NSP FAQ
Q

Would it be reasonable for a developer to retain all sales proceeds?

Date Published: October 2012

Print ShareThis

A

The answer depends on the type of developer and the net amount of the proceeds after all development expenses are paid. If the developer is a for-profit entity, the grantee must ensure that the total return to the developer, including developer fee and retained proceeds is reasonable and that there is no undue enrichment of the developer. If the developer is a nonprofit, it would be acceptable for the grantee to allow the nonprofit to retain all sales proceeds if the grantee's agreement stipulated that the funds must be re-used for additional affordable housing.

 


Tags: NSP Financial and Grants Management - Program Income

FAQ ID:

1005