Waiver of Rent per Square Foot Requirement
When reviewing Market Studies, the rent per square foot test may be waived on the Market Study Matrix under certain conditions for acquisition/rehabilitation projects. The following factors may be taken into consideration for a waiver of the rent per square foot. Requests for a waiver to the rent per square foot requirement should be submitted to the CDLAC Executive Director in writing.
For market rate projects that will be converted to rent restricted projects:
- How many existing tenants will income qualify under the new project structure?
- How do proposed maximum rents compare to rents currently paid by tenants?
For projects that are rent restricted prior to acquisition/rehabilitation:
- What percentage of existing tenants will income qualify after rehabilitation?
- What is the likelihood that the existing tenants will stay?
For all projects requesting a waiver of the rent per square foot:
- What is the availability of quality, low-income rental units in the market area?
- What is the vacancy rate in the market area?
- Are there any special circumstances?