This module demystifies the financial fundamentals behind housing development projects. Participants will work with simplified to more complex pro-formas, engage in cost and revenue forecasting, and understand how financial viability is evaluated by different stakeholders.

Learning Objectives:

• Learn the building blocks of a development pro forma
• Understand the vocabulary of financial analysis and the various perspectives (private developer, non-profit developer, investors, and bankers).
• Gain insights into how developers determine land value and profitability
• Understand how lenders and appraisers view risk and value
• Learn how to adjust for uncertainty through sensitivity analysis

Topics to be covered:

Developer - Multi Family

• Breaking down the performance
• Evaluating risks and rewards (return metrics)
• Case study of a multi-family project and pro-forma analysis

Appraiser

• Value fundamentals
• Basic "back of envelope" pro-forma
• Sensitivity analysis

Purpose Built Rental

• Development process
• Rental incentives
• Case study of a purpose-built rental project and pro-forma analysis

Banker

• Five C's of credit
• Common loan types and structures
• Lender considerations

Format & Features:

• Two-day in-person workshop format
• Hands-on work with pro formas in Excel or interactive tools
• Guest lectures from a developer, appraiser, and lender
• Peer review of small group financial modeling exercises

Ideal For:

• New and seasoned professionals seeking to understand the multiple views of project viability
• Professionals seeking to understand project economics
• Those preparing for internal or client-facing conversations about viability

CPD Credits:

• Qualifies for BC Housing informal CPD points
• Eligible for PIBC Continuous Professional Learning units