Development Sources Summary

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Using data drawn from the Financing Sources tab, this section of the Summary tab shows the sources of the funds that you plan to use to cover development costs.

Participating jurisdictions (PJs), subrecipients, and Community Housing Development Organizations (CHDOs) and developers can work together in a number of ways to make financing for a project work. In addition to making loans with HOME funds, PJs, subrecipients, and CHDOs can provide loan guarantees, thereby increasing the availability of private financing. They can also reduce the risk assumed by developers by acting as the construction lender during the relatively risky early phases of development. Later in the development process, PJs, subrecipients, and CHDOs can mitigate the market risk by referring low-income families seeking housing to developers' units.

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

• First Mortgage is the amount calculated by the Template based upon typical funding constraints imposed by lenders.
  
  
• Amortizing Second Mortgage is used in some projects to supplement the funds received from the first mortgage. Like conventional loans, amortizing second mortgages also require regular payments of both principal and interest.
  
  
• Deferred Payment Loan (1 and 2) is the loan that does not amortize and is repaid only when the property is sold. Remember, not all projects receive these loans.
  
  
• Developer Investment is the amount of funding being provided by the project's equity investors.
  
  
• Tax Credit Equity is the amount of funding received through Low-Income Housing Tax Credits.
  
  
• Grant or Donated Land (1 and 2), which is the amount of funds or lands donated to the project. A cash grant is given with no repayment expectation. Contributed land is the value of land contributed to a project either through a leasing arrangement or a donation.
  
  
• Other Financing refers to funds from other sources, excluding amortized debt from other sources.
  
  
• Custom Loan (1 and 2) is a loan involving complex or atypical financing, for which you manually entered the amount of payments for each year.
  
  
• Total is calculated by summing these seven funding sources listed above.