CPACE Program Structure 3

Question 1

Under most C-PACE enabling statutes, which property types are eligible for financing?

Accepted Answer

Commercial, industrial, agricultural, and multifamily properties (5+ units)

Answer

C-PACE statutes generally cover income-producing properties including commercial, industrial, agricultural, and larger multifamily buildings.

Question 2

What is a 'project completion reserve' in the context of C-PACE program structure?

Accepted Answer

Escrow funds retained until construction is verified complete and equipment is operational

Answer

A project completion reserve is escrowed capital held back from disbursement until the installed improvements are verified as complete and functional.

Question 3

How do C-PACE repayments typically appear on a property owner's financial obligations?

Accepted Answer

As a line item on the property tax bill, collected by the local tax authority

Answer

C-PACE assessments are collected alongside property taxes by the local tax authority, leveraging existing tax collection infrastructure.

Question 4

Which metric is most commonly used in C-PACE underwriting to confirm that a project makes financial sense for the property owner?

Accepted Answer

Savings-to-investment ratio (SIR) confirming projected savings exceed financing costs

Answer

The savings-to-investment ratio (SIR ≥ 1.0) is a standard C-PACE underwriting metric confirming that energy savings will exceed the total financing cost.

Question 5

In a C-PACE structure, who is responsible for verifying that installed measures actually perform as projected?

Accepted Answer

A qualified third-party measurement and verification (M&V) professional

Answer

Third-party M&V professionals validate that installed C-PACE improvements achieve the projected energy and cost savings after installation.

(CPACE) Commercial Property Assessed Clean Energy Practice Test

(CPACE) Commercial Property Assessed Clean Energy Practice Test

CPACE Program Structure 3