The agency & primary document
- Allocating agency
- Connecticut Housing Finance Authority (CHFA)
- QAP / guidelines
- https://www.chfa.org/developers/tax-credit-program/lihtc/
- Governing document
- CHFA Appraisal & Market Study Guidelines (Rev. 09/2025) + 2026 LIHTC QAP
- Methodology
- Agency-specific standalone methodology
Required market study sections
Connecticut uses its own standalone market study methodology rather than the NCHMA Model Content Standards. Agency-commissioned model — CHFA orders the market study directly and the analyst's client is CHFA, not the developer. CHFA publishes its own Supplementary Criteria for Market Study Reports (full narrative, 20-item content list). NCHMA is not the controlling standard.
Key Connecticut rules
- Staleness window
- 12 months from date of study at time of application; CHFA may request an update if original study is more than 12 months old or scope has materially changed
Connecticut-specific overlays
- Agency-commissioned model — CHFA engages the market analyst directly; for 9% LIHTC-only transactions without CHFA lending, applicants make full non-refundable payment for the study in advance
- Subcontracting the market study assignment is expressly forbidden without CHFA prior written consent
- Market analyst must verify with CHFA's staff Underwriter that the most current underwriting model has been incorporated in the study
- Market study must be 'complete and self-contained' — CHFA must be able to understand all conclusions without referencing any other documents
- PMA delineation must be based on telephone interviews with local/regional planning agencies, realtors, competitive facilities, and other referral sources (not just desk research)
- Demographic analysis must reference national, New England, State, county, and primary/secondary market area levels
- Comparable rental adjustment grids required with detailed adjustment analyses
- Absorption analysis required: analyst must identify most probable absorption rate between lease-up commencement and sustained occupancy
- For not-for-profit sponsor projects with 15 or fewer units, or projects with project-based rental assistance for all units, CHFA may waive standalone market study requirement
Required companion documents
- Copy of CHFA Statement of Work / Agreement (inclusive of Supplementary Criteria) — must be included as an exhibit in the market study report per Supplementary Criteria item 19
- Market Analyst professional credentials (photocopies included as exhibits per Supplementary Criteria item 1)
Things analysts miss in Connecticut
- CHFA (Connecticut) shares the same abbreviation as Colorado CHFA — always confirm context; Connecticut is chfa.org, Colorado is chfainfo.com
- Market study deliverable timeline is 6 weeks from receipt of all relevant information — longer than most states
- For LIHTC-only proposals (no CHFA mortgage financing), CHFA may at its discretion accept a market study provided by the applicant rather than ordering one itself
- CHFA's Supplementary Criteria require a complete copy of the CHFA agreement to be included as a report exhibit — missing this is a compliance failure
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Start a free Connecticut report →Frequently asked questions
Who reviews LIHTC market studies in Connecticut?
Connecticut Housing Finance Authority (CHFA) sets the market study requirements and reviews submissions for Connecticut Low-Income Housing Tax Credit applications.
How current must a Connecticut LIHTC market study be?
12 months from date of study at time of application; CHFA may request an update if original study is more than 12 months old or scope has materially changed
Does Connecticut follow NCHMA standards?
Agency-commissioned model — CHFA orders the market study directly and the analyst's client is CHFA, not the developer. CHFA publishes its own Supplementary Criteria for Market Study Reports (full narrative, 20-item content list). NCHMA is not the controlling standard.
Other states
This summary is for general reference and reflects Connecticut Housing Finance Authority (CHFA)'s published guidance as understood by StudyScribe; it is not legal or compliance advice. Always confirm requirements against the current QAP / market study guidelines before submission.