What is C-PACE?
- C-PACE provides low-cost, long-term financing for building improvements that serve a public purpose (e.g., energy efficiency, solar, resilience against natural disasters, public health)
- As much as 25% of new construction costs and 100% of retrofit costs may be eligible
- Financing is secured by a voluntary tax assessment and is usually repaid through an annual bill or on the properties’ regular tax bills
- Typically, administrative functions of originating and servicing C-PACE transactions is outsourced to private C-PACE administrators (e.g., Allectrify)
- As a component of the capital stack, C-PACE lowers a property’s cost of capital and increases cash on cash returns, IRRs, and equity multiples
- C-PACE does not accelerate in a default, like a mortgage does
- C-PACE financing is available to upgrade multifamily buildings and commercial real estate in 30 states plus Washington, DC. Check here to see if C-PACE is available in your state.