Displayed below is a list of Frequently Asked Questions (FAQs). Click on the “>” icon associated with each question to view the answer.
C-PACE is designed to help qualifying commercial, industrial, and multifamily (with five or more units) property owners access long term financing for the installation of qualifying energy efficiency improvements and renewable energy projects (energy improvements). Such improvements may include any construction, renovation or retrofitting of energy efficient technology, clean energy systems, or qualifying waste heat recovery technologies that are permanently fixed to qualifying commercial property.
C-PACE is a win-win program that, aside from lowering the utility expenses and increasing the value of improved properties, advances important public policy goals that include reducing energy and water costs, increasing renewable energy deployment, reducing greenhouse gas emissions, and creating local jobs.
C-PACE financing is provided by private capital providers in an open market. The financing is secured through a voluntary benefit assessment and assignable lien that is levied against the owner’s property. Repayment to the capital provider is facilitated in accordance with a standard C-PACE financing agreement between the property owner, the City, and the capital provider.
The financing term is based on the useful life of the improvements and can extend up to 25 years. The financing itself can cover up to 100 percent of a building’s project cost and often requires no money down.
C-PACE projects must be designed such that the estimated energy cost savings, over the effective useful life of the qualified energy efficiency improvements and/or renewable energy improvements, exceeds the financing amount, i.e. the savings-to-investment ratio (SIR) be greater than one. Such projects create positive cash flow for the property owner.
This combination of benefits means C-PACE property owners can make substantial upgrades to their buildings and, in most cases, the upgraded building is more valuable after a C-PACE project has been completed.
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.
The C-PACE program has an open-market structure under which any capital provider may fund eligible projects. To participate in C-PACE, simply fill out the Capital Provider Application in the Resources section of the website and submit it to Reno@PACEworx.com.
Properties eligible for C-PACE financing must be located within the legal boundaries of the city of Reno and have one of the following uses:
- Multifamily (with 5 or more units)
New construction is also eligible for C-PACE financing.
Repayment of the C-PACE financing is secured by a voluntary benefit assessment that is recorded in the City’s property records by the City Clerk in the County Recorder’s Office.
According to the terms of the Finance Agreement executed by the capital provider and the property owner, the capital provider will manage the C-PACE assessment billing and property owner payment collections process.
In the event of default or delinquency, only the current C-PACE installment payment and any Delinquent C-PACE Payments shall be prior and superior to all liens, claims, encumbrances, and titles other than the liens and assessments of general taxes pursuant to NRS 361.450. Delinquent C-PACE Payments shall (i) accrue penalties and interest in accordance with the Financing Agreement , and (ii) be enforced in accordance with the Financing Agreement. Foreclosure is the sole responsibility of the Qualified Capital Provider and shall be performed in the manner of a judicial foreclosure of a mortgage.
Because the C-PACE repayment obligation is tied to the property, the assessment can transfer to the next property owner if the property is sold.
C-PACE investments are secured by an Assessment and Assessment Lien placed on the Qualifying Commercial or Industrial Real Property on which the Qualified Improvement Projects are developed through a voluntary Assessment Agreement executed by the City and the Property Owner(s) of record. Upon Recording of the Notice of Assessment and Assessment Lien (to which the Assessment Agreement is attached), the Assessment and Assessment Lien is prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes attached to the Tract pursuant to the provisions of NRS 361.450, and:
- Is senior to all other previously Recorded senior liens of a Lender, provided a written Lender Consent is executed by the applicable Lender and Recorded; and
- Shall run with title to the Tract and shall not be extinguished by the sale of any property on account of the nonpayment of general taxes.
Applying for C-PACE simply requires that a property owner or developer submit a completed Project Application to Reno@PACEworx.com.
The C-PACE program administrator actively engages with property owners, contractors, mortgage holders, and capital providers via a multi-channel marketing and public relations strategy to raise awareness of, and interest in, the program.
Sustainable Real Estate Solutions, Inc. (SRS), an industry leader in C-PACE program administration services nationwide, has been selected by the City to administer the program.
Repayment periods span up to 25 years, depending on the owner’s preference, and are limited by the weighted average effective useful life (EUL) of the financed improvements.
Property owners are encouraged to pursue available federal investment tax credits (ITC), utility rebates, and all other available incentives. All or a portion of total incentives may be subtracted from the amount financed under the C-PACE program.
No, there is no fee to apply for C-PACE financing.
Funding for C-PACE financing is provided by private capital providers, which may include banks, specialty financiers, institutional investors, insurance companies, and other capital providers.