LIHTC Market Study Requirements in North Dakota

The agency & primary document

Allocating agency

North Dakota Housing Finance Agency (NDHFA)

QAP / guidelines

https://www.ndhfa.org/developers/lihtc/

Governing document

2026 LIHTC Allocation Plan §5.J Housing Need (two paragraphs)

Methodology

NCHMA Model Content Standards

Required market study sections

North Dakota market studies follow the NCHMA Model Content Standards. The required sections are:

• Executive Summary — Concise summary of each section including data, analysis, and conclusions. 11 minimum content items including feasibility opinion, strengths/weaknesses, absorption estimate.
• Introduction and Scope of Work — Purpose, intended use, intended users, scope of work, effective date, physical inspection date.
• Project Description — Unit mix, utilities, target market, unit and community amenities, construction date. If rehab: scope of work, existing rents and vacancies.
• Location — Site description, site photos/maps, community services map, neighborhood evaluation (visibility, accessibility, crime).
• Market Area Definition — PMA description and rationale, PMA map. Extended/secondary market area if applicable.
• Employment and Economy — Employment trends, employment by sector, unemployment rates, major employers and proximity, planned expansions/reductions.
• Demographic Characteristics — Population and household estimates/projections, building permits, household characteristics (income, tenure, size). Senior/special needs: target-market data.
• Competitive Environment — Comparable profiles and photos, map of comps, vacancy and rents analysis, subject comparison, affordable housing alternatives, pipeline projects.
• Affordability Analysis, Demand Analysis, Capture Rates, and Penetration Rates — Demand estimate, affordability analysis, capture rate, penetration rate.
• Local Perspective of Rental Housing Market and Housing Alternatives — NEW in MCS 3.1 (September 2025). Local market context and housing alternatives beyond standard comparable analysis.
• Analysis / Conclusions — Absorption rate and lease-up timeline, market feasibility statement, strengths and weaknesses, key conclusions reconciling any conflicting indicators, recommendations if any.
• Other Requirements — Analyst qualifications, data sources, physical inspection date, limiting conditions, signed certification.

Key North Dakota rules

North Dakota-specific overlays

• Two separate findings both required: (a) sufficient sustained demand AND (b) no adverse impact on existing affordable — do not combine into one finding
• Per-cycle per-city cap of two projects — analyst should identify if the concentration limit applies
• Disinterested-party required

Things analysts miss in North Dakota

• NCHMA IS the methodology — the state has minimal overlay; apply full NCHMA MCS and layer the two required separate findings

Frequently asked questions

Who reviews LIHTC market studies in North Dakota?

North Dakota Housing Finance Agency (NDHFA) sets the market study requirements and reviews submissions for North Dakota Low-Income Housing Tax Credit applications.

How current must a North Dakota LIHTC market study be?

Annual cycle; 6 months from Application Close Date

Does North Dakota follow NCHMA standards?

North Dakota market studies follow the NCHMA Model Content Standards section structure — NDHFA defers fully to NCHMA Model Content Standards. No state-specific prescribed assumptions for capture rate, absorption, PMA radius, or rent burden..

Other states

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This summary is for general reference and reflects North Dakota Housing Finance Agency (NDHFA)'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.