Clocktower Tax Credits is now working in conjunction with select lenders to offer unique loans to both Tax Credit and non-Tax Credit Projects alike.
Are you a building owner or developer making energy upgrades to your building? Are you installing renewable energy products in your building? Are you thinking about updating your building’s lighting, HVAC, or elevator? If you are, then you are eligible for PACE financing! Almost every new construction or renovation project qualifies.
Did you know you can reduce the amount of equity in your project with PACE financing? And did you know the loan payback stays with the building while the tenants of the building pay back the loan through taxes?
How does it Work?
PACE is a national initiative, but programs are established both statewide and locally. Individual municipalities may opt into PACE by a majority vote of the city or town governance.
To finance improvements, a property owner agrees to a betterment assessment (increased property tax) on their property, which repays the financing. This allows the property owner to undertake more comprehensive energy upgrades with longer payback periods of up to 20 years. At property sale, the lien stays with the property and is transferred to subsequent property owners.
What’s the Benefit?
Property owners can obtain low cost, non-recourse, upfront, long term, potentially off-balance sheet financing that remains with the property if sold. Capital improvements should reduce operating costs through increased energy efficiency, renewable energy and water conservation projects. Any upgrades done to a property should increase property value that will ultimately improve your financial return!
Clocktower has partnered with several lenders that specialize in PACE Financing. We have seen how our clients fill equity gaps in their projects’ development capital stack. It has worked perfectly with historic tax credit projects.
How can I get PACE?
If your state has passed a PACE statute, you are in luck! If not, stay tuned, it might be coming soon. As of April 2019, the states with active PACE programs are: AK, CA, CO CT, DC, FL, KY, MD, MI, MN, MO, NH, NJ, NY, OH, OR, RI, TX, UT, VA, WI.
For more information please contact us at Clocktower Tax Credits … we will hook you up!
Sue Ellyn Idelson at (978) 793-9574 or SIdelson@ClocktowerTC.com.