(a)

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

   1. (A) Housing tax credits under Arkansas’s low-income housing tax credit program (LIHTC);
   2. (B) Tax-exempt bond financing under Arkansas’s volume cap for private activity bonds program;
   3. (C) Funding from the HOME Investment Partnership Program; or
   4. (D) Any of the Arkansas Development Finance Authority's (the "authority") affordable housing programs.
2. (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. (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. (1)

   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.
   2. (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. (2)

   1. (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.
   2. (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.
   3. (C) Market studies performed by a firm that is not on the authority’s approved list will not be accepted.

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

   1. (A) Name, address, telephone number, and email address of person authorizing the market study;
   2. (B) Name, address, telephone number, and email address of person who prepared and certified the market study;
   3. (C) Development type, i.e., acquisition/rehabilitation and/or new construction;
   4. (D) Date of the market study (the market study must be dated within six (6) months prior to the application deadline);
   5. (E) A statement that there exists no identity of interest between the analyst and the applicant or its principals; and
   6. (F) A statement that recommendations and conclusions are based solely on the professional opinion and best efforts of the analyst.

(c)

1. (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. (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. (3) A copy of the page or pages from the source data provider must be included in an appendix to the market study.
4. (4) The footnote must include the appendix number to the source document page.
5. (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. (1) The market study must:

   1. (A) Address all of the items listed below; and
   2. (B) Demonstrate sufficient need in the market area to support the proposed housing.
2. (2) Market studies not meeting these guidelines will not be accepted.
3. (3) Market analysts that do not comply with these guidelines are subject to removal from the authority’s approved list.
4. (4) These guidelines establish the minimum requirements of the authority.
5. (5) Market analysts are expected to include any additional information they consider relevant and necessary to the analysis.