Commercial Property Assessed Clean Energy (C-PACE) was adopted by the City to act as a ‘carrot’ for property owners to have a cost – effective financing solution to help them meet the ambitious new carbon emissions reduction requirements of the Climate Mobilization Act.
Benefits of C-PACE in New York City
- 100% Financing of Eligible Improvements
- Fixed-Rate, Non-Recourse Capital
- Cash Flow Positive from Day 1
- Reduced Operating Expenses Increase Building Value
- Ability to Pass Through to Commercial Tenants
- C-PACE not subject to Mortgage Recording Tax
- Attractive Alternative to Mezzanine Debt or Preferred Equity in New Construction Projects
C-PACE in brief
C-PACE allows commercial property owners to obtain low cost, long-term financing for energy efficiency and renewable energy projects. The program classifies clean energy upgrades as a public benefit and allows them to be paid for through a tax assessment. These upgrades can be financed with no money down and then repaid over a term that matches the useful life of the improvements (typically 20-30 years), and may transfer on the sale of the property. The program is designed to help commercial building owners invest in energy efficient upgrades for their property while seeing day-one savings.