NY Open C-PACE

January 21, 2024

Summary

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 PACENation for more information about PACE financing, and for a comprehensive list of all PACE programs across the country.

Open C-PACE is a program offered by the Energy Improvement Corporation* (EIC) that provides financing to commercial properties for deep energy upgrades and renewable energy projects. The program is financed with Property Assessed Clean Energy (PACE) structure to provide low interest rates, long repayment terms, transferability of the loans, and other benefits.  The program allows the property owners to borrow money from approved capital providers, which is repaid via a special assessment in the real estate tax bill. The loans are issued based on property value instead of credit history. If the property is sold, then the repayment option is legally transferred with the property.

Eligibility

Financing is available for a wide variety of buildings, including commercially owned buildings, multi-family buildings, industrial space, schools, non-profits, and others. Funding is not available for new construction of buildings.  

To participate in the program, the projects should be located within a municipality that is a member of the Energy Improvement Corporation (EIC). List of all the participating municipalities in the program can be accessed here. The property that is being financed should be current on property tax payments, and must not have any involuntary liens or defaults.

Financing

Financing amounts vary by project type and approved capital provider. A list of providers can be found here. For more information please visit the above website or the contact listed below.

*EIC is a local development non-profit corporation established to assist municipalities and property owners to achieve long-term energy savings. New York municipalities can join EIC by passing a local law, signing a Municipal Agreement codifying the tax charge transfer, and requesting membership.  List of participating municipalities is listed in the website above.