PACE is a private, affordable, long-term financing vehicle that is not available through traditional funding avenues. Funded nationwide by billions of dollars in ethical investments, PACE is arranged to attract people who want to change the world for the better and make our communities more green by reducing our buildings’ energy consumption.
Because PACE is an assessment on your property, much like a tax, it guarantees the loaning authority that they have a lien on the property in effect of a default. That’s if there is no further involvement of the taxing or governing authorities with you or your property. The program is non-recourse – there is no down payment on a 20-year note, and it’s specifically for the purposes of reducing energy and water usage and your building’s impact on the grid. PACE funds have repeatedly been used as an essential item in the proforma. It has often made real estate investments’ cash flow more robust and improved the rate of return. It does this by eliminating the down payment and reducing the interest rates on the debt used to finance the project.