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WHAT IS CPACE FINANCING?
The PACE financing program was originally designed to provide funding to buildings that need equipment upgrades to bolster their energy efficiencies. CPACE is a branch of PACE financing that focuses on the commercial aspect of business and allows commercial building owners to obtain low-cost financing for renewable energy projects, seismic retrofits, water control measures, and even hurricane protection measures for their properties.
C-PACE is becoming an increasingly attractive financing option because energy improvements can lead to lowered utility bills and may increase property value. Energy efficiency improvements come with a high upfront cost and, once implemented, can take a while to reap the full economic benefits. CPACE is an innovative solution that allows property owners to install those improvements without having to drain working capital, all while giving them the flexibility to pay back the financing over a term that coincides with the life of the upgrades.
CPACE is available in states where legislation allowing for property owners to voluntarily enter into this type of assessment financing has been passed. Since the assessment attaches to the property itself, if the business owner were to sell the property, the assessment would remain on the property and the new owner would assume payments. Additionally, because the assessment resides at the tax assessor level, CPACE financing requires lender consent from any lienholder on the property.