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Development: Financial Feasibility

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.


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Created by the WI Department of Health and Family Services and the WI Housing and Economic Development Authority in partnership with NCB Development Corporation's Coming Home Program, a national program of the Robert Wood Johnson Foundation