NCHMA Category Archives

AHIC Updates LIHTC Underwriting Guidelines

The Affordable Housing Investors Council (AHIC) has published updated Underwriting Guidelines for its members.  The Guidelines are designed to be used as an outline for an underwriting process and for investment documents for proprietary, multi-investor, and direct investments in low-income housing tax credits (LIHTC). They examine how to analyze the financial strength and expertise of the development team; the key points to understand the sources and uses in the development budget; critical facets of underwriting the deal; best practices in due diligence; and tools for reviewing the capacity of syndicators.

NH&RA is pleased to see that once again, AHIC Underwriting Guidelines cite our affiliate, the National Council of Housing Market Analysts Model Content Standards in the market study portion of its Underwriting Guidelines.  Click here to download the Underwriting Guidelines.

Industry Leaders Convene at NCHMA Annual Meeting

The National Council of Housing Market Analysts gathered this week in New Orleans for discussions as bright and energetic as the legendary holiday decorations that lit up historic Roosevelt Hotel where they took place. While NCHMA is largely made up for market analysts, the event attracted professionals from across the industry. Eight in-depth panels featured the voices of Housing Finance Agency representatives, developers, and syndicators, in additional to market analysts. The conference participants delved into issues that spanned from adjusting for potential Section 8 subsidy loss to identifying market red flags to strategies for Year 15 projects.

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Recommended Practices for Determining Demand

The National Council of Housing Market Analysts (NCHMA) has separate definitions of overall market demand and project specific demand Market demand is the total number of households in a defined market area that would potentially move into any new or renovated housing units. Market demand is not project specific and covers all renter households and income levels. Components of demand vary and can include household growth; turnover, substandard dwelling units, rent over-burdened households, and demolished housing units.

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Best Practices For Rural Market Studies (DRAFT)

Several important differences between rural and urban market studies include market area definitions, evaluation of comparables, and consideration of demand. On the surface, it seems like defining a rural market area might be purely a matter of opinion, but well-established analytic tools are available to assist market analysts. Evaluating comparables, understanding how the proposal would fit into the market, and understanding what the demand calculations really mean are more a matter of experience.

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White Paper: Determining Market Area

The definition of a market area sets the context and tone of the entire market study. While a somewhat subjective judgment, a market area’s size and density has a profound impact on an analysis in terms of understanding demographic trends, demand estimates and the competitive environment.

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