15 CAR Part 97 — Market Study Guidelines for Affordable Rental Housing Program

Chapter VII

Subchapter C

Subpart 1

15 CAR § 97-101 Generally {#sec-15-car-97-101 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-101}

15 CAR § 97-101. Generally.

(a)(1) These market study guidelines ("guidelines") apply to all applicants seeking:

(A) Housing tax credits under Arkansas’s low-income housing tax credit program (LIHTC);

(B) Tax-exempt bond financing under Arkansas’s volume cap for private activity bonds program;

(C) Funding from the HOME Investment Partnership Program; or

(D) Any of the Arkansas Development Finance Authority's (the "authority") affordable housing programs.

(2) 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.

(3) 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.

(b)(1)(A) The objective of the market study is to demonstrate the existence of sufficient need for the proposed affordable rental development in the market area.

(B) The authority also wants to ensure the proposed development will not cause an adverse effect on other viable affordable rental developments in the market area.

(2)(A) The market study must be conducted at the applicant's expense by a disinterested third party approved to perform market studies by the authority.

(B) 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/Market%20Analysts%20Approved%20List07.pdf.

(C) Market studies performed by a firm that is not on the authority’s approved list will not be accepted.

(3) All market studies must include a letter, signed by the market analyst, certifying to the following:

(A) Name, address, telephone number, and email address of person authorizing the market study;

(B) Name, address, telephone number, and email address of person who prepared and certified the market study;

(C) Development type, i.e., acquisition/rehabilitation and/or new construction;

(D) Date of the market study (the market study must be dated within six (6) months prior to the application deadline);

(E) A statement that there exists no identity of interest between the analyst and the applicant or its principals; and

(F) A statement that recommendations and conclusions are based solely on the professional opinion and best efforts of the analyst.

(c)(1) 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.

(2) In addition, the market study must reference by footnote the national proprietary data provider, e.g., Esri, Claritas, etc., that has supplied the data or projection referenced in the market study.

(3) A copy of the page or pages from the source data provider must be included in an appendix to the market study.

(4) The footnote must include the appendix number to the source document page.

(5) 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.

(d)(1) The market study must:

(A) Address all of the items listed below; and

(B) Demonstrate sufficient need in the market area to support the proposed housing.

(2) Market studies not meeting these guidelines will not be accepted.

(3) Market analysts that do not comply with these guidelines are subject to removal from the authority’s approved list.

(4) These guidelines establish the minimum requirements of the authority.

(5) Market analysts are expected to include any additional information they consider relevant and necessary to the analysis.

15 CAR § 97-102 Table of contents {#sec-15-car-97-102 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-102}

15 CAR § 97-102. 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.

15 CAR § 97-103 Photographs {#sec-15-car-97-103 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-103}

15 CAR § 97-103. Photographs.

(a) All photographs should be labeled and placed in the section of the market study where referenced.

(b)(1) Good, quality color photographs of the subject property must be included.

(2) The photographs must be properly labeled and include north, south, east, and west orientations of the property with views of:

(A) The neighborhood;

(B) Surrounding neighborhoods; and

(C) Street scenes.

(c) Rehabilitation properties must include photographs of each side of each building and on-site community amenities.

(d)(1) Photographs of all comparable developments in the market area are required.

(2) See 15 CAR § 97-111, comparable units and developments.

(e)(1) A map clearly identifying the location of the development is required.

(2) The map should also identify the following:

(A)(i) Existing and proposed comparable developments in the market area.

(ii) The map should distinguish between:

(a) LIHTC developments;

(b) United States Department of Agriculture Rural Development developments;

(c) United States Department of Housing and Urban Development developments; and

(d) Conventionally financed developments; and

(B)(i) Existing grocery stores, medical and/or pharmaceutical facilities, schools, public transportation, and other service facilities in the market area.

(ii) The map should identify each service facility and its nearest driving distance from the proposed development's location.

(iii) See 15 CAR § 97-106, delineation of market area.

History

• Codification Notes: "LIHTC" means low-income housing tax credit. Authority: Arkansas Code § 15-5-207

15 CAR § 97-104 Executive summary and conclusions {#sec-15-car-97-104 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-104}

15 CAR § 97-104. Executive summary and conclusions.

The following must be included:

(1)(A) A concise description of the site and adjacent parcels, particularly neighborhood housing.

(B) The description must include the development's:

(i) Name;

(ii) Street address (if available);

(iii) City;

(iv) County;

(v) Zip code; and

(vi) Census tract number.

(C) Street-by-street directions to the development location must be provided beginning from the Arkansas state highway or interstate highway closest to the development location;

(2) A statement of assumptions and limited conditions considered by the analyst;

(3) A brief summary of the development, including the:

(A) Type of construction (new and/or rehabilitation);

(B) Number of buildings;

(C) Number and type of units;

(D) Proposed gross rents; and

(E) Population served;

(4) A brief description of the market area;

(5)(A) A precise statement of the analyst's opinion of market feasibility, including the prospect for long-term performance of the development given housing, demographic trends, and economic factors.

(B) The statement must include a capture rate of the need for each unit type, based on the targeted income group determined by the gross rent for such unit, in the expected year of market entry;

(6) A summary of market-related strengths and/or weaknesses that may influence the subject development's marketability, including, but not limited to:

(A) Compatibility with surrounding uses;

(B) The appropriateness of the subject development's location;

(C) Service facilities;

(D) On-site amenities;

(E) Off-site amenities and their driving distance from the development;

(F) Unit sizes and configurations; and

(G) Number of units;

(7) A summary of all comparable developments that distinguishes existing and planned affordable housing developments by type and includes:

(A) Driving distance from the subject development;

(B) Population served;

(C) Number of units by bedroom size;

(D) Gross rent by unit size;

(E) Services; and

(F) On-site amenities; and

(8)(A) A precise statement of key conclusions reached by the analyst, supported by the data contained in the market study.

(B) These conclusions must include:

(i) A summary of positive and negative attributes and issues that will affect the property's performance and lease-up, the analyst's observations that would mitigate or reduce any negative attributes, and any recommendations and/or suggested modifications to the proposed development;

(ii)(a) An evaluation of the proposed development, given the target population and market conditions.

(b) This evaluation should include market justification for the proposed development, including the proposed rents by unit and population type, estimated absorption rate, and should further evaluate the proposed unit, development, and on-site amenities given the market; and

(iii) An objective review of past, present, and future demographic and economic trends in the defined market area and include an estimate of how the proposed development will be integrated into the market area based on existing and proposed comparable rental developments.

15 CAR § 97-105 Development description {#sec-15-car-97-105 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-105}

15 CAR § 97-105. Development description.

The following must be included:

(1) A detailed description of the development location, including:

(A) Closest streets;

(B) Number of acres;

(C) Site configuration;

(D) Contiguous land use; and

(E) Zoning;

(2) Total proposed development units and total tax credit units by:

(A) Number of bedrooms;

(B) Gross rent assigned by the applicant;

(C) Income limit as a percent of the area median income as selected by the applicant;

(D) Unit size in square feet; and

(E) Utility allowances for tenant-paid utilities;

(3) Description of the development's target population and occupancy type (family, senior by type, e.g., fifty-five-plus years, sixty-two (62) years, United States Department of Agriculture Rural Development, or United States Department of Housing and Urban Development, assisted living, other supportive housing, etc.);

(4) Projected date for development completion and start of lease-up;

(5) Tenant-paid utility schedule and source of that schedule;

(6) Description of the:

(A) Number of buildings;

(B) Design (walk-up, elevator, single-family detached, etc.);

(C) Number of stories;

(D) Unit and common amenities; and

(E) Number of parking spaces; and

(7) For rehabilitation proposals:

(A) Current occupancy levels;

(B) Current rents; and

(C) Identification of any existing assisted housing program.

15 CAR § 97-106 Delineation of market area {#sec-15-car-97-106 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-106}

15 CAR § 97-106. Delineation of market area.

The following must be included:

(1)(A) An identification of the geographic market area by census tracts, jurisdictions, street names, or other geography forming the boundaries from which potential renters will be drawn (include a map that clearly delineates the market area).

(B) The analyst must provide a reasonable rationale for the market area taking into account:

(i) Political and natural boundaries;

(ii) Experience of comparable rental housing developments in the market area; and

(iii) Socioeconomic characteristics;

(2) A driving distance map of the suggested market area that identifies:

(A) The proposed development;

(B) All comparable rental properties;

(C) Closest medical/pharmaceutical facility;

(D) Closest full-service grocery store (do not include convenience stores);

(E) Schools; and

(F) Public transportation; and

(3) Description of current site characteristics, including:

(A) Topography, e.g., grade, low-lying area, flood plain, or wetlands;

(B) Proximity in feet to nuisances, e.g., railroad tracks, major highways/interstates, manufacturing/production plants; and

(C) Environmental issues.

15 CAR § 97-107 Market area economy {#sec-15-car-97-107 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-107}

15 CAR § 97-107. Market area economy.

Except independent senior, assisted living, and supportive housing for disabled persons' developments, the following information regarding the market area must be included:

(1) Employment by industry type, i.e., manufacturing, service, finance, or government;

(2)(A) Major current employers and any anticipated:

(i) Expansion;

(ii) Reduction; or

(iii) Closure.

(B) The analyst must provide workforce numbers and anticipated incomes as relevant to the development's targeted income group or groups;

(3)(A) New major employers known, as evidenced by proper documentation, to be locating in the market area prior to the expected year of market entry for such development.

(B) The analyst must provide workforce numbers and anticipated incomes as relevant to the development's targeted income group or groups;

(4) Employment growth for each of the seven (7) years prior to the expected year of market entry for such development; and

(5) Unemployment rate for each of the seven (7) years prior to the expected year of market entry for such development.

15 CAR § 97-108 Demographic data {#sec-15-car-97-108 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-108}

15 CAR § 97-108. Demographic data.

(a)(1) All proposals shall provide the following demographic information for the market area:

(A) Population trends:

(i) Total population;

(ii) Population by age group;

(iii) Number of senior and non-senior (senior developments only); and

(iv) Other special needs population by age group;

(B) Household trends:

(i) Total number of households;

(ii)(a) Households by tenure.

(b) That is, the number of owner and renter households;

(iii) For senior developments, separately designate senior households by tenure and senior type, i.e., fifty-five-plus years, sixty-two (62) years, United States Department of Agriculture Rural Development, United States Department of Housing and Urban Development;

(iv) For assisted living developments, separately designate households by tenure and type;

(v) Other special needs households, e.g., disabled, separately designate households by tenure and type; and

(vi) Average household size by tenure; and

(C) Income trends:

(i) Estimate of household incomes in increments of ten thousand dollars ($10,000), by household size and tenure;

(ii) For senior developments, separately designate senior household incomes by tenure and senior type, i.e., fifty-five-plus years, sixty-two (62) years, United States Department of Agriculture Rural Development, or United States Department of Housing and Urban Development;

(iii) For assisted living developments, separately designate household incomes by tenure and type; and

(iv) Other special needs households, e.g., disabled, separately designate household incomes by tenure and type.

(2) The information must be provided for the:

(A) Most recent census year (use as baseline data);

(B) Fifth year following the baseline year;

(C) Calendar year of the application; and

(D) Expected calendar year of market entry for such development.

(3) The market study must reference by footnote and appendix the national proprietary data provider that has supplied the demographic data and projections used by the market analyst.

(4) A copy of the page or pages from the source data provider must be included in the appendix to the market study.

(b) Independent senior housing proposals. The data for independent senior housing must be based upon the type of senior housing proposed, i.e., fifty-five-plus years, sixty-two (62) years, United States Department of Agriculture Rural Development, or United States Department of Housing and Urban Development.

(c) Assisted living housing proposals.

(1) The data must be based upon households, a member of which meets the medical criteria set forth in Section 26205II. of the Medical Services Policy Manual for the Department of Human Services.

(2) Households, a member of which is at least seventy-five (75) years old, will be assumed to have a member that meets the medical criteria set forth in Section 26205II. of the Medical Services Policy Manual for the Department of Human Services.

(d) Supportive housing for disabled persons proposals.

(1) The data must be based upon those households, a member of which is disabled as defined by the United States Department of Housing and Urban Development, that are intended to be served by the development.

(2) The market analyst must identify the disabled population the development intends to serve directly, taking into account and identifying the design and construction of the development and the supportive services to be offered by the development that meet the needs of the disabled population to be served.

History

• Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules contained the following footnote after subdivision (c)(1):"1 The following links to Section 26205II. of the Medical Services Policy Manual for the Arkansas Department of Human Services: http://www.arkansas.gov/dhs/webpolicy/Medical%20Services/MS%2026000.htm#MS%2026205" Authority: Arkansas Code § 15-5-207

15 CAR § 97-109 Need analysis {#sec-15-car-97-109 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-109}

15 CAR § 97-109. Need analysis.

(a) In preparing its analysis of the need for the proposed development in the market area, it is the responsibility of the market analyst to be aware of the applicable income and gross rent restrictions and requirements of the applicable affordable housing assistance program (e.g., LIHTC, HOME, tax-exempt bond).

(b) Need must be calculated using an income range based upon the:

(1) Minimum annual income of eligible households (the amount of income a household must make in order for no more than thirty percent (30%) of its annual income to be utilized for payment of the annual proposed gross rent set for the unit size (e.g., zero (0) bedroom, one (1) bedroom, two (2) bedrooms, etc.) and type (e.g., LIHTC, HIGH-HOME, LOW-HOME, tax-exempt bond, market rate)); and

(2) Maximum annual income a household can make for the unit size and type and still be income-eligible under the applicable program restrictions and restrictions as represented in applicant’s application to the Arkansas Development Finance Authority, i.e., thirty percent (30%) or fifty percent (50%) of area median income restricted units per the application’s representations.

(c)(1) The percentage of annual household income that can be used to determine the minimum annual household income amount, based upon the gross rent set for the unit, is thirty percent (30%).

(2)(A) The maximum annual household income amount that can be taken into account for the restricted units in the development is the maximum annual household income allowed for the targeted income group, e.g., thirty percent (30%), fifty percent (50%), or sixty percent (60%) of the area median income, for the unit type (e.g., LIHTC, HIGH-HOME, LOW-HOME, tax-exempt bond, market rate) based upon two (2) persons per bedroom.

(B) However, the maximum annual household income for efficiency units with zero (0) bedrooms must be based upon a one-person household.

(d) A separate need analysis must be performed for each group of units in the development of the same:

(1) Type (e.g., LIHTC, HIGH-HOME, LOW-HOME, market rate);

(2) Gross rent;

(3) Targeted income group (e.g., thirty percent (30%), fifty percent (50%), or sixty percent (60%) of the area median income); and

(4) Bedroom size.

(e)(1) Income-eligible households cannot be double counted, meaning an income eligible household cannot be taken into account in the need analysis of more than one (1) group of units in the development.

(2) The market analyst must distribute income-eligible households, which overlap into more than one (1) group of units, by pro rating among those groups or among those groups on a reasonable basis as identified and explained by the market analyst.

(f) All rents utilized by the market analyst and on which the market study is premised must equal the amount of assumed rents for each unit type (or, for each unit, if assumed rents vary within a unit type) set forth in the application for housing tax credits.

(g)(1) Each need analysis must be based upon the following components:

(A) Family developments. The sum of:

(i) Income-eligible renter households projected to move into the market area the calendar year of market entry for such development; and

(ii) Existing income-eligible renter households, as of the calendar year of market entry for such development, that have any one (1) of the following housing problems:

(a) Rent over-burdened, meaning the household is paying more than thirty percent (30%) of its annual income to gross rent;

(b) Overcrowded, meaning the household has 1.01 or more persons per room living in the unit; or

(c) Living in substandard housing unit, meaning unit does not have complete kitchen or plumbing facilities;

(B) Independent senior developments. The sum of:

(i) Income-eligible renter households projected to move into the market area the calendar year of market entry for such development;

(ii) Existing income-eligible renter households, as of the calendar year of market entry for such development, that have any one (1) of the following housing problems:

(a) Rent over-burdened, meaning the household is paying more than thirty percent (30%) of its annual income to gross rent;

(b) Overcrowded, meaning the household has 1.01 or more persons per room living in the household; or

(c) Living in substandard housing units, meaning unit does not complete kitchen or plumbing facilities; and

(iii)(a) Income-eligible senior homeowners likely to convert to renters.

(b) This category may only be included if the market analyst has surveyed all existing affordable senior renter developments in the market area and determined that percentage of current households in those developments whose tenants were homeowners immediately prior to leasing in the senior development at which they currently live;

(C) Assisted living developments. The sum of:

(i) Income-eligible households, a member of which meets the medical criteria set forth in Section 26205II. of the Medical Services Policy Manual for the Department of Human Services, that are projected to move into the market area the calendar year of market entry for such development;

(ii) Income-eligible households, a member of which is at least seventy-five (75) years old, that are projected to move into the market area the calendar year of market entry for such development;

(iii) Existing income eligible households, not living in an existing assisted living facility, a member of which meets the medical criteria set forth in Section 26205II. of the Medical Services Policy Manual for the Department of Human Services;

(iv) Existing income-eligible households, not living in an existing assisted living facility, a member of which is at least seventy-five (75) years old; and

(v) Existing income-eligible households living in an existing assisted living facility but are rent over-burdened, meaning the household is paying more than thirty percent (30%) of its annual income to gross rent; and

(D) Supportive housing for disabled persons developments. The sum of:

(i) Income-eligible households, a member of which is disabled and need housing and supportive services to be provided by the development, that are projected to move into the market area the calendar year of market entry for such development;

(ii) Existing income-eligible households, a member of which is disabled but not living in a supportive housing development; and

(iii) Existing income-eligible households, a member of which is disabled and living in a supportive housing development but are rent over-burdened, meaning the household is paying more than thirty percent (30%) of its annual income to gross rent.

(2)(A) All market studies shall utilize December 31 of the year that is two (2) years from the anticipated year of allocation as the market entry date of the development, i.e., December 31, 2013, shall be the assumed market entry date for all proposed developments applying for credits in 2011.

(B) An alternate market entry date or dates may be included in the study, but December 31 of the second year must be included in the market study.

(h) Capture rate.

(1) Each needs analysis must calculate the capture rate of its group of units from the net number of households in the market area that are income eligible and in need of the housing proposed.

(2) The capture rate is determined by dividing the number of units in the proposed group of units by the net number of households in the market area in need of the housing proposed.

(3)(A) The net number of households is determined by subtracting existing, vacant comparable units in the market area, proposed comparable units in the market area that have not yet been placed in service, and, in the case of rehabilitation developments, current households that will not be eligible to remain in the development, from the number of households determined to need the proposed housing in the market area.

(B) "Comparable units" are those units with comparable gross rents, bedroom size, and purpose (e.g., family, senior, assisted living, supportive housing) as those proposed in the development.

(4) If the market analyst excludes any comparable, vacant unit from the net number of households, the market analyst must give a detailed but concise explanation for the exclusion.

(i) Format. A format similar to the following should be used to summarize the results of each needs analysis:

History

• Codification Notes: "LIHTC" means low-income housing tax credit.This section as promulgated prior to codification into the Code of Arkansas Rules contained the following footnotes:A footnote to subdivision (b)(1), immediately following the phrase, "based upon the gross rent set for the unit," provided as follows:"2 The gross rent for the affordable units in the development is that amount restricted for the unit type by law, e.g., (e.g., LIHTC, HIGH-HOME, LOW-HOME, Tax-exempt, Market Rate)."Two footnotes to subdivision (b)(1), immediately following the phrase, "is thirty percent (30%)" provided as follows:"3 This percentage is based upon Section 42(g)(2)(A) of the Internal Revenue Code and HUD's statement that: "The generally accepted definition of affordability is for a household to pay no more than 30 percent of its annual income on housing. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care." The percentage must be applied for both affordable and market rate units.4 If the development will have a rental assistance contract, the minimum annual household income amount is $0.00 for those units receiving the rental assistance. The market analyst must describe the terms of the rental assistance contract and identify which units will receive the rental assistance contract."A footnote to subdivision (b)(2)(A) provided as follows:"5 Arkansas Code Annotated § 16-123-307(c)(3) provides: "An occupancy limitation of two (2) persons per bedroom residing in a dwelling unit shall be presumed reasonable in this state or any political subdivision of this state.""A footnote to subdivision (f)(1)(A)(i) provided as follows:"6 The market analyst cannot include households under categories identified as "leakage" or "spill-over" for areas outside the Market Area. Categories of this type should be included in the households projected to move into the Market Area." Authority: Arkansas Code § 15-5-207

15 CAR § 97-110 Absorption period {#sec-15-car-97-110 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-110}

15 CAR § 97-110. Absorption period.

(a)(1) The market study should define and justify the absorption period for the development.

(2) The absorption period is considered to start as soon as the first units are released for occupancy.

(b) The analysis must provide an estimate of the time required to reach ninety-five percent (95%) occupancy.

(c) The absorption period determination should consider, but is not limited to, such factors as:

(1) The overall estimate of new household growth;

(2) The available supply of comparable units;

(3) Observed trends in the absorption of comparable units; and

(4) The availability of rent subsidies.

15 CAR § 97-111 Comparable units and developments {#sec-15-car-97-111 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-111}

15 CAR § 97-111. Comparable units and developments.

(a)(1) The market study must identify all comparable units and developments in the primary market area.

(2) There is no minimum or maximum number of comparable developments as all such developments must be included.

(3)(A) Do not omit any comparable development or information for a comparable development because of lack of information.

(B) Information that is not available must be noted with an "N/A" with an explanation as to why the information was not obtainable.

(4) Market analysts must make all reasonable efforts to obtain information from developments within the market area.

(5) The Arkansas Development Finance Authority shall not consider market studies to comply with the market study guidelines if an unreasonable number of such developments are designated “N/A”.

(6) The following information must be included for each comparable development:

(A) Color photograph or photographs of comparable development;

(B) Development name;

(C) Development address;

(D) Development telephone number;

(E) Distance from subject;

(F) Current occupancy rate;

(G) Purpose (e.g., family, senior, assisted living, supportive housing);

(H) Amenities (unit and common);

(I) Appliances;

(J) Unit features;

(K) Security features;

(L) Utility type;

(M) Waiting list (by unit type);

(N) Development type (LIHTC, HOME, market rate); and

(O)(i) Chart/table outlining:

(a) Unit type (e.g., LIHTC, HIGH-HOME, LOW-HOME, market rate);

(b) Number of units per unit type;

(c) Number of bedrooms and bathrooms per unit type;

(d) Square footage for each unit type;

(e) Rent for each unit type;

(f) Vacancies per unit type; and

(g) Current vacancy rate per unit type.

(ii) Totals for each column must be included.

(b)(1) All units within the primary market area that charge rents comparable to the proposed developments that is the basis of the market study shall be included in the analysis of comparable units, regardless of type of financing.

(2) Units with comparable rents within the primary market area shall not be excluded because such units differ from the proposed units in bedroom size by one (1) bedroom, i.e., two-bedroom units in the primary market area, if comparable rents, must be included as a comparable unit to one-bedroom units.

(c) Senior developments shall be included as comparable developments, if otherwise comparable under these guidelines or in the professional determination of the market analyst, when determining market need for family developments.

(d) Exception to comparable rents. Family developments shall be excluded from comparable developments for purposes of determining market need for senior developments, unless determined comparable in the professional judgment of the market analyst.

History

• Codification Notes: "LIHTC" means low-income housing tax credit. Authority: Arkansas Code § 15-5-207

15 CAR § 97-112 Appendix {#sec-15-car-97-112 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-112}

15 CAR § 97-112. Appendix.

(a)(1) The national proprietary data provider for any data entry in the market study must be referenced by footnote with a copy of the source document page included in the appendix.

(2) The footnote should identify the appendix number of the source document page.

(b) All surveys and other data relied on by the market analyst must be included in the appendix.

(c) The appendix must be separated from the rest of the market study by a tabbed page divider.

15 CAR § 97-113 Disclaimer {#sec-15-car-97-113 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-113}

15 CAR § 97-113. Disclaimer.

(a)(1) The Arkansas Development Finance Authority reserves the right, in its sole and absolute discretion, to evaluate the need for the affordable housing proposed to be developed in the market area.

(2) The authority is not bound by any recommendation or conclusion of the market analyst and may substitute its own analysis and conclusions for those submitted by the market analysis.

(b) However, the approval of any application for housing tax credits or other authority-administered resource is not a determination or representation by the authority, and cannot and should not be relied upon by any person, persons, entity, or entities other than the authority, that a market need currently exists or will exist in the future that is sufficient to ensure the financial stability of the proposed development.

15 CAR § 97-114 Compliance {#sec-15-car-97-114 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-114}

15 CAR § 97-114. Compliance.

(a) Failure of the market analyst to comply with any guidelines set forth herein may result in rejection of the proposed development’s application from consideration for an award of federal low-income housing tax credits and all other Arkansas Development Finance Authority resources requested.

(b) Continued noncompliance, the determination of which is within the authority’s discretion, may result in suspension or permanent removal of the market analyst and all firms with which the market analyst is affiliated from the authority’s approved market study provider list.

15 CAR § 97-115 Market study analyst — Arkansas Development Finance Authority-approved list {#sec-15-car-97-115 omnilex-key=us-ar-regs-official--title-15-part-97--15 CAR § 97-115}

15 CAR § 97-115. Market study analyst — Arkansas Development Finance Authority-approved list.

(a) All market studies submitted as part of an application for housing tax credits must be performed by a market study analyst included on the Arkansas Development Finance Authority’s market study analyst approved list.

(b) Market study analysts that seek addition to the authority’s approved market study analyst list must submit to the multi-family housing department a copy of:

(1) A market study prepared by the analyst within the past six (6) months of a proposed development in which rents are restricted by the low-income housing tax credit program;

(2) A copy of the market study analyst’s resume or curriculum vitae;

(3) A copy of the resume or curriculum vitae of the market analyst’s firm, if any; and

(4) If such market study was not prepared in accordance with this part, a statement signed by the market analyst that the market analyst:

(A) Has reviewed and understands this part; and

(B) Will comply with all such guidelines in the preparation of all market studies submitted by the market analyst to the authority.

(c) Approval by the authority to be added to the market study analyst approved list represents only a determination by the authority that the:

(1) Submitted materials evidence the capability of the market study analyst to perform market studies; and

(2) Market study analyst has reviewed this part and agrees to prepare all market studies that are to be submitted as part of an application for housing tax credits in accordance with this part.

(d)(1) Approval by the authority is not a determination or representation by the authority that market studies performed by a market analyst on the authority-approved market study analyst list will be accepted by the authority.

(2) Market studies not in compliance with this part are subject to rejection and accordingly cause the application to be rejected from further consideration for an award of housing tax credits.