How does the mortgage holder participate in the C-PACE project development process?

There are multiple steps that will involve the mortgage holder:

  1. Once a property owner determines that a building modernization project may enhance their building’s asset value (collateral) and cash flow (improved mortgage repayment ability), he or she will seek a preliminary meeting with the mortgage holder to review the opportunity.
  1. At this first meeting, the owner and a representative of the C-PACE program administrator will describe the program’s requirements and answer any questions. In particular, they will discuss the independent quality assurance technical review process which is used to validate that the project’s estimated energy cost savings, over the effective useful life of the improvements, exceeds the total finance cost (SIR>1), and related key financial metrics associated with the project.
  1. Assuming the mortgage holder does not object, the C-PACE program administrator will collaborate with the owner and the owner’s C-PACE registered contractor to develop and optimize the project to ensure it meets program requirements. See C-PACE Program Guide for more information.
  1. The project development and optimization process includes the creation of a C-PACE Project Finance Report. This report is the culmination of a comprehensive process that includes input and reviews by the owner, contractor and the program administrator. The end product is a carefully designed, optimized project that meets all the requirements of the program.
  1. At a second meeting with the mortgage holder this Project Finance Report will be reviewed in detail and a formal request for consent will be made by the owner.