What is C-PACE?
Commercial Property Assessed Clean Energy (C-PACE) is a financing tool that provides long-term, low-cost construction financing for new and existing buildings. Property owners and developers use PACE financing to lower their overall cost of capital.
Eligible improvements may include energy efficiency, water efficiency, renewable energy, and resiliency measures such as seismic and stormwater measures.
CPACE loans are structured as assessments that are repaid through the property owner’s property tax bill over a 20 to 30 year period.
PACE-enabling legislation has been passed in 37 states and D.C. with programs active in 26 states. To see states where C-PACE is live, along with the lookback period available for each, be sure to explore our PACE eligibility map.
Video Credit: PACE Nation
How it Works
Unlike a traditional loan, C-PACE financing is repaid via property tax assessments. This means borrowers make payments only when property taxes are due, rather than every month.
The assessment remains with the property in the event of a sale enabling sellers to provide built-in seller financing.
C-PACE financing is long-term (depending on the program, up to 30 years), fixed-rate for the duration of the term, non-recourse, and considerably cheaper than traditional mezzanine debt – without covenants and guarantees.