PACE Financing

Under Assembly Bill 811, California property owners in special assessment districts may enter into voluntary contractual assessments  to finance a range of authorized energy and water efficiency products and improvements. The primary goals of the bill are environmental – to lower greenhouse gas levels, and to reduce energy and water consumption. Additionally, this mechanism, called Property Assessed Clean Energy (PACE) financing, is viewed by cities and counties as a stimulus program that spurs economic growth and creates new local jobs.

CEDA & PACE

CEDA issues multi-jurisdictional bonds that attract private capital for PACE-qualified  improvements. The program enables property owners to amortize payments for eligible improvements for up to 25 years for Commercial PACE. PACE financing provides long term, low interest rate funds with no money down, repaid as a line-item on property owners’ annual tax bill. Property owners in over 200 California jurisdictions can reduce their carbon footprints by investing in clean energy improvements with PACE funding.

This creates a streamlined and cost-free pathway for cities and counties to authorize a financing program for energy and water efficiency products benefiting property owners within their jurisdiction. Local municipalities that are not currently within CEDA’s PACE service area can join by adopting two resolutions: one authorizing the jurisdiction to join CEDA, and the second confirming the jurisdiction’s intent to join our PACE program as well as allowing CEDA to conduct assessment proceedings.

PACE Administration from CleanFund

CleanFund was the first private company to offer commercial PACE. CEDA has authorized CleanFund as the Program Administrator to provide private financing and file repayment obligations through property tax bills. They will work with the existing mortgage lender to structure PACE financing that will benefit the real estate owner and their lender. CleanFund will only finance an owner with their lender’s consent and that lender will be offered a first right of refusal to finance each PACE bond.

To reach CleanFund go to their website or email John.Kinney@CleanFund.com.

Key PACE-eligible measures for Commercial PACE:

  • Eligible Projects
  • Renewable energy
  • Solar PV
  • Battery Storage
  • Building envelope
  • Water heating & efficiency
  • Heating & air conditioning
  • Lighting
  • Seismic upgrades