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We are filling in values for a hypothetical project in a hypothetical place. You can adjust the affordability requirement to see how much affordable housing can be supported.

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FEASIBLE

NOT FEASIBLE

Profit is too low

AFFORDABLE UNITS

AS % OF TOTAL UNITS

Project Summary	Bachelor	1br	2br	3br	4br	Total	%	Area (sq. feet)
Approximate Unit Size
Base Market Rate Units							?
Bonus Units							?
Total Market Rate Units							?
Affordable Units: Level A							?
Affordable Units: Level B							?
Affordable Units: Level C							?
Total Affordable Units							?
Total Project Units							?

Project Unit Mix

Project Units Breakdown

Rent Schedule	Bachelor	1br	2br	3br	4br	Total	%
Market Rate Units							?
Bonus Unit Total							?
Affordable Level A							?
Affordable Level B							?
Affordable Level C							?
Commercial Space Rent
Other Rental Income
Gross Potential Income / mo

Price Schedule	Bachelor	1br	2br	3br	4br	Gross Sales Proceeds	%
Market Rate Units							?
Bonus Unit Total							?
Affordable Level A							?
Affordable Level B							?
Affordable Level C							?
Gross Sales Proceeds							?

Project Size	acres	sq. feet
Unloaded Area
Common Area
Commercial Space
Total Built Area
Site Area
Floor Area Ratio
Dwelling Units/Acre

Parking	%	#
Parking Ratio (spaces per unit)	?
Parking Reduction Incentive
Net Parking Ratio

Rental Income & Project Value
Gross Potential Income (annual)
Less Vacancy
Gross Rental Income
Less Operating Costs
Tax Abatement
Net Operating Income (NOI)
Cap Rate
Gross Value
Sales Marketing Costs
Net Project Value

Revenue & Project Value
Gross Sales Proceeds
Sales Marketing Cost
Net Project Value

Cost Analysis	$	% of TDC
Construction Costs
Parking Costs
Residential Impact Fees
Community Benefits Fee
Tarion Home Warranty Fee
Soft Costs
Other development costs
SubTotal Hard and Soft Costs
Financing Costs
Construction Loan Amount
Interest on Construction Loan
Points on Construction Loan
Land Costs
Gross Development Cost
Affordable Housing Subsidies
Net Total Development Cost (TDC)
TDC Per Unit

Profitability	$	Profit as % of TDC	Yield on Cost
Estimated Profit
Minimum Profit
Is Project Feasible?
Value Capture Opportunity
Residual Land Value

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PROJECT

Units per acre: 0
Total square feet: 0
Total parking spaces: 0

DESCRIPTION

Description

Enter a name or description for this project.

Tenure

Rental or Ownership

Rental
Ownership

BASE UNITS

Base Units

Number of units in the building (excluding any density bonus units)

SITE AREA

Site Area (acres or hectares)

Size of the property (in acres or hectares) on which the project will be built

PARKING RATIO (spaces per unit)

Parking Ratio (spaces per unit)

The number of parking spaces compared to the number of units in the building. Generally based on local planning/zoning requirements.

COMMON AREA %

Common Area %

The share of the overall building that is made up of hallways, common space, etc. instead of individual units.

COMMERCIAL SPACE (sq ft)

Commercial Space (square feet)

The size (in square feet) of any retail or office space in the project

COMMERCIAL RENT (per sq ft, per month)

Commercial Rent (per sq ft, per month)

The rent per square foot per month for any retail or office space in the project

OTHER RENTAL INCOME (per month)

Other Rental Income (per month)

The total monthly income from any other source such as parking or laundry fees

UNIT MIX

Basic Mode
Detailed Mode

AVERAGE MARKET RENT

Average Market Rent (per month)

The average rent for units in this development

AVERAGE MARKET PRICE

Average Market Price

The average price for units in this development

	UNIT SPECIFICATIONS
	# units	avg. size (sq. ft)	approx. rent
Bachelor
1BR
2BR
3BR
4BR

AFFORDABILITY

Total affordable units: 0
Total affordable housing fee: 0

AFFORDABLE UNITS AS % OF TOTAL UNITS

Affordable Units as % of Total Units

The share of housing units in a project that are sold or rented at a regulated affordable price

METHOD OF AFFORDABLE PRICE CALCULATION

Method of Affordable Price Calculation

'Price based' calculates prices based on a fixed discount relative to the market price. With 'Custom' you must input your own prices for each size and type of unit.

Price based
Custom

AVERAGE LOCAL MARKET HOME PRICE

Average Local Market Home Price

Published median or average home sales price for the area (not this project)

AVERAGE LOCAL MARKET RENT

Average Local Market Rent

Published median or average rent for the area (not this project)

COMMUNITY BENEFIT FEE

Community Benefit Fee (per unit)

Some communities require or allow payment of a fee to support development of affordable housing instead of providing onsite units. Note: be sure to set Affordable Units to 0% if you intend for this fee to take the place of onsite units

HOMEBUYER MORTGAGE RATE

Homebuyer Mortgage Rate

The interest rate that homebuyers will pay on their mortgage loans.

PROPERTY TAXES

Property Taxes

Property tax rate that the owner will pay

INSURANCE

Insurance

Cost of property insurance as a percent of total property cost

MAINTENANCE CHARGES

Maintenance Charges (per month)

Maintenance charges are charged to all condominium and townhouse units as well as to many single-family units in planned developments.

AFFORDABILITY STANDARD

Affordability standard

The percent of household income that can reasonably go towards total housing costs, typically between 30 and 35%.

ASSUMED DOWN PAYMENT

Assumed Down Payment

The amount of equity that a buyer invests in a new home - usually no less than 5%.

Affordable units breakdown

	bchlr	1br
	Affordability Levels When using Income-Based affordability calculation, only the dollar values affect calculations. The percentile income is just a label for reference.	AFFORDABILITY LEVELS
A		percentile income: of AMI of market
B		percentile income: of AMI of market
C		percentile income: of AMI of market

This development doesn't contain any affordable units.

Adjust “AFFORDABLE UNITS” at the top of the page to add some affordable units to your development.

INCENTIVES

AVAILABLE INCENTIVES make small

Density Bonus

An allowance for additional bonus units.

Parking Reduction

The developer is required to build fewer parking spaces.

Streamlined Processing

The process of applications, permitting etc. is expedited.

Fee Reduction

A reduction in fee, based on the number of units.

Upfront Capital Grant

Any grant or deferred payment loan (incl. Prov./Fed. Grants)

Annual Operating Grant

Any annual grant or operating subsidy including TIEG grants.

MY INCENTIVES

Click on the incentives you’d like to add to the project.

Units per acre: 0
Total Square Feet: 0
Total Parking Spaces: 0

DEVELOPMENT COST

Total Development Costs per square foot: 0
Development cost per unit: 0

CONSTRUCTION COSTS

Construction Costs (per sq ft, per sq meter, total cost, or cost per unit)

Construction hard costs include all construction material, labour, and general contractor overhead. Construction costs depend on building type. Buildings built with wood frames are much cheaper than those built with concrete or steel frames, for example.

LAND COST

Land Cost (per acre, per hectare, total cost, or cost per unit)

This is the price that a developer would need to pay to acquire the property.

ALLOWABLE LAND COST

Allowable Land Cost

The maximum amount a developer can spend on land while staying within profitability requirements. This number is calculated for you when in Residual Land Value mode.

COST PER PARKING SPACE

Cost per Parking Space

The cost of parking depends on the type of parking being provided. It costs far more to build a parking space underground or in a parking garage than it costs to build a surface parking space.

SALES AND MARKETING COSTS

Sales and Marketing Costs (as % of the sales price of the property)

Cost of real estate commissions and other sales and marketing costs.

SOFT COSTS (as % of hard costs)

Soft Costs (as % of hard costs)

All Soft Costs excluding Development Charges (see below); These typically range between 15 and 25% of hard costs. Soft costs include: - architectural and engineering costs - legal and insurance fees - planning approval fees - environmental clearance and building permits (also called entitlements) - other professional consulting fees or costs not connected to the physical building of the project. Financing costs are included below under financing.

OTHER DEVELOPMENT COSTS (total)

Other Development Costs (total)

Include any other special costs such as landscaping, street furniture, lighting, and other outdoor amenities.

DEVELOPMENT CHARGES

Development Charges (per unit)

Insert development charges (if any) imposed by the municipality on the project.

TARION HOME WARRANTY FEE (per unit)

Condo wrap insurance / Tarion Home Warranty Fee (per unit)

Developers of for-sale condominiums buy 'wrap insurance' that covers any potential risks and liabilities during the construction and sale of the units. Enter the cost per unit.

OPERATING COST

Net Operating Income: 0

RENTAL VACANCY RATE

Rental Vacancy Rate (% of units)

The percent of units in a rental property that are vacant after the initial lease-up period is over. Five percent vacancy is considered fully occupied with regular turnover.

RENTAL OPERATING COST

Rental Operating Cost (% of gross revenue)

The percent of gross rental revenue that is dedicated to operations and upkeep.

FINANCING

Construction Loan Amount: 0
Development Costs per Unit: 0

CONSTRUCTION LOAN INTEREST RATE

Construction Loan Interest Rate

The interest rate on a developer's construction loan

LOAN TO COST RATIO

Loan to Cost Ratio

The share of the total project cost that a developer finances with the construction loan

PERIOD OF INITIAL LOAN (months)

Period of Initial Loan (Months)

The likely construction period for a project (in months)

INITIAL CONSTRUCTION LOAN FEE (points)

Initial Construction Loan Fee (Points)

The fee paid to a lender at closing on a construction loan (as a % of the total loan amount)

AVERAGE OUTSTANDING BALANCE

Average Outstanding Balance

Construction loans are drawn down as funds are needed to pay for development expenses so the total cost in interest is dependent on the pace of development. The Average Outstanding Balance is the share of the total that is outstanding on average in each month of construction.

PROFITABILITY

Total Profit: 0

MEASURE OF PROFITABILITY

Measure of Profitability

Which measure or profitability will be used to determine whether the project is financially feasible?

Profit as a % of Development cost
Yield on Cost
Residual Land Value

REQUIRED PROFIT (% of development costs)

Required Profit (% of development costs)

The total developer profit as a percent of total development costs required to build this project. The project is considered feasible if the profit is above this threshold.

REQUIRED YIELD ON COST

Required Yield on Cost

The minimum yield on cost at which a developer will deem a project feasible. Often this value is near 10%.

CAP RATE

Cap Rate

The capitalization rate, or 'cap rate,' is the ratio between the Net Operating Income and the project's value. The cap rate is used to calculate the value of a rental property. Cap rates differ among different project types and markets and depending on the level of risk.

Yield on Cost and Cap Rate

Generally the Required Yield on Cost and the Cap Rate change together. Developers commonly expect to earn a yield that is 1 to 2 percentage points higher than the relevant cap rate. When cap rates rise or fall, expected yields tend to rise or fall with them. If you are changing one of these inputs, consider adjusting the other by a similar amount.



This calculator is designed as an educational resource to help policymakers understand real estate feasibility. It it not meant to serve as a substitute for professional real estate feasibility analysis. The calculator does not model long term cash flows or Internal Rate of Return

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