Date Published: October 2012
NSP grantees must ensure that a developer fee is reasonable and customary for similar types of projects or developments within their community or market area. Typically, a developer fee is a "reward" in return for taking the "risk" of a real estate development; hence the complexity and scale of a project should be a consideration in establishing a developer fee. Low cost, low risk projects should receive a fee that is less than a larger, more costly and risker project. Please see the Guide to Writing and Changing NSP Developer Agreements.