FAQ

The number of active C-PACE markets increases by the week. To date, C-PACE-enabling legislation has been passed in 38 states and the District of Columbia and C-PACE programs are now operating in 28 states plus the District of Columbia. Give us a call and we will let you know if your city participates; if not, we can work with the local C-PACE authority to help make it happen.

If your building is in need of energy efficiency, water efficiency, seismic or resiliency measures, your property is more than likely eligible. Petros PACE Finance will finance most commercial property types, including but not limited to office and industrial buildings, shopping centers, warehouses, multifamily properties, hospitality, medical facilities, schools, nonprofits etc.

Most commercial property types in need of efficiency upgrades will qualify. Eligible conservation measures (ECMs) must either reduce energy consumption or demand, produce renewable energy or conserve water. There is no prescribed list of measures but generally efficient mechanical, electrical and plumbing measures like chillers, boilers, LED lighting, building envelope, solar and low flow plumbing fixtures would qualify. Specific savings requirements will vary by project type and program.

In addition to ECM qualification, Petros will underwrite the financial merits of the project to determine qualification including, but not limited to, property value, owner’s equity, financial performance or projections of the property, loan-to-values (LTVs) percentages and debt service coverage ratios (DSCRs). Additional property evaluations will be conducted to ensure there are no existing environmental issues, involuntary liens or unpaid taxes.

Yes, in some states C-PACE can be used to finance improvements that are already installed and in operation. Petros can assist you in verifying eligibility and particular limitations that could apply in a specific market.

Because C-PACE programs are enabled by state and local legislation, program requirements vary by jurisdiction. Some states allow C-PACE financing for new construction, for example, while others do not. Savings requirements also vary by program. See map for more information.

Our goal is to maximize the amount of C-PACE funding without adding any cost or changing your design. We have deep expertise in energy engineering and can find the elements of your current plan that will qualify for C-PACE funding, identify the savings that will result, and help package those components to get approval from the C-PACE district administrators. In nearly every case, we are able to find enough energy savings from your current design to qualify for your desired amount of C-PACE funding.

1. Energy audit is obtained;
2. Property owner completes our financing application;
3. Petros works with the local C-PACE authority to obtain project approval;
4. Petros works with the borrower to obtain consent from the mortgage lender (if any); and
5. The closing and funding of the project occurs.

Petros works with developers to determine an initial sizing estimate of the C-PACE assessment for use in determining the preliminary project capital stack. We can also assist in the process to engage engineers experienced in evaluating new construction and gut rehab projects for identification of measures and their associated savings for qualification for C-PACE.

Petros does not hinder the normal project development timeline. As long as we receive our diligence information in a timely fashion, we can move along simultaneously with the energy auditors, project engineers, etc. Once all due diligence items are complete, we expect to close on funding within 30-45 business days.

Petros PACE Finance funds each project directly at closing into an escrow account. Property owners love our direct model, there’s no waiting around for weeks to obtain bond approval. Funds are then disbursed during the construction of the project, alongside the construction lender’s funds if applicable.

Yes, so long as the contractor is a registered contractor if required by the applicable C-PACE program.

Specific requirements regarding documentation of projects savings depends on the state statute or the program administrator’s guidelines. An energy audit assesses the energy usage of systems in the building and helps the property owner evaluate which upgrades will produce the most energy savings and are the most cost effective to pursue. Generally, an ASHRAE Level II audit is provided though not always required. In many states, the contractor can prepare the initial energy savings report that may be later verified by an independent third-party reviewer. Petros requires energy, water, seismic or windstorm feasibility studies or audits as applicable on all projects.

The assessment is included on your property’s tax bill and is typically paid annually or semi-annually either directly to the county along with your ad valorem taxes or directly to Petros depending on the collection method specified by the C-PACE program.

Yes, however, a prepayment fee may apply. These terms will be detailed in our term sheet and the Assessment Agreement.

The C-PACE assessment can remain in place as it is designed to transfer seamlessly to the subsequent owner upon sale. C-PACE improvements tend to increase the value of a property through higher tenant retention rates, higher occupancy, improved infrastructure and improved cash flows. The new owner and its tenants are assuming the cost of the C-PACE loan but they will also benefit from the utility and maintenance savings generated by the project. In general, it is easier to sell a property without end-of-life concerns around building systems — projects that can be financed through C-PACE.

C-PACE assessments are always recorded, so they are easily identified in title reports. The assessment will transfer automatically and because C-PACE assessments have a flat, predetermined amortization, they can be incorporated into your mortgage lender’s T&I escrow.