Set the PACE St. Louis

September 30, 2021

Summary

Set the PACE St. Louis provides 100% upfront, fixed rate, long-term financing to property owners for qualified energy upgrades, including energy efficiency, water efficiency, and renewable energy systems. Property owners repay PACE financing over a period up to 20 years through additional payments on their property tax bills. Financing is structured so that energy savings must more than offset the additional property tax assessment.

Commercial property owners, community associations (e.g., Home Owners Associations), and some residential property owners are eligible for Set the PACE St. Louis. Currently, only residential property owners who own their home without an existing mortgage can qualify for actual property assessed financing due to concerns raised by the Federal Housing Finance Agency (FHFA). There are, however, alternative financing options available to residential property owners with the Set the PACE St. Louis program, including home equity financing or energy efficiency mortgages (EEMs).

Administration

Set the PACE St. Louis is administered by Energy Equity Funding, LLC on behalf of the St. Louis Clean Energy Development Board, with project financing provided by PNC Bank.

Process

Eligible applicants can apply online or fill out a hard copy and will be notified of preliminary approval within 48 hours. The applicant then selects a participating energy auditor or consultant who analyzes the property to generate a project plan with the goal of maximizing energy efficiency. Based on the results of the project plan, the applicant selects the projects they want done and chooses a contractor to complete the project. The applicant then must complete a loan application and a work plan. The cost of the initial energy consultation can be included in the PACE loan to reimburse the property owner. After the lending institution approves the loan, construction on the improvement may begin.

Terms

The project amount to be financed is typically capped at 25% or less the assessed or appraised value of the property, whichever is higher. Set the PACE St. Louis offers flexibility on this requirement where the property strongly meets other eligibility criteria, and the minimum financing amount is $25,000. Loans can be amortized over 5, 10, 15, or 20 years depending on what improvements will be made to the property. Interest on PACE financing could be tax deductible depending on the personal filing.

For complete terms, conditions, and eligibility requirements, visit the Set the PACE St. Louis website or contact a program representative for more information.