Quick question. Although I am setting the Development Length (Summary Page M13) to 12 months, it seems that the Dev-Interest Calc page calculates the construction loan interest for 24 months! Can you please clarify?
When the Development Module is activated, financing includes first a construction loan (unless LTC on the Sources and Uses tab is set to 0%), that is subsequently paid off by a permanent loan (via the Perm. Debt tab). The funding of the Permanent Loan and payoff of the construction loan occurs at stabilization. So during the period you are carrying construction financing until the permanent financing takes out the construction loan, interest will accrue. Oftentimes, stabilization does not occur until sometime after construction ends and thus you’ll see interest accruing past the ‘Development Length’ set on the Summary tab. You can change the stabilization date in the Timing section of the Summary tab.
