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 now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.
The Rural Minnesota Energy Board (REMB) of Minnesota offers PACE for businesses in the member counties of the Rural Minnesota Energy Board (Blue Earth, Brown, Cottonwood, Faribault, Freeborn, Jackson, Lincoln, Lyon, Martin, Mower, Murray, Nobles, Pipestone, Redwood, Renville, Rock, Sibley, Watonwan). This program is administered by The Southwest Regional Development Commission.
Financing is applicable for Energy efficient and renewable energy retrofits of existing commercial or industrial buildings. These buildings must must be classified as Commercial or Industrial and the applicant(s) must be the legal owner of the property described in the application.
The property owner must be current on all mortgages and not involved in a bankruptcy and the property cannot be an asset in a bankruptcy. Further, there must be no federal or state income liens, judgment liens, or similar involuntary liens on the property.
The property must have an Energy Audit performed by approved energy auditor that shows significant cost savings.
Completed projects:
Blue Line Travel Center in Worthington
Parkwood Place in Mountain Lake
More information:
Visit the RMEB website
Download the brochure
| Implementing Sector: | Non-Profit |
| Category: | Financial Incentive |
| State: | Minnesota |
| Incentive Type: | PACE Financing |
| Web Site: | http://rmeb.org/pace.htm |
| Administrator: | |
| Start Date: | |
| Eligible Renewable/Other Technologies: |
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| Terms: |
Maximum PACE Loan will be up to 20% of the assessed property value or $100,000. Minimum PACE Loan will be $5,000 Greater than a 1:1 savings to investment ratio (projected savings based on energy audit should exceed investment costs) Maximum of 20 years to repay loan. Loan term must not exceed estimated life expectancy of improvement. Interest rate determined by RMEB Review Committee, currently 4% 1.0% origination fee |
| Name: | Robin Weis |
| Organization: | Southwest Regional Development Commission |
| Address: |
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| Phone: | (507) 836-1638 |
| Email: | robin@swrdc.org |
| Name: | Annette Fiedler |
| Organization: | Southwest Regional Development Commission |
| Address: |
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| Phone: | (507) 836-1631 |
| Email: | phydev@swrdc.org |
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.
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