FREQUENTLY ASKED QUESTIONS
How does Commercial PACE financing work?
Property Assessed Clean Energy (PACE) can provide 100% financing for energy- and water-saving upgrades in commercial real estate and multifamily housing. PACE financing is secured by a voluntary property tax assessment. The assessment is simply repaid on your property tax bill, much like other tax assessments routinely used to finance infrastructure upgrades.
How do I apply for PACE?
Why should a property owner consider C-PACE?
With C-PACE, building owners can enjoy the advantages of energy upgrades immediately and pay for them over time through a voluntary benefit assessment lien, levied and recorded against the benefiting property, to be repaid along with real property taxes. It's a safe investment that produces returns immediately and for years to come.
What are the benefits of C-PACE for the property owner?
C-PACE allows building owners to:
Take control of their energy costs to save money and increase their bottom line. Positive cash flows resulting from lower, more predictable energy costs allow you to focus on your core business.
Make their building more comfortable. Invest in upgrades that improve your building, making your facility more enjoyable and attractive for you, your employees, tenants, or customers.
Act with confidence. You can finance 100% of green energy upgrades. Experts develop credible energy savings projections that make building owners confident that energy savings should be greater than their investment.
Learn more about how C-PACE can benefit your building and put you in control of your building's energy costs.
Is my property eligible for C-PACE?
Most commercial buildings are in our footprint. This includes retail/office, institutional, or industrial real estate, and most types of multifamily housing. Properties owned by non-profits that do not pay real estate taxes are still eligible for PACE. Both retrofits and new construction may be eligible. To learn more, review our program guidelines or submit an inquiry at the bottom of this page with basic information about your property and we'll get back to you.
Will LordCap PACE put a lien on my property?
LordCap PACE financing is secured by a voluntary property tax assessment. The assessment is placed by your municipality and is simply repaid as part of your property taxes, much like other tax assessments routinely used to finance infrastructure upgrades. Like with real estate taxes, a lien is only created in the case of a delinquincy.
What kind of projects are eligible?
In addition to measures that directly reduce utility costs or add renewable generating capacity, LordCap PACE can finance measures that are substantially related to or necessary for the installation of energy and water conservation measures (e.g. a new roof to support a solar installation). LordCap PACE can finance up to 100% of eligible projects, including both hard and soft costs.
What project sizes are eligible for LordCap PACE?
There's no maximum C-PACE financing amount, and numerous projects exceed $10 million. Our minimum financing is $100,000.
For more information, view our program guidelines or contact us to see if your project is eligible.
What are the typical terms of C-PACE?
Repayment periods start from 5 years to a maximum of 30 years. Typically, C-PACE is 15- or 20-year fully amortizing fixed-rate financing.
Are religious organizations eligible?
LordCap PACE financing is available to all eligible building owners regardless of whether the building is owned by a religious institution. LordCap PACE financing is available for qualifying physical improvements to the buildings of religious institutions on the same basis as the financing of improvements to the buildings of other organizations within our footprint. Religious institutions are eligible to participate in programs/states where LordCap PACE is authorized as a Capital Provider.
What about new construction projects?
LordCap PACE allows for the use of PACE financing to fund energy- and water-saving improvements and related building upgrades in new construction and substantial rehabilitation projects. Contact us about the technical application required for new construction projects.
What is lender consent?
Consent from existing mortgage lenders is required. However, because C-PACE projects typically improve cash-flow and increase the value of the property, there is a proven track record for securing lender consent.
Which states does LordCap PACE participate in?
Currently, we are in California, Colorado, Connecticut, District of Columbia, Maryland, Michigan, Minnesota, Missouri, New York, Rhode Island, Texas, Utah, and Virginia. Check our application page to find out more about your state and its PACE programs. If we're not in your state yet and you're interested in PACE financing, let us know so we can make your state a priority.