How the Green Bank works with tax collectors

Tax collectors in Connecticut can levy a special municipal lien called a benefit assessment on properties in their municipalities. A benefit assessment recognizes an obligation to pay for a “benefit” received, in this case, C-PACE funding. The benefit assessment is foundational to the C-PACE program, making the tax collector key to the program’s success. For a property that chooses to finance a qualifying C-PACE project in Connecticut, the tax collector signs a benefit assessment lien and assignment, prepared by the lienholder of record, and assigns it to the Green Bank. The Tax Collector’s office then delivers the documents, and the accompanying check, to the Town or City Clerk for recording.

Formerly, Connecticut tax collectors also billed and collected benefit assessment payments on behalf of the C-PACE program. Since July 2021, the Green Bank has taken on the responsibility for billing and collecting.

What tax collectors can expect

When a property owner closes on C-PACE financing, the Connecticut Green Bank will overnight the following documents to the Tax Collector’s office:

1. Certificate of Levy and Lien of C-PACE Benefit Assessment
2. Assignment of Benefit Assessment Lien (Municipality to Green Bank)
3. If applicable, Assignment(s) of Benefit Assessment Lien (Green Bank to Capital Provider(s))
4. Filing instructions
5. A check covering all recording costs

Documents 1 and 2 above will always be signed by the municipality’s tax collector before filing. Any other documents will arrive signed.

In Practice

Because the tax collector is critical to the closing process in a C-PACE transaction, the Green Bank will sometimes reach out when a closing is being scheduled. This is because recorded liens and assignments are often required before funds can be transferred. While not directly involved in a C-PACE closing, the municipal tax collector is a critical contributor to its success. Coordinating with the tax collector’s schedule can become an essential item on the closing checklist for property owners, lenders, and the Green Bank.