HUD-52484 Development Cost Budget/ Cost Statement

Development Cost Budget/ Cost Statement

U.S. Department of Housing and Urban Development Office of Public and Indian Housing

OMB Approval No. 2577-0157 (exp. 3/31/2010)

N

Public Housing Agency:

Locality of Project:

Copy Number:

PR/Project Number:

Dwelling Units
Family Elderly Total

o financial or technical assistance may be provided to a project pursuant to an Annual Contributions Contract unless a PHA Proposal, including a development cost budget, has been approved (24 CFR 941).

Housing Type and Production Method	Turnkey	Conv.	Force Act.	Status (Check one) PHA Proposal (PP) Budget Budget Between PP and Contract Award Final Development Cost Budget Contract of Sale/Contract Award Budget Development Cost Control Statement Budget Between Contract Award & Final Statement of Actual Development Cost
New Construction
ACQ W/Subst. Rehab.
ACQ WO/Subst. Rehab.

Subpart I - Budget

	Latest Approved	Actual Development		Estimated
Line	Budget	Cost Incurred	Actual Contract	Additional to	Amount
No. Account Classification	Date	To	Award Balance	Complete	(c) + (d) + (e)	Per Unit
(a)	(b)	(c)	(d)	(e)	(f)	(g)

Developer's Price

P

1 1440 Site

2 1450 Site Improvements

3 1460 Dwelling Construction

4 1465 Dwelling Equipment

5 1470 Nondwelling Construction

6 1475 Nondwelling Equipment

7 1430.1 Archit. & Engr. Svcs.

8 Other

9 Total Developer's Price

ublic Housing Agency Costs Operations

10 1406 Operations

Administration

11	1410.1 Nontechnical Salaries
12	1410.2 Technical Salaries
13	1410.4 Legal Expenses
14	1410.9 Employee Benefit Contribution
15	1410.10 Travel
16	1410.18 Equipment Expended
17	1410.19 Sundry
18	Total Administration

Liquidated Damages

19 1415 Liquidated Damages

Interest

20	1420.1	Interest to HUD
21	1420.2	Interest on Notes—Non-HUD
22	1420.7	Interest Earned from Invest.
23		Total Interest

Initial Operating Deficit

24 1425 Initial Operating Deficit

Planning

25	1430.1 Architectural & Engr. Fees
26	1430.2 Consultant Fees
27	1430.6 Permit Fees
28	1430.7 Inspection Costs
29	1430.9 Housing Surveys
30	1430.19 Sundry Planning Costs
31	Total Planning

form HUD-52484 (8/96)

Page 1 of 5 ref Handbook 7417.1

Copy Number: PR/Project Number:

Page 2 of 5 ref Handbook 7417.1

Subpart I - Budget (continued)

	Latest Approved	Actual Development		Estimated
Line	Budget	Cost Incurred	Actual Contract	Additional to	Amount
No. Account Classification	Date	To	Award Balance	Complete	(c) + (d) + (e)	Per Unit
(a)	(b)	(c)	(d)	(e)	(f)	(g)

Site Acquisition

32	1440.1 Property Purchases
33	1440.2 Condemnation Deposits
34	1440.3 Excess Property
35	1440.4 Surveys and Maps
36	1440.5 Appraisals
37	1440.6 Title Information
38	1440.8 Legal Costs – Site
39	1440.10 Option Negotiations
40	1440.12 Current Tax Settlement
41	1440.19 Sundry Site Costs
42	1440.20 Site Net Income
43	Total Site Acquisition
44	1450 Site Improvements
45	1460 Dwelling Construction
46	1465 Dwelling Equipment
47	1470 Nondwelling Construction
48	1475 Nondwelling Equipment
49	1480 Contract Work in Progress
50	1485 Demolition
51	1495 Relocation Costs
52	1499 Development Used for Mod.
53	Total (Including Donations)
54	Less Donations
55	Total Before Contingency (less Donations)
56	Contingency: 1% to 5% (or less) of line 55
57	Total Development Cost
Subpart II - Detail of Other in Developer's Price Developer's Fee and Overhead Interim Financing Closing Costs Property Taxes and Assessments State or Local Sales, Excise or Other Taxes Total Other		$		1430.7: Provide the same information required for 1410.1 and 1410.2, listing employees of the architect (or PHA when use of PHA employees has been previously approved) who will perform inspection work for the project. 1450: Where off-site facilities are proposed to be included, identify and show the cost of such facilities and provide justification for including such costs in TDC. 1465: Identify and show the cost of each item included in this account. 1475: Complete the Table below and, on a separate attachment, list and show the cost of each item included in each sub-account.
		$
				Nondwelling Equipment (1475)				Cost
Subpart III - Supporting Data for Cost Estimates For the PP Budget, attach an itemized breakdown of the costs chargeable to each of the following accounts. For subsequent budgets, provide this information only for accounts that are being changed. 1410.1 and 1410.2: List, by job title, each PHA employee whose salary, or portions thereof, will be chargeable to these accounts. For each, show the annual rate of gross salary, the estimated length of time to be spent in connection with development of this project, and the total gross salary which is properly charge­able to either of these accounts. If only a portion of the employee's time will be chargeable to this project, show the percentage that will be so chargeable; and show, in a footnote, the percentage distribution to other projects and the accounts to which distributed. 1410.19: List and show the cost of each item of administrative and general expense for which a specific account is not provided in the 1410 group of accounts. If only a portion of the cost of any item will be chargeable to this project, show the percentage and amount that will be so chargeable; and show, in a footnote, the percentage distribution to other projects. 1430.2: List all planning consultants not paid under the architect's contract and, for each, identify and show the cost of the services provided.
				1475.1 Office Furniture and Equipment
				1475.2 Maintenance Equipment
				1475.3 Community Space Equipment
				1475.7 Automotive Equipment
				1475.9 Expendable Equipment
				Total Nonswelling Equipment
				1495: State the number of households and businesses to be displaced, and identify and show the estimated cost of relocation services and payments to be provided.

form HUD-52484 (8/96)

Copy Number: PR/Project Number:

Subpart IV - New Construction – Prototype Cost Comparison Percentage

A. Dwelling Construction and Equipment (DC&E) Cost from Subpart I

1. Total for Account 1460 $

2. Total for Account 1465

3. Subtotal (1 + 2) $

4. Contingency ( % x line 3)

5. Total DC&E (3 + 4) $

B. PPCL Total

(Attach calculation from PP, Part I, Subpart B, Item 3)

C. Comparison Percentage = %

(Line A5 ÷ Line B)

Subpart V - Acquisition–Development Cost Comparison Percentage

1. Proposed TDC from Subpart I $

2. Hypothetical TDC $

(Attach calculation from PP, Part I, Subpart B, Item 5a or, if applicable, other estimate and rationale.)

3. Comparison Percentage = %
   (Line A ÷ Line B)

Line No.	Item (Please List)	Amount (Value)
1

Subpart VI - Detail of Donations Subpart VII - Previously Approved Budgets

List chronologically the dates and TDC on all previously approved budgets, beginning with the PHA Proposal (P) Budget, and state the purpose (i.e., one of the budgets listed in the “Status” block on page 1 and any amendments thereto).

Date

TDC

Purpose

2 PP

3

4

Total

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)

Page 3 of 5 ref Handbook 7417.1

Submitted By: Name & Title of Official Authorized to Sign for PHA:

Signature of PHA's Authorized Official & Date:

X

For HUD Use Only

Recommended Name & Title of Authorized Official: for Approval By:

Signature of Authorized Official & Date:

X

Approved By: Name & Title of Authorized Official:

Signature of Authorized Official & Date:

X

form HUD-52484 (8/96)

T his form HUD-52484 includes the account classification numbers, actual development cost incurred, actual contract award balance, and total development cost which are apart of a Public Housing Agency's (PHA's) development cost budget/cost statement for development of a public housing project.

PHAs provide information on the amount of monies which will be needed to develop the project and other costs associated with it . The information collected in the proposal is used by HUD for review and approval of development funds.

Public Reporting Burden for this collection of information is estimated to average 10 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.

Response to this collection of information is mandatory to obtain a benefit or to retain a benefit.

The information requested does not lend itself to confidentiality.

HUD may not conduct or sponsor, and person is not required to respond to a collection of information unless it displays a currently valid OMB control number.

Instructions for Preparing Development Cost Budgets/Cost Statements, Form HUD-52484 A. General

This form HUD-52484 shall be used for all Development Cost Budgets and Statements identified in the “Status” section on page 1 and should be carefully completed for each type of submission. For information supplementing these instructions, see Public Hous­ing Development Handbook 7417.1 Descriptions of the budget accounts to which costs should be charged are set forth in Low-Rent Technical Accounting Guide 7510.1, Chapter 4, Section 15. The HUD Field Office, upon request, will assist PHAs in the distribution of costs to individual accounts.

1. General Preparation. The Form should cover all of the housing to be built under a single Contract of Sale/Construction Contract, whether on one or several sites. The “Dwelling Units” section at the top of page 1 shall show, in the “Elderly” block, the total of all units designed specifically for the elderly, including any such units which have more than one bedroom; and the other sections at the top of the page shall be completed as appropriate. Round out all amounts to even dollars. Where descriptions or supplementary data are required, use an attached sheet, identify­ing the item to which it is applicable.

I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)

2. Use of Form as Development Cost Budget

1. When first used (with form HUD-52483-A, PHA Pro­posal (PP), Part I, Subpart B, Item 2), the PHA shall submit an original and 2 copies to the HUD Field Office, as in the case of the PP and other related attachments. (If any major changes are proposed following approval of the PP, a revised PP and PP budget shall be submitted in accordance with Handbook 7417.1.) If there was no preliminary loan, the PHA shall enter the estimated costs for development of the project in column (f) and complete column (g) as appropriate. If the PHA received a preliminary loan, the form shall be completed as follows. In column (b), cross out the words “Latest Approved Budget” in the heading and enter the date the Preliminary Loan Contract was executed; enter the words “Prelimi­nary Loan Contract” lengthwise in the column; and enter the total preliminary loan amount in line 58. In columns (c) and (d), enter the latest readily available figures from the books of account main­tained for the Preliminary Loan Contract; and, in the heading of column (c), enter the date as of which such figures were taken. In column (e), enter the estimated costs for development of the project. Enter in column (f) the sum of columns (c), (d) and (e); and complete column (g) as appropriate.

2. For subsequent Development Cost Budgets, submit an
   original and 2 copies to the HUD Field Office. Enter the date of the latest approved budget in the heading of column (b) and, for each line item, enter the applicable latest approved cost. Enter in columns (c) and (d) the latest readily available figures from the

books of account for Accounts 1410 through 1475 and Accounts 1485, 1495, and 1499; and, in the heading of column (c), show the date as of which such figures were taken. Enter in column (e) for each Account 1410 through 1475, 1485, 1495, and 1499 an estimate of any additional cost to be incurred in completing the development work. Enter in column (v) the sum of columns (c), (d) and (e); and complete column (g) as appropriate. For Account 1480, which is not applicable to turnkey projects, leave all columns blank until submission of the Contract Award Budget. At that time and thereafter, the entries for Account 1480 shall be as follows:

1. For a Contract Award Budget, list each proposed construction contract to be included under Account 1480 in column (a) by name of contractor and type of work. Opposite each such listing, enter in columns (d) and (f) the amount shown in column (3) of the corresponding form HUD-52396, Analysis of Main Construc­tion Contact (or, in cases where a change in any bid amount is proposed, enter the amount shown in column (5) of form HUD-52396 and identify change order(s) included in the contract amount). Amounts for all work and equipment not covered by contracts shall remain in the appropriate subsidiary account.

2. For each budget submitted after a Contract Award Budget, enter in column (c) the total of payments made to each contractor; in column (d) the balance owing under each original contract; in column (e) the amount of any increases or decreases for change orders known to be needed at the time the budget is submitted; and in column (f) the sum of columns (c), (d) and (e). If the sum of columns (c) and (d) differs from the original contract amount in column (f) of the latest approved budget because of executed change orders, identify such change orders.

3. For the Final Budget, this Account 1480 is to be left blank and the amounts for each completed construction con­tract shall be redistributed to the appropriate Accounts 1450 through 1475, 1485, and 1499. On an attachment to the Final Budget, identify each construction contract by name of contractor and type of work; and show the final contract amounts, broken down in to the appropriate Accounts 1450 through 1475, 1485, and 1499.

3. Use of Form as Cost Statement

a. When used as the quarterly Development Cost Control

Statement (required during the period beginning with the date a project is placed under an ACC and ending with the date the form HUD-52427, Actual Development Cost Certificate, is submitted for each project), columns (b), (c), (d) and (f) shall be completed; and columns (e) and (g) shall be left blank. However, in cases where the PHA is reasonably certain that it will be necessary to incur additional costs that were not anticipated at the time of submission of the latest approved budget (identified in column (b)), the PHA shall enter the estimated amounts of such additional costs in column (e) so the Field Office will be aware of its budgetary problems and can take appropriate steps to help solve them. (In such cases, the amount in column (f) will be the sum of columns (c), (d) and (e).) If

Page 4 of 5 ref Handbook 7417.1

form HUD-52484 (8/96)

it is determined that the solution involves a change in any of the latest approved budget amounts, the PHA shall prepare a revised budget and submit it to the Field Office in accordance with instructions in Handbook 7417.1 and Item A2b, above.

b. When used as the Statement of Actual Development Cost (which is submitted simultaneously with form HUD-52427, Actual Development Cost Certificate), only columns (b) and (c) shall be completed for all accounts, except Account 1480 (which requires no entries in any column).

B. Subpart I – Budget

1. Development Method

1. Turnkey. For projects developed under the turnkey method, the account classifications for Developer's Price (lines 1 through 9) are to be completed. Where preselected sites are used, entries should be made in lines 32 through 43, as applicable, for those site costs borne by the PHA prior to the assignment to the developer of the right to purchase the site. The Total Developer's Price (line 9) shall be the price agreed upon by the developer, the PHA and HUD. The amounts entered for site and architectural and engineering services (lines 1 and 7) should be the amounts to be included, where applicable, in the Preliminary Contract of Sale for the eventuality of separate purchase by he PHA. The amount entered for Other (line 98 and Subpart II) should be the sum of (1) Developer's fee and Overhead, exclusive of builder-contractor's overhead and profit which is in other items of the developer's price; (2) Interim Financing; (3) Closing Costs; (4) property taxes and assessments during construction; and (5) State or local sales, excise or other taxes, if any. Planning costs approved by the HUD Field Office will allow for entries in lines 25 and 26, as well as in line 7 (in addition to inspections for which an entry will be made in line 28).

2. Conventional. For conventional projects, lines 1 through 9 will remain blank and, instead, those accounts will be completed utilizing lines 25 through 48. For lines 44 through 48, the Schematic Design Documents and the Architect's Estimate of Project Construction Cost will provide a basis for reasonable estimates for costs. Any comments from the HUD Field Office as a result of the prior submission of these documents shall be reflected in the Budget.

3. Acquisition. For acquisition projects, Account 1440 will be the approved price for the site, including the structures thereon which are to be acquired for the project; and Accounts 1450 through 1485 will be used for the work to be done. Lines 1 through 9, or 32 through 48, will be completed as required by the development method being used and other instructions herein.

2. 1410 – Administration (lines 10 through 18). PHAs with

experience in the development of low-income housing should estimate development-related administration costs on the basis of such experience, as applicable, for the current development method. For turnkey projects, there will be less administration activity than for conventional projects. The amounts for the various subaccounts shall be the costs of the items of expense which are directly traceable to and essential in the planning, construction and completion of the project, and the prorata amounts of the PHA's total administration costs with respect to the items which are not wholly traceable to the project. Administration (1410) and Planning (1430) Costs ordinarily terminate with the End of the Initial Operating Period. After this date, only costs of personnel employed full time in development work may be charged to these accounts.

3. 1420 – Interest (lines 22 through 26). For turnkey projects, because of the limited PHA financing until the completed project is acquired, PHA interest shall be limited to not more than 5 percent for 5 months on the total development cost, excluding interest and contingency. If the project is so planned as to be completed and occupied in several stages, PHA interest shall be computed from the time the PHA takes title to completed incre­ments of the projects to not more than 5 percent for 5 months after completion of the last increment. For a conventional project PP budget, interest shall be limited to not more than 5 percent for each 12 months or portion thereof. For budgets subsequent to the PP Budget, Accounts 1420.1 and .2 shall be charged, to the extent specifically approved by HUD, in accordance with Handbook 7510.1. Line 26, Total Interest, is the amount which results after the deducting interest earned on investments from the interest charged.

4. 1425 – Initial Operating Deficit (line 24). In the absence of dependable previous experience data on which to base a preliminary estimate of the initial operating deficit, an allowance of not to exceed $50 per dwelling unit may be used unless more is specifically authorized by HUD.

5. 1430 – Planning (lines 25 through 31). For turnkey projects generally, architectural-engineering services will be in­cluded in the Developer's Price except for periodic inspection of construction by an independent architect employed by the PHA (Account 1430.7).

6. 1440.5 – Appraisals (line 36). No entry shall be made in this Account when HUD performs the appraisal since no fee will be charged. This Account shall be charged with the costs incurred by the PHA for appraisals of land or improvements when provided by fee appraisers.

7. Donations (lines 53 and 54). Account 2850 is described in Handbook 7510.1. A donation represents cash and/or the reasonable value of property donated to the project. Any costs met from cash donations and the value of any donations in kind will be included under the appropriate cost account and itemized in Subpart VI. Since donations cannot be included in the Total Development Cost, the total of donations will be subtracted therefrom in Subpart I of the Budget.

8. Contingency (line 56). Enter not more than 5 percent for conventional projects, nor more than 1 percent for turnkey, of the Total Before Contingency.

3. Subpart III – Supporting Data for Cost Estimate in Account 1475 (Lines 6 and 48). Generally, the PHA provides nondwelling equipment, requiring an entry in line 48 only. Include only nondwelling equipment intended for use in developing the specific project. Account 1475 shall not include automotive passenger vehicles; and shall not, without detailed, itemized justification fully endorsed by the officials involved in its approval, exceed one-half of one percent of the project's Total Development Cost.

4. Subpart IV – New Construction-Prototype Comparison Percentage The accounts used in this comparison—1460 and 1465 (lines 3, 4, 45 and 46)—should be carefully prepared. It is particularly important that nondwelling construction and equip­ment costs (chargeable to Accounts 1470 and 1475) not be combined with the dwelling construction and equipment costs in Accounts 1460 and 1465 because this could adversely affect the prototype comparison percentage. Care should also be taken to assure that, in the case of a turnkey project where the developer and the PHA will each provide certain items of dwelling equipment, the amount in Item A2 of this Subpart is the sum of lines 4 and 46.

Page 5 of 5 ref Handbook 7417.1

form HUD-52484 (8/96)