CPACE Property Evaluation 2

Question 1

When conducting a CPACE property evaluation, which document most directly establishes the baseline energy consumption before improvements?

Accepted Answer

Utility bills from the prior 12–24 months

Answer

Property tax assessment records

Answer

The county parcel map

Answer

Mortgage origination documents

Question 2

A CPACE lender orders a Property Assessed Value report. What is the PRIMARY purpose of this report in the underwriting process?

Accepted Answer

Confirm the property generates sufficient assessed value to support the CPACE lien

Answer

Verify the property's zoning classification

Answer

Determine the owner's personal credit score

Answer

Set the repayment term length

Question 3

Which metric is typically used to express the relationship between projected annual energy savings and annual CPACE assessment payments?

Accepted Answer

Savings-to-Investment Ratio (SIR)

Answer

Loan-to-Value Ratio (LTV)

Answer

Net Operating Income (NOI)

Answer

Debt Service Coverage Ratio (DSCR)

Question 4

An energy auditor classifies a commercial building as ASHRAE Level 2. What does this signify for the CPACE property evaluation?

Accepted Answer

A detailed energy analysis with capital cost estimates was performed

Answer

Only visual inspection of building systems was conducted

Answer

The building passed federal energy code compliance

Answer

Renewable energy generation was measured on-site

Question 5

How does a senior mortgage lender's consent requirement affect the CPACE property evaluation timeline?

Accepted Answer

It can delay closing if the lender requires additional property appraisal or legal review

Answer

It eliminates the need for an independent energy audit

Answer

It automatically increases the eligible CPACE amount

Answer

It removes the property from the tax roll during review

Question 6

In CPACE underwriting, what does 'improvement-to-value' (ITV) ratio measure?

Accepted Answer

The CPACE financing amount divided by the assessed value of the property

Answer

The ratio of construction cost to projected energy savings

Answer

The percentage of the building improved by the project

Answer

The ratio of grant funding to total project cost

Question 7

A commercial property owner wants to include a rooftop solar PV system in a CPACE application. Which element of property evaluation is MOST critical for sizing the system?

Accepted Answer

The property's electricity load profile and roof structural capacity

Answer

The age of the building's HVAC system

Answer

The owner's federal tax credit eligibility

Answer

The municipality's property tax rate