What is the Commissions Maximum Development Cost per Housing Unit?
The Maximum Development Cost per Housing Unit limits the Total Project Costs for all Qualified Projects using HUDs 221(d)(3) Statutory Mortgage Limit Schedules which are included in the current years Application Package. The limitation on development costs applies for the purposes of determining the Equity Gap and the Credit amount. Although the costs in excess of the described limits will be excluded from these calculations, the sources to cover the excess costs will not be excluded (the Equity Gap and the maximum amount of Credit reserved or allocated to a Project will be reduced by the amount that the Total Project Costs exceed the applicable maximum development cost per Housing Unit). In determining the Equity Gap calculation, there is no deduction from Project sources of funds for that amount of financing associated with any portion of the commercial areas, unless such financing specifically identifies in its terms that it is being provided for the commercial area. The HUD 221(d)(
