7.6.8 Section 223(f)

A. For Section 223(f), calculate all three approaches to value for subjects that have an actual age of less than ten years. The appraisal for the 223(f) refinancing should assume market value for purposes of developing Criterion 3 and should further assume that any proposed repairs/improvements have been completed, as rents, expenses, and value must reflect completion of any proposed repairs or improvements. Not all repairs/improvements will result in an increase in value. Structural repairs, utility line improvements, or other repairs that do not directly result in an increase in market share or would not result in a resident’s willingness to pay an increased rental amount likely will not increase value. Any proposed rental increase must be demonstrated by market data.