NAC319.722. Profit and overhead for developer; maximum interest rate on deferred note.

      1. The maximum amount of pro forma profit and overhead for a developer on a project is 15 percent of the appraised value of the project. The profit must be paid as follows:

     (a) Ten percent paid on the basis of percentage of completion of the improvements;

     (b) Ten percent paid on the date the construction loan converts to a permanent loan; and

     (c) Eighty percent paid from cash flows after payment of debt service for senior projects and funded repair and replacement reserves.

     2. The maximum interest rate on a deferred note is limited to the amount needed to maintain the present value of the amount of the developer’s fee that remains unpaid.

     (Added to NAC by Housing Div. by R093-00, eff. 11-20-2000)