Training

Rental Housing Development Finance

HD420 – Rental Housing Development Finance.  The second course in the HDFP certification program, first course in the RHDFP certification program, examines in detail the financing and developing of rental property.  The course emphasizes the criteria used by lenders and investors to decide if they will put money into a project.  The course also explores methods to attract private funds and the use of public funds to fill financing gaps.  Topics include:

Rental Housing Development Process

• Key actors and their concerns
• Steps in developing rental housing

Preparing Financial Projections

• Pro forma income and expense analysis
• Sources and uses of funds statements

Private Financing

• Permanent lender ratio analysis
• Construction lender analysis
• Construction management

Appraisals

• Three approaches to value

Tax Credits

• Historic Rehabilitation Tax Credits
• Low-Income Housing Tax Credits

Discounted Cash Flow Analysis

• Present value theory
• Internal rate of return

Syndication

• Pricing benefits
• Investor concerns
• Key partnership issues

Deal Structuring

• Altering rates of return
• Debt and equity investment vehicles

Prerequisite:  While not required, NDC recommends completing HD410 before taking HD420