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Inclusionary Housing Calculator
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We are filling in values for a hypothetical project in a hypothetical place. You can adjust the affordability requirement to see how much affordable housing can be supported.

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Enter my New Project

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Profit is too low
AFFORDABLE UNITS
AS % OF TOTAL UNITS
PROJECT
DESCRIPTION
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Description

Enter a name or description for this project.
Tenure
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Tenure of units in project

Is the property for Rental or Ownership?
  • Rental
  • Ownership
BASE UNITS
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Base market rate units

Number of units in the building (not including units added as part of a density bonus)
SITE AREA
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Site area

Size of the Property (select feet or acres)
PARKING RATIO (spaces per unit)
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Parking ratio

The parking ratio is the number of parking spaces compared to the number of units in the building. This is often based on local planning/ zoning requirements
UNIT MIX
UNIT SPECIFICATIONS
# units avg. size (sq. ft) approx. rent
Studio
1BR
2BR
3BR
4BR
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AFFORDABILITY
METHOD OF AFFORDABLE PRICE CALCULATION
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Method of Affordable Price Calculation

Income based calculates affordable prices based on a target income category,
Price based calculates prices based on a fixed discount relative to the market price.
  • Income based
  • Price based
AVERAGE LOCAL MARKET HOME PRICE
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Average Local Market Home Price

Published median or average home sales price for the area (not this project)
AVERAGE LOCAL MARKET RENT
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Average Local Market Rent

Published median or average rent for the area (not this project)
AMI: AREA MEDIAN INCOME for a family of 4
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Area median income

Area Median Income is a typical way of measuring affordability levels for housing policy. Defined by the US Department of Housing and Urban Development (HUD) on an annual basis, you can find the latest Area Median Income for your area published by HUD at http://www.huduser.org/portal/datasets/il.html
Affordable units breakdown
AFFORDABILITY LEVELS
of AMI: $
of AMI: $
of AMI: $

This development doesn't contain any affordable units.

Adjust “AFFORDABLE UNITS” at the top of the page to add some affordable units to your development.

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INCENTIVES
DENSITY BONUS
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Density bonus

Density Bonuses are the most common development incentive. Density bonuses allow the developer to increase in the number of market-rate units permitted on the site.
ANNUAL TAX ABATEMENT (per unit)
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Tax abatement

Some juridictions reduce the property taxes owed by owners of properties that offer afforeable units. Enter the annual tax abatement per unit (for all units in the project).
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DEVELOPMENT COST
CONSTRUCTION COSTS
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Construction costs

Construction hard costs are measured in dollars per gross square foot. Construction hard costs include all construction material, labor, and general contractor overhead. Construction costs depend on building type. Buildings built with wood-frames are much cheaper than those built with steel-frames, for example.
LAND COST
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Land cost

This is the price that a developer would need to pay to buy the property (total, per foot or per acre).
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OPERATING COST
RENTAL VACANCY RATE
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Rental vacancy rate

What percent of units in rental property are vacant after the initial lease up period is over? Five percent vacancy is considered fully occupied with regular turnover.
RENTAL OPERATING COST
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Rental operating cost

What is the percent of gross rental revenue that is dedicated to operations and upkeep of the property?
FINANCING
CONSTRUCTION LOAN INTEREST RATE
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Construction loan interest rate

What is the interest rate on a developer's construction loan?
LOAN TO COST RATIO
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Loan to cost ratio

What is the share of the total project cost that a developer finances with the construction loan?
PERMANENT LOAN INTEREST RATE
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Permanent loan interest rate

The interest rate on a developer's permanent loan
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PROFITABILITY
MEASURE OF PROFITABILITY
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Profitability measure

The metric to use in determining the profitability of this project.
  • Profit as a % of Development cost
  • Yield on Cost
  • IRR
  • Residual Land Value
REQUIRED PROFIT (% of development costs)
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Required Profit

What is the Total developer profit as a percent of total development costs required to build this project?
REQUIRED YIELD ON COST
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Required Yield on Cost

The minimum Yield on Cost at which a developer will deem a project feasible. Often this value is near 10%.
CAP RATE
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Capitalization Rate

The Capitalization Rate, or Cap Rate, is the ratio between the Net Operating Income and the Project's value. The Cap Rate is used to calculate the value of a rental property. Cap rates differ between different project types and markets and depending on the level of risk.
Project Name
Total units (inc. bonus)
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Units per acre
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Development cost per unit
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Net Operating Income
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Total Profit
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Profit as % of TDC
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Welcome to the Inclusionary Housing Calculator!
Your goal is to ensure that your project remains financially feasible (with a green check mark) as you change the inputs.
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The right bar contains some more detailed information on your project. This information updates in real time as you make changes to project parameters.
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Let's start by adding some affordable units to your project. You can either drag the white slider, or enter a percentage into the field.

Try setting 10% or more affordable units.
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Notice the changes to your project as you adjust the percentage of affordable units (e.g. costs go up and profit goes down as you add more affordable units). To offset these changes, you might try adding some incentives. Scroll down to the “Incentives” section and experiment with the sliders and fields there. Click “More” on the lower right under Incentives to see more options.
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For more details on the specifications and financials of the current project, click the "Report" button.
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To return to the main calculator page from the Report page, click on the “Home” button.
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The Calculator lets you save multiple projects. When you’re ready, you can use the Save button, and the Projects menu at the right to save and switch between projects.
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Have fun!
The Calculator is meant to invite exploration. Enter some values that reflect a real-world project, or just try out some of the pre-fab templates. Drag sliders, change values, and see how these changes can affect your project.
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