The next parameter we will consider is land cost per unit. All things being equal, projects with lower land costs per unit will be easier to finance. In the table below we present land cost per unit for projects awarded credits in 2012.
For projects that received awards in 2012, the average land cost was $6,868 per unit. Age restricted (elderly) projects averaged $6,506 per unit, while general occupancy (family) came in at $7,049. New construction deals averaged $6,592 per unit, while the allocated land portion of total purchase price for rehabilitation deals came in at $8,011 per unit. There were no adaptive reuse projects in North Carolina’s 2012 allocation.
The graph below shows the distribution of awards.
The majority of projects were clustered between $5,000 and $10,000 per unit. Several exceeded this amount; several were lower than this amount. A few had virtually no basis in the land whatsoever (the land was contributed).
Allen & Associates Consulting, Inc. specializes in development consulting for affordable housing. Feel free to contact me (Jeff Carroll) at 704-905-2276 with any questions you may have regarding your project.