Rents & Operations
Alphabet Soup
Sources and Uses
Formula for What
Leftovers
100
Percentage of income used for housing generally considered "affordable"
What is 30%?
100
CCRH
What is the California Coalition for Rural Housing?
100
Preliminary engineering studies, Phase I environmental study, land appraisal, for example.
What are predevelopment expenses?
100
(rental income) - (vacancy allowance)
What is effective gross income (EGI)?
100
99.99%
What is the ownership percentage of the tax credit investor limited partner?
200
Federal program providing 15 - 20 years of rent subsidies.
What is Section 8?
200
AMI
What is the area median income?
200
20% for prevailing wages, 10% for elevator, 2% for child care, for example.
What are TCAC threshold basis limit boosts?
200
loan amount * interest rate * number of months * average outstanding loan balance
What is construction period interest?
200
F9
What is "recalculate?"
300
The amount deducted from the projected unit rent to account for tenants paying their own utilities.
What is a utility allowance?
300
EGI
What is effective gross income?
300
The sum of depreciable residential development costs used to determine the amount of low-income housing tax credits.
What is eligible basis?
300
=PV(rate / 12, term * 12, -(NOI/12/debt coverage ratio)
What is the amount of supportable mortgage debt?
300
2.5% and 3.5%
What are typical annual increases in income and expenses, respectively, used for underwriting?
400
Utilities, insurance, maintenance, repairs, management fees are examples of these.
What are operating expenses?
400
CTCAC or TCAC
What is the California Tax Credit Allocation Committee?
400
It's the source you still need when all your other sources of funds aren't enough to pay all development costs.
What is the gap?
400
Eligible basis * federal credit rate
What is the annual low income housing tax credit amount?
400
Capitalized operating reserves, permanent loan closing costs, and some developer fee, for example.
What are costs typically incurred after construction completion?
500
Gross rent on 2BR unit targeted at 50% of the area median income where 100% of median income for 3 person household is $96,000.
What is $1,200?
500
VHHP
What is the Veterans' Housing and Homelessness Prevention Program?
500
Net operating income from operations is used to leverage this, which is borrowed from a bank.
What is a mortgage?
500
= (total public funds)* (1 + 25% of % of units with rent or operating subsidy)
What is the first part of the 9% tiebreaker?
500
3.18% and 9% in July 2016.
What are the current "4%" and "9%" tax credit rates?
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