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Employment and Wages

LOWEST PAYING JOBS IN NASHUA CANNOT AFFORD RENT OR
HOME PURCHASE AT NASHUA’S MEDIAN PRICES.

* 31% of employees in Nashua’s top ten largest
employment sectors can't afford units at those
prices

« Jobs in these sectors are projected to continue to
grow in Nashua

¢ Implications for affordability, transportation, and
other household spending categories

ASSOCIATES INC

What Can Different Jobs/Earnings Afford in Nashua?

Source: EMS! 2020, HUD, RKG Associates

Earnings Chart

$135,000

Manufacturing
$425,000 Home

$3,208 Rent ff $120,000

$105,000
Government
$253,000 Home
$1,913 Rent —FT $90,000
Construction $75,000
$238,000 Home
$1,792 Rent —
$60,000
Admin Support Serv.
$198,000 Home
$1,491 Rent $45,000
$30,000
Accommodation/ $15,000
Food Services
$83,000 Home

$628 Rent

Prof/Tech/Science
$403,000 Home
$3,037 Rent

Healthcare
$242,000 Home
$1,829 Rent

Educational Services
$201,000 Home
$1,522 Rent

Retail
$138,000 Home
$1,039 Rent

Other Services
$119,000 Home
$900 Rent

Household Composition

Change in
Households
2013-2018

Source: ACS 2013, 2018

Households by
Size and Tenure
2013-2018

Source: ACS 2013, 2018

Households by
Age of Householder
2013-2018

Source: ACS 2013, 2018

HOUSEHOLDS ARE INCREASING AT A FASTER RATE THAN THE POPULATION.

HOUSEHOLD GROWTH OUTPACING POPULATION GROWTH.

« Nashua added just under 1,500 new households over the five-
year period
¢ Householders living alone accounted for 37% of that growth

GROWTH DRIVEN BY 1- AND 2-PERSON HOUSEHOLDS.

¢ One- and two-person renter households increased by 12% and 22%, respectively

OLDER RESIDENTS ARE DOMINATING NASHUA’S HOUSEHOLDS.

¢ Households headed by a resident 65 years or older are driving much of the population and
household change in Nashua

« The largest increases were in married-couple households and householders living alone

ASSOCIATES INC

Housing Stock Residential Type by Units in Structure AAW
Source: City of Nashua

SINGLE-FAMILY HOUSING UTILIZES A LARGE
PERCENTAGE OF NASHUA’S LAND.

Residential Land Area to
Unit Count Comparison

Source: City of Nashua Assessor Database, ( Unitsin Structure _
RKG Associates
1-Unit
% of % of 2- Units
Structure Type Land Area __ Res. Units » Units
1-Unit 63% 50%

4-9 Units
2-Unit 3% 10% GED 10-20Units
3-Unit 1% 3% GED 21 - 50 Units
4-9 Unit 1% 8% 51-100 Units
10-20 Unit 0.2% 2% GD 101+ Units
21-50 Unit 0.5% 3% ED tics

. Manu. Homes
51-100 Unit 1% 2%

GD Housing Auth.
100+ Unit A% 18% EBD Wising Home
Mixed-Use 0.03% 0.5% Other
Manufactured Housing 4% 0.04%

Housing Authority 0.5% 1%
Nursing Home 1% 2%

Other 22% 1%

Vacancy

HOUSING VACANCY IN NASHUA IS EXTREMLY LOW.

In 2018, 3.1% of Nashua’s housing
stock was classified as vacant

Only 1.1% of all units were being
actively marketed for sale or for rent.

A healthy vacancy rate for a
community is typically between 3%
and 5%

Units

1,200

1,000

800

600

400

200

ASSOCIATES INC

Vacant Housing Units by Category 2013 & 2018

Source: ACS 2013, 2018

1,075

757 733

476
439

Vacant Available Vacant Unavailable Vacant Other

m2013 =2018

Accommodating Future Growth

Development Pipeline
Source: City of Nashua, 2020

Permitted, Unit

Not Complete Count % of Total
Detached Single-Family 31 5%
Attached Single-Family 28 5%

3 Units or More 956 90%
Total 615 100%

There are 615 units of housing at different stages in
the development pipeline

90% of the housing units are in structures with three
or more units

159 Temple Street is permitted for 168 units
Bronstein Apartments development is permitted for

216 units with 172 units priced to households at or
below 60% of AMI

Accommodating Future Growth

ASSOCIATES INC

Total Population Change 2013-2030, City of Nashua

Source: ACS 2013, 2018, EMS!

« The population of Nashua is 100,000
projected to grow by 7,434 new —Nashua
residents between 2018 and 2030, 98,000
an 8.4% increase 96,040
96,000
* To accommodate the population 94,747
increase projected for 2030, the 94,000
city may need to produce an
additional 4,769 housing units 92,000
above what exists today
90,000
¢ Under these assumptions, RKG 88,606
projects the city would need to add 88.000
another 2,480 owner-occupied 86,766
housing units and 2,289 renter- 96.000
occupied units ,
¢« Households at or below 50% of AMI 8000
are likely to have a more difficult
time finding affordable housing 82,000
80,000

2013 2018 2025 2030

Accommodating Future Growth

ASSOCIATES INC

2030 Projections if 2018 Household 2030 Projections if Trends Continued
Composition Held Constant Based on Changes from 2013-2018
Source: EMSI, ACS 2013, 2018, RKG Associates Source: EMSI, ACS 2013, 2018, RKG Associates
HH Size HHs % of Total HH Size HHs % of Total
1-person 1,446 30.3% 1-person 1,710 35.9%
2-person 1,648 34.6% 2-person 3,148 66.0%
3-person 723 19.2% 3-person -329 -6.9%
4-person 604 12.7% 4-person 199 4.2%
9-or-more person 348 7.3% 5-or-more person 42 0.9%
Total 4,769 100% Total 4,769 100%

If current breakdown of owner and renter households continues, City will need a mix of
ownership and rental housing

If recent trends continue, City will need to focus more on the creation of rental housing and
smaller units

Given low vacancy rates in both owner and renter markets, there is room for growth in both
segments

City must also consider a percentage of new employees will want to live in Nashua as well

SECTION 5.03. Insurance. Maintain insurance with financially sound and reputable
insurance companies or associations reasonably acceptable to CoBank in such amounts and covering
such risks as are usually carried by companies engaged in the same business and similarly situated, and
make such increases in the amounts or coverage thereof as CoBank may from time to time require.
Without limiting the foregoing, in the event any property of the Company is located in a flood zone, then
the Company shall obtain such flood insurance as may be required by CoBank. All policies insuring any
collateral shall have lender or mortgagee loss payable clauses or endorsements in form and content
acceptable to CoBank. At CoBank’s request, the Company agrees to deliver to CoBank such proof of
compliance with this Section as CoBank may require.

SECTION 5.04. Property Maintenance. Maintain all of its properties that are necessary to
or useful in the proper conduct of its business in good repair, working order and condition, ordinary wear
and tear excepted, and make all alterations, improvements and replacements thereto as may from time to
time be necessary in order to ensure that its properties remain in good working order and condition. The
Company agrees that at CoBank’s request, which request may not be made more than once a year, the
Company will furnish to CoBank a report on the condition of the Company’s property prepared by a
professional engineer satisfactory to CoBank.

SECTION 5.05. Books and Records. Keep adequate records and books of account in which
complete entries will be made in accordance with GAAP.

SECTION 5.06. Reports aad Notices. Furnish to CoBank:

(A) Annual Financial Statements. As soon as available, but in no event more than
120 days after the end of each fiscal year of the Company occurring during the term hereof, annual
consolidated and consolidating financiai statements of the Company and its consolidated subsidiaries, if
any, prepared in accordance with GAAP consistently applied (or the appropriate standards of the
regulatory agency having jurisdiction over the Company). Such financial statements shall: {a) be audited
by independent certified public accountants selected by the Company and acceptable to CoBank; (b) be
accompanied by a report of such accountants containing an opinion thereon acceptable to CoBank; (c) be
prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of
income, a statement of retained earnings, a statement of cash flows, and all notes and schedules relating
thereto. Notwithstanding the foregoing, the delivery within the time period specified above of the
Guarantor’s Annual Report on Form 10-K for such fiscal year containing consolidating information on
the Company (together with the Guarantor’s annual report to shareholders, if any, prepared pursuant to
Rule 14a-3 of the Exchange Act) prepared in accordance with the requirements therefor and filed with
the Securities and Exchange Commission, together with the accountant’s certificate described above,
shal! be deemed to satisfy the requirements of this Section 5.06(A);

(B) Quarteriy Financial Statements. As soon as available, but in no event more
than 60 days after the end of each fiscal quarter of the Company occurring during the term hereof (other
than the last fiscal quarter in each fiscal year), such Company prepared quarterly financial statements as
CoBank may from time to time request.

(C) Annual Officer's Certificate, Together with each set of financial statements
delivered to CoBank pursuant to Subsection (A) of this Section 5.06, a duly completed and executed
certificate of the Chief Financial Officer of the Company in the form attached hereto as Exhibit B.

ISSUE & OPPORTUNITY AREA 2
FINANCIAL RESOURCES OF HOMEOWNERS AND RENTERS

ASSOCIATES INC

Income

ASSOCIATES INC

Median Household Income
Source: ACS 2018

Median Household Income by Race/Ethnicity
Source: ACS 2018

$100,000
$92,004 2018 Income
$90,000
$81,552
$80,000
$70,000
$60,000
Median HH Income $50,000
GED S0 - $44,000
GED $44,001 -$71,000 $40,000 $34,511 $33,275
GED $71,001 - $96,500 $30,000
GD $06,501 - $157,000
$20,000
$10,000
$0
White Alone Black or African Asian Hispanic or Latino

American

MEDIAN HOUSEHOLD INCOME OF WHITE HOUSEHOLDS IS 2.4 TIMES
HIGHER THAN BLACK, HISPANIC AND LATINO HOUSEHOLDS.