Arkansas Administrative Code › Agency 109 - Arkansas Development Finance Authority › Division 04 - Multi-Family Housing › Rule 109.04.08-008 - Market Study Guidelines for Affordable Rental Housing

Current through Register Vol. 49, No. 6, June, 2024
These Market Study Guidelines ("Guidelines") apply to all
				applicants seeking Housing Tax Credits under Arkansas' Low-Income Housing Tax
				Credit Program (LIHTC), tax-exempt bond financing under Arkansas' Volume Cap
				for Private Activity Bonds Program, funding from the HOME Investment
				Partnership Program, or any of the Arkansas Development Finance Authority's
				(the "Authority") affordable housing programs. By requiring specific
				information in all market studies, the Authority will be able to assess the
				affordable housing
need
in competing
				communities through a comparison of similar characteristics. By requiring that
				all market studies be prepared in accordance with a specific outline, the
				Authority will be able to perform a more comprehensive and expeditious
				review.
The objective of the market study is to demonstrate the
				existence of sufficient
need
for the
				proposed affordable rental development in the Market Area. The Authority also
				wants to ensure the proposed development will not cause an adverse affect on
				other viable affordable rental developments in the Market Area. The market
				study must be conducted at the applicant's expense by a disinterested third
				party approved to perform market studies by the Authority. A complete list of
				market study firms approved to perform market studies by the Authority can be
				found on the Authority's website at:
http://www.arkansas.gov/adfa/LIHTC%2008/Market%20Analysts%20Approved%20List_08.pdf
.
Market studies performed by a firm that is not on the Authority's
				approved list will not be accepted.
All market studies must include a
				letter, signed by the market analyst, certifying to the following:
1. Name, address, telephone number and e-mail
			 address of person authorizing the market study;
2. Name, address, telephone number and e-mail
			 address of person who prepared and certified the market study;
3. Development type,
i.e.
,
			 acquisition/rehabilitation and/or new construction;
4. Date of the market study (the market study
			 must be dated within six (6) months prior to the Application
			 Deadline);
5. A statement that
			 there exists no identity of interest between the analyst and the applicant or
			 its principals;
6. A statement that
			 recommendations and conclusions are based solely on the professional opinion
			 and best efforts of the analyst.
The market study must be organized in a format that follows
				these Guidelines and provides an index or table of contents indicating the page
				within the market study where each of the following minimum requirements can be
				found within the study. In addition, the market study
must
reference by footnote the data provider,
e.g., ESRI, Claritas,U.S. Census Bureau, U.S. Department of Labor,
				etc.
, that has supplied the data or projection referenced in the
				market study. A copy of the page(s) from the source data provider must be
				included in an Appendix to the market study. The footnote must include the
				Appendix number to the source document page. Any additional relevant data, such
				as primary source data from surveys or focus groups,
must
be identified by footnote with the source
				documentation included in the Appendix to the market study.
The market study must address all of the items listed below and
				must demonstrate sufficient need in the Market Area to support the proposed
				housing. Market studies not meeting these Guidelines will not be accepted.
				Market analysts that do not comply with these Guidelines are subject to removal
				from the Authority's approved list. These Guidelines establish the
minimum
requirements of the Authority. Market analysts
				are expected to include any additional information they consider relevant and
				necessary to the analysis.
I.
Table of Contents
A. Each section of the market study must be
			 identified with the corresponding page number.
B. Any exhibit or chart within the market
			 study must be numbered for easy reference.