Development costs can be entered with as much detail as desired. The easiest use of the model would be to enter land cost and building cost . Startup operating losses might be entered, especially if they are to be financed. Site improvements might be broken out separately since they are usually not depreciable. The acquisition of previously existing assets might be broken out separately as these are depreciable but treated differently from new construction for the low income housing tax credit.
Costs of financing is summarized in AVI. This input (and also startup operating losses AVI) are recalculated by ProCash© to assure that they are consistent with other assumptions.
AVI is a summary of the following:
° construction interest costs calculated from AVI[37 38 39] & CSF[;2], ° construction interest costs imposed as AVI or CSF[;12] (if construction draws were not modelled and thus interest charges were not calculated), ° financing fees entered as AVI[127-130] and FINFEES, ° management fees entered through CM, and ° accounting adjustments that result from AVI[30 31 32].