PACE Programs for Commercial Mortgage Lenders
PACE for Mortgage Lenders
CleanFund will develop and manage a PACE program for commercial real estate lenders to improve profits, expand business, and accomplish ESG goals with low risk investments.
PACE for Commercial Property Owners
PACE allows your lender to fund up to 100% of improvements that will lower your utility expenses without increasing your mortgage. Learn more from CleanFund.
Better Capital for
Better Building C-PACE Financing.
C-PACE for Real Estate Developers
With funding up to 30% LTV in a unique and modern financing solutions part of the capital. stack for new constructions, retrofits and value-add investments. Lean more or get in touch with our team to schedule an intro with CleanFund.
C-PACE for Commercial property owners
Energy efficiency is a global priority. CPACE finance allows commercial real estate owners and developers to access capital for their energy efficiency, water efficiency, seismic upgrades and resiliency measures projects.
What is PACE Financing?
PACE, or “Property Assessed Clean Energy”, is a tool that can finance energy efficiency and renewable energy improvements on commercial properties.
Lenders can use PACE to fund the upfront costs associated with energy efficiency or renewable energy improvements.
The capital is repaid over 30 years through property taxes. The security provided by the tax assessment results in long-term financing and transferability of the repayment obligations to the next property owner.
How does PACE Financing work?
This CleanFund video explains how PACE works in under two minutes. CleanFund can develop and manage a PACE program for your senior lender so there is limited additional underwriting.
PACE is for all stakeholders
CleanFund benefits all stakeholders including our environment. Discover how CleanFund can benefit your organization.
Lenders & Banks
Help borrowers maximize the value of their property.
Overall Benefits
- Increase property value
- Pass through expenses
- Finance equipment replacement
- Cash flow increase
- Preserve Capital
- Significant energy savings
Financing Terms
- 100% Financing
- Fixed Rate financing
- 20-30 years self-amortizing term
- Flexible pre-payment
- Non-recourse, non-accelerating
- Up to 20%-30% of asset value
Use of proceeds
- Fund construction cost overruns
- Pay down loan or mortgage
- Replenish reserves
- Increase working capital
- Funded like construction loan or as reimbursement for work already completed
What kind of projects qualify for CleanFund capital?
- New Construction
- Redevelopment
- Retroactive Financing
- Seismic Strengthening
- Retrofits
- Storm proofing
- Tenant Improvements
- Renewable Energy Improvements
- Building Expansion
Leadership Team
Learn more about PACE
Learn more about PACE with CleanFund to fund your next commercial real estate development.
Assessment Financing is like a TIFF. It is a public improvement mechanism that has been around for more than 100 years to fund projects that are for the public good. The definition of "public good" now includes projects that reduce energy and water usage.
Step 1: State approves PACE legislation (40 states so far)
Step 2: Counties or cities “opt-in” to one or more PACE programs based upon state program parameters
Step 3: CleanFund underwrites PACE programs to ensure best practices
Step 4: CleanFund sources transactions:
Directly through relationships with property owners
Indirectly through our participating lenders.
Step 5: Lenders approve transactions and fund directly or through CleanFund.
Step 6: The county collector adds a line-item to the property’s tax bill, and collects the new PACE payments as part of ordinary remittances
An assessment contract sets forth the property owner’s obligation to repay the PACE financing over time along with their normal property tax payments and clarifies the various terms of the PACE financing. The contract is between the property owner and the municipality in which the property is located. Either the lender or CleanFund will purchase a PACE bond that is backed by an assignment of the assessment contract.
This assessment is levied each tax year and included on the building owner’s property tax bill. The payments are due at the same time as ordinary property tax payments. The lender will generally collect property taxes monthly with the mortgage and pay on behalf of the owner.
No. In most jurisdictions, you cannot partially pay your property taxes (i.e., choosing to exclude certain line items). This is part of what makes PACE credit so reliable.
Yes. Typically, a prepayment premium is paid in connection with a prepayment and will vary depending on the negotiated interest rate.
Yes, PACE can be used to finance improvements that are already installed and in operation should there be written acknowledgement of PACE as a financing option. As a safeguard, CleanFund’s Initial Application includes a clause on intention to reimburse prior to the start of construction, which preserves the Owner’s right to be remunerated for work that has already been completed. This might include engineering studies, energy audits, and other soft costs.
Yes, CleanFund can provide financing for up to 100% of costs associated with the improvements, including soft costs, such as engineering, site work, and energy audits.
What is C-PACE Financing?
C-PACE, or Commercial Property Assessed Clean Energy, is a tool that can finance energy efficiency and renewable energy improvements on commercial properties.
Similar to other traditional real estate financing methods, CPACE uses borrowed capital to pay for the upfront costs associated with energy efficiency or renewable energy improvements.
The capital is repaid over time via a voluntary tax assessment. The security provided by the tax assessment, a long-used and well understood mechanism, results in several compelling features, including long term financing and transferability of the repayment obligations to the next property owner.
Key Benefits of using CPACE:
CleanFund CPACE can return developer's equity on a recently completed project. Proceeds can then be used for any use including cost overruns on a current development under construction. Additionally, the typical loopback window for construction reimbursement is 3 years.
Overall benefits
- Increase your property value
- Pass through expenses
- Finance equipment replacement
- Cash flow increase
- Preserve Capital
- Significant energy savings
Financing Terms
- 100% Financing
- Fixed Rate financing
- 20-30 years self-amortizing term
- Flexible pre-payment
- Non-recourse, non-accelerating
- Up to 20%-30% of asset value
Use of proceeds
- Fund construction cost overruns
- Pay down construction loan and/or facilitate ongoing debt service payment
- Replenish reserves
- Increase working capital
- CleanFund can fund proceeds directly to the developer for eligible equipment already installed
C-PACE is for a wide range of stakeholders
CleanFund's C-PACE benefits many stakeholders in the real estate industry. Discover how C-PACE Financing can benefit your organization.
Meet The CleanFund Team Of Experts
John Kinney
CEO
William Cassidy
Head of Underwriting
Laurence Hughes
Managing Director of Business Development
Manny Valido
Managing Director of Business Development
Bonnie Wheatley
Controller
Renee Pifer
Managing Director, Portfolio Management
Jessica Knowles
Human Resources Manager
Christopher Polidoro
Financial Analyst
Bhavik Patel
Director of Business Development
Herve Drompt
Director of Sales & Marketing
Nicholas Zuba
Director of PACE Policy and Programs
New, valuable component of the real estate capital stack
Non-recourse capital for major improvements to commercial, multi-family and alternative nonresidential properties.
100% Financing for vital building improvements
Finance up to 100% of hard and soft cost for both new construction and property acquisition or retrofit projects with easy repayments through property taxes.
Long-term capital to maximize property cash flow
With savings often exceeding payments, projects pay for themselves. For solar projects, customers can directly or indirectly take advantage of sizable tax benefits.
New, valuable component
of the real estate capital stack
Non-recourse capital for major improvements to commercial, multi-family and alternative nonresidential properties.
100% FINANCING FOR VITAL BUILDING IMPROVEMENTS
Finance up to 100% of hard and soft cost for both new construction and property acquisition or retrofit projects with easy repayments through property taxes.
LONG-TERM CAPITAL TO MAXIMIZE PROPERTY CASH FLOW
With savings often exceeding payments, projects pay for themselves. For solar projects, customers can directly or indirectly take advantage of sizable tax benefits.
John has started four "Inc. 500" companies. He started CleanFund and what became Commercial PACE in 2008. He left to focus on developing PACE programs for mortgage lenders and bought CleanFund back in 2022 to pursue that vision.
John Kinney CEO | CleanFund