NSP FAQ
Q

What is included in the Total Development Cost?

Date Published: October 2012

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The maximum sales price for a property sold to an individual as a primary residence is limited to the total development costs, which includes the acquisition cost plus rehabilitation or redevelopment costs necessary to rehabilitate the property. The aggregation of acquisition, rehabilitation, and redevelopment costs generally may include, among other items, costs related to the sale of the property such as staff time spent identifying homebuyers, obtaining appraisals, etc., as well as sales and closing costs. Costs directly attributable to project implementation are allowed as activity delivery costs, for which there is no set limit, though they must be reasonable. For specifics on determining activity delivery costs, see the NSP Policy Alert: Guide for Charging Administrative Costs Incurred by NSP2 Grantees. Developer fees and realtor commissions can also be included in the determination of the maximum sales price of an NSP assisted property. Grantees should not permit a developer fee or realtor commission that is higher than what is reasonable and customary for similar types of projects in the local market.


Tags: NSP Program Requirements - Appraisals and Property Valuation

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FAQ ID:

491