Do The Developers Make Money On SouthGate Place?

You better believe they do. Here is how it works:

1. Up front cost of $7,000,000
2. $6,000,000 comes in the forms of various grants and federal tax credits that in this case mandate that all 25 units are rented to low to mod income people for an "affordability" period. Think this one is 20 years.
3. Assuming all the units are in fact rented to low mod income, your only real costs that you need to pay back is the $1,000,000

Bottom line you if you play the low income game, you get 25 units that you can get section 8 money for 1 million. The developers make a ton of money on this project and don't let anyone tell you different.