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.

References in periodicals archive ?
Throughout the Dream Big event, M/I Homes will also offer a below-market interest rate and pay various amounts of closing costs -- up to $5,000 -- for qualifying homes and buyers when they use M/I Financial, a subsidiary of M/I Homes that offers financial services and mortgage programs.
The company helped create and retain 266 jobs with its lower down payment, below-market interest rate, and longer-term loans.
House's ethics (https://ethics.house.gov/sites/ethics.house.gov/files/documents/2008_House_Ethics_Manual.pdf) manual declares that "there can also be an improper gift when a Member or staff person is given a loan at a below-market interest rate."
As rates rise, bondholders have the choice between continuing to receive a below-market interest rate or selling for a loss.
The central bank had allocated CNY1tn to China Development Bank in April, using a newly introduced tool, called the 'pledged supplementary loan.' This loan is offered to commercial banks at a below-market interest rate. In return, the central bank takes assets as collateral.
The suit says the financial institution was 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 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." Edelson McGuire, the law firm representing the plaintiffs, plans to seek as much as $1.21 million to cover legal fees and expenses.
The loan carries a below-market interest rate of 0.95 percent and a 20-year term, and will come from limited funds that are made available to DEQ from the federal government time and again.
These strengths, which also include a stable state economy and the authority's current ability to meet its legislative mandate, are tempered by its low net interest margin compared with peers in the same rating category, due to below-market interest rate loans originated by the authority.
NMTC investments in low-income community businesses generally use leveraged structures, where equity is left in the businesses, or subsidized interest rate structures, where below-market interest rate loans are offered.
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 European Central Bank loaned 350 billion Euros to banks at a below-market interest rate in a bid to ease tight credit markets and reduce the cost of lending between retail and commercial banks.