| SiteMap |
A ground rent deal can be input as simply as giving a rate via AVI[90] which the system will multiply times the original land cost to determine the annual ground rent. When a ground rent deal is modeled, it is best to include the land in the original cost of the project so that the true economic cost of the project is reflected. If ownership of the land is separate, the cost (or value) of the land can be shown as financed by the partner who owns it. The value of the land will be given to that participant in the simulation of the ending sale. It is important to include land in the deal even if it is not owned by the principal partners because capitalization rates are generally developed on a basis that reflects land. Conceptual errors may result from attempting to calculate the ending value of the improvements without land.
The normal ground rent deal is assumed by the model to be subordinated, so that ground rent does not reduce income in the determination of the mortgage to be extended. If ground rent is not subordinated, AVI[123] should be set to 1 with the result that ground rent will reduce income in the calculation of the mortgage amount.
The number of acres in the ground rent deal may differ from the number of acres acquired for the project, and the price used in determining the ground rent deal may differ from the actual land acquistion price. Inputs are provided for these possibilities.
An annual rate of increase in ground rent can be input with MV[17].
| input | description | help# | importance | frequency |
|---|---|---|---|---|
| AVI[90] | Land lease rate (% of AVI[92] Price or $/Year) | 623 | 3 | |
| AVI[93] | Who will own land (if land lease exists) | 623 | 2 | |
| AVI[123] | Ground Rent Unsubordinated (default=subordinated) | 623 | 2 | |
| AVI[91] | No. acres in land lease Deal (if diff.from AVI[1]) | 623 | ||
| AVI[92] | Price/acre if sale-leaseback (if diff.from AVI[2]) | 623 | ||
| AVI[94] | When land lease payments start | 623 | ||
| AVI[146] | Annual Rate of Increase for Ground Rent (e.g.CPI) | 623 |
| viewtype | case study | view | file size | complexity | help# | comment |
|---|---|---|---|---|---|---|
| Outputs | Tax Credits for Low Income Housing, 11th Edition | (present value by participant by line item) | 3907 | 70 | 623 | |
| St. Lucie Warehouse | (present value by participant by line item) | 4163 | 95 | 623 | ||
| 601 Liberty St., Hotel Joint Venture | (present value by participant by line item) | 5438 | 134 | 623 | ||
| ABCO Joint Venture (office) | (present value by participant by line item) | 6351 | 156 | 623 | ||
| Mixed Use Development (Scenario 2-A) | (present value by participant by line item) | 5006 | 158 | 623 | ||
| Belle Glade 72 Units Deal A | (present value by participant by line item) | 5647 | 181 | 623 | ||
| 601 Liberty St. (office) | (present value by participant by line item) | 6445 | 193 | 623 | ||
| Tower Point Apartments (demo) | (present value by participant by line item) | 6034 | 217 | 623 | ||
| Executive Plaza (Under Const., office) | (present value by participant by line item) | 6368 | 223 | 623 | ||
| Tower Point Apartments (detail) | (present value by participant by line item) | 6149 | 226 | 623 | ||
| Executive Plaza (Pre-Const., office) | (present value by participant by line item) | 6485 | 231 | 623 | ||
| Shopping Center Illustration | (present value by participant by line item) | 6005 | 233 | 623 | ||
| Shelter School Renovation (L&H) | (present value by participant by line item) | 6330 | 243 | 623 | ||
| Brandon Villas of Tampa (market housing) | (present value by participant by line item) | 7355 | 280 | 623 | ||
| Spring Valley Hotel | (present value by participant by line item) | 6543 | 289 | 623 | ||
| Conv. 9% FAHP 3% 25 Years: 13 Areas (housing) | (present value by participant by line item) | 7617 | 300 | 623 | ||
| Demo Mixed Use Facility | (present value by participant by line item) | 8694 | 366 | 623 | ||
| Windsong Housing Associates : LIHTC | (present value by participant by line item) | 8849 | 371 | 623 | ||
| Turnkey Syndication : LIHTC | (present value by participant by line item) | 9150 | 391 | 623 | ||
| BHP II Limited Partnership : LIHTC | (present value by participant by line item) | 11136 | 478 | 623 |
