Commercial PACE (C-PACE) Financing
NCBPA is leading efforts to bring Property Assessed Capital Expenditures (PACE) Financing to North Carolina in 2018 through new legislation the association introduced in 2017. Read more about this work below including how your company can participate and support the association’s work.
What’s the Status of PACE in North Carolina?
S493 was introduced by Senators Tucker and Gunn on March 29, 2017 to enable Commercial PACE at the state level, thus allowing municipalities to opt-in and help setup PACE programs locally. The bill made it through the 2017 session’s crossover deadline but was not heard in committee. NCBPA and partner organizations are actively working with state agencies and local governments to hopefully move the bill through the legislature in 2018’s short session, making C-PACE project financing available in the latter half of 2018 in municipalities that adopt local ordinances to establish programs.
What is PACE Financing?
Property Assessed Capital Expenditures (PACE) Financing allows building and property owners to finance upgrades and improvements to their buildings and properties by obtaining 100% up-front financing with up to 25 year terms via voluntary property tax assessments. Essentially, building and property owners obtain funding to make their buildings and properties better via property tax liens from private banks.
PACE supports a variety of improvements including HVAC upgrades, windows and roofing, energy efficiency upgrades, renewable energy installations, weather-resiliency measures, building automation systems and much more! Visit PACENation’s website for a summary of PACE’s impact on US homes, buildings and more.
Who Benefits from PACE Financing?
PACE is a win-win-win for property owners, local governments and the community. PACE helps property owners make their homes and buildings more comfortable and valuable by providing affordable and accessible financing. This innovative financing mechanism saves property owners money, creates jobs and promotes economic development, making it a valuable policy tool for state and local governments. Cities and counties also benefit by collecting increased property tax assessments due to the increased property value of the building or property that received the improvements.
Who Provides the Money?
Many successful PACE programs around the country rely on private financing institutions to fund projects. In these cases, the financing institution provides the project funding and the city or county collects the tax assessments and directs the payments to repay the financing provider.
Are residential homes included?
S493 includes multifamily homes but excludes single family homes due to Federal Housing Finance Agency concerns over consumer protection and lien priority status with existing mortgages. Efforts are underway to make Residential PACE a more viable opportunity across the country. Once better options are available, NCBPA will seek to enable R-PACE in North Carolina.
How can C-PACE Happen in North Carolina?
Help NCBPA and partner organizations enable C-PACE by following these steps:
Identify projects in your local community that could benefit from C-PACE financing. This includes capital construction projects at buildings and properties where property taxes are paid. Project types include a variety of upgrades and improvements that save energy, reduce water consumption and improve performance. View the proposed C-PACE project types in the bill language.
Look up your Senate and House representatives here in order to match the Senate or House member for that legislative district to the building or property that would benefit from C-PACE financing.
Email or call them with the below message that focuses on the best aspects of this bill and its benefits to NC communities and companies like yours.
Let Ryan Miller know who you contact and what, if any, questions or feedback you receive. With that information, NCBPA will follow-up with them directly and setup meetings in their districts or at the Capitol as needed.
As the bill makes its way through the Senate and House, NCBPA will keep stakeholders updated on additional communications and support needed via this webpage and email.
Contribute to our fundraising goal of $25,000 to pay for staff and contract labor needed to effectively lobby the bill through the legislature in 2018.
Sample language for contacting Your Legislators:
Dear Senator/Representative REP NAME – My name is NAME from CITY/COUNTY and I work for NAME. I’m calling/emailing today requesting that in the coming legislative session you support S493 “C-PACE Program” that was introduced in 2017 and is sponsored by Senators Tucker and Gunn to enable private financing for building and property improvements via property tax assessments.
Across the U.S., Commercial Property Assessed Capital Expenditures (C-PACE) has created more than 7,395 jobs by providing $493 million in construction funding to 1,097 projects but isn’t yet available in North Carolina! This program will spur construction investment in new and existing multifamily, commercial, industrial and agricultural buildings, which will help companies like mine hire more workers and invest in our local economies.
S493 will enable a C-PACE program at the state level and allow municipalities to voluntarily opt-in to allow for the private financing mechanism to be offered locally. Once enabled, building and property owners can obtain 100% up-front financing with up to 25 year terms on upgrades and improvements that lower monthly operating costs and improve market value.
Please contact Ryan Miller at Ryan@BuildingNC.org or 919-521-3385 with questions about this bill and visit North Carolina Building Performance Association’s website for more details.
Thank you very much for your support.