Va 10-9009 Form 2005-2024

Va 10-9009 Form: What You Should Know

The substitute product must be comparable to, and functionally equal to, the product that the applicant is offering and must be sold in the same amount of time, price, and volume as the applicant's other product.” The definition is based on the guidance of the Office of Management and Budget (OMB)  In 2010, OMB issued guidance to agencies on how to evaluate whether a potential alternative is feasible and prudent based on the requirements of Section 4(f) of the Act in 23 CFR 774.17(g). The guidance noted that Section 4(f) required FHA to consider the effect of alternative products on the housing market, specifically the effect of providing more liquidity in a time of financial crisis. FHA was advised that to determine whether an alternative product is feasible, OMB requires  the agency to consider the following factors in order of importance: • What is the overall volume of the alternative product in the marketplace? To determine the overall volume of the alternative product, the agency must assess the impact that the alternative product could have on the overall market and whether a significant minority of the alternative product's sales would occur through direct interactions with the consumer.  • What is the market share of the alternative product in the marketplace? To determine the market share of the alternative product, the agency must assess the relative impact a sale of the alternative product could have on the alternative product's overall market share. To do this, the agency should examine sales data and sales volumes that are reported by competitors of the alternative product, take into consideration information from the company involved in the alternative product's sales, and consider estimates of the potential market size based on published information about the product by the company involved in the alternative product's sales.  • Would the alternative product be adopted in sufficient volume to affect the market share of the overall alternative product? To determine whether the alternative product would be adopted in sufficient volume to affect market share, OMB directs agencies to consider whether a significant majority of its sales are attributable to sales to consumers, whether the product is targeted at a specific group of consumers, and whether sales volumes are similar to that of other products in the marketplace.

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