Better Capital for
Better Building C-PACE Financing.

Step 1: State approves PACE legislation (36 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 channel partners (engineers, contractors, loan brokers, solar installers)

Step 5: CleanFund underwrites individual transactions, gets program approval and funds the transaction

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. In California, a Joint Powers Authority (“JPA”) often executes the contract on behalf of the municipality. CleanFund purchases a PACE bond that is backed by an assignment of the assessment contract (in California and certain other states).

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. This may vary depending on state and jurisdiction. Contact the CleanFund team for more information regarding the specific payment schedule in your jurisdiction.

No, in most jurisdictions, you cannot partially pay your property taxes (i.e., choosing to exclude certain line items). In the state of CA, a partial payment of property taxes or PACE assessment triggers a delinquency of the full amount of taxes and assessments due during that billing period.

Yes. Typically, a prepayment premium must be paid in connection with a prepayment, which is set forth in the assessment contract.

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.