|
Most lenders will look at financial feasibility before they
decide whether or not to lend any funds for the development.
Any development must make economic sense to be successful.
An Assisted Living Operating Proforma and Financial Feasibility
Analysis Model has been created for specifically for Wisconsin
RCACs. There is the User
Guide and an Excel spreadsheet
to test your ideas and assumptions. In an RCAC development,
it is important to be able to allocate income and expenses
between rent, support services, and meals. Each part should
make economic sense and stand on its own. A resident's contract
must reflect the charge for each.
A more simple model (WHEDA
financing) can be used to help evaluate the proposal's
strengths and weaknesses.
Certain key terms are used in
the development financial feasibility. It is important
to understand their meaning when determining financial feasibility.
Other terms, used in in the development
of affordable RCACs , should also be understood.
NCB Development Corporation
under the Affordable Assisted Living topic, offers information
regarding development and operations of an assisted living
development. It may useful to review this site.
|