Debt repayment is based primarily on the property, but in the event of default to the extent the property cannot pay-off debt, the borrower is personally responsible for debt repayment.
Repair, upgrade of units within existing structure.
See lease-up reserves
An account maintained by the borrower, funding of which is treated as an operating expense and used for repair or replacement of a project's infrastructure, i.e. roof, plumbing, mechanical, etc. For new construction PDC requires replacement reserves of $200 per unit per year.
Reservation of Funds
An informal set-aside of PDC direct financial assistance funds for a specific project that is valid for a limited period of time and evidenced by a Reservation Letter issued by the PDC. This is not a legal obligation to lend.
Money set aside to pay for future anticipated expenses.
Restricted Residential Unit
A housing unit in a PDC funded project that is restricted as to affordability and rent limitations for a specified period of time according to a written affordability agreement.