Pleasantville, NY (PRWEB) September 05, 2013
PACE provides 100 % financing for energy efficiency, renewable energy, and, in some states, water conservation upgrades that can be repaid over a period of up to 20 years. Commercial PACE programs are initiated by state and local governments and use a senior lien property tax based assessment mechanism for repayment. An existing mortgage lender’s support is sought for PACE projects because of the senior lien placement on the property.
PACENow is pleased to release the Lender Support Handbook, a toolkit for PACE borrowers and program administrators who seek support from an existing mortgage lender for a PACE project.
The Handbook has been designed to provide information that will allow an existing lender to recognize the value proposition of a PACE funded project and accommodate an important request from a customer. It contains consent template forms, broad information regarding the PACE marketplace, data on previously provided lender consents, and suggestions for how to gain the support of a building’s existing mortgage lender for a PACE project.
To date, over 35 lenders have already recognized the value of PACE and approved more than 80 PACE financed projects totaling nearly $15 million. Given the expected growth in PACE transaction volume nationally, some lenders are creating a formalized review process for PACE requests, backing the creation of standardized data and forms, and providing ongoing input for this Handbook.
The Handbook complements our Lender Support Study, which details important insights on lenders’ familiarity with and attitudes about PACE. The study found that lenders understand property taxes and assessments and factor them into underwriting models decisions. There was broad acceptance of PACE as an assessment, which limits lien exposure only to unpaid assessments, distinguishing it from a loan.
PACE financing for building retrofits is now enabled in 31 states and the District of Columbia, covering 80% of the US population. 2013 is a turning point year for PACE as to date, 16 commercial PACE programs have funded nearly $38 million of energy efficiency and renewable energy upgrades to commercial buildings in 10 states and the District of Columbia. There are 26 active commercial PACE programs that have over $100 million in pending applications from property owners who seek to take advantage of PACE financing.
PACENow is an advocate for PACE and our mission is to promote and assist the development of PACE programs by state and local governments and provide leadership and support for a growing universe of energy efficiency and PACE stakeholders. PACENow’s activities are made possible by the generous support of the Energy Foundation, the Rockefeller Brothers Fund, the Kresge Foundation, and the Tilia Fund.