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Development constraints and issues <br />With such a complex financial, technical, relational, and programmatic undertaking, any number <br />of unexpected hurdles can arise. The challenge for developers, whether public, private, or <br />nonprofit, is to ensure that they have not failed to anticipate issues such as: <br />* Funding gaps <br />* Construction cost overruns <br />* Inability tohonor timeline <br />* Unanticipated holding costs <br />p Interest rate fluctuation <br />* Aligning funding commitments <br />p Unexpected environmental conditions <br />* N|MBY-ism (Not In My Back Yard) <br />* Excessive or exclusionary regulation <br />* Urban growth boundaries orinfrastructure limitations <br />* Issues with local zoning <br />* Lot size and density potential <br />* Noncompliance with funding rules <br />Complexity 0fhousing finance <br />As mentioned, housing development typically entails at least three financing sources: a first <br />mortgage, a second mortgage, and an equity investment. For a large affordable housing project, <br />however, there may be as many as 8, 10, or 12 sources. How the debt is structured (who injects <br />capital into the project atvvhatpointandvvho8etorepaidhovvandvvhen)iocritica|tothe <br />pr ject'ooucceoa. <br />_ <br />ONE: Houshigmmr a Growing, 7hrivinq Region <br />