How to improve your community and the environment – at no charge to the taxpayer
It’s not often that an opportunity comes along that benefits your constituents, WITHOUT charging taxpayers money. Here’s one of those rare occasions.
Almost 20% of the nation’s annual greenhouse gas emissions come from the energy use in commercial office buildings. 51% of that is HVAC alone! With the C-PACE, or “Commercial Property Assessed Clean Energy,” commercial business owners can make energy and water upgrades with very affordable, long-term financing. Property improvements include projects such as lighting, HVAC systems, insulation, water pumps, as well as adding renewable energy generation elements like solar panels to reduce their utility bills and ultimately improve their energy efficiency. C-PACE doesn’t only apply to commercial office space either. Just about any commercial real estate is eligible, too.
How does it work?
One or more PACE administrators work closely with the local governments – their clients – so that C-PACE is managed according to local preferences, within the confines of the governing statute. The C-PACE administrators will ensure each project is eligible under the program’s guidelines and that all the requirements are met throughout the project and financing lifespan. This eliminates placing this burden on government officials. Importantly, C-PACE operates at no cost to counties or municipalities and the improvements elevate the commercial property values.
How can the C-PACE program improve your community?
- Tax base: Affordable financing helps to attract businesses to your community, increasing the tax base, freeing up dollars to support services and infrastructure for your constituents.
- Job growth: An increase of economic activity means more jobs. Local residents enjoy more opportunities and prosperity with thriving businesses in their community.
- Environment: Your constituents are asking leaders to address their environmental and energy concerns. The C-PACE program makes it possible to retrofit aging commercial buildings, saving owners money by reducing their energy footprint and decreasing water usage.
- Improved property: C-PACE’s generous financing is an affordable way for businesses to modernize and provide cleaner, healthier spaces for citizens. In the event that a property owner defaults on the loan, the property is improved, making it an attractive investment for future owners and tenants.
What commercial properties qualify for C-PACE?
- Privately-owned commercial real property: Including hotels, retail, offices, entertainment facilities, mixed-use properties, and not-for-profits such as hospitals, churches, and schools.
- Privately-owned industrial real property: Including industrial and manufacturing.
- Privately-owned residential real property: Multifamily properties with five or more dwelling units.
Is your community taking advantage of this opportunity?
Lone Star PACE is an approved administrator in the State of Texas and offers webinars and events that explain the program and eligibility requirements. Contact Lone Star PACE to see about adopting C-PACE in your area!
Sources: https://www.pwc.com/us/en/asset-management/real-estate/assets/pwc-emerging-trends-in-real-estate-2021.pdf, Energy.gov