Washington, DC “” June 12, 2012 “” The National Council of Housing Market Analysts (NCHMA) has adopted a new white paper that offers guidance and methodologies for providing a functional scope of work as a component of multifamily rental housing market studies.
The white paper, entitled Scope of Work & Reporting Standards, aims to improve the level of consistency and transparency of affordable housing market studies through a well-defined scope of work. The document also outlines three distinct reporting options for analysts who regularly conduct market reports with varying degrees of detail and/or conclusions.
NCHMA defines Scope of Work as a statement in a market study that: 1) identifies the purpose of the market study, 2) informs the reader of the steps taken during the preparation of a market study, 3) identifies steps that were not taken, 4) explains methodologies used in the derivation of conclusions, and 5) prevents misinterpretation or misuse of the market study.
“In today’s constrained fiscal environment, multifamily housing developers, HFAs, lenders and other users are relying more and more on the efficiency and usefulness of market studies in underwriting deals,” notes Thom Amdur, NCHMA’s Executive Director. Recognizing that different types of market study products exist, “NCHMA’s goal is to provide our analysts with guidance for clearly communicating the depth of their market studies’ content and conclusions to their various clients.”
The white paper also identifies three accepted reporting categories for analysts who complete market study assignments requiring varying degrees of field work, analysis, and/or conclusions: 1) Full Narrative Report, 2) Summary Report, and 3) Market Advisory Report. Coupled with a detailed scope of work statement, these reporting options help to inform the end user of the depth and validity of the conclusions, as well as preserve the integrity of a full, comprehensive market study.
The full text is available on NCHMA’s website or by contacting NCHMA. Additional resources including our Model Content Standards for Market Studies, Dictionary of Market Study Terminology, and other white papers are also available online.
Created in 2001, the National Council of Housing Market Analysts (NCHMA) is the only professional body dedicated exclusively to the field of residential rental real estate market analysis. NCHMA’s members are comprised of professionals involved in performing and reviewing market studies for rental affordable housing.
Thom Amdur, Executive Director