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specify the consequences of tax benefits, if any.,'an~l a~y other assumptions used <br />in calculating the project cash flow to determine the reasonableness of the rate of <br />return on equity investment. The proforma must represent the term of the HOME <br />affordability requirements or the term of other affordability requirements as <br />mandated by other funding sources if longer. The proforma should not exceed the <br />anticipated useful life of the facility. In general, adequacy of the proforma will be <br />evaluated on the basis of industry standards as identified by HUD. <br /> <br />The City will examine the proforma to ensure tl~at cash flow projections are <br />reasonable in the light of present economic conditions, and are neither unduly <br />conservative nor overly optimistic. It will also examine the proforma to <br />determine that the projected rates of return are reasonable and that the applicants <br />will not receive excessive profit or windfalls from the project. In doing so it will <br />use cash on cash return analysis or other approaches that may be more suitable to <br />the project. <br /> <br />EXHIBIT <br /> <br />Resolution No. 2003~032 <br /> Page 5 of 5 <br /> <br /> <br />