C-PACE financing doesn’t require any money out of pocket as a down payment on the loan. It’s zero cash down. The assessment can finance up to 100% of eligible energy-related improvements, thereby limiting the up-front cash payment for the entire financial stack. There are no financing covenants and the financing is off the balance sheet.

The building itself is guaranteeing the loan, as it’s part of the property assessed. As an individual, a property owner doesn’t have to guarantee repayment of the loan. There will be no foreclosure on the building as long as the tender is being paid, like taxes.

PACE financing improves the value of the property, either with improved mechanical systems and energy and water usage systems (such as plumbing and fixtures) and/or improvements to the building envelope, as related to the energy use of the building. In structures 15+ years old and older, there are very few energy conserving measures in the building envelope that aren’t PACE eligible. And who doesn’t want to own a property that is both operationally efficient and aesthetically pleasing?

There is an emotional reaction and sense of pride that comes with stepping inside an improved building that is visually appealing as well as environmentally friendly. It’s no longer just a building – it’s a place of importance. Tenants’ improved health and wellness are often byproducts of improved mechanical systems that include air filtration, air exchanges, lighting, and renewable energy systems.

A refreshed building in an otherwise stagnant or outdated-looking neighborhood is exciting. It conveys the idea that someone is willing to invest in improving the neighborhood, and often spurs other property owners in the area to seek PACE funding and revitalize their structures as well.