There is no cap or limit on a developer fee, and there are a number of factors involved when determining if a developer fee is reasonable. Grantees should consider:
- The risk of the project and typical levels of return for similar types of projects.
- Reasonable and customary fees for similar types of projects in their community.
- Other sources of developer profit, in addition to the developer fee, such as builder’s profits, property management fees, and cash flow.
- The size of the project and how much work a developer is putting into the project.