Introduction Facility Development Needs Assessment Site Selection Construction/ Renovation Financing Timeline Glossary Bibliography Appendix A Appendix B Appendix C Appendix D Appendix E		APPRAISAL Official report required by lenders giving an estimate or opinion of value based on an analysis of pertinent data by a qualified appraiser. BID SPECIFICATIONS Also known as "specs." Detailed set of instructions prepared by an architect specifying how a property is to be constructed or renovated and identifying the types of materials to be used. These specifications form the basis for soliciting bids from general contractors. BUILDING CODE Regulations, ordinances or statutory requirements of a governmental unit relating to building construction and occupancy. CERTIFICATE OF OCCUPANCY A document from a government building department stating that a structure was built or remodeled in compliance with regulations and is ready for occupancy. CHANGE ORDER A written order to the contractor signed by the owner and architect, issued after the execution of the contract, authorizing a change in the work or an adjustment in the contract sum or contract time. CLOSING COSTS Expenses involved in transferring real estate from a seller to buyer, including lawyer's fees, survey charges, title searches and insurance and fees to file deeds and mortgages. COLLATERAL Stocks, bonds, evidence of deposit and other marketable properties which a borrower pledges as security until a loan is repaid. In mortgage lending, the collateral is the specific real property being financed which the borrower pledges as security. COMMITMENT FEE Lender's charge for agreeing to hold credit available for a specific period of time and to reimburse them for administrative and staff costs in underwriting the loan. The fee is usually payable upon the applicant's signing of the commitment letter. CONSTRUCTION CONTINGENCY Portion of the borrower's construction budget set aside to cover unexpected hard costs. CONSTRUCTION LOAN A loan, usually short-term, which is made to finance the actual construction or renovation of improvements on land. The funds are disbursed as needed or in accordance with a prearranged plan, and the money is repaid on completion of the project, usually from the proceeds of a permanent mortgage. ENVIRONMENTAL ASSESSMENT Official report required by lenders which evaluates a piece of property to determine whether the site may have been contaminated by hazardous wastes. Usually only a phase one report is performed, but additional phases may be required if phase one uncovers evidence that possible environmental problems might exist. GENERAL CONTRACTOR Main contractor for a building or project who may hire smaller, more specialized sub-contractors. HARD COSTS Direct costs to construct a building, otherwise known as "brick and mortar" costs, distinguished from legal, financing and architects' and similar "soft costs" required for the project. INTEREST RATE Ongoing cost set by a lending institution for the use of its money, usually expressed as an annual percentage. LOAN CLOSING Legal session where final loan documents are executed. LOAN TERM The amount of time over which a borrower is expected to repay the loan. MORTGAGE LOAN Debt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan. PERMANENT LOAN A long-term loan, usually with a term between 10 and 30 years. Sometimes the proceeds are used to repay a construction loan. RETAINAGE Portion of each payment of a general contractor's requisition under a construction loan held in reserve by the lender until the project is completed. SECURITY Real or personal property collateral used to back up a mortgage or lien, which gives the lender tangible property that may be sold upon default to pay off the indebtedness. SOFT COSTS Expenses, other than hard costs, incurred in developing a real estate project. These costs include financial, legal and architectural fees. SOURCES AND USES OF FUNDS A schedule that identifies the different sources of funding for the construction of the project and provides a line-item identification of how those funds will be used in the project. ZONING Local regulations establishing the use of property and the size, height and location of structures placed on it.