- Long-term, Low-cost Financing: C-PACE provides fixed-rate financing over extended periods (typically 20-30 years), which helps property owners manage costs more effectively than traditional loans.
- No Upfront Costs: The financing does not require any down payment, covering all hard and soft costs associated with energy-efficient improvements.
- Non-Recourse and Secure: The collateral is non-recourse, meaning lenders cannot demand payment beyond the property’s value. The repayment mechanism through property tax assessments is considered secure and low-risk, which provides competitive interest rates.
- Cash Flow Positive: The savings from energy-efficient improvements often exceed the annual C-PACE payments, ensuring that property owners experience a positive cash flow from day one.
- Transferable Debt: The C-PACE assessment transfers with the sale of the property, allowing new owners to assume the debt without requiring a payoff. This makes it attractive for both buyers and sellers.
- Increased Property Value: Improvements funded by C-PACE can enhance a property’s value by providing modern, efficient systems and a “green” status, which can attract higher rental premiums.
- Flexibility in Financing Structure: C-PACE can be used for a wide range of projects, including new construction, redevelopment, and retroactive refinancing, making it versatile for various project needs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-main-benefits-of-c-pace-financing-for-property-owners/
