PACE financing provides up to 100% funding for energy efficiency, renewable energy, water conservation and wind/seismic improvements to new and existing buildings. PACE programs are available in more than 20 states, and while programs vary slightly, each allows for private capital providers to fund energy-saving and resiliency investment by property owners through a voluntary property tax assessment.
PACE financing is repaid through your property tax bill and collected with your regular property taxes as non-ad valorem assessment.
Depending upon your location, you will see an additional line item on your property tax bill for your scheduled payment, or you may receive a separate tax bill. Additionally, the first payment may be deferred for up to 2 years by capitalizing interest.
Note, if you have your taxes escrowed by your mortgage lender, the bank will adjust your monthly payment to include the amount due for the financing.
Most commercial property types are eligible including retail, office, hotel and multifamily buildings. As for location, PACE financing is available in numerous communities nationwide with additional being added every month. Use our "Get a Quote" button to contact us and learn if PACE is available in your area. If the program is not yet available in your community, you may email our Government Relations Department who may work with you to bring our program to your area.
- The Property taxes must be current in all states. Some states require no delinquency or only one delinquency in the last 3 years.
- All mortgage related debt plus the PACE financing may not exceed 100% of the value of the property.
- The Property Owner must be current on their mortgage at the time of the application without any delinquencies of more than 30 days in the past 12 months or since the property owner acquired the property, whichever is shorter.
The Property must not be subject to outstanding involuntary liens such mechanics or municipal nuisance liens.
- The Property owner must not have declared bankruptcy in the last 7 years and property must not be subject to an active bankruptcy.
- Some jurisdictions require senior lender consent be obtained.
- Properties with possible environmental risks may require additional evaluation before applications are accepted.
Project Costs must be within industry cost guidelines and can include both the cost of the Eligible or Qualifying Products and the installation costs. Products must be permanently affixed to the property.
Installation costs may include, but are not limited to the cost of and fees for energy, water and similar audits, appraisals, labor, designs, drawings, engineering services, building permit fees, surveys, inspections, materials required in connection with the installation of the Eligible Products and technical reviews.
Project Costs also include the cost of pre-paid warranties and service contracts for repairs and maintenance.
Apply via our website to provide contact and basic property information. The property will be screened for eligibility and then a representative will contact you with further information and answer your questions. At this point, owners may decide to proceed with an application or place on hold as they continue planning the improvements. The time needed for financing depends upon jurisdiction and project, but generally requires 14-60 days. Owners may receive financial approval for a maximum possible assessment and then place the application on hold.
Brokers or others with multiple properties may email a spreadsheet or list of property addresses for assistance with the application process.
Improvements related to the installation of renewable energy and energy efficiency products are eligible. Some PACE jurisdictions include risk mitigation improvements (flood, wind, seismic), water conservation or other environmental hazard mitigation
See the Products page for a listing of eligible products and improvements.
Examples of project types include but are not limited to:
- Energy efficiency equipment, such as HVAC, windows, doors, building envelope, green or cool roofs, meters, elevators, pools and control systems
- Renewable energy or alternative energy sources, such as solar systems, wind power and storage systems
- Tenant enhancements, such as LEED or WELL certification improvements
PACE financing can optimize a building's cap stack with the potential for off-balance sheet treatment and lower capital costs than both equity and mezzanine debt.
No acceleration clauses.
- The financing is self-amortizing ( no balloon payment) with terms that match the useful life of the improvement.
- Fixed interest rates up to 30 years
- Similar to a non ad-valorem tax, the regular payments are collected along with the normal real estate taxes on your tax cycle.
- 100% financing of project, including all soft costs such as permits, inspections and design fees
- Closing costs can be capitalized
- Maturities between 5-30 years up to the estimated useful life of the improvement
- Prepayment is not required upon sale or refinancing of the property
- May qualify for off balance sheet treatment
- Non-ad valorem assessment for tax purposes
The Program is available only for improvements to be made to a property. Previously completed projects may be considered subject to statutory restrictions.
New construction and gut rehabilitation projects are eligible in most PACE enabled markets. Please call us to discuss your project and the portions that may be eligible for PACE financing.
Unlike other construction loans, PACE financing offers 100% of the cost of the improvement including development soft costs, the cost of the product , installations and other approved ancillary costs. Interest rates are low and fixed, with terms extending up to 30 years. Repayments are made through your property taxes and in case the property is sold, the remaining assessment can be passed to the new property owner.
Registration process is a quick and easy process.
To become an Eligible Registered Professional :
- Apply online. You will be contacted with registration materials and Program requirements.
- Submit signed Registered Professionals Agreement and other required documentation as requested. You will be notified once they are reviewed and approved.
- Once approved, you will receive Program overview with process and procedures
- To maintain eligibility, you must comply with the Program Requirements for Registered Professionals
Eligible professionals must meet the following Minimum Requirements:
- Possess all valid licenses, certifications and registrations (federal, state, and local) legally required to make the Qualifying Improvement(s).
- Professionals who are not required to be licensed are eligible for the Program. Please submit online application or contact us for further details.
- License must be active and not on probationary status
- Maintain the appropriate insurance coverage for work to be performed
- Satisfy workers' compensation requirements
- Satisfy other federal, state and local requirements associated with the Qualifying Improvement(s)
In addition, specialized improvements such as solar installation, flood mitigation or seismic retrofits may require additional certifications, licenses or training.
Brokers, Manufacturers and other commercial real estate professionals may wish to register with Counterpointe to have access to program resources. Please contact us to explore partnering Counterpointe.
Registered Professionals are eligible to work on Counterpointe funded projects.
Along with the potential for leads and co-branding, another benefit to registering with Counterpointe is that your business will be included in lists provided to property owners who request eligible professionals in their area.
Repayments are made through your property taxes and in case the property is sold, the remaining assessment can be passed to the new property owner. The Program offers financing terms up to 30 years at low fixed interest rates. Please see Seismic Retrofit section of this website for links to information about rent passthrough. Unlike other construction loans, the Program offers 100% of the Seismic retrofit including permits, inspections, engineering plans and other soft costs of construction.
The Program is not limited to the soft story portion of your building.
You can finance other energy efficiency, renewable generation or water conservation improvements.
For buildings that are subject to mandatory structural retrofit, there may be opportunities for adding dwelling units during the seismic retrofit. For example, in San Francisco buildings with five or more existing units, you may add as many ADUs as fit and meet all planning and building code controls. For buildings that have four existing Dwelling Units or fewer, one ADU is permitted. The Zoning Administrator may grant an Accessory Dwelling Unit a complete or partial waiver of the density limits and parking, rear yard, exposure or open space standards of Building Code for buildings undergoing a simultaneous mandatory seismic retrofit. In addition, you may raise the building up to three feet to create ground floor ceiling heights suitable for residential use and maintain eligibility to enter condo-conversion programs, if such programs become available in the future.
Please contact us for questions about the eligibility of other planned improvements.
The Program will finance 100% of the seismic retrofit project, not just the structural steel or other hardening measure but all related work for the design. For example, if an electrical panel must be moved in order to properly locate a steel beam, the entire cost of the electrical work and new materials would be covered.
The Seismic Retrofit Program can be used to finance a condo association retrofit. Mixed use buildings or 4 family buildings may also be eligible.
Residential buildings of less than 4 units are PACE eligible, but not eligible for financing for seismic strengthening improvements.
We understand that Sesimic Retrofits require planning, permits and coordination with contractors and tenants. Applications may be placed on hold at any time during the process.
Early application determines eligibility of the property and allows our representatives to answer your questions. The next step is to receive financial approval and then technical approval of the project.
Submission of all the required documents for underwriting allows you to receive financial approval up to a maximum assessment amount. If time elapses between financial approval and closing, you will be required to submit latest version of the documents required for underwriting, such as updated rent rolls and financials. Mortgages may need to reverified at closing. Appraisals are generally accepted for up to 12 months.
Engineering plans require evaluation by a sesimic engineer and your contractor's proposal is to be submitted for PACE approval of costs and products. Unless there are changes to your plans or proposal while your application is on hold, technical approval of your project does not need to be repeated.
Please contact us for more information.
Apply via our website to provide contact and basic property information. A representative will determine the eligibility of your property and then contact you to answer questions and to provide further information about the Program.
The Program will finance 100% of the costs for Green or Living Roofs in eligible jurisdictions. All design, engineering, permits and installation costs may be included in the financing of the installation. Related costs may also be included such as stairway or elevator access. Other energy efficiency or program eligible improvements may be included with the financing of the green roof installation which allows property owners to install solar panels, to upgrade mechanicals or to perform other deferred maintenance. Please see Program eligible improvements for partial list of other eligible improvements. Some green wall installations may be also financed if they involve building envelope and improve energy efficiency to required specifications.
All improvements installed must be permanent improvements. Green roof installations that are not permanent are not eligible for financing. The Program requires that professionals involved in green roof installation demonstrate expertise or specialized training in green roofs.
Prepaid warranty, service or maintenance contracts are 100% eligible for financing. The program requires a maintenance plan, but contract is not required to be included in the financing.
One of the unique benefits of the Program for green roofs is that the 100% financing with long term, fixed rate payments help property owners preserve capital. First payment may be deferred for up to 2 years and is repaid through property taxes, which allows property owner to pass through costs to tenants or to hotel guests if green tax is permitted. Property owners retain these all tax rebates or other incentives. Cost of financing is less than equity and mezzanine debt and is a lower cost option in the capital stack for financing larger commercial projects-please contact us for more information.
Some states require the improvements to have a savings to investment ratio greater than one, a performance guarantee or other performance measurements. Please contact our representative to learn more about requirements for your property's location.
The Program is committed to our cities and can help city planners reduce heat island effect, improve air quality and manage stormwater by providing our Program to property owners in their city. The Program has partnered with San Francisco to provide financing to support city planning programs. Please contact our government department for more information about private public partnership information.
The Program can provide 100% financing on all types of wind resistance improvements, including, but not limited to:
- Strengthening the roof deck attachment
- Creating a secondary water barrier to prevent water intrusion
- Installing storm shutters
- Reinforcing roof-to-wall connections
- Impact windows and doors
The Program was formed by local governments for local governments with the special purpose to provide long-term financing for structural improvements that encourage renewable generation, energy efficiency and disaster resilience (wind, flood and seismic resiliency upgrades are available in certain areas or pending legislation). The Program is an independent funding source, and any municipality may subscribe by resolution or ordinance to make this financing opportunity available in its community.