7.5.7 Description of the Proposed Project

• A. The market study must include a thorough description of the proposed project, including:

1. The number of units by type and size with information on the number of bedrooms and bathrooms, structure type, square footage, etc. Actual (paint to paint) size should be noted as well as the size in published brochures or other media.

2. The proposed contract, utility allowance, and resulting gross rents by unit type. (Gross rent is defined as the cost of renting the unit, including the cost of resident-paid utilities.)

3. Description of any income or rent restrictions imposed on the project by the use of public financing and/or subsidies (e.g., LIHTC, tax-exempt bonds, or subordinate loans). Identify any project-based rental subsidies to be offered, specify the number of subsidized units, the type and form of the assistance, and rent levels compared to market rents.

4. Utility policy describing which costs are paid by the tenant and which costs are paid by the owner/landlord.

5. The unit features, project amenities and services, and associated cost.

6. For rehabilitation projects, provide:

   • A description of the proposed scope of rehabilitation including a breakdown of hard and soft costs, if available.

• An estimate of total construction cost and cost per unit.

• Identification of the existing unit mix and rents including any existing housing subsidies. Current and proposed rents should be compared.

Current and historical (if available) occupancy information.

• An analysis of the current rent roll (if available) to determine if existing tenants will remain income-qualified and/or able to afford the proposed rents.

7. The project location, in terms of:

   • Characteristics of the neighborhood in relation to schools, transportation, shopping, employment centers, social and community services, etc., to include a study of the adequacy of the public facilities that will service the site. The report must include a map showing the site and important neighborhood facilities and amenities.

• Any other locational considerations relevant to the market and marketability of the proposed project.

MAP Guide, March 2021 Go to beginning of Chapter 7

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 7 Page 7-7

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 7 Valuation & Market Analysis 7.5 Content and Format of the Market Study

Go to Table of Contents

• A conclusion concerning the suitability/appropriateness of the site for the proposed use.

8. Other Characteristics, if any, of the proposal that will have a specific bearing on its market prospects and overall marketability.