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Preliminary Assessment Tool v6.1
SESSION 2: OVERVIEW OF USDA RURAL DEVELOPMENT TRANSFER PROCESS Preliminary Assessment Tool v6.1 Presented To: Texas Rural Rental Housing Preservation Academy
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Preliminary Assessment Tool (PATv6.1)
Green Light Go! Completing the PAT and Getting the Best Possible Results
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Green Light Go Topics in this Lesson
What’s New to Version 6.1 of the PAT Completing the PAT HQ Review Underwriter’s Insider Tips Getting the Best Possible Results Green Light Go
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Green Light Go What’s New to PATv6
Non-Profit Incentive - Look for Green Shaded cells relating to the Agency’s March 1, 2017 Pilot Program to Promote Participation in Transactions to Retain the Section 515 Portfolio. To Use: GeneralInfo cells I16 (Participation check box) and J17 (Maturity date of the loan). Interim Budget – Added worksheet to assist field staff with implementing the closing budget to placed in service budget. To Use: Go to the NEW AgencyFeatures Page, click Show Interim Budget & Loan Agreement Worksheet. (password same as v5). Loan Agreement Addendum - Added sheets to generate Loan Agreement Addendum for tenant protection, RTO and Reserve Deposit schedule to be used by the Agency. To Use: Go to the AgencyFeatures Page, click Show Interim Budget & Loan Agreement Worksheet. (password same as v5). Improved DashBoard report to several tables. To Use: Go to the DashBoard sheet and view tables. Highlights if RTO is budgeted differently than PAT maximum calculation. Highlights if Exit Incentive proposed, and more. Green Light Go See Sheet “AboutThisTemplate” for More!
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Green Light Go Completing PATv6.1
Macros MUST be Enabled The magic happens with macros! Version Information Pat V6.1 and Splash Screen will appear ONLY if you enabled macros! Complete Pale Yellow cells on the Pale Yellow Sheet Tabs Always save with Macros Enabled LikeNewApts.xlsm extension PAT v6 has a new feature to save in proper format when you upload the FIN1700 Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet About this Template Sheet One of the most important sheets in the template, and the most overlooked! Read Summary of Changes & Release date Read and Study the Guiding Principles and Thresholds. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Instructions Sheet Here the spreadsheet does the hard work! Your MFIS reports and CNA are uploaded with a click of the button. NEVER SKIP THE INSTRUCTIONS TIP: Always review MFIS .xls reports before uploading in the PAT. FIN1700 look for blank columns and partial year budget. Correct these before uploading. (contact your HQ underwriter for details on this tip) FIN1200 change your FY in MFIS so your report contains the most recent submission. (Think before selecting FY: FY 1/1/2017 year end report will be blank until 4/1/2018.) FIN2000 use the current date when selecting your report in MFIS. NEVER skip this step; Even if the PAT is completed by your applicant . The PAT works with or without MFIS reports. Reloading will assure integrity of the data. A new feature has been added to this page; During upload of the FIN1700 report, you will be asked to save the report, and the correct format and naming convention will be automatically selected for you. If you have a consolidation, upload your primary project’s MFIS reports and CNA, then use the blue button in Item 7 to access the consolidation features. Examples of how to pull the MFIS reports are contained in the word tip icon . A double click will open the document in word. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet General Info Sheet Non-Profit check box: It’s a small check mark, but don’t overlook. Changes results for RTO and new Pilot program. Use AMAS to get recent unpaid balances. This could affect the sellers equity. Include all payments to the seller in the “agreed upon purchase price”. Assure the project rents are the most current rates and match budget uploaded. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet General Info Sheet Details of Sales & Purchase Agreement It is IMPORTANT to get this step right as this impact the entire deal. Read the sale and purchase agreement and obtain a clear understanding of what is included in the sale price and how the project cash accounts will be handled. Total Cash Payments to the Seller moves into the Sources & Uses Sheet. Summarize details of the purchase in comment box. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Cash Analysis Sheet Last Reported date will display above the balances. If this is a future date, your FIN1200 was not pulled with the correct FY. Yellow cells will allow you to enter the current balances. Don’t skip this step as this could affect your reserve sizing, or 20% calculation for GOA up front deposit. Assure notes payable and accounts payable are resolved. Make comments in yellow box. Transfer funds to Reserve, GOA and T&I as needed. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet MPR Applicant Sheet If FY 2017 NOSA responder, the applicant can use the deferral option for their underwriting by selecting yes. Agency Tool Box. Deal must be feasible before tools applied. This feature is used after the initial underwriting is completed and Transfer is approved. Agency Tool Box is for Agency Use ONLY: To replace hard debt with low cost agency loans / grants. Use yellow cells to replace loans displayed in gray boxes with MPR Loans / Grants. Click icon to load your template with Agency Loans. TIP: On click, a copy is made of select sheets (Transfer approval) before MPR Loans are applied to transaction. You can review later by using the Agency Features Page. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Sources & Uses Sheet Enter lenders names, rates, terms and amortization periods. Use the first yellow line for 538 ONLY. (Other loans are listed below). Use check boxes if non-amortizing Loans. List interim lender. Also price rate of credits. List deferred developer fee and owner contributions in designated cells. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Sources & Uses Sheet (continued) Entry from Sales and Purchase Agreement populates from General Info Sheet. Look for tips in red font for required tenant protection and needed GOA to meet 20% requirement. Entity & Syndication expenses enter below blue bar. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Reserve Sizing Sheet Use book like icon to open CNA pages to adjust savings plan. Changes made will cause red highlights on 2nd chart. Ending cash balance on last chart must be positive all years. Export feature is available to upload underwritten CNA to MFIS. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Rents & Operations Sheet Mismatch of LIHTC unit count and underwritten unit count will cause errors in template. Small blue and pink chart will highlight red with error. The MFIS vacancy entries from Occupancy Trend (user entered) should match financial periods reported on FIN 1700. Operating cost comment fields are not optional. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Documentation Sheet Use the computer icon to update this sheet. Required entries update to show threshold items not met. Any fields displayed must be documented. This sheet is not protected and you can expand sections for typing. Two new documentation fields: Exit Incentive and RTO. Green Light Go
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Green Light Go HQ Underwriter Insider Tips
Sheet by Sheet Executive Summary Sheet Check box beside MPR will close or expand sections of this sheet once selected. A picture is inserted by using the “insert” on excel ribbon. Next click “picture”, & navigate to your saved file. Yellow boxes can be expanded to type additional information. Green Light Go
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Preliminary Assessment Tool (PATv6)
Green Lights Understanding Thresholds and Analyzing Results
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Green Light Go Getting Best Possible Results
Thresholds in Detail Thresholds in Detail Understanding Thresholds Analyzing Results Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Post-Transfer Rents Post-transfer rents should not exceed the restricted rents of the LIHTC, HOME Program (if applicable), or CRCU (as defined in existing RD regulations), whichever is less. The term Restricted Rents for the purpose of this review will be the rent restrictions of LIHTC, HOME, or other Rent Restricting Program(s) that will be placed on the property upon completion of the transfer. Post-transfer rents on properties with 100 percent Project-Based Section 8 will not exceed the maximum rents authorized under the HAP contract. No rent increase beyond the current basic rents is authorized prior to completion of the planned rehabilitation. PAT Entries Affecting Results General Info Sheet Select appropriate State, County for LIHTC rents. If 9% tax credits, double check with your HFA if Non-Metro rent floor election can be used (will shade red if potentially eligible. Rents & Operations Sheet Enter the lessor of CRCU or LIHTC (uses weighed average for comparison) Enter CRCU rents (from appraisal). Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Post-Transfer Rents Shows Lessor of LIHTC or CRCU. Underwritten is displayed Rents should never exceed CRCU. PAT Entries Affecting Results Rents and Operations Sheet: See cells J19, K19, L19 as shown above. Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Rents Cash Flow in Proposed Operations Proposed rents must be sufficient to meet all projected expenses including a reasonable allowance for operations and incidentals, and are typically included in the estimated individual operating expense line items. The allowance may be expressed as a percentage of total operating expenses and the resulting planned amount is reflected in the amount shown as net cash on the RD operating budget, Form RD , Part I, Line 30. The minimum combined allowance for operating expenses and vacancy/bad debt loss must not fall below the equivalent industry standard of 5 percent vacancy loss or the applicable amount specified in #3 below. Net operating income (NOI) must also be sufficient to meet the general industry minimum standard of 1.15 Debt Service Coverage Ratio (DSCR) for all amortizing debt being placed on the property in the initial underwriting review and authorization determination based on the first year of typical operations (rents, O&M, etc.). If third-party lenders specifically require DSCR in excess of the minimum, such rate should be used for RD underwriting analysis during the initial three operating years. See also # 7 below. PAT Entries Affecting Results Rents & Operations Sheet Net cash line 30 can not be negative. Net operation income (prior to RTO must) be sufficient to cover DSCR for year 1. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Rents Cash Flow in Proposed Operations - Expenses & required DSCR within underwritten rents by $1 per unit. PAT Entries Affecting Results Rents & Operations Sheet. Rents & Operations Sheet, See warning message, and Line 30 of budget. Adjust Prospective Rents Cells L14 – L18 This Chart on Dashboard Gives Additional Details Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Vacancy/Bad Debt Loss The maximum allowance for vacancy and bad debt is 10 percent (for 16 or more units) and 15 percent (for fewer than 16 units) unless otherwise specified by terms of any supplemental Notice of Solicitation of Applications (NOSA) for which the transaction has been submitted. The minimum allowance is the lesser of the historical average of collected rents for the most recent three years plus 2 percent for bad debt, or the Restricted Rent Program / Lender requirement when specified. If the budgeted allowance is less than historical average plus 2 percent, it will be considered a failure to meet the required threshold unless extenuating circumstances can be supported and documented to RD’s satisfaction PAT Entries Affecting Results Rents & Operations Sheet Vacancy Loss Entry for Underwritten Budget General Information Sheet Lender and HFA requirement for vacancy loss Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Vacancy/Bad Debt Loss Maximum 10% (16 or more units) 15% (less than 16 units) Minimum Lessor of Historical of collected rents plus 2%, or HFA / Lender Requirement PAT Entries Affecting Results Rents & Operations Sheet Vacancy Loss Entry for Underwritten Budget. Cell L22 General Information (3rd Party Requirements) Cells I38 & I39 Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Operating Expenses The minimum amount of operating expenses required per unit is the greater of any specified by the Restricted Rent Program (LIHTC, HOME, etc.) or the third-party lender (if applicable). Generally, project maintenance costs are reduced as a result of the proposed rehab and generate a net reduction. However, any reduction must be reasonable. No more than a 10 percent change or variance in total project post-transfer closing operating expenses based on historical actual averages will be accepted for underwriting without an adequate justification acceptable to RD. PAT Entries Affecting Results Rents and Operations Sheet Evaluate the three year average and current actuals against typical year Proposed Budget. Use most recent actuals to evaluate Operating Expenses. Evaluate each line item within the Operating expenses that vary by 10% and comment on the line item. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Operating Expenses Within10% overall change from average of historical actual cost. Underwritten not lower than min allowed by HFA or Lender. PAT Entries Affecting Results General Info Sheet Cell I40 Enter HFA’s Required O&M per Unit if applicable Cell D40 Enter Lenders Required O&M per Unit is applicable Rents & Operations Cells W27 – W71 Type your comments Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds General Operating Account Minimum Requirement The project’s General Operating Account (GOA) must be equal to 20 percent total operating expense as underwritten at the time of transfer (excluding the required prorated tax and insurance escrow), and there must not be any outstanding accounts payable exceeding 30 days. If this requirement cannot be achieved through normal project operations as reflected in the underwritten typical year budget, the transfer development budget must include an additional cash deposit to the GOA from non-debt, LIHTC or the applicant’s non-project resources. Any additional required deposit (not from normal operations) made by the applicant must be documented to the Agency at the time of transfer. The applicant may recoup the additional required cash deposit to the GOA between the second and seventh year of operation in accordance with HB Chapter 4, Section 1, 4.3The project’s General Operating Account (GOA) must be equal to 20 percent total operating expense as underwritten at the time of transfer (excluding the required prorated tax and insurance escrow), and there must not be any outstanding accounts payable exceeding 30 days. If this requirement cannot be achieved through normal project operations as reflected in the underwritten typical year budget, the transfer development budget must include an additional cash deposit to the GOA from non-debt, LIHTC or the applicant’s non-project resources. Any additional required deposit (not from normal operations) made by the applicant must be documented to the Agency at the time of transfer. The applicant may recoup the additional required cash deposit to the GOA between the second and seventh year of operation in accordance with HB Chapter 4, Section 1, 4.3The project’s General Operating Account (GOA) must be equal to 20 percent total operating expense as underwritten at the time of transfer (excluding the required prorated tax and insurance escrow), and there must not be any outstanding accounts payable exceeding 30 days. If this requirement cannot be achieved through normal project operations as reflected in the underwritten typical year budget, the transfer development budget must include an additional cash deposit to the GOA from non-debt, LIHTC or the applicant’s non-project resources. Any additional required deposit (not from normal operations) made by the applicant must be documented to the Agency at the time of transfer. The applicant may recoup the additional required cash deposit to the GOA between the second and seventh year of operation in accordance with HB Chapter 4, Section 1, 4.3 PAT Entries Affecting Results General Operating Sheet Evaluate current balances and any distribution of excess funds or need for additional deposits. Cash Analysis Sheet Obtain current balances for GOA and T&I account. Determine when taxes due and how often. Evaluate insurance needs. Sources and Uses Sheet Review additional Deposits if needed. Rent and Operations Sheet Review taxes and insurance for budget accuracy. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result General Operating Account Minimum Requirement Displays the current GOA and Up Front Deposit and compares to 20% of Underwritten Expenses. PAT Entries Affecting Results General Operating Sheet GOA populates from Cash Analysis Entries Cash Analysis Sheet Cells H8 & H9 Transfer Funds in/out Cells D5 Recent Balance Sources and Uses Sheet Cell D109 Make Up Front Deposit Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Tenant Protection RD does not permit the intentional displacement of any existing RD-eligible tenant because of the planned transfer, as long as the tenant remains eligible under RD regulations and the terms of the RD-approved lease. For projects not having full Rental Assistance (RA) and for all non-RA assisted revenue units where the transfer results in a rent increase, the applicant must agree to protect currently eligible tenants affected by the rent increase as long as the tenant resides in the project. All tenant protection costs must be included in the Sources and Uses analysis used in RD underwriting for the full amount needed to fund the initial two-year minimum period following the transfer closing for transfer underwriting purposes. NOTE: This does not limit the total cost of tenant protections the transferee may ultimately be responsible for and is solely to aid in completing the initial transfer underwriting analysis using the PAT. The applicant will establish a specific cash escrow set-aside for this purpose at the time of closing, and is responsible for providing, from non-project resources, any future tenant subsidy or protections necessary to maintain cash flows if the project does not have or fails to secure 100 percent RA, or other tenant subsidy necessary to meet LIHTC or other third-party tenant rent restrictions. PAT Entries Affecting Results General information Sheet Evaluate Revenue and non Revenue units and verify Project based subsidy. Evaluate current vacancy and units not currently occupied. Tenant Protection required for all unsubsidized units. Must fund as if all units occupied. Rents And Operations Evaluate rents to determine rent increase. Sources and Uses Sheet Evaluate needed deposit for Tenant Protection Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Tenant Protection Tenant Protection calculated by the number of unsubsidized units x 24 months x rent increase. Compares to entry on Sources & Uses Sheet Cell D106 PAT Entries Affecting Results General information Sheet Cells I30 and I31 Number of Subsidized Units Cell D25 Non Revenue Units. Rents And Operations L14 – L18 Prospective Rent Increase over Current Budget Sources & Uses Sheet Cell D106 Up Front Deposit to Tenant Projection Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Capital Needs Assessment (CNA) Funding & Reserve Deposit The minimum requirement per unit is the greater of any Restricted Rent Program (LIHTC, HOME, etc.) requirement, or third-party lender (if applicable) requirement that will be placed on the property upon completion of the transfer. The Reserve Account ending balance forecast must be positive for all 20 years of CNA. PAT Entries Affecting Results General Information Sheet Evaluate most current balance in RR and the required balance. Determine if reserves to be part of sales price and use of funds. Enter Lender/HFA requirements Cash Analysis Sheet Determine if excess GOA and T&I funds can be deposited in reserve. Reserve Sizing Page Determine ADRR. Determine IDRR Evaluate CNA sheets for any needed adjustments. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Capital Needs Assessment (CNA) Funding & Reserve Deposit The Reserve Account ending balance forecast must be positive for all 20 years of CNA Compares HFA/Lender per unit requirement to Underwritten. PAT Entries Affecting Results General Information Sheet Cells D38 & D39 Lender/HFA Requirement Cells E53 Reserves part of sales price. Cash Analysis Sheet Cells H8 & K 8 Excess GOA and T&I funds can be deposited in reserve. Reserve Sizing Sheet Cells G34 & G35 Deposits annually & initial (also adjustments to savings plan within CNA Sheets.) Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds New Loans for RD Section 515 Eligible Purposes. Any new loans placed on the property must be for Section 515 RRH-eligible loan purposes only, as defined in 7 CFR The Agency will analyze Federal Government and other assistance provided to any MFH project to establish the maximum loan amount and to assure that the assistance is not more than the minimum necessary to make the housing affordable, decent, safe, and sanitary to potential tenants [7 CFR (d)]. Any prohibited uses of loan funds as defined in 7 CFR must be paid from non-debt sources. However, projects using a RD Section 538 Guaranteed Rural Rental Housing (GRRH) loan may be allowed additional debt for purposes eligible under the GRRH regulations PAT Entries Affecting Results Sources and Uses Sheet Evaluate all amortizing loans and purpose of loans. Loans may only be for eligible 515 purposes. Determine if LIHTC equity is sufficient to meet ineligible 515 costs. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result New Loans for RD Section 515 Eligible Purposes. Any new loans placed on the property must be for Section 515 RRH-eligible loan purposes only, as defined in 7 CFR PAT Entries Affecting Results Sources and Uses Sheet Evaluate all amortizing loans and purpose of loans. Loans may only be for eligible 515 purposes. Determine if LIHTC equity is sufficient to meet ineligible 515 costs. Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Debt Service Coverage Ratio (DSCR) RD underwriting will include annual trending increases of revenue at 2 percent and expenses at 3 percent (including reserve) for each of the first 15 years. For transfer underwriting and analysis, the project at a minimum must meet an initial DSCR of 1.15 through year 3, and may project subsequent DSCRs of 1.1 in years 4 and 5, and 1.0 for the remaining years solely for the purposes of the RD initial transfer analysis. Third-party lenders may require higher DSCR for their individual underwriting approval requirements. If so, the DSCR required by the third-party lenders should be used in the RD underwriting analysis during the initial 3 operating years. PAT Entries Affecting Results General Information Sheet Verify HFA and Lender requirements for DSCR. Verify time frames that DSCR must be meet What is min/max DSCR A DSCR above the minimum is not a deal killer and may not be an indicator that rents are set too high. Trending Sheet Evaluate where deficiencies in DSCR are and what year. RD always will approve a budget with 1.0 DSCR. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Debt Service Coverage Ratio (DSCR) DSCR = Net Operating Income / Annual Debt Service (NOI) = $115,000 (excludes Debt Service) Total Debt Service = $100,000 DSCR = 1.15 ($115,000 / $100,000) PAT Entries Affecting Results Trending Sheet Understanding the Math that makes up DSCR Profit above expenses (prior to debt payment) makes up DSCR means expenses were paid and debt payment, But no RTO is budgeted. RD Budgets for Profit (RTO), and is not in accordance with industry standard. RD Budgets will always have same DSCR in year 1 as year 30 because we include the profit in the budget. Trending Page in template to show how industry evaluates the transaction. IF no 3rd party lender requirement, do not give weight to this threshold and document same. High DSCR often means LOW Debt Service Example: DSCR is 4.09 ($8,180 / 2000) Debt Payment is $2000 (small balance on assumed RD Loan) RTO would be $6,180 DSCR is 1.15 (2180 / 2000) Debt Payment is $2000 RTO would be $180 Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Loan-to-Value Upon completion of all planned rehabilitation/repairs and approved development, all Debts must be secured within the Prospective As-Improved Security Value as defined by RD in 7 CFR 3560, § RD determines Security Value and includes the intangible benefits afforded by the interest credit subsidy of the RD loans, and the benefits of other favorable financing resulting from other Federal, state or local government instrumentality direct or authorized intermediary lending programs such as HOME, Preservation Revolving Loan Fund (PRLF), and Section 538 GRRH loans being made at below-market rates and terms, as permitted by RD regulations. Security Value does not include any non-amortizing or deferred loans or grants regardless of the source; or any federal, state or local LHITC and Historic tax credits or the investment value thereof. PAT Entries Affecting Results General Information Sheet Verify we have a valid approve appraisal that provides values as needed for underwriting. Ensure that values have been formulated based on the transaction. Ensure collaboration was conducted and appraisal provides all needed values READ THE APPRAISAL. Understand how the values were reached. Sources and Uses Sheet Check for favorable financing and verify same as evaluated in appraisal. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result PAT Entries Affecting Results General Information Sheet .Cells I21 (date), I19 Market Value, D22 Prospective Value, I22 Favorable Financing Sources and Uses Sheet Total Amortizing Loans Use Check Marks if Non-Amortizing. Loan-to-Value All Loans much be secured. This Additional Dashboard Chart gives details of calculation Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Loan Terms of Third-Party Debt No balloon payment from any third-party debt is allowed prior to the expiration of the minimum RD Loan Term (30 years for RRH transfers and 33 years for FLH transfers), unless the Lender provides a written agreement, acceptable to the Agency, to extend the scheduled maturity on terms that do not require rents above comparable rents for comparable units (CRCU) through the term of the RD loan. PAT Entries Affecting Results Sources and Uses Sheet Evaluate each loan and rates and terms. No balloon payment Terms should be equal to RD Lender must agree to restructure loan at maturity within RD requirements. Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Loan Terms of Third-Party Debt Both these conditions must be true before this threshold will fail: The Lender Loan term is less than amortization, and The loan term is be less than RD’s loan term. PAT Entries Affecting Results Sources and Uses Sheet Cells G10 – H 20 Terms and Amortization of Lenders Loans General Info Sheet Assumes agency loan will have a term of 30 years, unless the amortization period is less than 360 months (30 yrs.). Green Light Go
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Green Light Go Getting Best Possible Results
Understanding Thresholds Sources and Uses Must Balance Sufficient funds must be available for all proposed rehabilitation, acquisition costs, and uses to meet the terms of the proposed transaction. Funds must be adequate to address repairs needed immediately, including all health and safety, fair housing and accessibility issues. These may be included as part of the up-front rehabilitation that is being paid by third-party funds. Applicants must be able to fund any projected shortfalls from resources other than the project or project income. PAT Entries Affecting Results Sources and Uses Sheet Verify all Sources and funds and have commitment documents from providers. Review and validate proforma sources and uses from other lenders. Validate Green Light Go
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Green Light Go Getting Best Possible Results
Analyzing Result Sources and Uses Must Balance Sources & Uses are in Balance PAT Entries Affecting Results Sources and Uses Sheet Math for Sources & Uses is summarized in center of Sheet. If out of balance amount is shown. Adjust yellow cells as appropriate. It is the developer’s responsibility to assure funds are adequate. Green Light Go
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Preliminary Assessment Tool (PATv6)
Beyond the Green Lights Case Studies
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Beyond the Green Light Topics in this Lesson
Case studies – What if? Class Participants will now use their lap tops. Open Case Study and Continue Beyond the Green Light
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https://ems-team.usda.gov/sites/RD_PDLD/
Preservation and Direct Loan Division
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