Development Financial Model
A development financial model can be an intimidating set of information to collect, input and interpret. There are many values. Terms are not always well explained. It can be difficult to interpret the outputs. This tool provides a starting point for completing a financial model similar to those you will need to complete for funding applications. Additional instructions, descriptions and contextual information is included to help you.
The tool consists of 5 worksheets intended to be completed in the following order:
- Development Costs: Captures the costs to develop your project.
- Operating Pro Forma: Summarizes a rental project's bedroom distribution, income targets, operating income and expenses.
- Permanent Financing Sources: Captures all permanent sources of funds for the development of this project.
- Sources and Uses Statement: Used to show which funding sources will pay for which project development costs.
- 15 Year Operating Pro Forma: Captures income, expenses and cash flow over a 15 year period.
Following the instructions in each of these tabs will help you understand the financial feasibility of your development and prepare you to adapt the detailed information for funding application templates. This tool was created by Enterprise Community Partners in 2021 as part of the Native Housing Developer Toolkit. It is a modified version of a financial model created by the Colorado Division of Housing.