WHAT IS PROPERTY ASSESSED CLEAN ENERGY(PACE)?

PACE is an innovative program that enables property owners to obtain low-cost, long-term loans for energy efficiency, renewable energy, and water conservation improvements. Projects financed using PACE can generate positive cash flow upon completion with no up-front, out-of-pocket cost to property owners—eliminating the financial barriers that typically prevent investment in revitalizing aging properties. The term of a PACE Financing may extend up to the useful life of the improvement, which may be as high as 20 years or more, and can result in cost savings that exceed the amount of the PACE Financing. The result is improved business profitability, an increase in property value, and enhanced sustainability.

PACE financing is sourced from an open lending market and secured through a voluntary PACE special assessment on the property tax bill and is repaid directly to the lender. Like property taxes, PACE financing may be transferred to the next property owner if the property is sold. The remaining balance of the PACE financing is repaid by the subsequent owner, who continues to receive the benefits of the improvements from the project.

Types of commercial real estate projects that qualify for PACE financing include but are not limited to the following: