New Rent Comparability Checklist May Impact Owners and Agents
August 21, 2014
HUD recently conducted a nationwide review of Rent Comparability Studies. As a result of their evaluation, HUD determined there were numerous issues related to the initial and substantive review of the RCS. Consequently, HUD created a more comprehensive checklist for use by Project Based Contract Administrators and Appraisers.
Effective September 1, 2014 HUD requires all PBCAs and their appraisers to utilize a new checklist for reviewing Rent Comparability Studies submitted by Owners and Agents.
As part of NTHDC’s initial review of the Owner’s RCS, we will review for compliance with Chapter 9 of the Section 8 Renewal Guide.
Section 9-14 of the Renewal Guide prescribes a specific order in which the documents within the Rent Comparability Study must be arranged. The order is as follows:
1. Appraiser’s Transmittal Letter
2. Scope of Work
3. Description of Subject Property (including color photographs)
4. Identification of the Subject’s Market Area
5. Description of Neighborhood
6. Narrative Describing Selection of Comparables
7. Locator Map for Subject and Comparables
8. Rent Comparability Grid for Each Primary Unit Type
9. Narrative Explaining Adjustments and Market Rent Conclusions (one set of explanations for each Rent Grid)
10.Comparable Property Profiles (each including a color photograph)
11.Appraiser’s Certification
12.Copy of Appraiser’s License (only if relying upon a temporary license)
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