75 Charter Oak Avenue
Hartford, CT 06106
700 Canal Street
Stamford, CT 06902
C-PACE (Commercial Property Assessed Clean Energy) is a green energy financing program that helps commercial and non-profit property owners get affordable, long-term financing for green energy upgrades to their buildings. For building owners, energy improvements financed by C-PACE can produce immediate energy savings and enable them to increase their bottom line. And mortgage holders benefit from C-PACE, too!
C-PACE energy improvements are paid for out of the savings that the project creates. Borrowers should realize improved cash flow, leaving them less encumbered and able to repay the financing. Modernized buildings are stronger and more valuable assets on the mortgage holder’s balance sheets. And because building owners are required to get their mortgage holder’s consent before their project is eligible for financing, mortgage holders are involved in determining a property’s eligibility.
For C-PACE financing to go forward for a prospective borrower, the mortgage holder must agree to allow the C-PACE Benefit Assessment, which takes a senior position to their mortgage, to be levied on the property. This allows the borrower to pursue energy efficiency or renewable energy improvements using C-PACE, which will be repaid through the Benefit Assessment and collected in installments on their property tax bill. By completing a Lender Consent Form, mortgage holders indicate their understanding that the C-PACE Benefit Assessment will be collected in the same manner as and subject to the same penalties, and remedies as real property taxes. For the Lender Consent Form and other information about C-PACE, see the C-PACE Program Guidelines. By statute, C-PACE Benefit Assessments are senior liens, subordinate only to real property tax liens.
Mortgage holders can be confident about C-PACE green energy financing because it enhances a borrower’s ability to meet their financial obligations. This is what makes consenting to C-PACE financing a fundamentally sound business decision. Here’s why:
C-PACE is a powerful financing tool that creates stronger businesses. When lenders allow C-PACE to move forward, they’re supporting their borrowers, and the green energy movement and economy in Connecticut.