Construction Budget / Affordable-Housing Loan Committee Review

What it extracts

16 extraction fields

Deal Summary

A one-look roll-up of the request's spine - sponsor, GC, units and unit mix / AMI set-aside, construction type, total development and construction cost, loan requested, LIHTC / subsidy structure, and cost per unit - so a committee reviewer can orient before reading the detail.

Sources & Uses

The full sources-and-uses capital stack, one row per source and per use with per-unit and percent-of-total, plus each source's commitment status - the central committee artifact that must balance.

Development Budget - Hard, Soft & Contingency

The development budget decomposed into acquisition, hard construction cost, hard- and soft-cost contingency, builder general requirements/overhead/profit, developer fee, and reserves - the blocks contingency and fees are sized against.

Construction Budget Detail by CSI Division

Every individual construction line item extracted into one granular table grouped by CSI Division, capturing trade subcategory, description, unit/quantity/cost, scheduled value, subcontractor, and any allowance flag - ready to pivot onto an AIA G703 draw sheet.

Division Cost Roll-Up

Construction cost rolled up by CSI Division 01-16 with each division's percent of the construction total, so the committee can spot a trade that looks light or heavy for the scope.

Allowances & Contingency Detail

Every allowance and contingency line called out in the budget, classified and sized as a percent of construction cost, so the committee can treat each as a scope-specific mitigant against cost overruns.

Capital Stack - LIHTC Equity & Subsidy Layers

Every equity and subsidy layer beyond the senior loan - LIHTC equity (9% or 4%-with-bonds), tax-exempt bonds, HOME/CDBG/HTF/AHP soft debt and grants, GP equity, and deferred developer fee - with provider, amount, credit price or rate, priority, and commitment status.

Sponsor & General Contractor Experience

The sponsor and GC track record, capacity, bonding, and any prior defaults or litigation - because the loan is repaid out of successful completion and lease-up, not current cash flow.

Construction Schedule & Draw Structure

The construction timeline and the draw controls that govern funding - term, contract type, AIA G702/G703 draw method, retainage, lien waivers, interest reserve, and third-party construction monitoring.

Guarantees & Credit Enhancement

The completion, payment-and-performance bonding, repayment, operating-deficit, and environmental protections, guarantor net worth and liquidity, and the permanent takeout - the committee's primary mitigants against completion and cost-overrun risk.

Debt Sizing, Appraisal & DSCR

An independent recomputation of stabilized NOI, permanent loan amount, DSCR, construction loan-to-cost, loan-to-value against the restricted as-stabilized appraised value, and debt yield, with the appraisal and market-study conclusions, each graded against an affordable-housing threshold.

Cost Reasonableness Benchmarks

The budget's cost reasonableness graded against affordable-housing norms - total and hard cost per unit and per SF, hard- and soft-cost contingency percentages, builder fee load, developer fee, and land as a share of TDC - with the arithmetic shown and program-set limits flagged.

Budget Reconciliation & Math Checks

The deterministic math checks an underwriter runs before committee - sources equal uses, the development budget foots to TDC, the construction budget reconciles to its printed grand total, sources cover uses, the financing gap, per-unit math, contingency presence, and interest-reserve adequacy.

Committee Findings & Conditions

The severity-ranked findings log the committee reads - one row per real, file-supported issue across financing gap, capital stack, cost, contingency, debt sizing, sponsor/GC, guaranties, schedule, appraisal, and documentation - each with evidence and a recommended condition.

Loan Committee Recommendation

The single aggregated disposition - Recommend, Recommend with conditions, Refer back to originator, Table (incomplete package), or Decline - with an unfillable financing gap or an uncurable Critical finding driving a Decline.

Credit Memo Narrative & Conditions

A tight committee-facing narrative of the drivers, the sources-and-uses gap analysis, cost and contingency read, sponsor/GC and guaranty strength, schedule and takeout, conditions to close, and any data-integrity flags, with each driving value cited.

Where it fits

What it needs

What it produces

Review model

An underwriter and the credit committee review the recomputed capital stack, the graded benchmarks and math checks, and every severity-ranked finding - with each value cited to source - before the recommendation is trusted; the analyst confirms program-set thresholds against the lender's credit policy and the state agency's QAP.

Who uses it

Volume fit

Grounded in

• Internal Revenue Code Section 42 (Low-Income Housing Credit) - 9% and 4% creditsverified as of 2026-07-22
• IRC Section 42(h)(4) / 142 - tax-exempt private-activity bond financing test (aggregate-basis test for 4% LIHTC)verified as of 2026-07-22
• Affordable-housing construction / permanent underwriting conventions - DSCR, LTC, LTVverified as of 2026-07-22
• Development-budget contingency and builder/developer fee norms (state HFA QAP / cost-certification policy)verified as of 2026-07-22
• AIA Document G702 (Application and Certificate for Payment) and G703 (Continuation Sheet)verified as of 2026-07-22
• HOME Investment Partnerships Program (24 CFR Part 92) and CDBG (24 CFR Part 570)verified as of 2026-07-22

Changelog

• July 2026