Frequently Asked Questions

Answers to Common Questions About C-PACE

Why is this C-PACE financing different than a Loan?

Unlike loans, C-PACE programs (which vary slightly by state) enable project financing through a property assessment and repayments are collected in accordance with your commercial property tax schedule. This voluntary assessment represents a senior lien on the property being improved and automatically transfers to a new property owner upon any sale of the property.

Under C-PACE programs, eligible property owners may obtain 100% financing for eligible energy projects including soft costs, the cost of the product, installation and other approved ancillary costs. There are no balloon payments and assessments are self-amortizing

How is C-PACE financing repaid?

C-PACE financing is repaid through your property tax bill and collected with your regular property taxes as non-ad valorem assessment. You will see an additional line item on your property tax bill for your scheduled payment. If you have your taxes escrowed by your mortgage lender, the bank will adjust your monthly payment to include the amount due for the financing.

Who is eligible for C-PACE financing?

C-PACE programs are available in numerous communities with more coming every day. A map of covered territories is provided here, but we encourage you to use the inquiry button above to ask about availability in your area.  Most commercial property types are eligible including retail, office, hotel and multifamily buildings. 

What are the general eligibility criteria for C-PACE programs?

The eligibility criteria vary slightly from state to state, but generally, they include:

  • The Property taxes must be current with no late payments over the past three years in Florida and no more than one late payment over the past three years in California.
  • All mortgage related debt plus the Program financing may not exceed 100% of the value of the property.
  • The Property Owner must be current on their mortgage at the time of the application without any delinquencies of more than 30 days in the past 12 months or since the property owner acquired the property, whichever is shorter.
  • The Property must not be subject to outstanding involuntary liens such mechanics or municipal nuisance liens.
  • The Property owner must not have declared bankruptcy in the last seven years and must not be subject to an active bankruptcy.

Project costs must be within industry cost guidelines and can include both the cost of the eligible or qualifying products and the installation costs. Products must be permanently affixed to the property.

Installation costs may include, but are not limited to the cost of and fees for energy, water and similar audits, appraisals, labor, designs, drawings, engineering services, building permit fees, surveys, inspections, materials required in connection with the installation of the Eligible Products and technical reviews.

Project Costs also include the cost of pre-paid warranties and service contracts for repairs and maintenance.

What are the financing parameters for C-PACE through HASRE?

HASRE will generally finance projects from $500,000 to $100 million or more in certain circumstances. Underwriting is based upon property value and net income generated by the property. General approval parameters require a debt service coverage ratio (DSCR) of 1.15x on underwritten stabilized net cash flow and a PACE assessment to value (LTV) of no more than 35% of stabilized property value.

Do leased properties or those with ground leases qualify for the Program?

Yes. Properties with lease agreements may qualify for C-PACE financing subject to proper and adequate documentation, receipt of required property authorizations and signing of all financing documents by all owners. Properties may be subject to other conditions. 

What costs are eligible for C-PACE financing?

Project costs can include all financing costs and all installation costs including the hard costs of the products, labor, soft costs and all related work. 

Soft costs may include, but are not limited to, the cost of and fees for appraisals, designs, drawings, engineering services and reports, bank fees, building permit fees, surveys, inspections and technical reviews. 

Eligible costs may also include the cost of pre-paid warranties and service contracts for repairs and maintenance.

Do I have to work with a specific contractor or service provider?

One of the benefits of C-PACE programs nationwide is that you can work with a professional of your choosing.  In some jurisdictions, the service provider will need to register with the state or municipal PACE program administrator. 

How do I start?

Submit an inquiry via our website to provide contact and basic property/project(s) information. A representative will contact you to collect further information about the project and to provide a full quote.

What are the eligible improvements or projects?

Improvements related to the installation or modification of alternative energy projects, energy efficiency or water use improvements or a renewable energy system that generate energy, decrease energy use or decrease water consumption. Thousands of improvements are eligible for financing.

Examples of project types include but are not limited to:

• Alternative energy improvements such as motor vehicle charging stations and associated electrical infrastructure
• Energy efficiency equipment, such as HVAC, windows, doors, building envelope, cool roofs, meters, elevators, and control systems, including tenant enhancements, such as LEED or WELL certification improvements
• Water use improvements
• Renewable energy or alternative energy sources, such as solar systems, wind power and storage systems

Can I bundle multiple improvements?

Yes, there are thousands of improvements that are eligible for financing. In certain states PACE can even finance improvements that have been recently installed and put in operation.

Can I get help developing my project? I don’t know where to start…

HASRE has relationships with many developers, contractors, vendors and engineers. We can help put you in touch with multiple firms so you can feel informed and confident when you are ready to undertake your project.

HASRE is partnership between Counterpointe Sustainable Real Estate and Hannon Armstrong.