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Do Housing Rehabs Pay Their Way ? 4 4 5 Overall benefit/cost relationships at the organization (CDC) level and economic benefits are also of interest. Fiscal Costs Fiscal costs include the present value of all subsidies and financing the CDCs received from their local city in support of rehab projects. The total fiscal cost for all ten housing groups studied was $2.97 million. The typical experience was between $8,900 and $9,500 per unit of output (334 total rehabbed units).Z Administrative support was the most common subsidy. The average per unit administrative subsidy for the nine programs that took advantage of this item was $3,209. Loans deferred for a. given period of 61111 or UlIti I the Iransfer of the property were also a popular subsidy. The average unit received a deferred loan of approximately $6,161 from the respective city. Interest rates and payback period varied for these loans. Only two cities offered first mortgages to subsidize the rehabilitation projects of its NWO member. For the purpose of this analysis, first mortgages only include those loans that amortize over a given period where the payback begins immediately after loan origination. These loans averaged $15,712 per unit. Another popular subsidy type was the forgiveable loan, or grant, typically forgiven over a period of five to ten years if the recipient remained in the rehabbed home. These loans were generally transferable to the heirs of the homes. Therefore, an assumption was made that none of these loans were repaid, thus they were classified as grants. The average grant amount was $3,882. The final subsidy type was classified as other loans. These consist of below- market -rate loans, simple interest loans and no -interest loans that are repaid over a given period, but are not deferred. These loans averaged $7,162 per unit in the cities that used them. Exhibit 4 summarizes the per-unit and total fiscal costs for each subsidy. Fiscal Benefits Fiscal benefits are determined by the tax structure of each city government. The total fiscal benefits received among the ten case study organizations was $2.56 million, or about $7,700 per unit of output averaged over all 334 units studied in all ten cities. The largest benefit line item for the cities with first mortgages, deferred loans and other loans was the loan repayment benefit. Each loan payment stream was calculated and its present value was derived in order to calculate this benefit. J R E R I Vol. 25 1 No. 4 - 2003 25