Click here to read the full newsletter.
You may have heard about recently amended legislation in the General Assembly related to an energy efficiency financing mechanism known as PACE or Property Assessed Clean Energy. PACE is a new and innovative way for commercial property owners to finance energy efficiency and renewable energy improvements in their buildings. In a nutshell, PACE loans provide 100% funding of total project costs by placing a special assessment lien on the property that owners repay over time as part of their tax bill. These PACE “loans” are typically financed by capital providers who receive the PACE assessment payment via the local taxing authority. PACE has many benefits such as long term (up to 20 years), non-recourse financing, annual payments that transfer automatically at time of sale to the new building owner, net positive cash flow from energy efficiency measures (often in year one), and potential tenant pass-throughs as PACE is considered an operating expense (tax). Local organizations will be conducting outreach on the benefits of PACE to key stakeholders in the Hampton Roads area including local governments, building owners, energy consultants, and lenders.