Local Law 96 – Property Assessed Clean Energy (PACE) Loans

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Local Law 96

Property Assessed Clean Energy (PACE) Financing

Local Law 96 establishes long-term, low-interest Property-Assessed Clean Energy financing to fund
upgrades to building energy and water efficiency.

Local Law 96 of 2019 (the “Local Law”) establishes
a Property Assessed Clean Energy (PACE)
financing program. The PACE program will be available to help buildings comply with the Climate Mobilization Act by funding qualifying energy efficiency and renewable energy projects. PACE is distinguished by the repayment of eligible private loans through a voluntary charge on a building’s property tax bill issued by the Department of Finance.

What improvements are eligible?

PACE financing can be used to fund energy efficiency upgrades and renewable energy systems as defined in the Local Law, as well as soft costs such as energy audits and feasibility studies, and other hard costs related to the installation or performance of the energy-saving
measures.

Who is eligible for PACE Financing?

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.

Payment

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
    No out-of-pocket costs to the property owner.
  • Cash Flow
    Immediate cash flow benefits.
  • Recovery of Investment
    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.
  • Interest
    Competitive Interest Rates
  • Billing
    Quarterly or semiannual billing (depending on tax collection schedule per building)

Book A Consultation to learn more how we can help you apply for PACE financing and comply with NYC local laws.