Displayed below is a list of Frequently Asked Questions (FAQs). Click on the “>” icon associated with each question to view the answer.

Who administers Reno C-PACE?

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.

Does C-PACE use taxpayer dollars to fund projects?

No. C-PACE uses private capital to fund projects. View a list of capital providers that participate in the program.

When is the voluntary C-PACE benefit assessment recorded on the property?

Upon closing of C-PACE financing.

Is this a voluntary program?

Yes. Owners who choose not to participate remain unaffected.

What are typical C-PACE financing interest rates?

Qualified capital providers typically set interest rates based on the term of the financing. For example, 10-year-term financing may have an interest rate in the range of 5% to 5.5%; 15-year-term, 5.5% to 6%; and 20-year-term, 6% to 6.25%. Moreover, capital providers will typically set applicable closing fees to cover transaction costs, e.g. legal, underwriting, appraisal, etc.

To ensure the best possible terms, including interest rate and other fees, the property owner can review term sheets from multiple C-PACE qualified capital providers to select the best fit.

How is the length of the repayment period determined?

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.

How are tax credits, rebates, and utility incentives incorporated into C-PACE financing?

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.

Are there fees associated with the pre-payment of a C-PACE assessment?

Each C-PACE capital provider set their own terms, including pre-payment, in its financing agreement with the property owner. It is common for C-PACE capital providers to include a pre-payment fee schedule.

Can I use any contractor?

Yes. View a list of contractors who have attended C-PACE training. Note that by providing this list, the City of Reno, the City’s Program Manager, the Reno C-PACE program, and its Program Administrator are not recommending or endorsing any specific contractor.

Is there an application fee for C-PACE?

No, there is no fee to apply for C-PACE financing.

What is C-PACE for new construction?

C-PACE is an innovative, new financing mechanism for commercial real estate developers. It enables you to access affordable, long-term, non-recourse financing for the installation of energy efficiency and renewable energy measures.

What improvements are eligible for C-PACE financing?

Improvements that are eligible for C-PACE financing must be permanently affixed to the qualifying commercial or industrial property and have a useful life of 10+ years.

Energy Efficiency Improvement Projects. Examples include, but are not limited to:

  • Automated building controls (BMS, EMS)
  • Boilers, chillers, and furnaces
  • Building envelope (insulation, glazing, windows, etc.)
  • Combined heat and power (CHP) systems
  • Fuel cells
  • High-efficiency lighting
  • Hot water systems
  • HVAC upgrades
  • Roof replacement that improves energy efficiency (reflective/cool roof, enhanced insulation, or combined with a solar system installation)
  • Variable speed drives on motors, pumps, and fans
  • Waste heat recovery technologies.

Renewable Energy Projects. Examples include:

  • Geothermal systems
  • Hydroelectric systems
  • Small wind systems
  • Solar photovoltaic (roof upgrade/replacement for rooftop systems is also eligible)
  • Solar thermal.

Resiliency Projects. Examples include:

  • Indoor air quality systems
  • Seismic retrofits
  • Stormwater systems that reduce on-site or off-site risk of flash flooding
  • Wind and fire resistance.

Water Efficiency Improvement Projects. Examples include:

  • Irrigation systems that improve water efficiency.
  • Water efficient fixtures (low-flow faucets, toilets, etc.).

 

In addition, the cost of improvements that are directly related to the installation of eligible improvements may be included in the financing, e.g., roof upgrades to support a roof-mounted solar PV installation.

This list is not all-inclusive and is expected to change over time. If a proposed improvement or expense is not on this list, contact the program administrator with a description of the improvement or expense for consideration.

How does C-PACE financing benefit developers?

Developers can qualify for C-PACE Financing in an amount up to 35% of the fair market (“as stabilized”) appraised value of their Tract, provided they design a new building to meet or exceed the City’s current energy code (IECC 2018/ASHRAE 90.1-2016).

Are C-PACE assessments considered off-balance sheet?

You are encouraged to consult an accountant on this matter.

Is there clarity on the treatment of C-PACE as an operating expense from the perspective of the accounting industry?

You are encouraged to consult an accountant on this matter.

From an accounting perspective, have any auditing firms concluded that the assignable lien (which supports the financing) is not the property owner’s liability?

There has been no specific ruling by the Financial Accounting Standards Board on this issue.

How do developers qualify for financing?

Developers can qualify for C-PACE Financing in an amount up to 35% of the fair market (“as stabilized”) appraised value of their Tract, provided they design a new building to meet or exceed the City’s current energy code (IECC 2018/ASHRAE 90.1-2016).

How do I apply for C-PACE financing for my project?

To apply, simply complete the Application Form and submit it and any attachments to Reno@PACEworx.com.

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