FY2014CLASSREPORT — File 195904

CITY OF SOMERVILLE JOSEPH A. CURTATONE MAYOR SOMERVILLE BOARD OF ASSESSORS MARC A. LEVYE, RMA, MAA HUMPHREY MOYNIHAN, MAA CHIEF ASSESSOR AND CHAIRMAN MICHAEL FLYNN, MAA CITY OF SOMERVILLE BOARD OF ALDERMEN HEARING NOVEMBER 26, 2013 ADOPTION OF TAX LEVY PERCENTAGES FOR FY2014 MASSACHUSETTS GENERAL LAWS CHAPTER 797 OF THE ACTS OF 1979 RECOMMENDATIONS: 1. A MOTION THAT THE BOARD OF ALDERMEN ADOPTS A MINIMUM RESIDENTIAL FACTOR OF 85.2615 THE LEGAL MINIMUM FOR THE CITY OF SOMERVILLE FOR FY2014. 2. A MOTION THAT THE BOARD OF ALDERMEN ACCEPTS THE PROVISIONS OF CHAPTER 59, SECTION 5C APPROVING A RESIDENTIAL EXEMPTION OF 30% OF AVERAGE ASSESSED VALUE FOR OWNER OCCUPIED PROPERTIES FOR FY2014. 3. A MOTION THAT THE BOARD OF ALDERMEN ACCEPTS THE PROVISIONS OF SECTION 4 OF CHAPTER 73 OF THE ACTS OF 1986 AND VOTES AN ADDITIONAL STATUTORY EXEMPTION OF UP TO 100% FOR FY2014.

PUBLIC HEARING ALLOCATION OF LOCAL TAXES After the assessors receive the Commissioner of Revenue certifications, the Board of Alderman must conduct a public hearing on the issue of allocating the local property tax levy among the four classes of real property and of personal property for FY2014. G.L. Ch. 40 S.56. The public hearing called by the Alderman must comply with the requirements of the Open Meeting Law, as supplemented by local by-laws or ordinance. The Board of Assessors must provide notice of the conduct of the hearing to taxpayers by a public information release in a newspaper of general circulation in the community, as well as any other appropriate news media. The release should provide the date, time and place of the public hearing. At the public hearing, the assessors must provide all information and data relevant to making a decision on allocating the tax levy including the fiscal effect of the available alternatives. THE MINIMUM RESIDENTIAL FACTOR At the public hearing, the Board of Alderman, together with the Mayor’s approval, must first adopt a residential factor. In a city, if the Mayor vetoes the Aldermans’s factor, the Alderman may override the vote with a vote equal to two-thirds of the members elected. The residential factor adopted must be an amount not less than the minimum residential factor calculated by the Commissioner of Revenue. THE RESIDENTIAL EXEMPTION At the option of the Mayor with the approval of the Board of Alderman, an exemption of not more than 30 percent of the average assessed value of all Class One, Residential, parcels may be applied to residential parcels that are the principal residence of the property taxpayer as used by the taxpayer for income tax purposes as of January 1, 2013. G.L. Ch. 59 S5C. ADDITIONAL EXEMPTION UP TO 100% Since FY 1986, Section 4 of Chapter 73 of the Acts of 1986 allowed an additional exemption of up to 100% of the amount for the Statutory Elderly, Blind, Widowers and Veteran Exemptions. This would be triggered whenever tax increases are incurred. Under this provision, anyone who qualifies for a statutory exemption, (and after the residential exemption is applied) will pay no more taxes than they did in the previous fiscal year, (provided however that the statutory amount granted in the current year cannot exceed more than double the base rate amount). See base rate amounts and a “statutory” example on the next 2 pages. 2

Somerville Board of Assessors Clause Exemptions- Fiscal Year 2014 The laws of the Commonwealth of Massachusetts provide for real estate tax relief for certain people. Each category of tax relief is defined, and the allowable amount stated, in the various clauses of Chapter 59, Section 5 of the General Laws. The table below summarizes who qualifies for these exemptions and the amounts of the various exemptions. State law also gives each city and town the option of increasing the exemption up to double the amounts. The Somerville Board of Aldermen, with the approval of the Mayor, has elected this option each year. The exemption amounts shown in the tables are therefore base exemption amounts. They can be increased up to double the amounts shown depending upon the amount each applicant’s tax bill has increased over the prior years’ taxes (except for senior work-off). Certain deductions are allowed from the income limits shown for the clause exemptions. You should call or come into the Assessors Office in City Hall to find out details. The asset limits do not include the value of owner occupied properties. Clause Name Clause# Basic Qualifications Other Qualifications Income Limits Asset Limits $$$ Amount Elderly 17D Age 70 or older Own & occupy property 5 years None $56,387 $246.00 Widows 17D Surviving Spouse None None $56,387 $246.00 Other 17D Minor Parents are deceased None $56,387 $246.00 Hardship 18 Age, Infirmity, Income Must meet all three (3) Poverty Varies Veterans 22A Service related loss of or loss of use of one foot or one hand or one eye or received honor etc. Spouses (where veteran’s spouse owns the domicile) or surviving spouses of veterans entitled to exemption under Cl. 22A None None $750.00 Veterans 22 10% Service Disability or Purple Heart Mass resident 6 months prior to service or 5 years Mass residency None None $400 Veterans 22B Loss of two limbs or both eyes Mass resident 6 months prior to service or 5 years Mass residency None None $1250 Veterans 22C Disability requires specially adapted housing Mass resident 6 months prior to service or 5 years Mass residency None None $1500 Veterans 22E 100% disability, file V.A. certificate annually Mass resident 6 months prior to service or 5 year Mass residency, unemployed for all of previous years None None $1000* Paraplegic 8A of 58 Paraplegic due to wartime injury Mass resident 6 months prior to service or Mass residency for 5 years V.A. certificate None None 100% Blind 37A Legally Blind Yearly blind certificate None None $500 Tax Deferral 41A Age 65 or Older, tax deferred 8% interest per year Own & Occupy Property for 5 years $40,000 None Defers Up to 100% Elderly 41C Age 65 or older Own / Occupy 5 yrs. in MA & MA resident 10 yrs. (S)$20,000 (M)$30,000 (S)$40,000 (M)$55,000 $750 Senior Work-off 5K Over 60 Somerville resident contact Council on Aging None Up to $1,000 *for veterans owning two family or larger houses, Clause 22E is reduced to the same portion as the veterans’ occupancy of the property. The qualifying date for the Clause Exemptions Is July 1, (each year). Questions can be addressed to Assessing at [phone removed] ext. 3100. The application deadline is three months from the date the Third Quarter Bill was mailed. 3

EXAMPLE (using Clause 41C) ADDITIONAL (UP TO) 100% EXEMPTION AMOUNT SECTION 4 OF CHAPTER 73 ACTS OF 1986 FY 2013 FY 2014 $450,000 VALUE $485,000 VALUE X 13.42 TAX RATE X 12.66 TAX RATE $6,039.00 $6,140.10 -1,885.97 RES. EXEMPTION -1,907.53 RES. EX. $4,153.03 $4,232.57 - 750.00 STATUTORY AMOUNT - 750.00 STAT. AMT. $3,403.03 NET TAX $3,482.57 NET TAX $3,482.57 FY 2014 NEW NET TAX $3,403.03 FY 2013 OLD NET TAX $79.54 INCREASE FROM PREVIOUS YEAR CERTIFICATE $750.00 STATUTORY AMOUNT + $79.54 INCREASE $829.54 THIRD QUARTER BILL DEDUCT $414.77 FOURTH QUARTER BILL DEDUCT $414.77 EFFECTIVE INCREASE IN TAXES $ 0 4

4001 8001 2001 7001 3001 9001 3001 5001 1001 6001 4001 BEACON ST SUMMER ST LOWELL ST CEDAR ST PEARL ST WALNUT ST BROADWAY GLEN ST MYSTIC AVE ALBION ST INTERSTATE HIGHWAY 93 SOMERVILLE AVE NORTH ST MEDFORD ST ELM ST KIDDER AVE HOLLAND ST HUDSON ST MORRISON AVE HEATH ST BELMONT ST JOY ST FOLEY ST BOW ST BAILEY RD AVON ST POWDER HOUSE BOULEVARD PORTER ST BOSTON ST BOSTON AVE PARK ST DANE ST SYCAMORE ST CROSS ST PROSPECT ST GRANT ST OAK ST CHERRY ST PACKARD AVE HANCOCK ST DAY ST CENTRAL ST ALPINE ST CONCORD AVE LINWOOD ST ROGERS AVE MIDDLESEX AVE PEARSON RD TEN HILLS RD SCHOOL ST SHORE DRIVE BARTLETT ST FLINT ST IRVING ST MAIN ST HIGHLAND RD MUNROE ST VERNON ST TALBOT AVE LIBERTY AVE ORCHARD ST OXFORD ST WASHINGTON ST FELLSWAY WEST TRULL ST THIRD AVE OSSIPEE RD PUTNAM ST JAQUES ST WALLACE ST COLLEGE AVE DERBY ST TUFTS ST FREMONT ST GORDON ST GILMAN ST OLIVER ST GLENWOOD RD HALL AVE VINAL AVE PROFESSORS ROW HIGHLAND AVE LINE ST TEMPLE ST BERKELEY ST OTIS ST LAKE ST THURSTON ST GROVE ST WOODS AVE NEWTON ST PARTRIDGE AVE LOWDEN AVE ELECTRIC AVE CONWELL AVE PEARSON AVE WEBSTER AVE SOUTH ST DIMICK ST RAYMOND AVE LAUREL ST ADAMS ST WHEATLAND ST DOVER ST FLORENCE ST SPRING ST DANA ST MORELAND ST CHANDLER ST PINCKNEY ST MARION ST FAIRFAX ST JAY ST HIGH ST LEXINGTON AVE BROMFIELD RD WARE ST BAY STATE AVE ASH AVE VICTORIA ST HINCKLEY ST COLUMBUS AVE PRESCOTT ST RUFO RD PRICHARD AVE CRAIGIE ST SIMPSON AVE ELMWOOD ST EDGAR AVE McGRATH HIGHWAY QUINCY ST BOND ST AUSTIN ST MADISON ST MT VERNON ST PAULINA ST CAMERON AVE PENNSYLVANIA AVE CLYDE ST ALLEN ST BANKS ST TEELE AVE BONAIR ST GORHAM ST PERRY ST CROWN ST BENTON RD SYDNEY ST BRADLEY ST KENSINGTON AVE STONE AVE FOSKET ST CHESTNUT ST RUSSELL ST MEMORIAL RD LEE ST MYSTIC VALLEY PARKWAY DANE AVE GARRISON AVE FARRAGUT AVE CHURCH ST AMES ST WEST ST MURDOCK ST IVALOO ST FISK AVE DELL ST LINDEN ST CURTIS AVE WATERHOUSE ST ATHERTON ST CURTIS ST FRANEY RD MANSFIELD ST SARGENT AVE SAWYER AVE ADRIAN ST ROSE ST WARWICK ST NASHUA ST SPENCER AVE SKEHAN ST PARK AVE WHITMAN ST COLUMBIA ST CUTTER AVE BURNSIDE AVE CHESTER AVE HOWE ST WILLOW AVE CHETWYND ROAD DICKSON ST WARD ST APPLETON ST WOODBINE ST WESLEY ST SUNSET ROAD UPLAND ROAD SUMMIT AVE HOUGHTON ST WINDSOR RD HILL ST NO. UNION ST MYRTLE ST MERRIAM ST KINGSTON ST PROPERZI WAY HAMILTON RD LORING ST FOUNTAIN AVE WINTER ST KNAPP ST CLAREMON ST MT PLEASANT ST PRINCETON ST ASHLAND ST ROSSMORE ST RUSH ST PITMAN ST DURHAM ST FRANKLIN AVE ALEWIFE BROOK PARKWAY LINCOLN AVE PLEASANT AVE FIRST AVE CORINTHIAN RD KENT ST CRESCENT ST JAMES ST ALDRICH ST MILLER ST GARFIELD AVE STICKNEY AVE LOMBARDI SPRING HILL TER HARVARD ST LINDEN AVE OAKLAND AVE GRAND VIEW AVE WAY GARDEN CT WALDO ST CONNORS DRIVE MEACHAM RD WALNUT RD GILMAN TER HAWKINS ST CONWELL ST WINDOM ST HERBERT ST MORGAN ST MAPLE AVE WILSON AVE SUMMIT ST ESSEX ST WALDO AVE WESLEY PARK CARLTON ST WYATT ST EAST ALBION ST KENWOOD ST YORKTOWN ST MT VERNON AVE WATSON ST COONEY ST EASTMAN RD BOW ST PL WESTMINSTER ST WEST QUINCY LINE ST SCHOOL ST BROADWAY BROADWAY BROADWAY McGRATH HIGHWAY MYSTIC AVE WASHINGTON ST ASH AVE FELLSWAY WEST ELM ST HIGHLAND AVE MEDFORD ST MEDFORD ST BONAIR ST PITMAN ST MYRTLE ST FLINT ST FELLSWAY WEST BROADWAY CURTIS ST VINAL AVE ELM ST CENTRAL ST WASHINGTON ST INTERSTATE HIGHWAY 93 RUSH ST District Boundaries Source = City of Somerville, 2013 M y s t i c R i v e r MEDFORD CAMBRIDGE EVERETT BOSTON CAMBRIDGE AR LI N G T ON MEDFORD Union Square Gilman Square Davis Square Ball Square Porter Square Inner Belt Magoun Square Teele Square Assembly Square Sullivan Square Wellington Inman Square East Somerville Ten Hills Winter Hill Spring Hill Tufts University Clarendon Hill CITY OF SOMERVILLE, MA Neighborhood Assessment Districts November 2013 Mayor Joseph A. Curtatone For more information dial 311 or visit www.somervillema.gov ¯ 0 0.25 0.5 0.125 Miles 5001

FY2014 ASSESSMENT & PARCEL COUNT CHANGES BY USE & NEIGHBORHOOD SINCE FY2012 PARCEL COUNT ASSESSMENT ASSESSMENT DISTRICT FY12 PARCEL FY13 PARCEL FY14 PARCEL PERCENT FY12-AVG FY13-AVG FY14-AVG PERCENT COUNT COUNT COUNT CHANGE FY13-14 ASSESS. ASSESS. ASSESS. CHANGE FY13-14 SINGLE FAMILY 1001 (W. SOMERVILLE SOUTH/CAMBRIDGE LINE) 95 95 94 458,700 502,400 557,100 10.89% 2001 (WARD 2, UNION SQ. SOUTH) 269 269 268 383,000 398,500 471,900 18.42% 3001 (WARD 2, COBBLE HILL) N/A N/A N/A N/A N/A N/A 4001 (WEST SOMERVILLE) 429 430 430 566,300 581,600 656,900 12.95% 5001 (WINTER HILL NORTH) 152 151 151 295,300 305,200 320,800 5.11% 6001 (TEN HILLS ) 30 29 29 366,200 373,900 393,700 5.30% 7001 (WINTER HILL/MAGOUN SQ) 480 480 481 336,900 346,700 387,300 11.71% 8001 (CENTRAL, SPRING, & PROSPECT HILL) 636 640 639 419,800 442,200 490,700 10.97% 9001 (EAST SOMERVILLE) 270 267 267 276,400 277,700 303,900 9.43% PARCEL COUNT CHANGE FROM PREVIOUS YR. +3 0 -2 CITY AVERAGE-SINGLE FAMILY 402,000 417,500 467,300 11.93% TWO FAMILY 1001 (W. SOMERVILLE SOUTH/CAMBRIDGE LINE) 264 263 263 517,600 549,500 592,500 7.83% 2001 (WARD 2, UNION SQ. SOUTH) 475 469 464 -1.07% 451,300 463,700 519,600 12.06% 3001 (WARD 2, COBBLE HILL) N/A N/A N/A N/A N/A N/A 4001 (WEST SOMERVILLE) 1,910 1,899 1,882 -0.90% 567,200 573,400 623,400 8.72% 5001 (WINTER HILL NORTH) 194 195 196 368,500 375,800 377,100 0.35% 6001 (TEN HILLS ) 204 205 205 425,300 433,700 439,100 1.25% 7001 (WINTER HILL/MAGOUN SQ) 614 618 614 -0.65% 402,100 410,700 429,300 4.53% 8001 (CENTRAL, SPRING, & PROSPECT HILL) 1,116 1,104 1,099 -0.45% 483,000 502,400 531,300 5.75% 9001 (EAST SOMERVILLE) 517 521 521 362,400 360,900 372,500 3.21% PARCEL COUNT CHANGE FROM PREVIOUS YR. -32 -20 -30 CITY AVERAGE-TWO FAMILY 484,800 494,900 529,400 6.97% THREE FAMILY 1001 (W. SOMERVILLE SOUTH/CAMBRIDGE LINE) 119 116 116 621,200 642,300 690,600 7.52% 2001 (WARD 2, UNION SQ. SOUTH) 367 368 371 0.82% 546,900 559,900 617,400 10.27% 3001 (WARD 2, COBBLE HILL) N/A N/A N/A N/A N/A N/A 4001 (WEST SOMERVILLE) 609 607 599 -1.32% 635,600 645,600 708,200 9.70% 5001 (WINTER HILL NORTH) 206 206 205 459,100 464,900 472,000 1.53% 6001 (TEN HILLS ) 8 8 8 460,900 477,500 490,700 2.76% 7001 (WINTER HILL/MAGOUN SQ) 277 273 271 -0.73% 482,500 489,600 514,800 5.15% 8001 (CENTRAL, SPRING, & PROSPECT HILL) 506 503 496 -1.39% 560,200 581,300 616,400 6.04% 9001 (EAST SOMERVILLE) 292 286 286 439,000 435,900 445,700 2.25% PARCEL COUNT CHANGE FROM PREVIOUS YR. -12 -17 -15 CITY AVERAGE-THREE FAMILY 547,500 558,800 598,100 7.03% CONDOMINIUM 1102 (W. SOMERVILLE SOUTH/CAMBRIDGE LINE 323 332 351 5.72% 397,800 399,800 418,700 4.73% 2102 (WARD 2, UNION SQ. SOUTH) 732 743 776 4.44% 331,700 323,200 339,200 4.95% 3102 (BRICKBOTTOM) 146 146 146 296,400 290,100 308,600 6.38% 4102 (WEST SOMERVILLE) 896 931 984 5.69% 385,400 395,500 410,200 3.72% 5102 (WINTER HILL NORTH) 274 282 301 6.74% 219,400 235,000 240,200 2.21% 6102 (TEN HILLS ) 51 51 51 319,100 324,000 332,000 2.47% 7102 (WINTER HILL/MAGOUN SQ) 531 536 551 2.80% 246,600 252,500 253,700 0.48% 8102 (CENTRAL, SPRING, & PROSPECT HILL) 981 1027 1088 5.94% 328,200 330,400 344,500 4.27% 9102 (EAST SOMERVILLE) 325 331 341 3.02% 254,100 252,500 259,300 2.69% PARCEL COUNT CHANGE FROM PREVIOUS YR. +121 +120 +210 CITY AVERAGE-CONDOMINIUM 320,500 323,800 338,000 4.39% 7

COMPARISON OF FY 2007 (MARKET PEAK) & FY 2014 AVERAGE VALUES BY USE USE FY 2007 FY 2014 PERCENT CHANGE CONDOMINIUM $338,400 $338,000 -0.12% SINGLE FAMILY $440,000 $467,300 6.20% TWO FAMILY $538,800 $529,400 -1.74% THREE FAMILY $620,500 $598,100 -3.61% 4-8 FAMILY $805,100 $772,600 -4.04% 9+ FAMILY $2,411,300 $2,802,100 16.21% COMM. & IND. $1,377,400 $1,753,300 27.29% 8

AVERAGE SALE PRICES 2010, 2011, 2012 & YEAR TO DATE 2013 CALENDAR CALENDAR CALENDAR CALENDAR 2013 PERCENT PERCENT PERCENT 2010 2011 2012 (YEAR TO DATE*) CHANGE 10-11 CHANGE 11-12 CHANGE 12-13 SINGLE FAMILY 539,100 530,100 551,600 599,000 -1.67% 4.06% 8.59% TWO FAMILY 534,300 516,200 558,400 683,800 -3.39% 8.18% 22.46% THREE FAMILY 605,400 610,000 635,400 737,900 0.76% 4.16% 16.13% CONDOMINIUM 387,900 404,700 412,700 436,200** 4.33% 1.98% 6.28% *2013 SALES ARE THROUGH OCTOBER BUT NOT ALL HAVE BEEN VERIFIED AS MARKET SALES ** DOES NOT INCLUDE 2013 SALES OF UNITS TO BE ASSESSED AS CONDOS FOR THE FIRST TIME IN FY2015 NOTE THAT OTHER THAN CONDO SALES, THE NUMBER OF CALENDAR YEAR SALES IS LIMITED FOR 1, 2, & 3 FAMILY PROPERTIES. AS A RESULT THE DOR REQUIRES THAT 2 YEARS OF SALES BE ANALYZED IN ANY GIVEN FISCAL YEAR. NUMBER OF RESIDENTIAL CONDOMINIUM UNITS FISCAL YEAR NUMBER OF NUMBER ADDED PERCENT CHANGE UNITS FROM PREVIOUS YR. FROM PREVIOUS YR. (NUMBER OF UNITS) 2009 3653 N/A N/A 2010 3928 275 7.53% 2011 4138 210 5.35% 2012 4259 121 2.92% 2013 4379 120 2.82% 2014 4589 210 4.80% 2014(THRU EARLY NOV. 2013) 4739 164 3.27% FORECLOSURES CALENDAR YR. NUMBER PERCENT CHANGE FROM PREVIOUS YR. 2009 41 N/A 2010 56 36.59% 2011 38 -32.14% 2012 23 -39.47% 2013 (THRU OCT.) 6 -73.91% THE 6 FORECLOSURES IN CAL.2013 TO DATE INCLUDE 2 CONDO UNITS, 2 SINGLE FAMILY, & 2 COMMERCIAL PROPERTIES. 9

MEDIAN SALE PRICES CALENDAR 2010, 2011, 2012 AND 2013 YEAR TO DATE (VARIOUS CITIES) CALENDAR 2010 CALENDAR 2011 CALENDAR 2012 CALENDAR 2013 % CHANGE 10-11 % CHANGE 11-12 % CHANGE 12-13 % CHANGE 10-13 (THRU SEPTEMBER) SOMERVILLE SINGLE FAMILY 400,000 445,000 448,250 533,000 11.25% 0.73% 18.91% 33.25% CONDOMINIUM 350,000 358,000 375,000 409,000 2.29% 4.75% 9.07% 16.86% MEDFORD SINGLE FAMILY 342,000 339,500 355,000 395,000 -0.73% 4.57% 11.27% 15.50% CONDOMINIUM 286,250 280,000 285,000 293,500 -2.18% 1.79% 2.98% 2.53% ARLINGTON SINGLE FAMILY 497,350 498,688 515,000 547,500 0.27% 3.27% 6.31% 10.08% CONDOMINIUM 375,000 340,000 350,000 357,500 -9.33% 2.94% 2.14% -4.67% BOSTON SINGLE FAMILY 2,150,000 1,930,000 1,950,000 2,110,000 -10.23% 1.04% 8.21% -1.86% CONDOMINIUM 561,000 555,000 572,750 599,000 -1.07% 3.20% 4.58% 6.77% CAMBRIDGE SINGLE FAMILY 755,500 740,000 810,750 858,300 -2.05% 9.56% 5.86% 13.61% CONDOMINIUM 415,000 417,000 437,500 490,000 0.48% 4.92% 12.00% 18.07% EVERETT SINGLE FAMILY 225,000 218,750 237,000 257,000 -2.78% 8.34% 8.44% 14.22% CONDOMINIUM 187,950 139,500 131,000 174,500 -25.78% -6.09% 33.21% -7.16% BROOKLINE SINGLE FAMILY 1,126,000 1,188,750 1,200,000 1,259,000 5.57% 0.95% 4.92% 11.81% CONDOMINIUM 468,500 505,000 487,750 510,000 7.79% -3.42% 4.56% 8.86% CHELSEA SINGLE FAMILY 200,000 210,900 189,500 240,000 5.45% -10.15% 26.65% 20.00% CONDOMINIUM 176,500 145,000 170,000 192,450 -17.85% 17.24% 13.21% 9.04% MALDEN SINGLE FAMILY 269,500 261,250 278,000 315,000 -3.06% 6.41% 13.31% 16.88% CONDOMINIUM 174,000 187,250 196,250 202,000 7.61% 4.81% 2.93% 16.09% STATE SINGLE FAMILY 295,000 286,000 290,000 325,000 -3.05% 1.40% 12.07% 10.17% CONDOMINIUM 265,000 270,000 277,000 295,000 1.89% 2.59% 6.50% 11.32% SOURCE-THEWARRENGROUP.COM RAW NUMBERS WITH NO SCREENING FOR ARMS-LENGTH NATURE OF SALES 10

 11 Apartment Rent Comparisons 2005 – 2012 (FY 2007-FY 2014) For most of the state, rents have not increased more than 1 to 1-½%. In Somerville, we have seen a substantial increase in rents for all city locations and have a vacancy rate of only between 1-2 %. West Somerville and properties along the Cambridge line have seen the highest rents recorded but the rest of Somerville is close behind with rising rents for all apartment properties. Below is a comparison of rent increases between calendar years 2005 and 2012, and between 2011 and 2012. Average locations in Somerville are East Somerville, Winter Hill, Pearl, Cross and Summer Streets and up to Magoun Square, parts of Medford and Highland Streets and Washington Street. Highest locations are Alewife Brook, West Somerville, Davis Square, Powderhouse and Tufts area along with Beacon Street and the Cambridge line. MaxPax, Clarendon Hills, & Cobble Hill Comparison Rents for Average Area Apt. Type Calendar 2005 Calendar 2012 Rent Increase % Rent Increase 05-12 Calendar 2011 Calendar 2012 Ave Rent Increase % Rent Increase 11-12 StudioHD $800 $975 $175 21.88 $900 $975 $75 8.33 1 BD HT $825 $1150 $325 39.39 $1000 $1150 $150 15.00 2 BD HT $950 $1350 $400 42.11 $1100 $1350 $250 22.73 3 BD HT $1100 $1500 $400 36.36 $1300 $1500 $200 15.38 StudioUH $700 $875 $175 25.00 $800 $875 $75 9.38 1 BD UH $725 $1025 $300 41.38 $900 $1025 $125 13.89 2 BD UH $850 $1200 $350 41.18 $1000 $1200 $200 20.00 3 BD UH $950 $1400 $450 47.37 $1200 $1400 $200 16.67 AVGS $863 $1,184 $321 37.3% $1,025 $1,184 $159 15.6% HT = Heated, UH = Unheated Comparison Rents for Highest Area Apt. Type Calendar 2005 Calendar 2012 Rent Increase % Rent Increase Calendar 2011 Calendar 2012 Ave Rent Increase % Rent Increase Studio HT $900 $1050 $150 16.67 $1000 $1050 $150 5.56 1 BD HT $975 $1300 $325 33.33 $1100 $1300 $200 20.00 2 BD HT $1150 $1500 $350 30.43 $1225 $1500 $275 25.00 3 BD HT $1400 $2000 $600 42.86 $1450 $2000 $550 42.31 Studio UH $850 $950 $100 11.76 $900 $950 $50 5.56 1 BD UH $925 $1150 $225 24.32 $1000 $1150 $150 16.67 2 BD UH $1000 $1350 $350 35.00 $1100 $1350 $250 25.00 3 BD UH $1300 $1600 $300 23.08 $1350 $1600 $250 20.83 AVGS $1,063 $1,363 $300 28.2 $1,141 $1,363 $221.88 19.5%

 12 Commercial and Industrial Rents Per Square Foot - Calendar 2005 – 2012 Average Commercial locations are East Elm St, Somerville Ave, Washington St, East Broadway, Medford St, Highland Ave and parts of McGrath and Mystic Highest Commercial locations are Davis Square, West Somerville, Inner Belt Road, Beacon St, Cambridge line and all of Assembly Square and Twin City area Comparison Rents for Average Area Type – Use Per SF Rent 2005 Per SF Rent 2012 SF Increase Per Cent Increase Retail $14/yr. $21/yr. $7 50.00 Bank NED $19 N/A N/A Office $14 $20 $6 42.86 Restaurant $15 $17 $2 13.33 Auto Serv/Sales $7 $11 $4 57.14 Industrial $8 $10 $2 25.00 Warehouse $6 $10 $4 66.67 Telecom Bldg NED $18 N/A N/A Job Shop $7 $9 $2 28.57 Fast Food $17 $22 $5 29.41 Garage $7 $10 $3 42.86 Land Lease $2 $4 $2 100.00 Averages $9.70 $14.25 $4.55 46.91% NED = not enough data Comparison Rents for Highest Area Type – Use Per SF Rent 2005 Per SF Rent 2012 SF Increase Per Cent Increase Retail $20/yr. $28/yr. $8 40.00 Bank NED $25 N/A N/A Office $23 $29 $6 26.09 Restaurant $22 $26 $4 18.18 Auto Serv/Sales $9 $13 $4 44.44 Industrial $10 $12 $2 20.00 Warehouse $8 $12 $4 50.00 Telecom Bldg NED $32 N/A N/A Job Shop $9 $12 $3 33.33 Fast Food $22 $26 $4 18.18 Garage $8 $10 $2 25.00 Land Lease NED $8 N/A N/A Averages $14.55 $19.42 $4.87 33.47%

FISCAL YEAR 2014 WITHOUT NOT 175% CLASSIFICATION RECOMMENDED AS OF: 11/26/2013 WITHOUT FY2014 TAX LEVY LIMIT 116,126,060 30% RESIDENTIAL EXEMPTION FY2013 TAX LEVY 109,923,150 TAX LEVY % INCREASE = 5.6% LEVY CHANGE AVAILABLE 6,202,910 TAX BASE EXPANSION FROM GROWTH 3,454,728 FY2014 TAX LEVY: 116,126,060 TAX BASE EXPANSION FROM 2.5% INCREASE 2,748,182 FY2013 TAX LEVY: 109,923,150 LEVY $ CHANGE USED 6,202,910 SINGLE TAX RATE: 12.29 EXCESS LEVY (UNUSED) CAPACITY 0 % OF LEVY CHANGE FROM GROWTH 56% % OF LEVY CHANGE FROM 2.5% INCREASE 44% COMMERCIAL % VALUE= 16.4239 RESIDENTIAL % VALUE = 83.5761 % TAX LEVY LIMIT USED 100.00% IF COMM=1.75%, SHARE= 28.7418 % TAX LEVY LIMIT UNUSED 0 THEN RES SHARE= 71.2582 RES XEMP CALCULATIONS: LOWEST RES SHARE = 64.2641 PRELIM RATE: (based upon residential value) 12.29 RES % OF TOTAL LEVY: 71.2582 # RES PARCLS: 15,718 COM % OF TOTAL LEVY: 28.7418 AVG RES VALUE: 502,248 RES XMP VAL DISCOUNT (30%) MINIMUM RES FACTOR: RES XMP TAX DISCOUNT (30%) COMMERCIAL FACTOR: # EXEMPTIONS: RESIDENTIAL LEVY: 97,053,666 ADJ RES VALUE: 7,894,327,349 COMMERCIAL LEVY: 19,072,394 RESIDENTIAL EXEMPTION BREAK EVEN VALUE ----------------------------------------- ----------------------------------------- ------------------------------------------------------- THIS YEAR LAST YEAR CHANGE ----------------------------------------- THIS YEAR LAST YEAR CHANGE RESIDENTIAL TAX RATE: $12.29 $13.42 -$1.13 COMMERCIAL TAX RATE: $12.29 $22.38 -$10.09 -8.4% -45.1% NUMBER AVERAGE AVERAGE AVERAGE 1/4 AVERAGE 1/4 PER $ OF FY2014 FY2013 FY2014 FY2013 FY2014 CENT QUARTERLY YEAR PROPERTY CLASS PARCELS VALUE VALUE BILL* BILL* CHANGE CHANGE CHANGE AVER CONDO 4,589 $323,800 $338,000 $615 $1,039 68.9% $424 $1,695 AVER 1 FAMILY 2,359 $417,500 $467,300 $929 $1,436 54.6% $507 $2,029 AVER 2 FAMILY 5,244 $494,900 $529,400 $1,189 $1,627 36.8% $438 $1,752 AVER 3 FAMILY 2,352 $558,800 $598,100 $1,403 $1,838 31.0% $435 $1,741 AVER 4-8 FAMILY 512 $730,500 $772,600 $1,979 $2,375 20.0% $396 $1,582 AVER MULTI APT. 137 $2,540,400 $2,802,100 $8,523 $8,612 1.0% $89 $357 AVER COMM. , INDUST. 720 $1,429,800 $1,510,600 $8,000 $4,643 -42.0% -$3,357 -$13,429 AVER MIXED-USE 256 $913,100 $1,151,300 $3,685 $3,539 -4.0% -$146 -$586 14

FISCAL YEAR 2014 WITH NOT 175% CLASSIFICATION RECOMMENDED AS OF: 11/26/2013 WITHOUT FY2014 TAX LEVY LIMIT 116,126,060 30% RESIDENTIAL EXEMPTION FY2013 TAX LEVY 109,923,150 TAX LEVY % INCREASE = 5.6% LEVY CHANGE AVAILABLE 6,202,910 TAX BASE EXPANSION FROM GROWTH 3,454,728 FY2014 TAX LEVY: 116,126,060 TAX BASE EXPANSION FROM 2.5% INCREASE 2,748,182 FY2013 TAX LEVY: 109,923,150 LEVY $ CHANGE USED 6,202,910 SINGLE TAX RATE: 12.29 EXCESS LEVY (UNUSED) CAPACITY 0 % OF LEVY CHANGE FROM GROWTH 56% % OF LEVY CHANGE FROM 2.5% INCREASE 44% COMMERCIAL % VALUE= 16.4239 RESIDENTIAL % VALUE = 83.5761 % TAX LEVY LIMIT USED 100.00% IF COMM=1.75%, SHARE= 28.7418 % TAX LEVY LIMIT UNUSED 0 THEN RES SHARE= 71.2582 RES XEMP CALCULATIONS: LOWEST RES SHARE = 64.2641 PRELIM RATE: (based upon residential value) 10.48 RES % OF TOTAL LEVY: 71.2582 # RES PARCLS: 15,718 COM % OF TOTAL LEVY: 28.7418 AVG RES VALUE: 502,248 RES XMP VAL DISCOUNT (30%) MINIMUM RES FACTOR: 85.2615 RES XMP TAX DISCOUNT (30%) COMMERCIAL FACTOR: 175 # EXEMPTIONS: RESIDENTIAL LEVY: 82,749,340 ADJ RES VALUE: 7,894,327,349 COMMERCIAL LEVY: 33,376,720 RESIDENTIAL EXEMPTION BREAK EVEN VALUE ----------------------------------------- ----------------------------------------- ------------------------ ------------------------ THIS YEAR LAST YEAR CHANGE ----------------------------------------- THIS YEAR LAST YEAR CHANGE RESIDENTIAL TAX RATE: $10.48 $13.42 -$2.94 COMMERCIAL TAX RATE: $21.51 $22.38 -$0.87 -21.9% -3.9% NUMBER AVERAGE AVERAGE AVERAGE 1/4 AVERAGE 1/4 PER $ OF FY2014 FY2013 FY2014 FY2013 FY2014 CENT QUARTERLY YEAR PROPERTY CLASS PARCELS VALUE VALUE BILL* BILL* CHANGE CHANGE CHANGE AVER CONDO 4,589 $323,800 $338,000 $615 $886 44.0% $271 $1,083 AVER 1 FAMILY 2,359 $417,500 $467,300 $929 $1,225 31.8% $296 $1,182 AVER 2 FAMILY 5,244 $494,900 $529,400 $1,189 $1,387 16.7% $198 $793 AVER 3 FAMILY 2,352 $558,800 $598,100 $1,403 $1,567 11.7% $164 $657 AVER 4-8 FAMILY 512 $730,500 $772,600 $1,979 $2,025 2.3% $46 $182 AVER MULTI APT. 137 $2,540,400 $2,802,100 $8,523 $7,343 -13.8% -$1,180 -$4,720 AVER COMM. , INDUST. 720 $1,429,800 $1,510,600 $8,000 $8,125 1.6% $125 $500 AVER MIXED-USE 256 $913,100 $1,151,300 $3,685 $3,985 8.1% $300 $1,200 15

FISCAL YEAR 2014 WITH 175% CLASSIFICATION RECOMMENDED AS OF: 11/26/2013 WITH FY2014 TAX LEVY LIMIT 116,126,060 30% RESIDENTIAL EXEMPTION FY2013 TAX LEVY 109,923,150 TAX LEVY % INCREASE = 5.6% LEVY CHANGE AVAILABLE 6,202,910 TAX BASE EXPANSION FROM GROWTH 3,454,728 FY2014 TAX LEVY: 116,126,060 TAX BASE EXPANSION FROM 2.5% INCREASE 2,748,182 FY2013 TAX LEVY: 109,923,150 LEVY $ CHANGE USED 6,202,910 SINGLE TAX RATE: 12.29 EXCESS LEVY (UNUSED) CAPACITY 0 % OF LEVY CHANGE FROM GROWTH 56% % OF LEVY CHANGE FROM 2.5% INCREASE 44% COMMERCIAL % VALUE= 16.4239 RESIDENTIAL % VALUE = 83.5761 % TAX LEVY LIMIT USED 100.00% IF COMM=1.75%, SHARE= 28.7418 % TAX LEVY LIMIT UNUSED 0 THEN RES SHARE= 71.2582 RES XEMP CALCULATIONS: LOWEST RES SHARE = 64.2641 PRELIM RATE: (based upon residential value) 10.48 RES % OF TOTAL LEVY: 71.2582 # RES PARCLS: 15,718 COM % OF TOTAL LEVY: 28.7418 AVG RES VALUE: 502,248 RES XMP VAL DISCOUNT 150,674 (30%) MINIMUM RES FACTOR: 85.2615 RES XMP TAX DISCOUNT 1,907.54 (30%) COMMERCIAL FACTOR: 175 # EXEMPTIONS: 9,016.368332 RESIDENTIAL LEVY: 82,749,340 ADJ RES VALUE: 6,535,795,067 COMMERCIAL LEVY: 33,376,720 RESIDENTIAL EXEMPTION BREAK EVEN VALUE 875,557 ----------------------------------------- ----------------------------------------- --------------------------------------------- THIS YEAR LAST YEAR CHANGE ----------------------------------------- THIS YEAR LAST YEAR CHANGE RESIDENTIAL TAX RATE: $12.66 $13.42 -$0.76 COMMERCIAL TAX RATE: $21.51 $22.38 -$0.87 -5.7% -3.9% NUMBER AVERAGE AVERAGE AVERAGE 1/4 AVERAGE 1/4 PER $ OF FY2014 FY2013 FY2014 FY2013 FY2014 CENT QUARTERLY YEAR PROPERTY CLASS PARCELS VALUE VALUE BILL* BILL* CHANGE CHANGE CHANGE AVER CONDO 4,589 $323,800 $338,000 $615 $593 -3.6% -$22 -$88 AVER 1 FAMILY 2,359 $417,500 $467,300 $929 $1,002 7.9% $73 $293 AVER 2 FAMILY 5,244 $494,900 $529,400 $1,189 $1,199 0.8% $10 $39 AVER 3 FAMILY 2,352 $558,800 $598,100 $1,403 $1,416 0.9% $13 $53 AVER 4-8 FAMILY 512 $730,500 $772,600 $1,979 $1,969 -0.5% -$10 -$42 AVER MULTI APT. 137 $2,540,400 $2,802,100 $8,523 $8,869 4.1% $346 $1,385 AVER COMM. , INDUST. 720 $1,429,800 $1,510,600 $8,000 $8,125 1.6% $125 $500 AVER MIXED-USE 256 $913,100 $1,151,300 $3,685 $4,421 20.0% $736 $2,944 *CONDO, 1, 2, 3, & 4-8 FAMILY INCLUDE RESIDENTIAL EXEMPTION 16

TWO FAMILY PROPERTY VALUES AND TAXES SINCE FY 2007 FISCAL YEAR RES. TAX RATE AVG. VALUE AVG. TAXES TAX $ INCREASE TAX % CHANGE WITH RESX FROM PREVIOUS FROM PREVIOUS YEAR YEAR 2007 $10.15 $538,800 $3,884 N/A 2008 $10.95 $516,500 $4,028 $144 3.71% 2009 $11.71 $499,500 $4,128 $100 2.48% 2010 $12.30 $486,900 $4,292 $164 3.97% 2011 $12.71 $483,300 $4,408 $116 2.70% 2012 $13.10 $484,800 $4,548 $140 3.18% 2013 $13.42 $494,900 $4,756 $208 4.57% 2014 $12.66 $529,400 $4,796 $40 0.84% RESIDENTIAL PERCENTAGE LEVY CHANGE WITH CLASSIFICATION SINCE FY 2007 FISCAL YEAR RESIDENTIAL % % CHANGE FROM PREVIOUS YEAR 2007 75.40% N/A 2008 74.57% -1.10% 2009 74.38% -0.25% 2010 73.66% -0.97% 2011 73.21% -0.61% 2012 73.06% -0.20% 2013 73.49% 0.59% 2014 71.26% -3.03% 17