This section of the module walks you through the Operating Pro-Forma tab of the HOME Multifamily Underwriting Template. At this point, you should have completed or skipped the Custom Loans tab and completed the preceding tabs of the Template. Click on the Operating Pro-Forma tab to proceed.

After completing this section of the module, you will be able to:

• Understand the operating pro-forma as calculated and presented by the Template based on data you have provided; and
  
• Describe the underwriting concepts involved in assembling and using an operating pro-forma for a multifamily affordable housing project.

To begin, an operating pro-forma is a year-by-year projection of a project's expenses and income. Using the operating pro-forma, you can get a sense of your project's long-term viability and potential for generating profit.

The operating pro-forma is of particular interest to the project's investors and lenders. These projections allow investors to assess their return on investment, while lenders are interested in ensuring that their loans are likely to be repaid. For these reasons, the operating pro-forma is a standard component of presentations to prospective investors and lenders.

Let's continue the training on this section by clicking on: The Operating Pro-Forma and the HOME Multifamily Underwriting Template.