Nev. Admin. Code § 319.722 - Profit and overhead for developer; maximum interest rate on deferred note

1. The amount of the fee for a developer on a project, excluding any potential profits that the developer anticipates earning by participating as a general partner in the partnership of borrowers:

(a) Is limited to a maximum of 15 percent of the basis of the project that is eligible for tax credit; and

(b) Must be identified in the document described in paragraph (c) of subsection 3 of NAC 319.7125.

2. The fee must be paid to the developer as follows:

(a) Not more than 50 percent paid on the basis of percentage of completion of the improvements;

(b) Not more than 25 percent paid on the date the construction loan converts to a permanent loan; and

(c) At least 25 percent paid from cash flows after payment of debt service and deposits required for repair and replacement reserves.

Notes

Nev. Admin. Code § 319.722

Added to NAC by Housing Div. by R093-00, eff. 11-20-2000; A by R114-14, eff. 10/27/2015

NRS 319.140