Local Law 96 - Property Assessed Clean Energy (PACE) Loans
Property Assessed Clean Energy (PACE) Loans (Local Law 96), powered by NYCEEC, is available for all building types for solar photovoltaics in new construction as well as retrofits. Green roof retrofits may be eligible for PACE financing as long as the applicant demonstrates the energy savings that will result from the green roof.
Any commercial or multifamily (3 units and larger) building, including tax exempt non-profit and religious facilities, health care facilities, and industrial properties are eligible for PACE financing to fund qualifying energy efficiency and renewable energy projects to help buildings comply with the Climate Mobilization Act.
PACE loan terms may vary by project and may extend up to the weighted average useful life of the energy-saving equipment installed. In some cases, that may be as long as 30 years.
Eligible private loans with PACE are repaid through a voluntary charge on a building’s property tax bill issued by the Department of Finance. The tax bill collection mechanism enables PACE financing to:
- Transfer to the new owner upon sale of the property, ensuring owners only pay for the energy savings they receive
- Not accelerate; PACE loans will not require immediate repayment of the outstanding principal balance after a payment default.
Benefits of PACE loans
- 100% financing with no out-of-pocket costs to the property owner
- Immediate cash flow benefits
- Recovery of landlord investment in improved tenant spaces, as the PACE charge can be passed through on most commercial leases
- Long term (often between 20 and 30 years)
- Competitive interest rates
- Quarterly or semiannual billing (depending on tax collection schedule per building)
For more information, contact us for free consultation
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