CPACE Assessment Process 2

Question 1

Which entity typically initiates the PACE assessment by filing a notice with the county or municipality?

Accepted Answer

The property owner

Answer

The property owner voluntarily initiates the C-PACE assessment by applying to the program and agreeing to the lien on their property.

Question 2

What happens to a C-PACE assessment lien when a commercial property is sold?

Accepted Answer

It transfers to the new property owner

Answer

C-PACE assessments are attached to the property, not the borrower, so the obligation transfers to the new owner upon sale.

Question 3

Which professional typically conducts the energy audit required before a C-PACE assessment is approved?

Accepted Answer

A qualified energy auditor or engineer

Answer

A qualified energy auditor or engineer assesses existing conditions and projects the savings from proposed improvements.

Question 4

The 'savings-to-investment ratio' (SIR) in C-PACE underwriting is used to verify that:

Accepted Answer

Projected energy savings meet or exceed the financing cost

Answer

An SIR of 1.0 or greater confirms that projected savings are sufficient to cover the assessment payments, a key underwriting requirement.

Question 5

What is the purpose of the 'notice of assessment' recorded in land records during the C-PACE process?

Accepted Answer

To publicly disclose the lien and its terms on the property

Answer

Recording the notice of assessment creates a public record of the lien, putting future purchasers and lenders on notice of the encumbrance.

(CPACE) Commercial Property Assessed Clean Energy Practice Test