C-PACE Financing: Utilizing Property Taxes to Finance New Construction and Upgrades to Commercial Real Estate

During this unprecedented time of increasing interest rates and inflation, C-PACE (Commercial Property Assessed Clean Energy), a voluntary non-ad valorem assessment repaid through property taxes, has emerged in the financing of certain sustainable and resiliency upgrades to new construction and retrofits.  

Learn the basics of C-PACE, how the tax lien mechanism is utilized to back the financing and why it is revolutionizing the capital stacks of commercial properties to become a staple of commercial real estate finance. This program will benefit attorneys practicing in several areas including environmental law, energy, public interest, real estate, and healthcare. Topics will include eligibility requirements, the financing process, benefits and implications for municipalities, mortgage lenders, the construction industry, tenants, and owners. Case studies will be presented on how financing is being used in practice as it is emerging as a staple of commercial real estate finance.

Learning Objectives:

1. Ascertain knowledge about statutory and program requirements to create a valid PACE tax lien

2. Learn the basics of C-PACE and its benefits in the financing of energy-efficient new construction and retrofits

3. Follow the financing mechanism from the creation of tax lien, funding of the assessment, and collection process through the property taxes

4. Learn how to use C-PACE as a financial tool for clients through case studies on new construction and retrofits