NMR 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 1% to 3% per year, and at the end of 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.

Equity investment.

NMR makes equity investments in projects on very favorable terms. NMR may become a special partner in a class that doesn't participate in profits or losses or 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 terms.

Other terms and conditions.

NMR's investments may include some or all of the following characteristics:

• Loans may be subordinated to a first mortgage or ground lease.
• Loans may have a higher than standard loan to value ratio.
• A 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.
• Low cost origination fees may help make the financing more economical.