What are the minimum underwriting criteria for capital providers?

The program administrator will review each capital provider’s underwriting standards in the Capital Provider Application and Participation Agreement. At a minimum, capital providers must use the following factors when determining whether to underwrite C-PACE projects:

  • Total property-related debt to property value ratio (total property-related debt includes mortgage debt, the C-PACE financing and any other obligations secured by the property). The property value may be established by either (i) as the assessed value of the property, or (ii) its appraised value, as supported by a recent appraisal. In either case, the property’s value may include the enhanced value of the property resulting from the installation of the improvements being financing with C-PACE.
  • Whether the property owner is current on its property tax and assessment payments.
  • The status of involuntary liens, defaults, or judgments applicable to the subject property. A property owner may be able to participate if it can be demonstrated that there is an acceptable reason for the lien, default, or judgment and provide supporting documentation.
  • The property owner(s) or their affiliated companies have not been a debtor in a bankruptcy.
  • Cash flow generated by the property.