Operations Summary

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Using data drawn from the Operating Pro-Forma tab, this portion of the Summary tab summarizes income and expenses for Years 1, 2, 5, 10, 15, and 30 of operations. This section is of special interest to potential lenders and investors trying to determine the property's ability to meet expenses and pay debt service.

While useful, this snapshot of the projects first two years is not intended to replace the full operating pro-forma, which should more fully demonstrate the long term sustainability of your project.

Below are definitions of the fields found in this section of the Summary tab and some include links to additional information.

• HOME Rents is the total rental income from HOME units. This figure already takes utility expenses for HOME units into account. As with the other rental income projections, the amount increases each year at the rate you specified.
  
  
• Market Rents is the total rental income from market rate units. This figure does not include utility expenses for these units.
  
  
• Other Affordable Rents is the total rental income from other types of affordable units, besides HOME-assisted units (e.g., Low-Income Housing Tax Credit or Community Development Block Grant units). This figure already takes utility expenses into account.
  
  
• Gross Potential Rent (GPR) is the projected revenue of a property assuming all units are occupied at all times. The Template calculates GPR by adding the total rental income to the other income.
  
  
• Vacancy Loss is calculated, based on data you provided in the Development Pro-Forma tab, as a percentage of GPR.
  
  
• Other Revenue is calculated based on data that you entered under the Rents and Income tab. Many properties supplement their income from rents with income from other services they provide residents, such as access to laundry machines. The amount of other income increases each year at the rate you specified.
  
  
• Effective Gross Income (EGI) is calculated as the GPR less the vacancy loss, plus the other revenue.
  
  
• Total Expenses incurred by a project are calculated by summing the residential expense, replacement reserve amount, operating reserve amount, and property taxes.
  
  
• Net Operating Income (NOI) represents a project's income after expenses. The Template subtracts total expenses from EGI to supply the projected NOI.
  
  
• Cash Flow (After Debt Service) is the amount of income remaining after all debt service has been paid.