C-PACE (Commercial Property Assessed Clean Energy) empowers property owners to access long-term financing for qualifying energy and water upgrades, indoor air quality projects, or resiliency projects to their buildings. Property owners must obtain consent from all mortgage and lien holders to be eligible for C-PACE financing.
Why Do Senior Lendors Consent?
- C-PACE payments do not accelerate – only current and past due C-PACE payments can be enforced through a tax lien and are senior to a mortgage lender’s claim.
- C-PACE projects improve the borrower’s cash flow, leaving them less encumbered and able to repay the financing.
- Modernized buildings are stronger and more valuable assets on the mortgage holder’s balance sheets. It also makes the building more attractive to tenants and future owners.
- C-PACE projects typically add new equipment to the property, increasing the mortgage holder’s collateral.
