How does C-PACE Financing work?

This CleanFund introduction video explains how C-PACE financing works in under two minutes. Finance your new commercial real estate development, retrofit, and upgrades with CleanFund's CPACE. 

Overall benefits

Financing Terms

Use of proceeds

What kind of projects does CleanFund's C-PACE fund?

What is PACE and how does it work?

Learn more about C-PACE with CleanFund to fund your next commercial real estate development. 

Assessment Financing is a public improvement finance mechanism that has been around for more than 100 years to fund public works projects. Property Assessed Clean Energy (PACE) was introduced in California in 2007 as a form of assessment financing to fund improvements to qualifying properties, namely projects that reduce energy and water usage, and which are deemed in the “public good” (like assessments for school bonds, fire districts, etc.)

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.

What is PACE and how does it work?

Learn more about C-PACE with CleanFund to fund your next commercial real estate development. 

Assessment Financing is a public improvement finance mechanism that has been around for more than 100 years to fund public works projects. Property Assessed Clean Energy (PACE) was introduced in California in 2007 as a form of assessment financing to fund improvements to qualifying properties, namely projects that reduce energy and water usage, and which are deemed in the “public good” (like assessments for school bonds, fire districts, etc.)

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.

What States have an established C-PACE program?

At CleanFund, we constantly track the evolution of PACE Policy and Programs in the United States. Everyday.

CleanFund is your partner for C-PACE Financing. Learn how we can make a difference for commercial property owners and developers

C-PACE Financing is one of 2022's best financing tools available to commercial real estate owners and developers. CleanFund's webinars and videos help you better understand how C-PACE can benefit you, even on recently completed projects. 

This CleanFund introduction video explains how CPACE Financing works to finance your new commercial real estate development, retrofit, and upgrades.

CPACE helps you unlock the hidden opportunities in your real estate assets. 

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there are hidden opportunities in every
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building embrace the opportunity to
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become more efficient productive and
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profitable clean fund holds the key to
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unlocking your real estates hidden value
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clean fund provides an innovative
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financing solution to upgrade your
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buildings major mechanical electrical
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and structural components by increasing
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energy efficiency water conservation and
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renewable energy you'll create
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significant value for your property
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clean fund provides all the capital and
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makes the process easy projects become
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cash flow positive often as soon as they
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are completed clean funds pace financing
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makes all this possible with a low cost
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fixed-rate over 20 to 30 years and it
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all gets paid off through an annual
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assessment as you pay your property tax
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bill roofing windows insulation lighting
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building controls water systems heating
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and cooling systems renewable energy and
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so much more
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payments can be treated as an operating
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expense in most cases they can be passed
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through to tenants clean fund requires
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no guarantees the financing can stay
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with the building when it's sold or be
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prepaid if desired clean funds financing
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is a new breed of capital use it for
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routine upgrades new construction or
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strategic enhancements to your
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properties rely less on your capital
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budget corporate equity or bank debt
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because the best way to unlock your
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buildings hidden value is with the right
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partner
This CleanFund introduction video explains how C-PACE financing works in under two minutes. Finance your new commercial real estate development, retrofit, and upgrades with CleanFund’s CPACE. 
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