Typical third-party fees associated with C-PACE financing include:
- Origination Fees: Most C-PACE lenders charge a 1% origination fee as part of the loan process.
- Program Fees: These are often included as part of the eligible soft costs and cover the costs associated with managing the C-PACE program itself.
- Energy or Water Survey Fees: These fees are part of the upfront costs necessary to assess the energy or water efficiency improvements needed for the project.
- Design and Engineering Fees: These costs are necessary for project planning and development, ensuring that the upgrades meet the requirements for C-PACE financing.
- Legal and Permit Fees: Additional costs for legal services and obtaining necessary permits are also covered under C-PACE financing as eligible soft costs.
- Inspection and Commissioning Fees: These fees cover the costs of inspecting the project to ensure it meets the specified standards and commissioning the new systems.
- Recordation Fees: Fees associated with recording the C-PACE assessment against the property.
- Fees Associated with Bond Issuance: If financing involves issuing bonds, additional fees may apply to cover these costs.
These fees can add up quickly, especially for larger projects, and are typically non-negotiable as they involve third-party services essential to facilitating the C-PACE financing process.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-typical-third-party-fees-associated-with-c-pace-financing/
