Keeping you informed and actually having your input is training. Developer fees Do insist that the for-profit developer match your financial investment in the project. If you have to defer some of the developer s fee, make sure the for-profit company defers the same amount on the same terms imposed on you. Project viability Don t blindly accept those complicated spreadsheets. Question the underlying assumptions.
Spreadsheets don t make for long-term viability if the underlying assumptions are unrealistic.
The developer s exit strategy is typically simple at the end of construction, the developer is long gone. You need an exit strategy for the long-term, say 15 to 30 years in the future. First, your tax-exempt status could be in jeopardy. Second, if you are a CHDO, you are required to materially participate in the development and decision-making. Third, if the project fails, it s your agency, not the developer, who the tax credit investors will turn to for financial compensation.