New-Mexico C-PACE Program
C-PACE Status: Enabled & Active
C-PACE Financing is available in New-Mexico and 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.
How does C-PACE work?
C-PACE makes it possible for commercial property owners to obtain low-cost, long-term financing for energy efficiency, water conservation, and renewable energy projects. Most commercial property types qualify for C-PACE financing.
The program starts with a state-level government policy that classifies clean energy upgrades as a public benefit – like a new sewer, water line, or road.
These upgrades can be financed with no money down and then repaid as a benefit assessment on the property tax bill over a term that matches the useful life of improvements and/or new construction infrastructure (typically ~20-30 years). The assessment transfers on the sale of the property and can be passed through to tenants where appropriate.
While facilitating sustainability efforts, the program reduces property owners’ annual costs and provides dramatically better-than-market financing for green new construction.
Submit a C-PACE Financing Request Today!
C-PACE Financing Overview
Next Generation Construction Finance for Energy Efficient Upgrades and Deferred Maintenance
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. C-PACE
financing can also be used to fund portions of
“green” new construction in some jurisdictions.
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.
Product Snapchat
20-30 years fixed-rate loan
terms Rates 50% less than
mezz/pref
Non-recourse upon completion
Obligation may be transfered on
sale or prepaid
Tailored step-down prepayment fees
C-PACE Product Term Sheet
Next Generation Construction Finance
LOAN AMOUNT
$5,000,000 – $5,00,000,000
LENDING FOOTPRINT
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
LOAN PURPOSE
100% financing for energy, water, and resiliency capital expenditures.
ELIGIBLE PROPERTIES1
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.
INELIGIBLE PROPERTIES
Single-family residential, residential condos, government owned buildings.
ELIGIBLE UPGRADES2
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.
LOAN TERMS
20-30 years fixed; shorter loan terms available.
AMORTIZATION
Full term; Actual / 360
INTEREST RESERVE
Capitalized interest reserve during construction
C-PACE Debt-to- Value3
Maximum LTV 30% for new construction/rehab based on the as-stabilized or as-complete property value.
Maximum LTV of 3 5 % for retrofit based on the as-stabilized or as-complete property value.
Total-to- Cost3
90% LTC for New Construction & Value-Add Development (C-PACE + Mortgages)
95% LTC for Maximum C-PACE + Mortgages LTC of 9 5 % 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
DSCR
Minimum requirement of 1.25x (1.10x for multi-family) inclusive of energy savings & total debt.
DISBURSEMENTS
Milestone-based disbursement schedule; generally pro rata with senior lender for new construction/rehab projects.
LOCKOUT PERIOD
No lockout period, yield maintenance or exit fee
PREPAYMENT AND EXIT
Tailored prepayment fees that step down over time;
RECOURSE
Non-recourse upon completion
SENIOR MORTGAGE4
C-PACE financing requires lender consent from any lienholder on a property.
C-PACE financing is non-accelerating even in the case of default.
FULLY TRANSFERABLE
C-PACE may be paid off at sale/refinancing or transferred with title with no restrictions
- 1) Special Purpose buildings are reviewed on a case-by-case basis and include houses of worship, sports complexes, golf courses, hospitals, and educational facilities
- 2)Subject to State & County specific eligible upgrades
- 3)Consult with a C-PACE.com Advisor for State & County specific leverage requirements
- 4)Consult with a C-PACE.com Advisor for details regarding lender consent approval
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