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Sample Pro Forma Single Family Rentalsv. rv..tr.ro!change orders' Typical contingency amounts for rental rehab projects are 10% to 15%. Typically, the morecarefully the project has been evaluated and specifications identified, the lower the contingency amountneeded.Soft Costsr Architecturalfees should be based on estimates from an architect. These fees may be based on a certainpercentage of the construction contract amount, a fee per dwelling unit, a flat fee for services, or anotherbasis. With rental rehab projects, the specifications and cost estimates are often completed by a rehabspecialist, either a specialist on the developer's staff or a contracted specialist. Note that design andconstruction management costs could be $o for budgeting purposes if the developer fee has been calculatedto pay for all project planning and management costs-' The engineering fee should also include mechanical or structural engineering costs, if any, incurred as partofthe design process.r Environmental review costs could include the cost of a third-party contractor completing reviews requiredto determine clearance; the third-pafi reviews would need to be approved by the grantee or other"responsible entity".r A survey prior to acquisition may or may not be required by NSP grantees for single-family programs. priorto providing construction or permanent financing, it may be required by the mortgage lender. A survey canreveal easements that make sorne of the land unbuildable.r As-is appraisals are required in NSP for foreclosed properties, to determine if the selling price is at least 1%above the market value. lt is a good practice to ask the appraiser or another entity to provide ,,comparablerents" for the housing units in completed condition, based on a transmittal of the plans and specifications orinspection of the unit(s) after the redevelopment is complete. The "rent comparables" should be used toestablish the rents in the operating pro forma.' Propertylcasualty insurance should be obtained by the developer for the interim period before builder'sr::y::::i:T::i:': ?IlT-l'_:1"-1,:::?t::l::,::ir:"",i:::1,:_T:l_l'i::53:y:l'n"*u,d obtain