How C-PACE works for you

C-PACE for Mortgage Holders

C-PACE is an innovative, voluntary financing program that enables borrowers (with the consent of the mortgage holder) to modernize their building by installing qualifying energy improvements funded with affordable, long-term financing.

Building upgrades designed to conform to C-PACE standards which require that, over the effective useful life of the improvements, the estimated energy cost savings exceed the total finance cost. Owners of C-PACE-financed buildings typically experience improved net operating income, increased asset value, and a positive return on their investment.

Mortgage Holder Benefits

From the mortgage holder’s point of view, a completed C-PACE project has the following key benefits:

  • The mortgage holder’s loan is more secure due to the borrower’s increased cash flow
  • The property is more attractive to current and potential tenants or buyers
  • The assessment does not accelerate. In the event of a default, only the amount of the assessment in arrears is due.

Across the country, commercial property assessed clean energy (C-PACE) programs have been embraced by more than 170 national, regional, and local mortgage holders. View a list of consenting mortgage holders.

How it Works

C-PACE can provide up to 100% financing to owners of existing buildings which need routine energy equipment replacement or are simply looking to modernize and improve the value of their eligible building. The financing, which is based on the estimated useful life of the improvements—is secured through the City’s creation of an Assessment and Assessment Lien.

Upon Recording, the voluntary Assessment and Assessment Lien levied against an eligible property is prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes attached to the Tract pursuant to the provisions of NRS 361.450, and:

  • Is senior to all other previously Recorded senior liens of a Lender, provided a written Lender Consent is executed by the applicable Lender and Recorded; and
  • Shall run with title to the Tract and shall not be extinguished by the sale of any property on account of the nonpayment of general taxes.

Immediately following the Recordation of the Notice of Assessment and Assessment Lien, an Assignment of the Assessment and Assessment Lien, executed by the City for the benefit of the Capital Provider, is Recorded, by which the City’s rights and obligations under the Assessment Agreement are assigned to and assumed by the Qualified Capital Provider, which shall then be solely responsible for billing, collection, and enforcement of the Assessment and Assessment Lien.

From the Mortgage Holders point of view, a completed C-PACE project has the following key benefits:

  • The Lender’s loan is more easily repaid due to the borrower’s increased cash flow;
  • The Tract is more attractive to current and potential lessees or buyers; and
  • The Assessment and Assessment Lien does not accelerate. In the event of a default, only the portion of the Financing Amount that is in arrears (together with the current payment and any applicable penalties or fees under the Financing Agreement) is due.


A borrower who wishes to pursue C-PACE financing will, typically in collaboration with the program administrator, seek a meeting with the mortgage holder. At the meeting, the owner or program administrator will describe the program’s requirements and answer the mortgage holder’s questions. In addition, the program administrator will provide a description of the independent quality assurance technical review process, which is used to validate that the project’s estimated energy cost savings, over the effective useful life of the improvements, exceeds the total finance cost.

Assuming all parties agree that a project is worth pursuing, the project will move to development and underwriting. As part of the underwriting process, the program administrator will support the mortgage holder’s project review, as needed.


Once the owner is satisfied with project design and cost, the C-PACE program administrator will review the scope of work and, assuming it meets program eligibility requirements, make a determination that it is eligible for financing under the C-PACE guidelines.

The owner will then meet with the mortgage holder to provide a summary of the project’s key assumptions. To facilitate the mortgage holder’s due diligence process, this review will include a description of the equipment to be replaced, the projected financial metrics, and the enhanced cash flows that will result from the building equipment upgrade.

Learn More

To learn more about how you can reduce mortgage default risk and increase the value of your collateral, contact us today or visit our FAQs page.

Back to Top