UNDERWRITING POLICY

Policy Statement:
For housing development projects, NHD will conduct an underwriting analysis to assess the financial feasibility and ensure the minimum amount of subsidy is provided to support the maximum level of affordability while minimizing risk associated with the  its development, construction or management. 

Evaluative Considerations:
DND will analyze the following elements of a development proposal:

• Sponsor/ developer capacity
• Market need
• Design approach
• Regulatory approvals
• Construction method and pricing/ capital needs
• Operating  revenue and cash flow
• Sources of financing  including subsidy layering
• General Development Costs
• Lease-Up strategy