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PACE Financing
What is PACE? Let us explain
PACE provides long-term financing for qualifying construction and renovations that improve the environmental footprint of property to save you money on utility bills with no money down. You repay funds to private lenders as a semi-annual voluntary tax, the first voluntary property tax assessment in the U.S. By using voluntary property taxes to repay funds, you and other small businesses get access to the same financing terms that large corporations benefit from, ensuring that your projects produce positive cash flow in year 1. This frees you up to spend your capital on other investment opportunities, such as opening that next location or hiring more staff.
Your Options: PACE VS other funding options
| Feature | PACE | New Mortgage | Vendor Finance | Company Cash |
|---|---|---|---|---|
| Cost alignment with tenants | Yes | Yes | Yes | Yes |
| Cash flow positive year 1 | Yes | No | No | No |
| Owner keeps incentives | Yes | No | Yes | Yes |
| Balance sheet neutral | Yes | No | No | Yes |
| No acceleration upon default | Yes | No | Yes | No |
| Can be terminated upon request | Yes | No | No | No |
| Transferable on sale | Yes | No | No | No |
| No pre-payment of first mortgage | Yes | No | No | Yes |
| Preserve borrowing capacity | Yes | No | Yes | Yes |
| Preserve internal capital | Yes | No | Yes | Yes |
| Non-recourse, no personal guarantee | Yes | No | No | No |
| Typical terms in years | 5-30 | 10-20 | 5-10 | N/A |
Interviews: Hear from real people
Supported by political leaders from more than 30 states, PACE has been used to create over 50,000 jobs, save 32 million metric tons of carbon (the equivalent of 8 coal fired power plants), and help over 200,000 Americans fund more than $5 billion in construction and renovation projects.
HVAC updates
Envelope update
Solar update
Case Studies: Projects funded with PACE
Restaurant
Right Proper Brewery produces craft beer for some of the top restaurants and bars in the region. Located in an old warehouse, the brewery installed a new rooftop, a 56-kW rooftop solar PV system, and a 7-kW solar parking canopy with PACE financing.
Project cost: $230,000
Income after: $11,100
Hardware store
Annie’s ACE Hardware, a local fixture in Washington, D.C.’s Brookland neighborhood, used PACE to finance interior and exterior LED lighting, envelope improvements, a VRF system, and low-flow bathroom fixtures.
Project cost: $396,000
Income after: $22,000
Apartment
Brittany Apartments is owned by a third-generation, family-owned real estate company. The apartment complex used PACE to upgrade its hot water boilers, hot water heaters, storage tanks, and distribution pumps.
Project cost: $530,000
Lifetime savings: $121,900
New construction
The new DC United stadium wanted to implement money-saving green measures, which included an 884-kW solar system, high efficiency HVAC systems, LED field lighting, insulation, site stormwater conservation, a green roof, and low-flow fixtures.
Project cost: $25,000,000
Lifetime savings: over $25MM
Affordable housing
The Phyllis Wheatley YWCA provides 84 rental units to low-income women and was in urgent need of upgrades, including new appliances, new water fixtures, heating systems, lighting system, HVAC system, and solar.
Project cost: $700,000
Income after: $7,000
Office
The Headquarters of the FSFSC worked with the DC PACE program to finance HVAC, windows, lighting, and new kitchen equipment as part of a gut rehab, allowing it to attract new tenants.
Project cost: $2,200,000
Lifetime savings: $2,500,000
Publications: Published results
Commercial PACE for affordable multifamily housing 2018
Energy efficiency for all, NRDC & VEIC
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