Debt Financing
The three letters typically used to describe a project's NOI relative to debt payment
What is DCR?
A typical amount of revenue realized by building owners from laundry machines per unit per month is $.6? $6? or $60?
What is $6?
LIHTC was introduced in this year.
What is 1986?
Architecture costs are this kind of cost (direct or indirect)?
What is indirect?
This federal source that begins with the letter H is administered by states, counties, cities and participating jurisdictions.
What is HOME?
A typical permanent loan term (repayment period) in affordable housing
What is 16,17 or 18 years?
Project revenue less vacancy and expenses is often referred to as these three letters.
What is NOI?
Investors in LIHTC deals receive this kind of tax benefit in addition to tax credits.
What are passive losses?
The costs associated with title insurance and recording documents such as a Deed of Trust or Regulatory Agreement as part of a closing are referred to as these costs.
What are title and recording costs?
An HCD funding program that is available for infrastructure costs is called this.
What is the Infill Infrastructure Grant Program (IIG)?
When a loan has a shorter term than amortization period, the payment due at the end of the term is often called this.
What is a balloon payment?
Insurance is typically a development cost, operating cost or both.
What is both?
Tax exempt bonds must be used to pay for what percent of basis plus land in order to receive credits?
What is at least 25%(!)?
A line item used as cushion to pay for unexpected costs or overruns is referred to as this.
What is contingency?
Instead of fixed payments, soft loans are often repaid out of this form of cash flow.
What is surplus cash or residual receipts?
Perm loan interest rates are often calculated with a spread over this I-letter word?
What is index?
When an income qualified tenant moves out of an affordable development, the next tenant typically does or does not need to income qualify?
What is does need to income qualify?
Land, permanent loan fees and marketing costs all have this in common.
What is not included in basis?
In affordable housing, which reserve would more typically be capitalized (included in the development budget) - operating reserve or replacement reserve?
What is operating reserve?
Since AB434 passed in 2022, HCD issues this notice with funds are available for MHP, IIG, Serna and VHHP.
What is the SuperNOFA?
Construction loans are often priced off of this index.
What is SOFR (Secured Overnight Financing Rate)?
TCAC requires that income and expense escalation assumptions be separated by at least this amount.
What is 1%?
The general partner (or an affiliate) often has these three mechanisms for acquiring the project or interests from the limited partner at the end of the compliance period.
What is the option to purchase, right of first refusal, put option?
An operating reserve that is capitalized typically includes 3 to 6 months worth of these three things.
What are operating expenses, debt service and reserve contributions?
HCD requires this per unit amount as the annual replacement reserve contribution.
What is $500?