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2015 LIHTC - Pro forma - Construction Interest

PostPosted: Mon Apr 20, 2015 1:39 pm
by DSHA Dev Staff
DSHA’s pro forma has an automatic calculation of projected interest during the construction term. DSHA recognizes that some lenders may require additional construction interest as a hedge against longer construction periods. However, to the extent that the construction line item was increased beyond the amount automatically calculated by DSHA’s pro forma, the construction interest remaining at the conversion date will be applied to reduce the HDF debt. If there is no HDF debt on the project, then the amount remaining in the construction line item will be used to reduce other debt. The amount of interest remaining may not be applied to other line items, except at the discretion of DSHA.