Jessica is building a new affordable apartment complex here in Montgomery County, VA$,$ She would like to rehab an old school building and convert it into $26$ restricted units for seniors $(65+).$ Her development costs are $$1,500,000$ with financing costs of $$$00,000.$ She is not expected to build in a difficult to development area.

What is the development cost $($in dollars$)?$

What is the eligible basis $($in dollars$)?$

$3.)$ What is the qualified basis $($in dollars$)?$

$4.)$ What is the basis boost $($in dollars$)?$

Jessica would like to submit her project for LIHTC in Virginia. She is interested in receiving $30\%$ of the present value of her project from this particular funding source.

$5.)$ What LTTHC tax credit is Jessica going to apply for?

$6.)$ Should she expect to receive it$,$ and why or why not?

After working with Carson, the potential project investor, Jessica finds out that the project equity is valued at $$426,000,$ with a present value of $$360,000.$

$7.)$ How much does Jessica get to put directly in to the project?

$3.)$ How much profit does Carson make by investing in this project after $10$ years?

Jessica will need some gap finaneing to complete the project.

$9.)$ Provide an example of a gap$-$finanding source Jesslca could potentially pursue,

$10.)$ What should Jessica try to avold when pursuing gapfinancing?