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About this Tool
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A development financial model can be an intimidating set of information to collect, input and interpret. There are many values. Terms are not always well explained. It can be difficult to interpret the outputs. This tool provides a starting point for completing a financial model similar to those you will need to complete to understand the viability of your development and apply for funding. Additional instructions, descriptions and contextual information is included to help you.

The tool consists of 5 worksheets intended to be completed in the following order:
-Development Costs:Captures the costs to develop your project.
-Operating Budget: Summarizes a rental project's bedroom distribution, income targets, operating income and expenses.
-Capital Sources: Captures all permanent sources of funds for the development of this project.
-15 Year Operating Pro Forma: Captures income, expenses and cash flow over a 15 year period.
-Sources and Uses Statement: Used to show which funding sources will pay for which project development costs.

Following the instructions in each of these tabs will help you understand the financial feasibility of your development and prepare you to adapt the detailed information for funding application templates.

This tool was created by Enterprise Community Partners in 2022 as part of the Preservation Next Toolkit for preserving small to medium multifamily properties. It is a modified version of a financial model created by the Colorado Division of Housing.

The full toolkit can be accessed at the following url: https://preservation-next.enterprisecommunity.org

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How To Use
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There are two main sources of guidance for each worksheet:

First, each worksheet contains a set of instructions located in a green-shaded box that can be displayed or hidden using the "Show/Hide Instructions" button located at the top of the worksheet. Note that you may need to click "Enable content" and trust the workbook in the yellow ribbon in order for these buttons to work, as they rely on macros to function.

Second, clicking on specific cells will display a small tooltip that provides additional information about what a value means or how it is calculated. Cells shaded in tan are those you should input values into if they are relevant to your project.

Note that worksheets have protection enabled to prevent accidental changes to the model, but there is no password. If you would like to make changes to the model, you can turn off protection under the Format menu in the Ribbon and select "Unprotect Sheet."

Note that when using another financial model template, you may see line items categorized or aggregated differently, so you will need to pay close attention to both what is there and what is missing. Make sure key numbers like your total development cost, net operating income and total sources of funding match, even if there are some variations in costs by category or other subtotals due to differences in templates.
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