Rents and Operations
Percent of income paid for housing considered"affordable" by housing programs.
What is 30%?
CCRH
What is California Coalition for Rural Housing?
Expenses for early architect and engineering studies, Phase I environmental study, land appraisal, for example.
a) operating budget;
b) predevelopment expenses;
c) General Contractor expenses;
d) utility allowances
What are predevelopment expenses?
(rental income) - (vacancy allowance) equals this.
a) EGI;
b) NOI;
c) AMI;
d) LP
What is effective gross income (or EGI)?
99.99%
What is the percentage ownership by the tax credit investor limited partner?
Federal program providing 15 or 20 year rent subsidy contract for tenants.
What is Section 8?
AMI
What is area median income?
In the TCAC application, 20% for prevailing wages, 10% for elevator, 2% for child care, for example.
a) qualified census tract boost;
b) operating expense boosts;
c) tiebreaker points;
d) threshold basis boosts
What are TCAC's threshold basis boosts?
Construction loan amount * interest rate * number of months * average outstanding loan balance equals this.
What is interest on the construction loan during the construction period?
F9
What is the Excel calculate function key?
Reduction from gross rent for tenant to pay electric and water bills, for example.
What is a utility allowance?
EGI
What is Effective Gross Income?
The list of residential development costs from which the low-income housing tax credits are calculated.
What is eligible basis?
= (total public funds) / (total residential costs)
What is Part 1 of 9% TCAC tiebreaker?
2.5% and 3.5% per year
What are typical annual increases in income and expenses used for underwriting by most lenders and investors?
The budget that includes expenses like maintenance, insurance, property management fee
What is the operating budget?
CTCAC
What is California Tax Credit Allocation Committee?
Total estimated project costs minus all of your sources committed so far.
a) the mortgage;
b) the gap;
c) the investor equity;
d) excess costs
What is the gap?
Eligible basis * federal credit rate equals this.
a) basis boost;
b) part II of tiebreaker;
c) annual federal credit amount;
d) state credit amount
What is annual federal credit amount?
Of the following costs, the one NOT included in eligible basis: architect fees, developer fee, land.
What is land?
The gross rent on a two bedroom unit targeted at 50% of Area Median Income where 100% of Area Median Income for a three person household is $6,000/month. a)$900; b)$1000; c) $500; d) $750
What is $900?
NOI
What is Net Operating Income?
Net operating income is used to leverage this, from a bank.
a) investor equity;
b) soft loan;
c) conventional mortgage;
d) deferred developer fee
What is a conventional mortgage?
=NOI / Debt
What is debt coverage ratio?
Capitalized operating reserves, permanent loan closing costs, and most of the developer fee, for example.
What are costs typically incurred after the construction period is complete?