What is PACE Financing?
Property Assessed Clean Energy (PACE) is a financing option available to Los Angeles County commercial, industrial and multifamily property owners to fund on-site energy efficiency, renewable energy and water-saving improvements that enhance a building’s value while lowering greenhouse gas emissions and creating jobs. A unique financing tool, PACE allows the County to issue a bond to a lender, which secures funding for the construction of an energy upgrade. Property owners then repay financing twice a year through an assessment on their property tax bill.
PACE can take your building’s energy performance to the next level. Meet with our project developers today to learn about financing 100 percent of your upgrade and how quickly the investment will pay off. Property owners can choose their own PACE investor and contractor, and our project developers can help you every step of the way.
- Lower operating costs to increase property value
- Project costs and their energy savings may be passed through to tenants
- If the property is sold, the financing assessment stays with the property and transfers to the new property owner, along with the energy saving benefits
- Projects can be cash-flow positive from day one
- Preserve capital for investment in core business activities
PACE can finance any upgrade permanently fixed to the property that is proven to save energy, water or produce renewable energy such as:
- Heating, ventilation and air conditioning (efficient chillers, boilers and cooling towers)
- Building automation systems and controls
- Solar PV or fuel cells to generate electricity
- Building envelope (roof, windows and insulation)
- Elevator modernization
- High-efficiency lighting fixtures and lamps
- Occupancy and day-lighting sensors
- Industrial manufacturing equipment
Non-publicly owned commercial, industrial or multifamily properties that receive a property tax bill within a participating city in Los Angeles County are eligible.
Properties must meet the following criteria in order to be eligible for PACE financing:
- Applicant must be the legal owner of the property, and all of the legal owners of the property must agree to participate.
- Mortgage holder(s) must explicitly consent to the PACE assessment in writing.
- Property owner must be current on any existing mortgage(s); property owner must not have defaulted on the deeds of trust.
- Property must not be subject to any involuntary liens or judgments.
- Property must not have been delinquent on property taxes for the past five years, or since the date of the most recent transfer if less than five years.
- Property will be subject to the appropriate jurisdiction’s permitting inspections and all other applicable federal, state, and local codes and regulations.
- Property owner must not be in bankruptcy and must not have declared bankruptcy within the last 10 years.