CPACE Assessment Process 4

Question 1

When a C-PACE project is partially funded by both C-PACE and a traditional senior mortgage, the arrangement is often called:

Accepted Answer

A blended or stacked financing structure

Answer

Blended or stacked financing combines C-PACE with a senior mortgage to fund the full project cost, with each instrument covering a defined layer of the capital stack.

Question 2

What is the typical maximum term for a C-PACE assessment repayment period?

Accepted Answer

25 to 30 years

Answer

C-PACE assessments commonly allow repayment terms up to 25 or 30 years, aligning with the useful life of the installed improvements.

Question 3

Which government body is usually responsible for collecting C-PACE assessment payments from property owners?

Accepted Answer

The local tax collector or county treasurer

Answer

Local tax collectors or county treasurers collect C-PACE payments as part of the property tax bill and remit funds to the capital provider.

Question 4

What is the primary reason C-PACE programs require an independent 'third-party review' of contractor bids and project scope?

Accepted Answer

To verify that costs are reasonable and improvements will achieve projected savings

Answer

Independent review protects property owners and capital providers by confirming project costs are market-appropriate and savings projections are technically sound.

Question 5

A C-PACE lien is recorded against a commercial property. If the owner fails to pay the assessment, the most likely first enforcement action is:

Accepted Answer

Addition of penalties and interest to the delinquent assessment on the tax roll

Answer

Like unpaid property taxes, delinquent C-PACE assessments accrue penalties and interest on the tax roll before escalating to tax lien sale or foreclosure.

(CPACE) Commercial Property Assessed Clean Energy Practice Test

(CPACE) Commercial Property Assessed Clean Energy Practice Test

CPACE Assessment Process 4