2. PACE PROGRAMS  Regular PACE  Flex PACE  Flex PACE Daycare Facilities  Flex PACE Affordable Housing  Flex PACE

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%  Community’s portion can be direct cash or other in-kind contribution to the project such as land, infrastructure, loans, or equity investments

4. BUYDOWN SCHEDULE

6. 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

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

8. 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

9. 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.

10. Questions & Comments Bank of North Dakota