7.8.6 Expense Adjustments

A. Project expenses must be expressed in the same units of comparison in order to ensure accurate adjustments and correct reporting of expense estimates. Consistent adjustments for significant differences between the comparables and the subject units shall be derived from the market and applied to the subject expense estimate.

B. The appraiser must enter the dollar amounts attributable to significant differences between the subject proposal and each of the expense comparables, such as for physical characteristics, equipment, services provided, the level of management furnished to residents, and any differences in rates between tax and utility jurisdictions. The appraiser must also correlate the comparable expense for each component which is applicable to the subject project.