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Post on 22-Dec-2015
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PACE PROGRAMS
Regular PACE Flex PACE Flex PACE Daycare Facilities Flex PACE Affordable Housing Flex PACE
INTEREST BUYDOWN
Borrow receives up to a 5% interest buydown which is funded by BND and the local community
Borrower must pay at least 1% Community’s portion can be direct cash
or other in-kind contribution to the project such as land, infrastructure, loans, or equity investments
BUYDOWN SCHEDULE
BUYDOWN SCHEDULE
FUNDING ARRANGEMENT WITH
BND Community can pay up front (discount
received) Community can pay at least annually – Billed
by BND Community can pay in-kind
COMMUNITY AGREEMENTWITH THE BORROWER
Most communities enter into a loan agreement with the borrower and the funds are paid back after the PACE is complete
Some communities will grant the interest buydown
Some communities limit the term of the interest buydown
Some communities limit the amount of buydown based on certain factors such as salaries/benefits, use of loan funds, etc
Other
COMMUNITY FUNDING SOURCES
Cash Sales tax and/or other taxation Multiple community entities partner up to
provide the buydown Borrow funds from other entities.
Opportunity Fund (RECs) Regional Councils Local utility cooperative
Community fund drive. Small communities Other
COMMUNITY FUNDING SOURCES
In-Kind Donating land to the borrower Paying for infrastructure costs TIF used to develop the property Other
Must be able to validate the amount of in-kind contribution.
Questions & Comments
Bank of North Dakota
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