The Development Costs tab of the Template walks you through the process of generating a development budget. In addition, data from this tab, combined with data from the HOME and Other Affordable Housing Requirements, Rents and Income, Operating Expenses, and Financing Sources tabs, will generate the operating pro-forma.

To complete the Development Costs tab of the Template, begin by entering information on different development uses. Click on the following links to learn more about types of data on development costs you will be asked to provide in this portion of the Template:

• Acquisition Costs
• Site Work Costs
• Construction / Rehabilitation Costs
• Architectural and Engineering Fees
• Other Owner Costs
• Interim Financing Costs
• Permanent Financing Fees and Expenses
• Developer's Fee
• Initial Project Reserves
• Tenant Relocation Costs
• Project Administration and Management Costs
• Other Development Costs

Next, enter information on the project's construction loan to determine the construction interest cost.

When you have entered all of the inputs on the Development Costs tab, scroll to the bottom of the Excel worksheet to view the Total Development Cost (excluding points). Permanent loan origination fees (points) are calculated later on the Financing Sources tab. Total development cost, together with the cost of points for the first and second mortgages, will help you determine the amount of the financing needed for the project.

Once the Development Costs tab of the Template is complete, proceed to the next tab in the Template, Operating Expenses.