Unlocking Property-Assessed Clean Energy (PACE) Financing for Multifamily Housing in California

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PACENow applauds today’s announcement by California Governor Jerry Brown and HUD Secretary Julián Castro of a number of steps that the state and HUD are taking to make qualifying multifamily housing properties within the portfolios of HUD, the California Department of Housing and Community Development, and the California Housing Finance Agency.

PACENow is a national non-profit advocate for PACE financing.

We applaud the Obama Administration, Governor Brown, and the MacArthur Foundation for their leadership in promoting broader PACE use for HUD supported properties through this path-breaking Pilot initiative.

PACENow applauds today’s announcement by California Governor Jerry Brown and HUD Secretary Julián Castro of a number of steps that the state and HUD are taking to make qualifying multifamily housing properties within the portfolios of HUD, the California Department of Housing and Community Development, and the California Housing Finance Agency.

The California Multifamily PACE Pilot established by Governor Brown today in partnership with the MacArthur Foundation will use criteria developed by HUD to establish eligibility among HUD-assisted and -insured housing in California. Prior to today’s announcement, HUD backed housing projects had not been approved by HUD for PACE financing. This pilot, if successful, can have positive implications for the national PACE market. Additionally, the performance data from the Pilot program will be analyzed in a study designed and implemented by the U.S. Department of Energy.

David Gabrielson, Executive Director of PACENow, notes: “PACE is a proven and effective financing solution for just about every building type, including multifamily. We applaud the Obama Administration, Governor Brown, and the MacArthur Foundation for their leadership in promoting broader PACE use for HUD supported properties through this path-breaking Pilot initiative. PACE is being adopted throughout the U.S. and is helping to drive economic activity, create jobs, revitalize our buildings, and protect our environment.”

PACE makes it easier for property owners to finance energy efficiency and renewable energy projects that make buildings more valuable and sustainable. It can be used, voluntarily, to finance 100% of a broad array of energy reducing projects, or solar installations, and long-term payback of up to 20 years means most projects save money immediately for property owners and tenants.

According to the White House: “In the United States, about a quarter of households live in multifamily housing units, including more than 3 million units in California alone.

Improving the energy efficiency of these buildings nationwide by 20 percent would save nearly $7 billion in energy costs each year and cut 350 million tons of carbon pollution in a decade.” PACE can help make existing multifamily buildings more affordable to renters with low incomes and, as a result, save money for consumers and taxpayers.

About PACENow:

PACENow is a non-profit foundation funded advocate for Property Assessed Clean Energy (PACE) financing. PACENow’s mission is to promote improved energy efficiency in buildings and use of PACE. Our strategy is to be a trusted source for information and resources to a growing coalition of PACE stakeholders that includes local governments, businesses, industry service providers, labor and trade organizations, environmental groups and private individuals nationwide.

Energy efficiency retrofits represent a spectacular investment opportunity. A $279 billion investment in commercial, residential, and institutional segments could save $1 trillion over a decade, according to the Rockefeller Foundation study. Moreover, the ACEEE’s estimates show that energy efficiency improvements tend to result in the average return on investment of 22 percent. PACE financing is a robust and flexible tool that can be used to make our nation’s buildings more energy efficient.

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Kristina Klimovich
PACENow
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