### Question
How does the law define development cost?


### Answer
Under *20 U.S.C. § 1132d*, **development cost** is defined as:

> costs of the construction of the housing or other educational facilities and the land on which it is located, including necessary site improvements to permit its use for housing, academic facilities, or other educational facilities, except that in the case of the purchase of facilities such term means the cost as approved by the Secretary

#### Citation:
  - *20 U.S.C. § 1132d*
  - Heading: **CHAPTER 27-NATIONAL VOCATIONAL STUDENT LOAN INSURANCE > SUBCHAPTER VII-CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC FACILITIES > Part C-Loans for Construction, Reconstruction and Renovation of Academic, Housing, and Other Educational Facilities**

