A market analysis for income properties, that is that includes rental units, requires an estimate of market rent. Depending on the purpose of the study, it could be an average market rent for all units in a defined market area, a weighted average market rent for all units, or for various unit types, ie., studios, one or two bedrooms, etc.
An estimate of demand is a measure of the number of income-qualified households with the propensity to move to the subject property. Demand estimates can vary significantly based on the components used and the variables applied to measure propensity to move. The components of demand are often based on the goal of the report’s end-user. The goal of NCHMA’s demand model is to provide a base estimate of income-qualified renter households. Refinements to this demand model can be made to address a more discrete target population on a case-by-case basis. The intention of this demand model is to provide a consistent methodology for comparison purposes.
The rate that tenants move from one unit to another affects the length of time a project needs to achieve full occupancy. It also influences a project’s annual revenues and operating expenses. This paper identifies factors to be considered, highlights red flags and recommends best practices for analyzing turnover.
Market analysis for age- and income-restricted rental housing, referenced here as “senior housing market analysis”, differs significantly from the analysis of general occupancy rental communities. The tendencies, incomes, needs and wants of senior renter households differ, at times significantly, from younger and/or family households. The demand for age-restricted rental housing should be evaluated with an understanding of these differences. This white paper identifies specific factors to be considered in conducting senior housing market analysis, proposes best practices, and suggests red flags that warrant particular attention when encountered in this type of study.
The Internal Revenue Service (IRS) recently released Notice 2012-44 to provide guidance regarding Qualified Energy Conservation Bonds (QECBs). State and local governments were first authorized by the Energy Improvement and Extension Act of 2008 to issue QECBs to finance certain eco-friendly projects.
PowerPoint presentations and conference materials from our 2012 Spring Developers Forum are available for download.
The House Financial Services Subcommittee on Insurance, Housing and Community Opportunity on Thursday June 7 held a hearing on strengthening the Federal Housing Administration’s (FHA) affordable multifamily insurance programs.
On May 9, Alabama’s state legislature sent the proposed Alabama New Markets Development Act (HB257) to Governor Wallace’s office for approval. The bill is informed by the Federal New Markets Tax Credit and much of the language and general structure mirrors key concepts and precedent in Section 45D of the IRS Code of 1986; however, there are several notable differences.
NH&RA and its Legislative Leadership and HOPE VI/Mixed-Finance Committees were pleased to submit comments to HUD on its Rental Assistance Demonstration implementation strategy laid out in Notice PIH 2012-18.
The House Ways and Means Select Revenue Subcommittee recently held a hearing on tax extenders in which a few members specifically expressed support for the New Markets Tax Credit (NMTC) and Wind Production Tax Credit programs.
The Senate Appropriations Committee on April 19 approved the Transportation, Housing and Urban Development (THUD) Subcommittee’s fiscal year (FY) 2013 appropriations bill. The bill proposes to fund the Department of Housing and Urban Development (HUD) programs at $46.16 billion, an increase of $1.4 billion above the President’s FY 2013 request and $2.4 billion more than the FY 2012 enacted budget amount.
NH&RA / NCAHMA is pleased to offer the Power Point Presentations from our recent FHA MAP Market Study & Underwriting Symposium and Affordable Housing Underwriting & Policy Forum, which was held March 28-30 in Washington, DC.