MA C-PACE financing explained:
Massachusetts Commercial Property Assessed Clean Energy
(MA-C PACE) for commercial buildings is a new mechanism to finance any energy efficiency improvement on commercial, industrial properties, and residential buildings with 5 units or more in Massachusetts. Non profits who agree to tax assessment for improvements are eligible.
To finance improvements, a property owner agrees to a betterment tax assessment of the loan cost. The municipality collects a portion of the Property Assessed Tax and transfers that payment to the financing entity.
This approach enables owners to undertake more comprehensive energy upgrades with longer payback periods of up to 20 years. At property sale, the tax assessment loan stays with the property and is transferred to subsequent property owners.
Mass Development (the agent) recommends that project cost be $250,000 or more to take best advantage of MA C-PACE.