CPACE CPACE Stakeholders and Participants 1

Question 1

Which party in a CPACE transaction holds the senior lien on the property for the assessment amount?

Accepted Answer

The local government municipality

Answer

The CPACE lender/capital provider

Answer

The property owner's mortgage lender

Answer

The energy contractor

Question 2

What is the role of a CPACE program administrator?

Accepted Answer

To manage program guidelines, underwrite projects, and coordinate between stakeholders

Answer

To finance the project directly with their own capital

Answer

To perform all construction and installation work

Answer

To purchase the property after project completion

Question 3

Why must existing mortgage lenders typically provide consent before a CPACE assessment is placed on a property?

Accepted Answer

Because the CPACE assessment lien is senior to the existing mortgage

Answer

Because CPACE lenders pay the mortgage off at closing

Answer

Because CPACE requires the mortgage to be refinanced

Answer

Because CPACE reduces the property's market value

Question 4

Which entity typically originates and structures a CPACE transaction before selling it to an institutional investor?

Accepted Answer

A CPACE capital provider or originator

Answer

The property owner

Answer

The state energy office

Answer

The general contractor

Question 5

What is the primary responsibility of a CPACE servicer?

Accepted Answer

Collecting assessment payments and remitting funds to investors

Answer

Installing energy equipment on the property

Answer

Approving building permits for improvements

Answer

Providing the initial capital for CPACE projects

Question 6

Which type of professional is typically hired to verify that a CPACE project's energy savings projections are reasonable before funding?

Accepted Answer

An independent energy engineer or consultant

Answer

A real estate appraiser

Answer

A mortgage underwriter

Answer

A tax attorney