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 local government municipality holds the senior lien on the property because CPACE assessments are structured as a tax lien on the real estate.

Question 2

What is the role of a CPACE program administrator?

Accepted Answer

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

Answer

A CPACE program administrator manages program guidelines, underwrites projects, and coordinates among property owners, lenders, and capital providers.

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

Existing mortgage lenders must consent because the CPACE lien is senior to their mortgage, which could affect their collateral position in a default.

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

A CPACE capital provider or originator structures and underwrites the deal, often selling the resulting assessment bond to institutional investors.

Question 5

What is the primary responsibility of a CPACE servicer?

Accepted Answer

Collecting assessment payments and remitting funds to investors

Answer

A CPACE servicer collects periodic assessment payments from property owners and remits the appropriate funds to capital providers or investors.

(CPACE) Commercial Property Assessed Clean Energy Practice Test

(CPACE) Commercial Property Assessed Clean Energy Practice Test

CPACE CPACE Stakeholders and Participants 1