offers low cost financing with flexible terms and conditions aimed
at bridging a gap in feasibility for projects that will have a dramatic
impact on the Low Income Community. In general, its financing will
take one or more of the following forms:
Low Interest Rate Loan
NMR makes low interest rate loans that are interest-only
for seven years. The interest rate will be below market, usually
by 3.5% to 5% per year, and at the end of the seven years, the borrower
will have an opportunity either to extend the term at a very low
rate, or to refinance on terms that will allow it to buy down the
loan at a discount. The combined benefit of these provisions will
typically be a subsidy of approximately 25% to 30% of the amount
of the loan.
NMR makes equity investments in projects on very favorable terms.
NMR may become a partner in a special class that receives a very
modest participation in profits or losses and cash flow. After seven
years, an agreement with the other partners will give them the right,
under specified circumstances, to buy out NMR on very attractive
Other Terms & Conditions.
NMR's investments may include some or all of the following characteristics:
may be subordinated to a first mortgage or a ground lease.
may have a higher than standard loan to value ratio.
put/call provision may give the borrower or sponsor the effective
ability to buy down a loan or buy in NMR's equity at a steep discount
after seven years.
cost origination fees may help make the financing more economical.
may be interest-only or have longer than standard amortization