Arbors at Arundel Preserve            25      3       2       1,316       Market      Natural   Gas                                                      $1,995         $176       -$166     $2,005       H       M
   Archstone Russett                     24      1       1        870        Market      Natural   Gas                                                      $1,330         $116         $0      $1,446      VH       H
   Archstone Russett                     4       1       1        964        Market      Natural   Gas                                                      $1,375         $116         $0      $1,491      VH       H
   Archstone Russett                     14      1       1        796        Market      Natural   Gas                                                      $1,460         $116         $0      $1,576      VH       H
   Archstone Russett                     24      2       2       1,087       Market      Natural   Gas                                                      $1,540         $138         $0      $1,678       H       M
   Archstone Russett                     54      2       2       1,072       Market      Natural   Gas                                                      $1,555         $138         $0      $1,693       H       M
   Archstone Russett                     30      2       2       1,082       Market      Natural   Gas                                                      $1,565         $138         $0      $1,703       H       M
   Archstone Russett                     28      3       2       1,273       Market      Natural   Gas                                                      $1,815         $176         $0      $1,991       H       M
   Archstone Russett                     56      3       2       1,467       Market      Natural   Gas                                                      $1,940         $176         $0      $2,116       H       H
   Ashley                                8       1       1        804       Section 8    Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Ashley                                32      1       1        804        Market      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,220          $0        -$125     $1,095      M        M
   Ashley                                25      1       1        893        Market      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,253          $0        -$125     $1,128      M        M
   Ashley                                11      1       1        966        Market      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,263          $0        -$125     $1,138      M        M
   Ashley                                24      1       1        984        Market      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,268          $0        -$125     $1,143      M        M
   Ashley                               150      2       1       1,070       Market      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,360          $0        -$125     $1,235      M         L
   Ashley                               221      2       2       1,087       Market      Natural   Gas    ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,595          $0        -$125     $1,470      M        M
   Camden Russett                       118      1       1        790        Market      Natural   Gas                                                      $1,281         $116         $0      $1,397       H       H
   Camden Russett                        60      1       1        929        Market      Natural   Gas                                                      $1,342         $116         $0      $1,458      VH       H
   Camden Russett                        12      1       1        830        Market      Natural   Gas                                                      $1,342         $116         $0      $1,458      VH       H
   Camden Russett                        12      1       1       1,029       Market      Natural   Gas                                                      $1,438         $116         $0      $1,554      VH       H
   Camden Russett                        81      2       2       1,061       Market      Natural   Gas                                                      $1,370         $138         $0      $1,508       H       M
   Camden Russett                        17      2       2       1,118       Market      Natural   Gas                                                      $1,463         $138         $0      $1,601       H       M
   Camden Russett                        60      2       2       1,068       Market      Natural   Gas                                                      $1,470         $138         $0      $1,608       H       M
   Camden Russett                        4       2       2       1,164       Market      Natural   Gas                                                      $1,548         $138         $0      $1,686       H       M
   Camden Russett                        1       2       2       1,611       Market      Natural   Gas                                                      $1,760         $138         $0      $1,898      VH       H
   Camden Russett                        33      3       2       1,218       Market      Natural   Gas                                                      $1,713         $176         $0      $1,889       H       M
   Camden Russett                        28      3       2       1,276       Market      Natural   Gas                                                      $1,874         $176         $0      $2,050       H       M
   Carlyle Apartments                    10      1       1        840        Market      Natural   Gas    ⌧                                 ⌧               $1,070          $68         $0      $1,138      M        M
   Carlyle Apartments                    70      2       1       1,030       Market      Natural   Gas    ⌧                                 ⌧               $1,245          $77         $0      $1,322      M         L
   Carlyle Apartments                    20      3       2       1,620       Market      Natural   Gas    ⌧                                 ⌧               $1,550          $91         $0      $1,641      M        M
   Concord Park at Russett               2       1       1        870        Market      Natural   Gas                                              ⌧       $1,380         $101         $0      $1,481      VH       H
   Concord Park at Russett               75      1       1        885        Market      Natural   Gas                                              ⌧       $1,400         $101       -$120     $1,381       H       M
   Concord Park at Russett               3       1       1        942        Market      Natural   Gas                                              ⌧       $1,450         $101         $0      $1,551      VH       H
   Concord Park at Russett               8       1       1        985        Market      Natural   Gas                                              ⌧       $1,510         $101         $0      $1,611      VH       H
   Concord Park at Russett               33      2       2       1,116       Market      Natural   Gas                                              ⌧       $1,610         $123         $0      $1,733       H       M
   Concord Park at Russett               32      2       2       1,200       Market      Natural   Gas                                              ⌧       $1,700         $123         $0      $1,823       H       H
   Concord Park at Russett               18      2       2       1,303       Market      Natural   Gas                                              ⌧       $1,830         $123         $0      $1,953      VH       H
   Concord Park at Russett               69      2       2       1,287       Market      Natural   Gas                                              ⌧       $1,840         $123         $0      $1,963      VH       H


Gross Rent Detail by Community                                                               Odenton-Crofton Submarket                                                                                            Page 1 of 4
 Table A2-7 Multifamily Rental Communities Gross Rent Detail by Community
 Odenton Crofton

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                         Utilities Included in Rent                              Gross Rent Calculation               Classification

                                       Total                                                                          Hot             Other    Water           Published      Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt        Program         Heat Source     Heat    Water    Cook     Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income Income

   Concord Park at Russett               34      2       2       1,318         Market         Natural Gas                                               ⌧       $1,855         $123        -$60     $1,918      VH       H
   Concord Park at Russett               13      2       2       1,390         Market         Natural Gas                                               ⌧       $1,910         $123         $0      $2,033      VH       H
   Concord Park at Russett               12      2       2       1,441         Market         Natural Gas                                               ⌧       $1,958         $123         $0      $2,081      VH       H
   Concord Park at Russett               16      3       2       1,410         Market         Natural Gas                                               ⌧       $1,940         $161         $0      $2,101       H       H
   Concord Park at Russett               16      3       2       1,626         Market         Natural Gas                                               ⌧       $2,135         $161         $0      $2,296      VH       H
   Concord Park at Russett               4       3       2       1,860         Market         Natural Gas                                               ⌧       $2,230         $161         $0      $2,391      VH       H
   Crofton Village Apts.                 20      1       1        690          Market           Electric                                                ⌧       $1,015         $136         $0      $1,151      M        M
   Crofton Village Apts.                 36      1       1        780          Market           Electric                                                ⌧       $1,055         $136         $0      $1,191       H       M
   Crofton Village Apts.                116      2       2        840          Market           Electric                                                ⌧       $1,155         $170         $0      $1,325      M         L
   Crofton Village Apts.                 39      2       2        944          Market           Electric                                                ⌧       $1,245         $170         $0      $1,415      M        M
   Crofton Village Apts.                 47      3       2       1,008         Market           Electric                                                ⌧       $1,420         $225         $0      $1,645      M        M
   Elms at Stoney Run Village            58      1       1        830          Market         Natural Gas                                                       $1,375         $116         $0      $1,491      VH       H
   Elms at Stoney Run Village            20      1       1        980          Market         Natural Gas                                                       $1,595         $116         $0      $1,711      VH       H
   Elms at Stoney Run Village            30      2       1        965          Market         Natural Gas                                                       $1,453         $138         $0      $1,591       H       M
   Elms at Stoney Run Village           112      2       2       1,165         Market         Natural Gas                                                       $1,560         $138         $0      $1,698       H       M
   Elms at Stoney Run Village            77      2       2       1,255         Market         Natural Gas                                                       $1,691         $138         $0      $1,829       H       H
   Elms at Stoney Run Village            20      2       2       1,455         Market         Natural Gas                                                       $1,810         $138         $0      $1,948      VH       H
   Elms at Stoney Run Village            46      2       2       1,533         Market         Natural Gas                                                       $1,895         $138         $0      $2,033      VH       H
   Elms at Stoney Run Village            17      3       2       1,390         Market         Natural Gas                                                       $1,844         $176         $0      $2,020       H       M
   Elms at Stoney Run Village            6       3       2       1,650         Market         Natural Gas                                                       $2,140         $176         $0      $2,316      VH       H
   Fieldstone Farm                       42      1       1        750          Market           Electric                                                ⌧       $1,390         $136         $0      $1,526      VH       H
   Fieldstone Farm                       42      2       2       1,029         Market           Electric                                                ⌧       $1,610         $170         $0      $1,780       H       M
   Fieldstone Farm                       69      2       2       1,114         Market           Electric                                                ⌧       $1,660         $170         $0      $1,830       H       H
   Fieldstone Farm                       34      3       2       1,303         Market           Electric                                                ⌧       $1,855         $225         $0      $2,080       H       H
   Friendship Station Senior             88      1       1        950        Section 202        Electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Friendship Village Senior Housing     63      1       1        570          Sect 8"          Electric                                        ⌧       ⌧       no rent          --         --      no rent     EL       EL
   Horizon Square                       134      1       1        883          Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $883           $0         -$70      $813        L       VL
   Horizon Square                        96      2       2       1,204         Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,204          $0        -$100     $1,104       L       VL
   Horizon Square                        24      3       2       1,618         Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,618          $0        -$135     $1,483      M         L
   Keswick Park                          91      1      1.5       824          Market           Electric                                                        $1,266         $151         $0      $1,417       H       H
   Keswick Park                          90      1       1        721          Market           Electric                                                        $1,297         $151         $0      $1,448      VH       H
   Keswick Park                          75      1       1        648          Market           Electric                                                        $1,337         $151         $0      $1,488      VH       H
   Keswick Park                          75      2      2.5      1,048         Market           Electric                                                        $1,345         $185         $0      $1,530       H       M
   Keswick Park                          75      2       2        925          Market           Electric                                                        $1,382         $185         $0      $1,567       H       M
   Lake Village                         135      2       1        913          Market         Natural Gas                                       ⌧       ⌧       $1,154          $85         $0      $1,239      M         L
   Lake Village                         155      2       1        971          Market         Natural Gas                                       ⌧       ⌧       $1,179          $85         $0      $1,264      M        L
   Lake Village                         155      2       1       1,013         Market         Natural Gas                                       ⌧       ⌧       $1,239          $85         $0      $1,324      M        L
   Lake Village                         155      2       1       1,013         Market         Natural Gas                                       ⌧       ⌧       $1,264          $85         $0      $1,349      M        M
   Lake Village                          19      3       1        998          Market         Natural Gas                                       ⌧       ⌧       $1,319         $102         $0      $1,421      M         L
   Lake Village                          20      3       1       1,058         Market         Natural Gas                                       ⌧       ⌧       $1,404         $102         $0      $1,506      M         L
   Lodge at Seven Oaks                   36      1       1        722          Market         Natural Gas                                               ⌧       $1,260         $101         $0      $1,361       H       M
   Lodge at Seven Oaks                   36      1       1        786          Market         Natural Gas                                               ⌧       $1,410         $101         $0      $1,511      VH       H
   Lodge at Seven Oaks                   72      1       1        838          Market         Natural Gas                                               ⌧       $1,470         $101         $0      $1,571      VH       H
   Lodge at Seven Oaks                   30      1       1        987          Market         Natural Gas                                               ⌧       $1,610         $101         $0      $1,711      VH       H
   Lodge at Seven Oaks                   30      1       1        989          Market         Natural Gas                                               ⌧       $1,610         $101         $0      $1,711      VH       H
   Lodge at Seven Oaks                   78      2       2       1,127         Market         Natural Gas                                               ⌧       $1,720         $123         $0      $1,843       H       H
   Lodge at Seven Oaks                   39      2       2       1,198         Market         Natural Gas                                               ⌧       $1,790         $123         $0      $1,913      VH       H
   Lodge at Seven Oaks                   39      2       2       1,233         Market         Natural Gas                                               ⌧       $1,840         $123         $0      $1,963      VH       H
   Lodge at Seven Oaks                   36      3       2       1,348         Market         Natural Gas                                               ⌧       $2,050         $161         $0      $2,211      VH       H
   Meade Village                         25      1                 --       Public Housing    Natural Gas                                               ⌧       no rent          --         --      no rent     EL       EL
   Meade Village                         25      2                 --       Public Housing    Natural Gas                                               ⌧       no rent          --         --      no rent     EL       EL
   Meade Village                         50      3                 --       Public Housing    Natural Gas                                               ⌧       no rent          --         --      no rent     EL       EL
   Meade Village                         50      4                 --       Public Housing    Natural Gas                                               ⌧       no rent          --         --      no rent     EL       EL


Gross Rent Detail by Community                                                                    Odenton-Crofton Submarket                                                                                           Page 2 of 4
 Table A2-7 Multifamily Rental Communities Gross Rent Detail by Community
 Odenton Crofton

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                        Utilities Included in Rent                              Gross Rent Calculation               Classification

                                       Total                                                                          Hot            Other    Water           Published      Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt        Program         Heat Source      Heat   Water    Cook    Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent      Income Income

   Meade Village                         50     5+                 --       Public Housing    Natural Gas                                              ⌧       no rent          --        --       no rent     EL       EL
   North Forest                          72      1       1         --          Market         Natural Gas                                                      $1,070         $116        $0       $1,186       H       M
   North Forest                          9       1       1         --          Market         Natural Gas                                                      $1,210         $116        $0       $1,326       H       M
   North Forest                          81      2       1         --          Market         Natural Gas                                                      $1,245         $138        $0       $1,383      M        M
   North Forest                          20      2       2         --          Market         Natural Gas                                                      $1,285         $138        $0       $1,423      M        M
   Old Stage                             35      1       1        613          Market         Natural Gas                                              ⌧        $911          $101       -$75       $937       M         L
   Old Stage                             20      2       1        730          Market         Natural Gas                                              ⌧       $1,064         $123       -$88      $1,099       L       VL
   Orchards at Severn                    40      1       1        690          Market         Natural Gas                                      ⌧       ⌧        $832           $73        $0        $905       M         L
   Orchards at Severn                   276      2       1        952          Market         Natural Gas                                      ⌧       ⌧        $922           $85        $0       $1,007       L       VL
   Orchards at Severn                   180      3       1       1,105         Market         Natural Gas                                      ⌧       ⌧        $990          $102        $0       $1,092       L       VL
   Orchards at Severn                    4       4       1       1,328         Market         Natural Gas                                      ⌧       ⌧       $1,195         $119        $0       $1,314       L       VL
   Park Glen                             25      1       1        630          Market         Natural Gas                                              ⌧        $750          $101        $0        $851        L       VL
   Park Glen                            130      2       1        720          Market         Natural Gas                                              ⌧        $850          $123        $0        $973        L       VL
   Park Glen                             16      3       1        800          Market         Natural Gas                                              ⌧       $1,000         $161        $0       $1,161       L       VL
   Quarterfield Crossing                203      2       1        800          Market         Natural Gas                                      ⌧       ⌧        $903           $85       -$33       $955        L       VL
   Riverscape                            75      1       1        744          Market         Natural Gas                                              ⌧       $1,310         $101        $0       $1,411       H       H
   Riverscape                            51      2       1        918          Market         Natural Gas                                              ⌧       $1,370         $123        $0       $1,493       H       M
   Riverscape                            52      2      1.5       918          Market         Natural Gas                                              ⌧       $1,405         $123        $0       $1,528       H       M
   Riverscape                            52      2       2       1,061         Market         Natural Gas                                              ⌧       $1,505         $123        $0       $1,628       H       M
   Riverscape                            50      3       2       1,246         Market         Natural Gas                                              ⌧       $1,720         $161        $0       $1,881       H       M
   Scotts Manor                          15      1       1         --          Market         Natural Gas              ⌧                       ⌧                $850           $76        $0        $926       M         L
   Scotts Manor                          63      2       1         --          Market         Natural Gas              ⌧                       ⌧                $950           $85        $0       $1,035       L       VL
   Seven Oaks                           132      1       1        740          Market         Natural Gas                                                      $1,239         $116        $0       $1,355       H       M
   Seven Oaks                            41      1       1        948          Market         Natural Gas                                                      $1,417         $116        $0       $1,533      VH       H
   Seven Oaks                            16      1       2       1,128         Market         Natural Gas                                                      $1,557         $116        $0       $1,673      VH       H
   Seven Oaks                            17      2       1        948          Market         Natural Gas                                                      $1,409         $138        $0       $1,547       H       M
   Seven Oaks                            28      2       2       1,130         Market         Natural Gas                                                      $1,582         $138        $0       $1,720       H       M
   Seven Oaks                            66      2       2       1,014         Market         Natural Gas                                                      $1,584         $138        $0       $1,722       H       M
   Seven Oaks                            44      2       2       1,091         Market         Natural Gas                                                      $1,587         $138        $0       $1,725       H       M
   Seven Oaks                            64      2       2       1,170         Market         Natural Gas                                                      $1,597         $138        $0       $1,735       H       M
   Seven Oaks                            8       2       2       1,128         Market         Natural Gas                                                      $1,630         $138        $0       $1,768       H       M
   Seven Oaks                            20      2       3       1,256         Market         Natural Gas                                                      $1,752         $138        $0       $1,890      VH       H
   Seven Oaks                            12      2       3       1,310         Market         Natural Gas                                                      $1,812         $138        $0       $1,950      VH       H
   Seven Oaks                            28      2       3       1,350         Market         Natural Gas                                                      $1,832         $138        $0       $1,970      VH       H
   Seven Oaks                            66      3       2       1,152         Market         Natural Gas                                                      $1,697         $176        $0       $1,873       H       M
   Severn Square                         40      1       1        600          Market         Natural Gas                                                       $899          $116        $0       $1,015      M         L
   Severn Square                         20      2       1        600          Market         Natural Gas                                                      $1,067         $138        $0       $1,205      M         L
   Shelter Cove                          42      1       1        705          Market         Natural Gas                                                      $1,012         $116       -$84      $1,044      M        L
   Shelter Cove                          42      1       1        820          Market         Natural Gas                                                      $1,104         $116       -$92      $1,128      M        M
   Shelter Cove                          47      2       1        910          Market         Natural Gas                                                      $1,126         $138        $0       $1,264      M        L
   Shelter Cove                          46      2       2        940          Market         Natural Gas                                                      $1,179         $138        $0       $1,317      M         L
   Shelter Cove                          47      2       1       1,030         Market         Natural Gas                                                      $1,282         $138        $0       $1,420      M        M
   Shelter Cove                          46      2       2       1,050         Market         Natural Gas                                                      $1,294         $138        $0       $1,432      M        M
   Shelter Cove                          30      3       2       1,080         Market         Natural Gas                                                      $1,457         $176        $0       $1,633      M        M
   Somerset Woods                       200      3       1       1,125         Market         Natural Gas                                      ⌧       ⌧       $1,074         $102       -$85      $1,091       L       VL
   Stoney Hill                           35      1       1         --       Public Housing      Electric                                       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Stoney Hill                           20     Eff      1         --       Public Housing      Electric                                       ⌧       ⌧       no rent          --        --       no rent     EL       EL
   Tall Oaks                             98      1       1        835          Market         Natural Gas                                              ⌧        $799          $101        $0        $900       M         L
   Tall Oaks                             19      1       1        891          Market         Natural Gas                                              ⌧        $891          $101        $0        $992       M         L
   Tall   Oaks                          137      2      1.5      1,098         Market         Natural   Gas                                            ⌧        $1,009        $123        $0       $1,132      M        L
   Tall   Oaks                           29      2      1.5      1,168         Market         Natural   Gas                                            ⌧        $1,149        $123        $0       $1,272      M        L
   Tall   Oaks                           48      3       2       1,213         Market         Natural   Gas                                            ⌧        $1,309        $161        $0       $1,470      M        L
   Tall   Oaks                           21      3       2       1,283         Market         Natural   Gas                                            ⌧        $1,625        $161        $0       $1,786      H        M


Gross Rent Detail by Community                                                                    Odenton-Crofton Submarket                                                                                          Page 3 of 4
 Table A2-7 Multifamily Rental Communities Gross Rent Detail by Community
 Odenton Crofton

 Affordability Class                                  % AMI
   Extremely Low Rent and Subsidized          EL        30%
   Very Low Rent                              VL        50%
   Low Rent                                    L        60%
   Moderate Rent                              M         80%
   High Rent                                  H        100%
   Very High and Extremely High Rent          VH         +



                                                                    Floorplan Detail                                                      Utilities Included in Rent                                   Gross Rent Calculation              Classification

                                            Total                                                                                             Hot                   Other   Water           Published      Utility   Incentive   Gross     Area  County
     Community                              Units      Beds      Baths        SqFt             Program            Heat Source        Heat    Water      Cook         Elec   Sewer   Trash     Rent         Adjust     Adjust     Rent     Income Income

   The Groves at Piney   Orchard               21         1         1          744               LIHTC              Natural   Gas                                                    ⌧         $612         $101        $0        $713      VL       VL
   The Groves at Piney   Orchard               27         2         1          918               LIHTC              Natural   Gas                                                    ⌧         $738         $123        $0        $861      VL       VL
   The Groves at Piney   Orchard               30         2         2         1,061              LIHTC              Natural   Gas                                                    ⌧         $738         $123        $0        $861      VL       VL
   The Groves at Piney   Orchard               10         3         2         1,246              LIHTC              Natural   Gas                                                    ⌧         $835         $161        $0        $996      VL       VL
   The Groves at Piney   Orchard               43         1         1          744               Market             Natural   Gas                                                    ⌧        $1,245        $101        $0       $1,346     H        M
   The Groves at Piney   Orchard               71         2         1          918               Market             Natural   Gas                                                    ⌧        $1,311        $123        $0       $1,434     M        M
   The Groves at Piney   Orchard               30         2         2         1,061              Market             Natural   Gas                                                    ⌧        $1,430        $123        $0       $1,553     H        M
   The Groves at Piney   Orchard               26         3         2         1,246              Market             Natural   Gas                                                    ⌧        $1,634        $161        $0       $1,795     H        M
   Woodside Apts.                             100         1         1          700               Market             Natural   Gas     ⌧         ⌧        ⌧                   ⌧       ⌧        $1,024         $35        $0       $1,059     M        M
   Woodside Apts.                             100         2         1          840               Market             Natural   Gas     ⌧         ⌧        ⌧                   ⌧       ⌧        $1,102         $40        $0       $1,142     M        L
   Woodside Apts.                             100         2         1          928               Market             Natural   Gas     ⌧         ⌧        ⌧                   ⌧       ⌧        $1,167         $40        $0       $1,207     M        L
   Woodside Apts.                              33         3        1.5        1,075              Market             Natural   Gas     ⌧         ⌧        ⌧                   ⌧       ⌧        $1,294         $47        $0       $1,341     M        L
   Woodside Apts.                              33         3        1.5        1,396              Market             Natural   Gas     ⌧         ⌧        ⌧                   ⌧       ⌧        $1,429         $47        $0       $1,476     M        L
 Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


 NOTE:            Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Community                                                                                          Odenton-Crofton Submarket                                                                                                 Page 4 of 4
 Table A2-8 Multifamily Rental Communities Gross Rent Detail by Classification
 Odenton Crofton

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                         Utilities Included in Rent                                Gross Rent Calculation               Classification

                                       Total                                                                          Hot             Other    Water           Published        Utility   Incentive   Gross      Area  County
     Community                         Units   Beds    Baths     SqFt        Program         Heat Source     Heat    Water    Cook     Elec    Sewer   Trash     Rent           Adjust     Adjust     Rent      Income Income

   Ashley                               8        1       1        804         Section 8       Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Friendship Station Senior            88       1       1        950        Section 202        Electric      ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Friendship Village Senior Housing    63       1       1        570          Sect 8"          Electric                                        ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Meade Village                        25       1                 --       Public Housing    Natural Gas                                               ⌧       no   rent         --         --       no rent     EL       EL
   Stoney Hill                          35       1       1         --       Public Housing      Electric                                        ⌧       ⌧       no   rent         --         --       no rent     EL       EL
   Meade Village                        25       2                 --       Public Housing    Natural Gas                                               ⌧       no   rent         --         --       no rent     EL       EL
   Meade Village                        50       3                 --       Public Housing    Natural Gas                                               ⌧       no   rent         --         --       no rent     EL       EL
   Meade Village                        50       4                --        Public Housing    Natural Gas                                               ⌧       no rent           --         --       no rent     EL       EL
   Meade Village                         50     5+                 --       Public Housing    Natural Gas                                               ⌧       no rent            --         --      no rent     EL       EL
   Stoney Hill                           20     Eff      1         --       Public Housing      Electric                                        ⌧       ⌧       no rent            --         --      no rent     EL       EL
   The Groves at Piney Orchard           21      1       1        744           LIHTC         Natural Gas                                               ⌧        $612            $101         $0       $713       VL       VL
   The Groves at Piney Orchard           27      2       1        918           LIHTC         Natural Gas                                               ⌧        $738            $123         $0       $861       VL       VL
   The Groves at Piney Orchard           30      2       2       1,061          LIHTC         Natural Gas                                               ⌧        $738            $123         $0       $861       VL       VL
   The Groves at Piney Orchard           10      3       2       1,246          LIHTC         Natural Gas                                               ⌧        $835            $161         $0       $996       VL       VL
   Horizon Square                       134      1       1        883          Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $883             $0         -$70      $813       L        VL
   Park Glen                             25      1       1        630          Market         Natural Gas                                               ⌧        $750            $101         $0       $851       L        VL
   Quarterfield Crossing                203      2       1        800          Market         Natural Gas                                       ⌧       ⌧        $903             $85        -$33      $955       L        VL
   Park Glen                            130      2       1        720          Market         Natural Gas                                               ⌧        $850            $123         $0       $973       L        VL
   Orchards at Severn                   276      2       1        952          Market         Natural Gas                                       ⌧       ⌧        $922             $85         $0      $1,007       L       VL
   Scotts Manor                          63      2       1         --          Market         Natural Gas              ⌧                        ⌧                $950             $85         $0      $1,035       L       VL
   Somerset Woods                       200      3       1       1,125         Market         Natural Gas                                       ⌧       ⌧       $1,074           $102        -$85     $1,091       L       VL
   Orchards at Severn                   180      3       1       1,105         Market         Natural Gas                                       ⌧       ⌧        $990            $102         $0      $1,092       L       VL
   Old Stage                             20      2       1        730          Market         Natural Gas                                               ⌧       $1,064           $123        -$88     $1,099      L        VL
   Horizon Square                        96      2       2       1,204         Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,204            $0        -$100     $1,104      L        VL
   Park Glen                             16      3       1        800          Market         Natural Gas                                               ⌧       $1,000           $161         $0      $1,161       L       VL
   Orchards at Severn                    4       4       1       1,328         Market         Natural Gas                                       ⌧       ⌧       $1,195           $119         $0      $1,314      L        VL
   Tall Oaks                             98      1       1        835          Market         Natural Gas                                               ⌧        $799            $101         $0       $900       M        L
   Orchards at Severn                    40      1       1        690          Market         Natural Gas                                       ⌧       ⌧        $832             $73         $0       $905       M        L
   Scotts Manor                          15      1       1         --          Market         Natural Gas              ⌧                        ⌧                $850             $76         $0       $926       M         L
   Old Stage                             35      1       1        613          Market         Natural Gas                                               ⌧        $911            $101        -$75      $937       M        L
   Tall Oaks                             19      1       1        891          Market         Natural Gas                                               ⌧        $891            $101         $0       $992       M        L
   Severn Square                         40      1       1        600          Market         Natural Gas                                                        $899            $116         $0      $1,015      M         L
   Shelter Cove                          42      1       1        705          Market         Natural Gas                                                       $1,012           $116        -$84     $1,044      M        L
   Woodside Apts.                       100      1       1        700          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,024            $35         $0      $1,059      M        M
   Ashley                                32      1       1        804          Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,220            $0        -$125     $1,095      M        M
   Ashley                                25      1       1        893          Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,253            $0        -$125     $1,128      M        M
   Shelter Cove                          42      1       1        820          Market         Natural Gas                                                       $1,104           $116        -$92     $1,128      M        M
   Tall Oaks                            137      2      1.5      1,098         Market         Natural Gas                                               ⌧       $1,009           $123         $0      $1,132      M         L
   Ashley                                11      1       1        966          Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,263            $0        -$125     $1,138      M        M
   Carlyle Apartments                    10      1       1        840          Market         Natural Gas     ⌧                                 ⌧               $1,070            $68         $0      $1,138      M        M
   Woodside Apts.                       100      2       1        840          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,102            $40         $0      $1,142      M         L
   Ashley                                24      1       1        984          Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,268            $0        -$125     $1,143      M        M
   Crofton Village Apts.                 20      1       1        690          Market           Electric                                                ⌧       $1,015           $136         $0      $1,151      M        M
   Severn Square                         20      2       1        600          Market         Natural Gas                                                       $1,067           $138         $0      $1,205      M         L
   Woodside Apts.                       100      2       1        928          Market         Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧       $1,167            $40         $0      $1,207      M         L
   Ashley                               150      2       1       1,070         Market         Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧       $1,360            $0        -$125     $1,235      M         L
   Lake Village                         135      2       1        913          Market         Natural Gas                                       ⌧       ⌧       $1,154            $85         $0      $1,239      M         L
   Lake Village                         155      2       1        971          Market         Natural Gas                                       ⌧       ⌧       $1,179            $85         $0      $1,264      M        L
   Shelter Cove                          47      2       1        910          Market         Natural Gas                                                       $1,126           $138         $0      $1,264      M        L
   Tall Oaks                             29      2      1.5      1,168         Market         Natural Gas                                               ⌧       $1,149           $123         $0      $1,272      M         L
   Shelter Cove                          46      2       2        940          Market         Natural Gas                                                       $1,179           $138         $0      $1,317      M         L


Gross Rent Detail by Classification                                                               Odenton-Crofton Submarket                                                                                             Page 1 of 4
 Table A2-8 Multifamily Rental Communities Gross Rent Detail by Classification
 Odenton Crofton

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                  Utilities Included in Rent                              Gross Rent Calculation              Classification

                                       Total                                                                   Hot             Other    Water           Published      Utility   Incentive   Gross     Area  County
     Community                         Units   Beds    Baths     SqFt       Program   Heat Source     Heat    Water    Cook     Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent     Income Income

   Carlyle Apartments                    70      2       1       1,030       Market    Natural Gas     ⌧                                 ⌧                $1,245         $77         $0      $1,322     M        L
   Lake Village                         155      2       1       1,013       Market    Natural Gas                                       ⌧       ⌧        $1,239         $85         $0      $1,324     M        L
   Crofton Village Apts.                116      2       2        840        Market      Electric                                                ⌧        $1,155        $170         $0      $1,325     M        L
   Woodside Apts.                        33      3      1.5      1,075       Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧        $1,294         $47         $0      $1,341     M        L
   Lake Village                         155      2       1       1,013       Market    Natural Gas                                       ⌧       ⌧        $1,264         $85         $0      $1,349     M        M
   North Forest                          81      2       1         --        Market    Natural Gas                                                        $1,245        $138         $0      $1,383     M        M
   Crofton Village Apts.                 39      2       2        944        Market      Electric                                                ⌧        $1,245        $170         $0      $1,415     M        M
   Shelter Cove                          47      2       1       1,030       Market    Natural Gas                                                        $1,282        $138         $0      $1,420     M        M
   Lake Village                          19      3       1        998        Market    Natural Gas                                       ⌧       ⌧        $1,319        $102         $0      $1,421     M        L
   North Forest                          20      2       2         --        Market    Natural Gas                                                        $1,285        $138         $0      $1,423     M        M
   Shelter Cove                          46      2       2       1,050       Market    Natural Gas                                                        $1,294        $138         $0      $1,432     M        M
   The Groves at Piney Orchard           71      2       1        918        Market    Natural Gas                                               ⌧        $1,311        $123         $0      $1,434     M        M
   Ashley                               221      2       2       1,087       Market    Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $1,595         $0        -$125     $1,470     M        M
   Tall Oaks                             48      3       2       1,213       Market    Natural Gas                                               ⌧        $1,309        $161         $0      $1,470     M        L
   Woodside Apts.                        33      3      1.5      1,396       Market    Natural Gas     ⌧        ⌧       ⌧                ⌧       ⌧        $1,429         $47         $0      $1,476     M        L
   Horizon Square                        24      3       2       1,618       Market    Natural Gas     ⌧        ⌧       ⌧        ⌧       ⌧       ⌧        $1,618         $0        -$135     $1,483     M        L
   Lake Village                          20      3       1       1,058       Market    Natural Gas                                       ⌧       ⌧        $1,404        $102         $0      $1,506     M        L
   Shelter Cove                          30      3       2       1,080       Market    Natural Gas                                                        $1,457        $176         $0      $1,633     M        M
   Carlyle Apartments                    20      3       2       1,620       Market    Natural Gas     ⌧                                 ⌧                $1,550         $91         $0      $1,641     M        M
   Crofton Village Apts.                 47      3       2       1,008       Market      Electric                                                ⌧        $1,420        $225         $0      $1,645     M        M
   North Forest                          72      1       1         --        Market    Natural Gas                                                        $1,070        $116         $0      $1,186     H        M
   Crofton Village Apts.                 36      1       1        780        Market      Electric                                                ⌧        $1,055        $136         $0      $1,191     H        M
   North Forest                          9       1       1         --        Market    Natural Gas                                                        $1,210        $116         $0      $1,326     H        M
   Arbors at Arundel Preserve            44      1       1        635        Market    Natural Gas                                                        $1,325        $116       -$110     $1,331     H        M
   The Groves at Piney Orchard           43      1       1        744        Market    Natural Gas                                               ⌧        $1,245        $101         $0      $1,346     H        M
   Seven Oaks                           132      1       1        740        Market    Natural Gas                                                        $1,239        $116         $0      $1,355     H        M
   Lodge at Seven Oaks                   36      1       1        722        Market    Natural Gas                                               ⌧        $1,260        $101         $0      $1,361     H        M
   Arbors at Arundel Preserve            83      1       1        687        Market    Natural Gas                                                        $1,375        $116       -$114     $1,377     H        M
   Concord Park at Russett               75      1       1        885        Market    Natural Gas                                               ⌧        $1,400        $101       -$120     $1,381     H        M
   Camden Russett                       118      1       1        790        Market    Natural Gas                                                        $1,281        $116         $0      $1,397     H        H
   Riverscape                            75      1       1        744        Market    Natural Gas                                               ⌧        $1,310        $101         $0      $1,411     H        H
   Arbors at Arundel Preserve            61      1       1        746        Market    Natural Gas                                                        $1,415        $116       -$118     $1,413     H        H
   Keswick Park                          91      1      1.5       824        Market      Electric                                                         $1,266        $151         $0      $1,417     H        H
   Riverscape                            51      2       1        918        Market    Natural Gas                                               ⌧        $1,370        $123         $0      $1,493     H        M
   Camden Russett                        81      2       2       1,061       Market    Natural Gas                                                        $1,370        $138         $0      $1,508     H        M
   Riverscape                            52      2      1.5       918        Market    Natural Gas                                               ⌧        $1,405        $123         $0      $1,528     H        M
   Keswick Park                          75      2      2.5      1,048       Market      Electric                                                         $1,345        $185         $0      $1,530     H        M
   Seven Oaks                            17      2       1        948        Market    Natural Gas                                                        $1,409        $138         $0      $1,547     H        M
   The Groves at Piney Orchard           30      2       2       1,061       Market    Natural Gas                                               ⌧        $1,430        $123         $0      $1,553     H        M
   Keswick Park                          75      2       2        925        Market      Electric                                                         $1,382        $185         $0      $1,567     H        M
   Elms at Stoney Run Village            30      2       1        965        Market    Natural Gas                                                        $1,453        $138         $0      $1,591     H        M
   Camden Russett                        17      2       2       1,118       Market    Natural Gas                                                        $1,463        $138         $0      $1,601     H        M
   Camden Russett                        60      2       2       1,068       Market    Natural Gas                                                        $1,470        $138         $0      $1,608     H        M
   Arbors at Arundel Preserve            44      2       2        964        Market    Natural Gas                                                        $1,625        $138       -$135     $1,628     H        M
   Riverscape                            52      2       2       1,061       Market    Natural Gas                                               ⌧        $1,505        $123         $0      $1,628     H        M
   Archstone Russett                     24      2       2       1,087       Market    Natural Gas                                                        $1,540        $138         $0      $1,678     H        M
   Camden Russett                        4       2       2       1,164       Market    Natural Gas                                                        $1,548        $138         $0      $1,686     H        M
   Arbors at Arundel Preserve            62      2       2        989        Market    Natural Gas                                                        $1,695        $138       -$141     $1,692     H        M
   Archstone Russett                     54      2       2       1,072       Market    Natural Gas                                                        $1,555        $138         $0      $1,693     H        M
   Elms at Stoney Run Village           112      2       2       1,165       Market    Natural Gas                                                        $1,560        $138         $0      $1,698     H        M
   Archstone Russett                     30      2       2       1,082       Market    Natural Gas                                                        $1,565        $138         $0      $1,703     H        M
   Seven Oaks                            28      2       2       1,130       Market    Natural Gas                                                        $1,582        $138         $0      $1,720     H        M
   Seven Oaks                            66      2       2       1,014       Market    Natural Gas                                                        $1,584        $138         $0      $1,722     H        M


Gross Rent Detail by Classification                                                        Odenton-Crofton Submarket                                                                                          Page 2 of 4
 Table A2-8 Multifamily Rental Communities Gross Rent Detail by Classification
 Odenton Crofton

 Affordability Class                           % AMI
   Extremely Low Rent and Subsidized    EL      30%
   Very Low Rent                        VL      50%
   Low Rent                              L      60%
   Moderate Rent                        M       80%
   High Rent                            H      100%
   Very High and Extremely High Rent    VH       +



                                                         Floorplan Detail                                 Utilities Included in Rent                              Gross Rent Calculation              Classification

                                       Total                                                                   Hot            Other    Water           Published      Utility   Incentive   Gross     Area  County
     Community                         Units   Beds    Baths     SqFt       Program   Heat Source     Heat    Water    Cook    Elec    Sewer   Trash     Rent         Adjust     Adjust     Rent     Income Income

   Seven Oaks                           44       2       2       1,091       Market    Natural Gas                                                       $1,587        $138         $0      $1,725      H       M
   Concord Park at Russett              33       2       2       1,116       Market    Natural Gas                                              ⌧        $1,610        $123         $0      $1,733      H       M
   Seven Oaks                           64       2       2       1,170       Market    Natural Gas                                                       $1,597        $138         $0      $1,735      H       M
   Arbors at Arundel Preserve           79       2       2       1,100       Market    Natural Gas                                                       $1,775        $138       -$147     $1,766      H       M
   Seven Oaks                           8        2       2       1,128       Market    Natural Gas                                                       $1,630        $138         $0      $1,768      H       M
   Fieldstone Farm                      42       2       2       1,029       Market      Electric                                               ⌧        $1,610        $170         $0      $1,780      H       M
   Tall Oaks                            21       3       2       1,283       Market    Natural Gas                                              ⌧        $1,625        $161         $0      $1,786      H       M
   The Groves at Piney Orchard          26       3       2       1,246       Market    Natural Gas                                              ⌧        $1,634        $161         $0      $1,795      H       M
   Concord Park at Russett              32       2       2       1,200       Market    Natural Gas                                              ⌧        $1,700        $123         $0      $1,823      H       H
   Elms at Stoney Run Village           77       2       2       1,255       Market    Natural Gas                                                       $1,691        $138         $0      $1,829      H       H
   Fieldstone Farm                      69       2       2       1,114       Market      Electric                                               ⌧        $1,660        $170         $0      $1,830      H       H
   Lodge at Seven Oaks                  78       2       2       1,127       Market    Natural Gas                                              ⌧        $1,720        $123         $0      $1,843      H       H
   Seven Oaks                           66       3       2       1,152       Market    Natural Gas                                                       $1,697        $176         $0      $1,873      H       M
   Riverscape                           50       3       2       1,246       Market    Natural Gas                                              ⌧        $1,720        $161         $0      $1,881      H       M
   Camden Russett                       33       3       2       1,218       Market    Natural Gas                                                       $1,713        $176         $0      $1,889      H       M
   Archstone Russett                    28       3       2       1,273       Market    Natural Gas                                                       $1,815        $176         $0      $1,991      H       M
   Arbors at Arundel Preserve           25       3       2       1,316       Market    Natural Gas                                                       $1,995        $176       -$166     $2,005      H       M
   Elms at Stoney Run Village           17       3       2       1,390       Market    Natural Gas                                                       $1,844        $176         $0      $2,020      H       M
   Camden Russett                       28       3       2       1,276       Market    Natural Gas                                                       $1,874        $176         $0      $2,050      H       M
   Fieldstone Farm                      34       3       2       1,303       Market      Electric                                               ⌧        $1,855        $225         $0      $2,080      H       H
   Concord Park at Russett              16       3       2       1,410       Market    Natural Gas                                              ⌧        $1,940        $161         $0      $2,101      H       H
   Archstone Russett                    56       3       2       1,467       Market    Natural Gas                                                       $1,940        $176         $0      $2,116      H       H
   Archstone Russett                    24       1       1        870        Market    Natural Gas                                                       $1,330        $116         $0      $1,446     VH       H
   Keswick Park                         90       1       1        721        Market      Electric                                                        $1,297        $151         $0      $1,448     VH       H
   Camden Russett                       60       1       1        929        Market    Natural Gas                                                       $1,342        $116         $0      $1,458     VH       H
   Camden Russett                       12       1       1        830        Market    Natural Gas                                                       $1,342        $116         $0      $1,458     VH       H
   Concord Park at Russett              2        1       1        870        Market    Natural Gas                                              ⌧        $1,380        $101         $0      $1,481     VH       H
   Arbors at Arundel Preserve           2        1       1        911        Market    Natural Gas                                                       $1,495        $116       -$125     $1,486     VH       H
   Keswick Park                         75       1       1        648        Market      Electric                                                        $1,337        $151         $0      $1,488     VH       H
   Archstone Russett                    4        1       1        964        Market    Natural Gas                                                       $1,375        $116         $0      $1,491     VH       H
   Elms at Stoney Run Village           58       1       1        830        Market    Natural Gas                                                       $1,375        $116         $0      $1,491     VH       H
   Arbors at Arundel Preserve           32       1       1        897        Market    Natural Gas                                                       $1,525        $116       -$131     $1,510     VH       H
   Lodge at Seven Oaks                  36       1       1        786        Market    Natural Gas                                              ⌧        $1,410        $101         $0      $1,511     VH       H
   Fieldstone Farm                      42       1       1        750        Market      Electric                                               ⌧        $1,390        $136         $0      $1,526     VH       H
   Seven Oaks                           41       1       1        948        Market    Natural Gas                                                       $1,417        $116         $0      $1,533     VH       H
   Concord Park at Russett              3        1       1        942        Market    Natural Gas                                              ⌧        $1,450        $101         $0      $1,551     VH       H
   Camden Russett                       12       1       1       1,029       Market    Natural Gas                                                       $1,438        $116         $0      $1,554     VH       H
   Arbors at Arundel Preserve           8        1       1        885        Market    Natural Gas                                                       $1,575        $116       -$131     $1,560     VH       H
   Lodge at Seven Oaks                  72       1       1        838        Market    Natural Gas                                              ⌧        $1,470        $101         $0      $1,571     VH       H
   Archstone Russett                    14       1       1        796        Market    Natural Gas                                                       $1,460        $116         $0      $1,576     VH       H
   Concord Park at Russett              8        1       1        985        Market    Natural Gas                                              ⌧        $1,510        $101         $0      $1,611     VH       H
   Seven Oaks                           16       1       2       1,128       Market    Natural Gas                                                       $1,557        $116         $0      $1,673     VH       H
   Arbors at Arundel Preserve           5        1      1.5      1,102       Market    Natural Gas                                                       $1,725        $116       -$143     $1,698     VH       H
   Elms at Stoney Run Village           20       1       1        980        Market    Natural Gas                                                       $1,595        $116         $0      $1,711     VH       H
   Lodge at Seven Oaks                  30       1       1        987        Market    Natural Gas                                              ⌧        $1,610        $101         $0      $1,711     VH       H
   Lodge at Seven Oaks                  30       1       1        989        Market    Natural Gas                                              ⌧        $1,610        $101         $0      $1,711     VH       H
   Arbors at Arundel Preserve           25       2       2       1,166       Market    Natural Gas                                                       $1,900        $138       -$158     $1,880     VH       H
   Seven Oaks                           20       2       3       1,256       Market    Natural Gas                                                       $1,752        $138         $0      $1,890     VH       H
   Camden Russett                       1        2       2       1,611       Market    Natural Gas                                                       $1,760        $138         $0      $1,898     VH       H
   Arbors at Arundel Preserve           17       2       2       1,141       Market    Natural Gas                                                       $1,925        $138       -$160     $1,903     VH       H
   Lodge at Seven Oaks                  39       2       2       1,198       Market    Natural Gas                                              ⌧        $1,790        $123         $0      $1,913     VH       H
   Concord Park at Russett              34       2       2       1,318       Market    Natural Gas                                              ⌧        $1,855        $123        -$60     $1,918     VH       H
   Elms at Stoney Run Village           20       2       2       1,455       Market    Natural Gas                                                       $1,810        $138         $0      $1,948     VH       H


Gross Rent Detail by Classification                                                        Odenton-Crofton Submarket                                                                                         Page 3 of 4
 Table A2-8 Multifamily Rental Communities Gross Rent Detail by Classification
 Odenton Crofton

 Affordability Class                                    % AMI
   Extremely Low Rent and Subsidized            EL        30%
   Very Low Rent                                VL        50%
   Low Rent                                      L        60%
   Moderate Rent                                M         80%
   High Rent                                    H        100%
   Very High and Extremely High Rent            VH         +



                                                                      Floorplan Detail                                                      Utilities Included in Rent                                   Gross Rent Calculation              Classification

                                              Total                                                                                             Hot                   Other   Water           Published      Utility   Incentive   Gross     Area  County
     Community                                Units      Beds      Baths        SqFt             Program            Heat Source        Heat    Water      Cook         Elec   Sewer   Trash     Rent         Adjust     Adjust     Rent     Income Income

   Seven Oaks                                   12          2         3         1,310              Market             Natural   Gas                                                             $1,812        $138         $0      $1,950     VH        H
   Concord Park at Russett                      18          2         2         1,303              Market             Natural   Gas                                                    ⌧        $1,830        $123         $0      $1,953     VH        H
   Concord Park at Russett                      69          2         2         1,287              Market             Natural   Gas                                                    ⌧        $1,840        $123         $0      $1,963     VH        H
   Lodge at Seven Oaks                          39          2         2         1,233              Market             Natural   Gas                                                    ⌧        $1,840        $123         $0      $1,963     VH        H
   Arbors at Arundel Preserve                   9           2         2         1,308              Market             Natural   Gas                                                             $1,995        $138       -$166     $1,967     VH        H
   Seven Oaks                                   28          2         3         1,350              Market             Natural   Gas                                                             $1,832        $138         $0      $1,970     VH        H
   Concord Park at Russett                      13          2         2         1,390              Market             Natural   Gas                                                    ⌧        $1,910        $123         $0      $2,033     VH        H
   Elms at Stoney Run Village                   46          2         2         1,533              Market             Natural   Gas                                                             $1,895        $138         $0      $2,033     VH        H
   Concord Park at Russett                      12          2         2         1,441              Market             Natural   Gas                                                    ⌧        $1,958        $123         $0      $2,081     VH        H
   Lodge at Seven Oaks                          36          3         2         1,348              Market             Natural   Gas                                                    ⌧        $2,050        $161         $0      $2,211     VH        H
   Concord Park at Russett                      16          3         2         1,626              Market             Natural   Gas                                                    ⌧        $2,135        $161         $0      $2,296     VH        H
   Elms at Stoney Run Village                   6           3         2         1,650              Market             Natural   Gas                                                             $2,140        $176         $0      $2,316     VH        H
   Concord Park at Russett                      4           3         2         1,860              Market             Natural   Gas                                                    ⌧        $2,230        $161         $0      $2,391     VH        H
 Source: Phone/Field Survey, RPRG, Inc. August/September 2010.


 NOTE:              Utility Adjustments made based on utility allowance schedules provided by the Prince George's County Department of Housing / Section 8 Division




Gross Rent Detail by Classification                                                                                       Odenton-Crofton Submarket                                                                                                 Page 4 of 4
APPENDIX 3 COUNTY MEDIAN INCOME PENETRATION RATE



    Within the penetration analysis in this report, we establish the income cohorts by
    reference to data on 2010 median family income by household size issued by the US
    Department of Housing and Urban Development (HUD) for the Baltimore-Towson,
    MD HUD Metro FMR Area, which includes Anne Arundel County.              Reflecting the
    regional nature of housing markets, the HUD “area” median income is used to
    establish income limits and rent restrictions for most affordable housing programs.
    Given its regional nature, the area median income averages both more and less
    affluent counties of the region. An alternative methodology is to base the penetration
    analysis on county income characteristics exclusively.                    h
                                                                In this case, t e “county”
    median income used in this analysis would reflect the affordability of the housing
    stock to residents of just Anne Arundel County. Such an analysis is based on the
    Anne Arundel County median family income per the American Community Survey
    (ACS) for 2008 inflated to reflect a 2010 county median income (inflated using the
    relative change in median income as reported by HUD for the region between 2008
    and 2010).    The 2010 ACS median family income for Anne Arundel County is
    $99,695, or 21 percent higher than the HUD published area median income for the
    Baltimore region of $82,200.


    Based on this higher adjusted median income, rents for each unit classification will be
    adjusted (Table A3.1).      For example, under the HUD area median income
    classification, one-bedroom units with a gross rent below $432 are considered an
    Extremely Low Rent (<30%) unit, while the threshold for a two-bedroom unit is $555
    dollars. Under the county median income-based classification, one-bedroom units
    with a gross rent below $523 are considered Extremely Low Rent (<30%) while the
    threshold for a two-bedroom unit under the county income is $673.


    Overall, under the HUD area median income classification, 66 percent of the Anne
    Arundel County stock of multifamily rental units could be considered moderate rent
    (<80%) or lower. All units in the Glen Burnie submarket are moderate rent or lower,
    compared to three-fourths of units in the Severna Park submarket. Nearly 55 percent

                                       144                           RealPropertyResearchGroup
of units in the Odenton-Crofton submarket are moderate rent or lower, while in the
Annapolis submarket, less than half of units (46 percent) are moderate rent or lower
(Table A3.1). Using the higher median income for Anne Arundel County to inventory
the units, 87 percent of the entire multifamily rental inventory in Anne Arundel County
would be considered moderate rent units or units affordable to households at or below
80 percent of county median income (Table A3.2).         All units in the Glen Burnie
submarket and nearly all units in the Severna Park submarket would be considered
moderate rent or lower, compared with nearly 80 percent of units in both the
Annapolis and Odenton-Crofton submarkets.          Under the higher county median
income classification, the county-wide penetration rate of moderate rent units is 74
percent compared with 82 percent under the HUD area median income classification
(Table A3.3). The penetration rate of low rent units is 66 percent using the county-
wide median and 45 percent under HUD area median income. For very low rent
units, the penetration rate is 45 percent under the county median income
classification and 7 percent under the area median income.


The next phase of our assignment is to perform a risk assessment using the property-
specific characteristics and market trends identified in this report for each rental
property in Anne Arundel County and throughout the eight Preservation Compact
counties.   We hope the information provided by this analysis will assist the
Department and the Preservation Compact in their efforts to target affordable housing
preservation resources effectively.




                                      145                        RealPropertyResearchGroup
TABLE A3-1 Classification of Affordable Units                                         Anne Arundel County

Classification Based on ACS 2010 County Median Family Income*                              $99,695         Anne Arundel County


                                                  % of AMI Range                      Maximum Rent by Bedroom                                        Maximum Income by Bedroom
 Unit Classification                              Min        Max              0 BR      1 BR   2 BR    3 BR   4 BR                   0 BR            1 BR      2 BR        3 BR                      4 BR
   Extremely Low Rent and Subsidized               0%             30%         $523      $523       $673      $778       $867        $20,936        $20,936         $26,918         $31,105          $34,694
   Very Low Rent                                   30%            50%         $872      $872      $1,122     $1,296    $1,446       $34,893        $34,893         $44,863         $51,842          $57,823
   Low Rent                                        50%            60%        $1,047     $1,047    $1,346     $1,555    $1,735       $41,872        $41,872         $53,835         $62,210          $69,388
   Moderate Rent                                   60%            80%        $1,396     $1,396    $1,795     $2,074    $2,313       $55,829        $55,829         $71,781         $82,947          $92,517
   High Rent                                       80%           100%        $1,745     $1,745    $2,243     $2,592    $2,891       $69,787        $69,787         $89,726        $103,683          $115,647
   Very High and Extremely High Rent              100%             +            +         +          +         +          +            +               +               +              +                +



NOTE: Incomes are adjusted assuming 1 person per household for Efficiency and 1 BR units and 1.5 persons per unit for all other unit sizes. Maximum rents assume a maximum 30% gross rent burden.
* ACS 2008 Median Family Income adjusted to 2010 by applying the ratio between ACS 2008 MFI and HUD 2010 AMFI at the regional level.
TABLE A3-2 Inventory of Affordable Rental Units - County Median Income

                                                                                    Annapolis      Glen Burnie      Severna Park    Odenton Crofton    Anne Arundel County

Inventory of Affordable Rental Units

Total Number of Multifamily Rental Units                                         7,323            5,933            5,006            8,541               26,803
                                                              Maximum Rent         #         %      #        %       #        %       #          %         #        %
     Extremely Low Rent and Subsidized Units                                     2,373    32.4%    777    13.1%     161     3.2%     414       4.8%      3,725    13.9%
        Efficiency and One Bedroom Units                          $523            694     29.2%    343     44.1%     17    10.6%     239       57.7%    1,293     34.7%
        Two Bedroom Units                                         $673            812     34.2%    354     45.6%    124     77.0%     25        6.0%    1,315     35.3%
        Three Bedroom Units                                       $778            699     29.5%     80     10.3%     20    12.4%      50      12.1%       849     22.8%
        Four+ Bedroom Units                                       $867            168      7.1%      0      0.0%      0     0.0%     100      24.2%       268      7.2%
      Units with Subsidy                                                         2,355    99.2%    777    100.0%     58    36.0%     414      100.0%    3,604     96.8%
      Units with Program Rent Restrictions                                         18      0.8%     0      0.0%     103    64.0%       0       0.0%       121      3.2%
     Very Low Rent Units                                                          327      4.5%   2,658   44.8%     795    15.9%    1,435     16.8%      5,215    19.5%
        Efficiency and One Bedroom Units                          $872             46     14.1%    932     35.1%     93    11.7%     180       12.5%    1,251     24.0%
        Two Bedroom Units                                        $1,122           174     53.2%   1,576   59.3%     702    88.3%     845       58.9%    3,297     63.2%
        Three Bedroom Units                                      $1,296            94     28.7%    150      5.6%      0     0.0%     406       28.3%      650     12.5%
        Four+ Bedroom Units                                      $1,446            13      4.0%      0      0.0%      0     0.0%       4       0.3%       17       0.3%
      Units with Program Rent Restrictions                                        205     62.7%    823     31.0%    143    18.0%      88        6.1%    1,259     24.1%
     Low Rent Units                                                               690     9.4%    1,919   32.3%    2,229   44.5%    1,696     19.9%     6,534     24.4%
        Efficiency and One Bedroom Units                         $1,047           169     24.5%    820     42.7%   1,347   60.4%     259       15.3%    2,595     39.7%
        Two Bedroom Units                                        $1,346           494     71.6%    885     46.1%    823     36.9%   1,260      74.3%    3,462     53.0%
        Three Bedroom Units                                      $1,555            27      3.9%    214     11.2%     59     2.6%     177       10.4%      477      7.3%
        Four+ Bedroom Units                                      $1,735             0      0.0%      0     0.0%       0     0.0%       0       0.0%        0       0.0%
      Units with Program Rent Restrictions                                        134     19.4%     34     1.8%       0     0.0%       0       0.0%       168      2.6%
     Moderate Rent Units                                                         2,413    33.0%    579     9.8%    1,747   34.9%    3,119     36.5%      7,858    29.3%
        Efficiency and O B d
        Effi i                      Units
                     d One Bedroom U it                          $1 396
                                                                 $1,396           844     35.0%
                                                                                          35 0%     38     6 6%
                                                                                                            6.6%    638    36.5%
                                                                                                                           36 5%     814      26 1%
                                                                                                                                               26.1%    2,334
                                                                                                                                                        2 334     29.7%
                                                                                                                                                                  29 7%
        Two Bedroom Units                                        $1,795          1,458    60.4%    455     78.6%    881     50.4%   1,914      61.4%    4,708     59.9%
        Three Bedroom Units                                      $2,074            99      4.1%     86    14.9%     228    13.1%     391      12.5%       804     10.2%
        Four+ Bedroom Units                                      $2,313            12      0.5%      0      0.0%      0     0.0%       0        0.0%       12      0.2%
      Units with Program Rent Restrictions                                          0      0.0%     0      0.0%       0     0.0%       0       0.0%        0       0.0%
     High Rent Units                                                             1,247    17.0%     0      0.0%      74     1.5%    1,867     21.9%      3,188    11.9%
        Efficiency and One Bedroom Units                         $1,745           785     63.0%      0        --     74    100.0%   1,041      55.8%    1,900     59.6%
        Two Bedroom Units                                        $2,243           429     34.4%      0        --      0     0.0%     658       35.2%    1,087     34.1%
        Three Bedroom Units                                      $2,592            33      2.6%      0        --      0     0.0%     168       9.0%       201      6.3%
        Four+ Bedroom Units                                      $2,891             0      0.0%      0        --      0     0.0%       0       0.0%        0       0.0%
      Units with Program Rent Restrictions                                          0      0.0%      0        --      0     0.0%       0       0.0%        0       0.0%
     Very High and Extremely High Rent Units                                      273     3.7%      0      0.0%      0      0.0%      10       0.1%       283     1.1%
        Efficiency and One Bedroom Units                            +             175     64.1%      0        --      0       --      10      100.0%      185     65.4%
        Two Bedroom Units                                           +              90     33.0%      0        --      0       --       0       0.0%        90     31.8%
        Three Bedroom Units                                         +               8      2.9%      0        --      0       --       0       0.0%         8      2.8%
        Four+ Bedroom Units                                         +               0      0.0%      0        --      0       --       0       0.0%         0      0.0%
      Units with Program Rent Restrictions                                          0      0.0%      0        --      0       --       0       0.0%        0       0.0%

 All Units with Moderate Rent or Lower                                           5,803    79.2%   5,933   100.0%   4,932   98.5%    6,664     78.0%     23,332    87.0%
   Units with Subsidy                                                            2,355    40.6%    777    13.1%     58     1.2%      414      6.2%      3,604     15.4%
   Units with Program Rent Restrictions                                           357      6.2%    857     14.4%    246     5.0%      88       1.3%      1,548     6.6%
   Units with Market-Rate Rent                                                   3,091    53.3%   4,299    72.5%   4,628   93.8%    6,162     92.5%     18,180    77.9%

Source: Field/Phone Surveys, Real Property Research Group, Inc. August-September 2010.
TABLE A3-3 Penetration Rate Analysis - County Median Income

                                                               Annapolis               Glen Burnie            Severna Park          Odenton Crofton      Anne Arundel County

Inventory of Affordable Rental Units

Total Number of Multifamily Rental Units                   7,323                     5,933                  5,006                   8,541                 26,803
                                                             #             %           #           %           #            %         #           %          #           %
       Extremely Low Rent and Subsidized Units (<30%)      2,373         32.4%        777        13.1%        161        3.2%        414        4.8%       3,725       13.9%
       Very Low Rent Units (30-50%)                         327           4.5%       2,658       44.8%        795       15.9%       1,435      16.8%       5,215       19.5%
       Low Rent Units (50-60%)                              690           9.4%       1,919       32.3%       2,229      44.5%       1,696      19.9%       6,534       24.4%
       Moderate Rent Units (60-80%)                        2,413         33.0%        579         9.8%       1,747      34.9%       3,119      36.5%       7,858       29.3%
       High Rent Units (80-100%)                           1,247         17.0%         --           --        74        1.5%        1,867      21.9%       3,188       11.9%
       Very High and Extremely High Rent Units (>100%)      273           3.7%         --           --         --          --        10         0.1%        283         1.1%

2011 Renter Households by Affordability Band

   Income Bands                                          Min Income    Max Income
      Extremely Low Rent and Subsidized Units               $0           $34,694
      Very Low Rent Units                                 $20,936       $57,823
      Low Rent Units                                      $34,893       $69,388
      Moderate Rent Units                                 $41,872        $92,517
      High Rent Units                                     $55,829       $115,647
      Very High and Extremely High Rent Units             $69,787       $173,470

2011 Total Renter Households                              13,738                    10,627                  8,417                   15,202                47,985
   Allocation of Renters to Multifamily Rental Stock      57 3%
                                                          57.3%                     63 5%
                                                                                    63.5%                   55.4%
                                                                                                            55 4%                   47 8%
                                                                                                                                    47.8%                 55.4%
                                                                                                                                                          55 4%
2011 Estimated Multifamily Renters                         7,867                     6,751                  4,662                   7,268                 26,577
                                                                                                                                     # of
                                                         # of Renter   % of Renter # of Renter    % of    # of Renter % of Renter   Renter   % of Renter # of Renter % of Renter
                                                            HHs           HHs         HHs      Renter HHs    HHs         HHs         HHs        HHs         HHs         HHs
       Extremely Low Income Hhlds                          2,827         35.9%       2,786       41.3%       1,308      28.1%       1,781      24.5%        8,702      32.7%
       Very Low Income HHlds                               3,102         39.4%       3,170       47.0%       2,288      49.1%       3,049      42.0%       11,610      43.7%
       Low Income HHlds                                    2,590         32.9%       2,450       36.3%       1,983      42.5%       2,916      40.1%       9,939       37.4%
       Moderate Income HHlds                               2,933         37.3%       2,497       37.0%       2,018      43.3%       3,222      44.3%       10,671      40.2%
       High Income HHlds                                   2,354         29.9%       1,779       26.4%       1,488      31.9%       2,616      36.0%        8,238      31.0%
       Very High and Extremely High Income HHlds           1,970         25.0%       1,358       20.1%       1,172      25.1%       2,208      30.4%        6,708      25.2%

Penetration Rate (Units / Qualified HHs)

       Extremely Low Rent and Subsidized Units                   83.9%                     27.9%                   12.3%                  23.2%                  42.8%
       Very Low Rent Units                                       10.5%                     83.9%                   34.7%                  47.1%                  44.9%
       Low Rent Units                                            26.6%                     78.3%                   112.4%                 58.2%                  65.7%
       Moderate Rent Units                                       82.3%                     23.2%                   86.6%                  96.8%                  73.6%
       High Rent Units                                           53.0%                       --                     5.0%                  71.4%                  38.7%
       Very High and Extremely High Rent Units                   13.9%                       --                       --                   0.5%                   4.2%
APPENDIX 4 ANALYST RESUMES




                       149   RealPropertyResearchGroup
                                  ROBERT M. LEFENFELD
                                        Managing Principal

Mr. Lefenfeld is the Managing Principal of the firm with over 30 years of experience in the field of
residential market research. Before founding Real Property Research Group in February, 2001, Bob
served as an officer of research subsidiaries of the accounting firm of Reznick Fedder & Silverman
and Legg Mason. Between 1998 and 2001, Bob was Managing Director of RF&S Realty Advisors,
conducting market studies throughout the United States on rental and for sale projects. From 1987 to
1995, Bob served as Senior Vice President of Legg Mason Realty Group, managing the firm’s
consulting practice and serving as publisher of a Mid-Atlantic residential data service, Housing
Market Profiles. Prior to joining Legg Mason, Bob spent ten years with the Baltimore Metropolitan
Council as a housing economist. Bob also served as Research Director for Regency Homes between
1995 and 1998, analyzing markets throughout the Eastern United States and evaluating the
company’s active building operation.

Bob oversees the execution and completion of all of the firm’s research assignments, ranging from a
strategic assessment of new development and building opportunities throughout a region to the
development and refinement of a particular product on a specific site. He combines extensive
experience in the real estate industry with capabilities in database development and information
management. Over the years, he has developed a series of information products and proprietary
databases serving real estate professionals.
Bob has lectured and written extensively on the subject of residential real estate market analysis. He
has served as a panel member, speaker, and lecturer at events held by the National Association of
Homebuilders, the National Council on Seniors’ Housing and various local homebuilder associations.
Bob serves as a visiting professor for the Graduate Programs in Real Estate Development, School of
Architecture, Planning and Preservation, University of Maryland College Park. He also serves as
Immediate Past Chair of the National Council of Affordable Housing Market Analysts (NCAHMA)
and is a board member of the Baltimore chapter of Lambda Alpha Land Economics Society.
AREAS OF CONCENTRATION:
•   Strategic Assessments: Mr. Lefenfeld has conducted numerous corridor analyses throughout the
    United States to assist building and real estate companies in evaluating development
    opportunities. Such analyses document demographic, economic, competitive, and proposed
    development activity by submarket and discuss opportunities for development.
•   Feasibility Analysis: Mr. Lefenfeld has conducted feasibility studies for various types of
    residential developments for builders and developers. Subjects for these analyses have included
    for-sale single-family and townhouse developments, age-restricted rental and for-sale
    developments, large multi-product PUDs, urban renovations and continuing care facilities for the
    elderly.
•   Information Products: Bob has developed a series of proprietary databases to assist clients in
    monitoring growth trends. Subjects of these databases have included for sale housing, pipeline
    information, and rental communities. Information compiled is committed to a Geographic
    Information System (GIS), facilitating the comprehensive integration of data.

EDUCATION:
Master of Urban and Regional Planning; The George Washington University.
Bachelor of Arts - Political Science; Northeastern University.
                                       JAMES M. RIGGS
                                          Director
James Riggs leads the firm’s Impact Analysis practice, conducting Economic and Fiscal Impact
analyses throughout the United States. Additionally, he is a real estate professional specializing in
affordable housing development as well as financial and market analysis of a variety of real estate
products.

Prior to joining Real Property Research Group, James was Director of Operations for an affordable
housing developer based in Maryland, and managed the development, financing and construction of
low-income housing tax credit projects and new home communities. Previously to that, he served as
a Senior Associate in the Transaction Advisory and the Realty Advisors teams of Reznick Group in
Baltimore, Maryland. In this capacity, James focused on providing real estate developer, investor and
lender clients with market and financial analyses of real estate projects, specializing in projects
involving low income housing and historic tax credits. James also created financial models for
various clients requiring unique solutions to complex analytical needs. James began his tenure at
Reznick working with RFS Realty Advisors, a subsidiary of Reznick Group, conducting market
studies for affordable housing.

James also brings public sector planning and development experience with work as a Planner at the
Maryland Office of Planning and as a Project Manager for the City of South Bend, Indiana. In these
roles, James worked with elected and appointed officials, area business leaders and community
groups to implement public policies, including Maryland’s Smart Growth Initiative. In South Bend,
James managed the development and construction of a 350-acre city-owned office park and golf
course project as part of a $30-million economic development initiative.


AREAS OF CONCENTRATION:
  • Real Estate Financial Analysis - James specializes in providing detailed financial models for
     real estate developers, non-profit organizations and local governments wishing to explore
     development opportunities. During his career, James has utilized standard spreadsheet and
     database applications to create detailed and specialized analytical tools for a wide variety of
     clients, including General Electric, the National Electrical Benefit Fund, and numerous real
     estate developers and investors around the country. In addition to standard real estate
     proformas, James has prepared financial models with focus on the needs of the particular
     assignment; including tax benefit projections, discounted cash flow analysis, and portfolio
     analysis.
    •   Financing Applications and Packages – James has developed an expertise and unique capacity
        to create successful financing applications for real estate developers seeking government
        financing or responding to government requests for proposals. James was responsible for
        preparing applications and responses to RFP’s while Director of Operations for an affordable
        housing developer. James produced applications that were eventually rewarded nine percent
        tax credits for two LIHTC projects on land obtained though the RFP processes from the City
        of Baltimore.

EDUCATION:
    Masters of Science, Real Estate Development – Johns Hopkins University, 2004
     Bachelors of Urban Planning and Development – Ball State University, 1992
    Bachelors of Science, Environmental Design – Ball State University, 1992
                              KARA OLSEN SALAZAR
                                    Analyst

Kara Olsen Salazar entered the field of market research in 2005 as a Research Associate
at RPRG, gathering economic, demographic, and competitive data for market feasibility
analyses. Kara’s background is in affordable housing advocacy and community
development, specifically in the Latino community. This included service as an
AmeriCorps volunteer in Chicago, where she worked on affordable housing, economic
development and employment organizing.

Areas of Concentration:

   •   Low Income Tax Credit : Kara prepares rental market studies for submission to
       lenders and state agencies for nine percent and four percent Low Income Housing
       Tax Credit allocations. While most of these studies are for new construction
       product, several examine the feasibility of renovating existing family and senior
       rental communities.

   •   Senior Housing: Kara prepares reports for proposed senior rental communities.
       This includes market rate, tax credit, and mixed- income projects.

   •   Market Rate Rental: This area of Kara’s practice includes preliminary analyses
       designed to guide developers in product development and positioning of market
       rate rental communities. Kara also conducts full studies evaluating the feasibility
       of market rate rental communities, some of which are mixed- use developments
       with a commercial component.

Education:

Bachelor of Arts – Political Science; Wheaton College, Wheaton, Illinois
APPENDIX 5 RESIDENTIAL RENTAL COMMUNITY PROFILES




                        150               RealPropertyResearchGroup

				
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