Respuesta :
Many state and local housing authorities are able to fund low and moderate income housing with below-market interest rate loans. They can do this because they are allowed to Fund the loans with tax-exempt bonds.
What do you mean by the market interest rate loans?
The market rate for a loan is the typical interest rate that will be assessed to the recipient by a number of lenders.
The average rate of interest earned from all or a specific group of investment vehicles that are offered on the open market is what the investor refers to as the "market rate."
The term "market interest rate" Interest rates are set by the interaction between the supply and demand for money in the money market and are applied to deposits and other investments.
Therefore, many state and local housing authorities are able to fund low and moderate income housing with below-market interest rate loans. They can do this because they are allowed to Fund the loans with tax-exempt bonds.
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