Frequently asked questions

What is Commercial Property Assessed Clean Energy (C-PACE) ?


C-PACE or Commercial PACE is a long term financing tool for commercial property owners to pay for energy efficiency upgrades. A City or County creates a land secured financing district. Property owners sign up for financing to install energy projects. Then lender then provides funds to pay for the project Property Owners then install upgrades to their facilities and the C-PACE loan is paid back through a special assessment on their property taxes.




What are the benefits of C-PACE?


  • Cash flow positive from day one and increased property value
  • Solves split incentive problem, payments can be passed easily to tenant
  • Financing is not tied to the credit of the property owners or developer
  • Decreases maintenance cost and increases net operating income
  • Non-recourse (no personal guarantee) payments run with the land and are transferred to subsequent owner upon sale of property
  • Long term with no upfront cost- 100% financing
  • Energy savings can fund C-PACE assessment payments
  • Creates local jobs
  • Lower cost of doing business
  • Healthy environmental impact




Who can use C-PACE Financing?


Property owners and developers in the commercial sector including industrial/manufacturing retail, office, multifamily, agriculture, municipalities and more. Ideal for new construction, re-devolopments, gut-rehabs, stabalized buildings, etc....




Where can I use C-PACE?


Active C-Pace States -Oregon -California -Utah -Colorado -Texas -Nebraska -Missouri -Arkansas -Minnesota -Wisconsin -Michigan -Ohio -Kentucky -New York -New Hampshite -Maryland -Rhode Island -Washington DC -Virginia -Florida In Process -New Jersey -Illinois -Georgia -Pennsylvania -Massachusetts -Nevada




What energy efficient products will qualify?


These improvements vary by state to state and municipality. This is a reference tool, please submit your energy efficient plans to CR PACE.

  • Roof-Green Roof, Cool Roof, Reflective Roof, White Roof, Roof work pertaining to solar panels and exhaust ventilation
  • Heating/Ventilation- Furnace/Boilers, Duct Work, Heat Pumps, Control Systems, Exhause Fans, Air Conditioners, Chillers, Ventilation Fixtures, Compressed Air, Refrigeration
  • Plumbing/Water Efficiency- Hot Water Heating Systems, Pipe Install, Sprinkler Systems Low Flow Fixtures, Irrigation System, Rainwater Systems, Greywater/Blackwater Sytems, Washer/Dryer/Dish
  • Lighting-High Efficiency Lighting (Outdoor/Indoor), Fluorescent Lighting, Induction Lighting, Controls/ Sensors
  • Solar/Renewable Energy- Solar Equipment, Geothermal, Wind Turbines, Renewable Fuel Systems, Co-generation Systems, Fuel Cell Sytems
  • Building Envelope Windows/Insulation- Doors and Windows, Walls/Wall Coatings, Skylight, Window Films, Window Systems, Insulation, Air/Duct Sealing, Air Filtration, Fans




Can I get better terms from a traditional bank?


Benefits over traditional financing:

  • No up-front, out of pocket costs for the property owner
  • Up to 30 years rather than 5 to 30 years
  • No borrower guarantees or financial covenants
  • Finance 100% of project costs, includes soft costs ( permits, inspections, and design fees)
  • Cash flow positive from day one, through utility savings and lower capital costs
  • Fixed interest rates for life of the assessment (payments can be passed on to tenants)
  • Payment stays with property and does not have to paid upon sale of the property
  • Payments are collected along with normal real estate taxes on your life cycle
  • Assessment may qualify as an operating expense which will preserve capital and credit
  • Self amortizing (no baloon payment)
  • No quarterly bank reporting




Does my mortgage lender need to give consent?


Yes, a C-PACE assessment holds the same priority as property taxes therefore the existing mortgage lender must give consent. Lender usually approve C-PACE because projects improve the value of the property and net operating income. This makes it easier for property owners to pay their existing mortgage.




What if the property is sold before loan maturity?


If the property is sold or refinanced the assessment does not need to be be prepaid. The assessment passed on to the new owner who will continue to benefit from the energy cost savings.




How much and how long can the money be borrowed?


Loan Size: $1,000,000 to $20,000,000+ Loan Terms: 5-30 Years




Can the C-PACE loan be prepaid?


Prepayable at anytime. Prepayment fees vary based on loan terms.




Do I need an energy audit?


Yes, the energy usage of systems in the building must be assessed, this will help the property owner understand what projects will produce the most energy savings.




What are the steps to be funded by CR-PACE?


Eligibility Form





Cuyahoga River Capital LLC

 

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