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Sample Pro Forma Single Famity Rentels construction financing costs and holding costs and/or has equity at risk in the project. Fees are typicallylower if NSP or other sources are funding all holding costs and the developer has little or no equity in theproject' ln general, fees should also be lower for "easy" projects - srch ai a.qui.ing and selling homes ingood condition that require little or no rehabilitation, sometimes fees are est;blished as a specific dollaramount per dwelling unit; this may be appropriate in projects where the per-unit development costs arerelatively low. For example, 15% of a S4o,oo0 total development cost may not be sufficient incentive for adeveloper to participate' Finally, it is generally not a good practice to bottr pay a fee and also reimburse thedeveloper for staffing and other internal costs; this raises the possiblity of ,,double dipping.,, B. OPERATING PRO FORMA The operating Proforma worksheet is designed to summariee a rental project,s bedroom distribution, 'ncome tar8ets, operating income and expenses, net operating income (Noll before debt service, estimateddebt service (from the operating page) and the NSP gap financing needed. This example shows only a singlerental unit and should be adapted as needed by the inAividual project. . First enter the proj€ct Name, Developer Name and Address of property" ' Enter the number of dwelling units of each t1pe. A proforma could be used for several scattered-site unitsin one project, but with single-family rentals, the pro forma will typically be for a single dwelling unit, thoughit might be for a 2-4 unit property. t Enter the estimated monthly rental amounts. These should be based on "rent comparables,, of similarunits in the vicinity of the project, io conditions similar to the after-redeveloment condition of the rentalunit(s) in the project. o No "other income" is included because single-family rentals do not have income from sources such ascommon laundries or renting a function room. ' Next, enter your project's estimated annual expenses in the expense line items. These should be based onpast experience of the developer or data obtained from similar types of rental projects. Maintenance costsof detached or semi-detatched single-family rentals are typically higher than for low-rise apa.tm€nts.However, tenants in scattered-site rental units are typically responsible for grounds maintenance, per theirleases.