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Funding to make up the gap can come from a number of sources such as Community Development Block Grant, HOME Partnership, Fannie Mae's American Community Fund, Historic Preservation and Low Income Tax Credit programs and foundations. In order to make the project attractive to developers, the Development Corporation and the City should reduce as many of the pre-development expenses as possible and then utilize existing incentive programs during the development and sales phases of the project. As illustrated in the Pre-Development and Development Responsibilities diagrams above, removing up to 40% of those pre-development costs from the developer's responsibility should create an investment scenario that is attractive to a number of developers.
Public and non-profit investment in pre-development phases could assist with property acquisition, site planning, surveying, preliminary architectural work, engineering and site preparation. Public investment provided during development would primarily be in the form of existing incentives and potential new homeownership incentives, such as employee downpayment or closing costs assistance from the hospital, City or County.
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Financial Analysis |
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Pre-Development Costs |
Development Costs |
Total |
| Total |
$1,985,750 |
$10,200,000 |
$12,185,750 |
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| City/Development Corp. |
$794,300 |
$2,040,000 |
$2,834,300 |
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Private Sector
(conventional financing) |
$1,191,450 |
$8,160,000 |
$9,351,450 |
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Public-private leverage of 2:3 |
Public-private leverage of 1:4 |
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Related to A Development Plan for the Center City Neighborhood |
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