| (VI) For rural Developments, discuss the relative draw
(services, jobs, medical facilities, recreation, schools, etc.) of
the Development's immediate local area (city or populous area if no
city) in comparison to its neighboring local areas (cities, or populous
areas if no cities), in and around the PMA. A rural PMA should not
include significantly larger more populous areas unless the analyst
can provide substantiation and rationale that the tenants would migrate
to the Development's location from the larger cities;
(VII) Discuss and quantify current and planned single-family
and non-residential construction (include permit data if available);
and
(VIII) Other housing issues in general, if pertinent;
(ii) a complete demographic report for the defined
PMA;
(iii) a scaled distance map indicating the PMA boundaries
showing relevant U.S. census tracts with complete 11-digit identification
numbers in numerical order with labels as well as the location of
the subject Development and all comparable Developments. The map must
indicate the total square miles of PMA; and
(iv) a proximity table indicating distance from the
Development to employment centers, medical facilities, schools, entertainment
and any other amenities relevant to the potential residents and include
drive time estimates.
(C) Comparable Units. Identify developments in the
PMA with Comparable Units. In PMAs lacking sufficient rent comparables,
it may be necessary for the Market Analyst to collect data from markets
with similar characteristics and make quantifiable and qualitative
location adjustments. Provide a data sheet for each comparable development
consisting of:
(i) development name;
(ii) address;
(iii) year of construction and year of Rehabilitation,
if applicable;
(iv) property condition;
(v) Target Population;
(vi) unit mix specifying number of Bedrooms, number
of baths, Net Rentable Area including:
(I) monthly rent and Utility Allowance; or
(II) sales price with terms, marketing period and date
of sale;
(vii) description of concessions;
(viii) list of unit amenities;
(ix) utility structure;
(x) list of common amenities;
(xi) narrative comparison of its proximity to employment
centers and services relative to targeted tenant population of the
subject property; and
(xii) for rental developments only, the occupancy and
turnover.
(9) Market Information.
(A) Identify the number of units for each of the categories
in clauses (i) - (vi) of this subparagraph, if applicable:
(i) total housing;
(ii) all multi-family rental developments, including
unrestricted and market-rate developments, whether existing, under
construction or proposed;
(iii) Affordable housing;
(iv) Comparable Units;
(v) Unstabilized Comparable Units; and
(vi) proposed Comparable Units.
(B) Occupancy. The occupancy rate indicated in the
Market Analysis may be used to support the overall demand conclusion
for the proposed Development. State the overall physical occupancy
rate for the proposed housing tenure (renter or owner) within the
defined market areas by:
(i) number of Bedrooms;
(ii) quality of construction (class);
(iii) Target Population; and
(iv) Comparable Units.
(C) Absorption. State the absorption trends by quality
of construction (class) and absorption rates for Comparable Units.
(D) Demographic Reports must include:
(i) All demographic reports must include population
and household data for a five year period with the year of Application
submission as the base year;
(ii) All demographic reports must provide sufficient
data to enable calculation of income-eligible, age-, size-, and tenure-appropriate
household populations;
(iii) For Elderly Developments, all demographic reports
must provide a detailed breakdown of households by age and by income;
and
(iv) A complete copy of all demographic reports relied
upon for the demand analysis, including the reference index that indicates
the census tracts on which the report is based.
(E) Demand. Provide a comprehensive evaluation of the
need for the proposed housing for the Development as a whole and each
Unit Type by number of Bedrooms proposed and rent restriction category
within the defined market areas using the most current census and
demographic data available.
(i) Demographics. The Market Analyst should use demographic
data specific to the characteristics of the households that will be
living in the proposed Development. For example, the Market Analyst
should use demographic data specific to the elderly populations (and
any other qualifying residents for Elderly Developments) to be served
by an Elderly Development, if available, and should avoid making adjustments
from more general demographic data. For HOME-ARP, demand for Qualifying
Populations must be identified in accordance with Section VI B.10.a.ii
of CPD Notice 21-10. If adjustment rates are used based on more general
data for any of the criteria described in subclauses (I) - (V) of
this clause, they should be clearly identified and documented as to
their source in the report.
(I) Population. Provide population and household figures,
supported by actual demographics, for a five year period with the
year of Application submission as the base year.
(II) Target. If applicable, adjust the household projections
for the qualifying demographic characteristics such as the minimum
age of the population to be served by the proposed Development.
(III) Household Size-Appropriate. Adjust the household
projections or target household projections, as applicable, for the
appropriate household size for the proposed Unit Type by number of
Bedrooms proposed and rent restriction category based on 2 persons
per Bedroom or one person for Efficiency Units.
(IV) Income Eligible. Adjust the household size appropriate
projections for income eligibility based on the income bands for the
proposed Unit Type by number of Bedrooms proposed and rent restriction
category with:
(-a-) the lower end of each income band calculated
based on the lowest gross rent proposed divided by 40% for the general
population and 50% for elderly households; and
(-b-) the upper end of each income band equal to the
applicable gross median income limit for the largest appropriate household
size based on 2 persons per Bedroom (round up) or one person for Efficiency
Units.
(V) Tenure-Appropriate. Adjust the income-eligible
household projections for tenure (renter or owner). If tenure appropriate
income eligible target household data is available, a tenure appropriate
adjustment is not necessary.
(ii) Gross Demand. Gross Demand is defined as the sum
of Potential Demand from the PMA, Demand from Other Sources, and External
Demand.
(iii) Potential Demand. Potential Demand is defined
as the number of income-eligible, age-, size-, and tenure-appropriate
target households in the designated market area at the proposed placed
in service date.
(I) Maximum eligible income is equal to the applicable
gross median income limit for the largest appropriate household size.
(II) For Developments targeting the general population:
(-a-) minimum eligible income is based on a 40% rent
to income ratio;
(-b-) appropriate household size is defined as two
persons per Bedroom (rounded up); and
(-c-) the tenure-appropriate population for a rental
Development is limited to the population of renter households.
(III) For Developments consisting solely of single
family residences on separate lots with all Units having three or
more Bedrooms:
(-a-) minimum eligible income is based on a 40% rent
to income ratio;
(-b-) appropriate household size is defined as two
persons per Bedroom (rounded up); and
(-c-) Gross Demand includes both renter and owner households.
(IV) For Elderly Developments:
(-a-) minimum eligible income is based on a 50% rent
to income ratio; and
(-b-) Gross Demand includes all household sizes and
both renter and owner households within the age range (and any other
qualifying characteristics) to be served by the Elderly Development.
(V) For Supportive Housing:
(-a-) minimum eligible income is $1; and
Cont'd... |
