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
- 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
What kind of projects does CleanFund's C-PACE fund?
- New Construction
- Redevelopment
- Retroactive Financing
- Seismic Strengthening
- Retrofits
- Storm proofing
- Tenant Improvements
- Renewable Energy Improvements
- Building Expansion
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.
Who can benefit from using C-PACE financing?
CleanFund's C-PACE benefits many stakeholders in the real estate industry. Discover how C-PACE Financing can benefit your organization.
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.
How does PACE Financing Works?
PACE in the capital stack
Payments & Disbursements
How pace financing works
Pace-eligible Improvements
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.