PACE PROGRAMS  Regular PACE  Flex PACE  Flex PACE Daycare Facilities  Flex PACE...

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Transcript of PACE PROGRAMS  Regular PACE  Flex PACE  Flex PACE Daycare Facilities  Flex PACE...

  • Slide 1
  • Slide 2
  • PACE PROGRAMS Regular PACE Flex PACE Flex PACE Daycare Facilities Flex PACE Affordable Housing Flex PACE
  • Slide 3
  • 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% Communitys portion can be direct cash or other in-kind contribution to the project such as land, infrastructure, loans, or equity investments
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  • BUYDOWN SCHEDULE
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  • 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
  • Slide 7
  • COMMUNITY AGREEMENT WITH 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
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  • 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
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  • 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.
  • Slide 10
  • Questions & Comments Bank of North Dakota