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