NSP FAQ
Q

If NSP and another source of Federal funds are used to assist a property, how should program income resulting from the sale of the property be prorated?

Date Published: October 2012

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A

For an activity that is funded by multiple sources of Federal funding, program income should be prorated to reflect the proportion of the total development cost invested from each funding source. For example: A project had a total development cost of $100,000. The NSP investment was $60,000 (60%), and HOME provided $40,000 (40%). The house sold for $90,000. 60% ($54,000) is NSP Program Income, and 40% ($36,000) is HOME program income.


Tags: NSP Underwriting and Project Selection - Subsidy Layering

FAQ ID:

932