This section of the module walks you through completing the Operating Expenses tab of the HOME Multifamily Underwriting Template. At this point in the module, you should have completed the Development Costs tab of the Template. Now go ahead and click on the Operating Expenses tab to proceed.

After completing this topic, you will be able to:

• Complete the Operating Expenses tab of the HOME Multifamily Underwriting Template;
  
  
• Understand additional information calculated by the Template based on the data you provide; and
  
  
• Describe the typical expenses involved in operating a multifamily affordable housing project.

The Template groups typical operating expenses into four major categories. Click on each category to begin entering data for the project:

• Management Expenses
• Operations and Maintenance Expenses
• Utilities Paid by the Property
• Taxes / Insurance / Reserves / Other Expenses

Next, enter information on the operating expense increase per year. This data will allow the Template to generate projected operating expenses for the Operating Pro-Forma.

Finally, enter additional reserve for replacement information.

Once the Operating Expenses tab of the Template is complete, proceed to the next tab in the Template, Financing Sources.