CPACE Stakeholders and Participants Flashcards
6 cards from real CPACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPACE Stakeholders and Participants flashcards as text
Which party in a CPACE transaction holds the senior lien on the property for the assessment amount?
Answer: The local government municipality
The local government municipality holds the senior lien on the property because CPACE assessments are structured as a tax lien on the real estate.
What is the role of a CPACE program administrator?
Answer: To manage program guidelines, underwrite projects, and coordinate between stakeholders
A CPACE program administrator manages program guidelines, underwrites projects, and coordinates among property owners, lenders, and capital providers.
Why must existing mortgage lenders typically provide consent before a CPACE assessment is placed on a property?
Answer: Because the CPACE assessment lien is senior to the existing mortgage
Existing mortgage lenders must consent because the CPACE lien is senior to their mortgage, which could affect their collateral position in a default.
Which entity typically originates and structures a CPACE transaction before selling it to an institutional investor?
Answer: A CPACE capital provider or originator
A CPACE capital provider or originator structures and underwrites the deal, often selling the resulting assessment bond to institutional investors.
What is the primary responsibility of a CPACE servicer?
Answer: Collecting assessment payments and remitting funds to investors
A CPACE servicer collects periodic assessment payments from property owners and remits the appropriate funds to capital providers or investors.
Which type of professional is typically hired to verify that a CPACE project's energy savings projections are reasonable before funding?
Answer: An independent energy engineer or consultant
An independent energy engineer or consultant reviews and validates the energy savings projections to ensure the project meets CPACE technical requirements.