Paying for the Construction Interest and Mortgage

We expect to pay for construction interest and a mortgage primarily from growth in new  "Family or Giving Units" as we move to Grace @ Greenhouse Village.  The chart below illustrates how an increase of 20 "Family or Giving Units" by the 2012/13 fiscal year generates most of the incremental funding we anticipate needing.  We currently have about $50,000 in the Building Fund, and will maintain that amount as a minimum reserve to use in any instance where incremental giving does not completely cover construction loan interest or mortgage costs. 

Key assumptions for our forcast include:

• An increase in "Giving or Family Units" from 90 in the current fiscal year (2009/10), to 95 in 2010/11, to 100 in 211/12, and to 110 in 2010/13
• Annual giving per unit remains at its average for the past three years
• Operating expenses, net of interest and mortgage, increase 3% per year, starting in 2010/11