NOTE: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are operating with loan loss reserve funds, appropriate disclosures, contractual subordination or other protections meant to address FHFA's concerns. The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD), has released initial guidelines for using PACE with FHA-secured single or multifamily properties. This guidance is independent of FHFA policy. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing, and for a comprehensive list of all PACE programs across the country.
On June 2012, Connecticut passed legislation enabling Commercial Property Assessed Clean Energy financing (C-PACE), targeting commercial, industrial and multifamily property owners. C-PACE is a financial policy tool that allows property owners to finance qualifying energy efficiency and clean energy improvements on their properties through a special assessment on the property tax bill, which is repaid over a period of years (up to 20 years). Connecticut's C-PACE program is “owner-arranged,” meaning the property owner contracts directly with a private capital provider to obtain financing. The special assessment (also called a lien) on the property shall take precedence over all other liens except a lien for taxes of the municipality on real property. The lien automatically transfers to the next owner in the event of a sale or transfer of ownership. The lien is senior to a mortgage, although it is non-accelerated, meaning in the event of default, only the payments in arrears would come due.
To participate in C-PACE financing, interested property owners must:
While there is no financing minimum, PACE financing is best suited for capital improvements above $150,000, due to transaction costs. Please see C-PACE Program Guidebook for more information about the program.
|Incentive Type:||PACE Financing|
|Administrator:||Connecticut Green Bank|
|Eligible Renewable/Other Technologies:||Solar Water Heat,Solar Space Heat,Geothermal Electric,Solar Thermal Electric,Solar Photovoltaics,Wind (All),Biomass,Geothermal Heat Pumps,Municipal Solid Waste,Combined Heat & Power,Fuel Cells using Non-Renewable Fuels,Landfill Gas,Lighting,Lighting Controls/Sensors,Chillers,Furnaces,Boilers,Heat pumps,Air conditioners,Programmable Thermostats,Energy Mgmt. Systems/Building Controls,Caulking/Weather-stripping,Duct/Air sealing,Building Insulation,Windows,Siding,Roofs,Motor VFDs,Processing and Manufacturing Equipment,Comprehensive Measures/Whole Building,Custom/Others pending approval,Other EE,Yes; specific technologies not identified,Wind (Small),Hydroelectric (Small),Geothermal Direct-Use,Fuel Cells using Renewable Fuels,Other Distributed Generation Technologies,Data Center Equipment,Reflective Roofs,LED Lighting|
|Terms:||Locally determined; 20-year payback term|
|Name:||Conn. Gen. Stat. § 7-121n|
|Name:||Conn. Gen. Stat. § 16a-40g|
|Name:||CT Green Bank|
865 Brook Street
Rocky Hill CT 06067
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
Copyright © 2023 EnergyBot • All rights reserved.
1601 Bryan St Suite 900, Dallas, TX 75201