C-PACE Financing is enabled but not yet available in Alabama. C-PACE allows building owners and developers to access the capital they need to make energy-related deferred maintenance upgrades in their existing buildings, support new construction costs, and make renewable energy accessible and cost-effective.
C-PACE (Commercial Property Assessed Clean Energy) is a public-private partnership enabled by state law and financed with private capital that finances sustainability improvements to CRE, such as energy efficiency, water conservation, seismic resiliency, and wildfire hardening. In some jurisdictions, C-PACE financing can also be used to fund portions of “green” new construction.
C-PACE finances these measures with long-term, fixed-rate financing, generally on a non-recourse basis. The structure exists because the state and local municipalities view these improvements as a public benefit, akin to how a sewer improvement would benefit the public.
20-30 years fixed-rate loan terms
Rates 50% less than mezz/pref
Non-recourse upon completion
Obligation may be transferred on sale or prepaid
Tailored step-down prepayment fees
100% upfront financing for eligible measures
$500,000 – $500,000,000
All states with active C-PACE programs and continually expanding (Currently): AK, AR, CA, CO, CT, DE, FL, IL, KY, MA, MD, MI, MN, MO, MT, NE, NM, NV, NY, OH, OK, OR, PA, RI, TN, TX, UT, VA, WA, WI, & DC
100% financing for energy, water, and resiliency capital expenditures.
Multifamily, Hospitality, Industrial, Office, Retail, Senior Living, Student Housing, non-profit, and special purpose.
Single-family residential, residential condos, government owned buildings.
Hard, soft, and associated costs connected to mechanical, electrical, plumbing, building envelope improvements and renewable energy sources. Examples include HVAC, LED lighting + facility controls, boilers, windows, and solar.
20-30 years fixed; shorter loan terms available.
Full term; Actual / 360
Capitalized interest reserve during construction
Maximum LTV 30% for new construction/rehab based on the as-stabilized or as-complete property value. Maximum LTV of 35 % for retrofit based on the as-stabilized or as-complete property value.
90% LTC for New Construction & Value-Add Development (C-PACE + Mortgages)
95% LTC for Maximum C-PACE + Mortgages LTC of 95 % for retrofit projects based on the as-stabilized or as- complete property value.
Total debt to cost ratios are subject to appropriate DSCR ratios and senior lender approval.
Minimum requirement of 1.25x (1.10x for multi-family) inclusive of energy savings & total debt.
Milestone-based disbursement schedule; generally pro rata with senior lender for new construction/rehab projects.
Milestone-based disbursement schedule; generally pro rata with senior lender for new construction/rehab projects.
No lockout period, yield maintenance or exit fee
Tailored prepayment fees that step down over time;
Non-recourse upon completion
C-PACE financing requires lender consent from any lienholder on a property. C-PACE financing is non-accelerating even in the case of default.
C-PACE may be paid off at sale/refinancing or transferred with title with no restrictions
