Financial Feasibility Analysis
PROCESS
UNDERSTANDING THE APPROACH
* Regulatory policies control development process devoid of
market and financial feasibility
* Policies can go
* “Too far” meaning their requirements will make projects non-
competitive, effectively eliminating development
* “Not far enough” meaning they do not deliver the intended
purpose due te lax requirements
* “Just right” balance intended benefits with market/financial
opportunity cost
* Process to determine “just right” is both quantitative AND
qualitative
* Analyses like this one can relate policy with market/financial
performance impacts
* However, balance is relative to perspective (i.e., City versus
development community)
° Focus of the recommendation to create a “revenue neutral” IZ
policy
* Balance IZ requirements with market return expectations
ASSOCWIES INC
Creating an Effective Policy - Considerations
~,
Public
a
Housing
Affordability
Development Activity
Housing Diversity
Private
Profitability
Predictability and
Consistency
