below-market interest rate

below-market interest rate (BMIR)

Government-subsidized interest rate concessions offered to spur development,usually in a particular market segment,such as low-income housing,or in particular market areas,such as parts of the country heavily damaged by natural disasters.In the housing industry, the borrower is generally required to pass along the savings to consumers in the form of lower rents.

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Although Freddie Mac obtained its amortizable basis in the favorable financing intangible under a specific DRA provision that subjected the institution to Federal income tax, the Tax Court's holding in this case will apply broadly to any purchaser of assets that assumes the seller's existing debt with a below-market interest rate.
Over the last 30 years the agency's primary programs have provided: -- Below-market interest rate loans to thousands of low and moderate income first-time homebuyers -- More than 6,600 families benefited from this program in the last fiscal year, receiving total financing of more than $1.
The HiCAP consists of a below-market interest rate CHFA first loan and a $25,000 down payment assistance second loan.
Proceeds from the bond sales, which could total as much as $150 million for the year, will be used to fund below-market interest rate loan programs for single-family, first-time homebuyers and for developers of affordable multi-family dwellings.
Features include a below-market interest rate, low down payments, reduced closing costs and flexible credit requirements.
As rates rise, bondholders have the choice between continuing to receive a below-market interest rate or selling for a loss.
This loan is offered to commercial banks at a below-market interest rate.
The CDE provides a qualified equity investment under favorable terms, such as a below-market interest rate and a longer-than-standard period of interest-only payments, to the qualified active low income community business.
The lawsuit said this was often not the case and that Citigroup was simply pursuing a "thinly-veiled, unlawful attempt to limit its exposure to the risk of collapse in the United States housing market and to rid itself of below-market interest rate loans.
The resolution creating a public facilities board does not obligate the city or its taxpayers to repay the bonds, which would be tax-free and therefore carry a below-market interest rate.
The 27-year-old single mother qualified for a Michigan State Housing Development Agency (MSHDA) first-time home buyer program that provided a below-market interest rate mortgage since her income was below $69,000 and her credit score was above 670.