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Appendix G: Development Feasibility Everett Housing Action Plan G-15 <br /> <br />Exhibit 15. Other Pro Forma Inputs for Prototype Developments. <br />COSTS R1 R2 UR4 <br />Construction hard costs per square foot $100 $110 $130 <br />Sale price per square foot $220/SF $220/SF - <br />Unit rents per month <br /> Studio - - $1,700 <br /> 1-bedroom - - $1,900 <br /> 2-bedroom - - $2,400 <br />Proportion of units <br /> Studio - - 33% <br /> 1-bedroom - - 33% <br /> 2-bedroom - - 33% <br />Source: BERK, 2021. <br />Sensitivity/Scenario Analyses <br />Although the estimates provided here use parameters that are expected to be typical of the market <br />under the conditions discussed, there is value in determining how these projects would perform under <br />different inputs. This can be relevant in two respects. <br />First, this can highlight how the results of this analysis can change with respect to different conditions <br />that deviate from these assumptions. If conditions are different because of changes in the market, or <br />differences between these assumptions and a neighborhood market, this can indicate whether the <br />findings and resulting strategies should be considered differently. <br />Second, this can present ways that changes to the underlying regulatory conditions can be used to <br />change the feasibility of development. For the owner-occupied housing studied, options are more <br />constrained, but additional incentives can potentially increase development feasibility for rental <br />housing. <br />For all scenarios, the following parameters are adjusted to determine impacts on feasibility: <br /> Total value of land <br /> Value of existing improvements <br /> Construction costs <br /> Rents / sale prices <br />Additionally, the multifamily prototype scenario also evaluates the effects of extending the multifamily <br />tax exemption (MFTE) to new areas and reducing on-site parking requirements.