FREE CPACE Financing Structure and Repayment Terms Questions and Answers
How is the repayment for a C-PACE loan typically structured?
C-PACE financing is repaid through a special assessment added to the property taxes, making it convenient and secure for both property owners and lenders.
What makes C-PACE financing appealing to commercial property owners?
C-PACE financing often eliminates the need for upfront capital and provides long-term repayment plans (up to 20-30 years), allowing property owners to undertake substantial energy projects without immediate financial strain.
What happens to a C-PACE loan if the property is sold?
C-PACE loans are tied to the property rather than the owner. When the property is sold, the responsibility for repayment transfers to the new owner as part of the property tax assessment.
What is a common benefit of the C-PACE repayment structure for lenders?
C-PACE assessments are often given senior lien status, which means they are prioritized for repayment over most other debts in case of default, reducing risk for lenders.
Which type of property is typically eligible for C-PACE financing?
C-PACE financing is specifically designed for commercial, industrial, and sometimes multi-family properties (depending on the jurisdiction) to fund energy efficiency and renewable energy projects.