FOR IMMEDIATE RELEASE
Press Contact: Thom Amdur, Executive Director
National Housing & Rehabilitation Association
202-939-1753 or tamdur@housingonline.com
National Housing Organization Announces Guidelines for Determining Feasibility of Multifamily Housing Developments
Washington, DC — February 12, 2013 — The National Council of Housing Market Analysts (NCHMA), a professional association of real estate market analysts and appraisers, has announced a new version of the organization’s Model Content Standards for Rental Housing Market Studies and Market Study Index. These documents contain recommended guidelines for the content of market studies prepared by market analysts on proposed new construction or substantial rehabilitation of multifamily housing projects.
A market study is a comprehensive 3rd party independent analysis used by developers, housing finance agencies, lenders, equity investors and local governments to determine the feasibility of a proposed real estate development. Key features include assessment of the primary market area, supply and comparable property analysis, demographic and employment trends and rent derivation. NCHMA’s Model Content Standards are the only national standards for rental housing market analysis.
The release of the revised documents coincides with an ongoing rebranding and expansion of NCHMA’s organization’s mission, which began in 2012, to include members and address issues relating to conventional multifamily housing in addition to those in the affordable multifamily rental housing field.
“Nationally housing markets are finally beginning to recover after a financial crisis brought on in part by inadequate underwriting and poor understanding of markets. As such, it is a particularly opportune moment for the housing and real estate finance industries to adopt guidelines and best practices as part of improved underwriting practices,” says Thom Amdur, Executive Director of NCHMA. “We believe these updated and reorganized documents identify the key issues that every market study should address while providing enough flexibility for market analysts to meet individual client needs and preferences. These documents provide a firm foundation for affordable rental housing development as well as properties insured by the Federal Housing Administration and other market-rate rental housing.”
The new version of NCHMA’s Model Content Standards is the result of more than three years of research and industry input and was adopted by the Association’s membership by an overwhelming majority. The Council will continue to collect additional feedback and comments on the revised documents from its housing partners — including the U.S. Department of Housing and Urban Development, syndicators, investors and other market study users. The documents are posted at www.housingonline.com/NCHMAModelContent.aspx.
Created in 2001, the National Council of Housing Market Analysts (NCHMA), formerly the National Council of Affordable Housing Market Analysts, is the only professional body dedicated exclusively to the field of residential rental real estate market analysis. NCHMA’s members are comprised of professionals involved in performing and reviewing residential market studies.
The Council presents opportunities for market analysts to discuss current issues, network and gain state-of-the-art information. Since its formation in 2001, NCHMA has developed an extensive body of work including our Model Content Standards for Market Studies for Affordable Rental Housing, Market Study Terminology, Market Study Index, Code of Ethics and Standards of Professional Practice, and a series of white papers on key market study related topics including:
- Factors to Consider in Market Analyses of a Preservation Property
- Recommended Practices for Analyzing Turnover
- Calculating Market Rent
- Selecting Comparable Properties
- Determining Market Area
- Recommended Practices for Determining Demand
Visit the NCHMA resources page to learn more about these reports. In addition, through multi-day forums and state HFA sponsored seminars, the Council brings market analysts together to share ideas among themselves – and with state agencies, equity syndicators, developers, local governments and other market study users. To date, the organization has primarily focused on opportunities related to affordable housing rental development.
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