C-PACE loans typically have long repayment terms, usually ranging from 20 to 30 years. This duration aligns with the useful life of the energy-efficient improvements or infrastructure financed through these loans. Repayment occurs through an annual or semi-annual special property tax assessment, which is distributed by the tax collector to the C-PACE lender. The financing is structured as a non-recourse, fixed-rate loan, often providing lower costs compared to traditional forms of financing like mezzanine debt.
Key Features of C-PACE Repayment Terms:
- Duration: 20 to 30 years, based on the life of the improvements.
- Repayment Method: Through property tax assessments, not traditional monthly payments.
- Security: The loan is secured by a senior lien on the property, but it is non-recourse, meaning personal liability is limited to the property itself.
- Flexibility: Loans can often be prepaid without penalties after a certain period.
These features make C-PACE financing attractive for commercial property owners looking to enhance energy efficiency without significant upfront costs or personal risk.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-typical-repayment-terms-for-c-pace-loans/
