Local Law 96/19 PACE LOANS

Financing Options

There are a variety of programs available in New York to help you pay for energy efficiency upgrades and water conservation measures.

LL96/19 PACE LOANS F.A.Q.

Property Assessed Clean Energy (PACE) (LL96 of 2019)

PACE is coming to New York City in 2021! The program offers affordable financing that allows property owners to pay for upgrades that improve energy efficiency, harness renewable energy, and conserve water.

PACE allows a property owner to finance the up-front cost of energy or other eligible improvements on a property and then pay the costs back over time through a voluntary assessment. The unique characteristic of PACE assessments is that the assessment is attached to the property rather than an individual.

The Mayor’s Office of Climate & Environmental Justice, in partnership with the New York City Energy Efficiency Corporation, are working to develop a PACE financing program that will benefit all commercial and multifamily building owners.

Contact info@nyceec.com with the subject line “NYC PACE” to stay in the loop on PACE developments in New York City.

PACE Resources

Green Housing Preservation Program

Green Housing Preservation Program provides no- and low-cost financing for energy efficiency and water conservation improvements, along with moderate rehabilitation work, for small- to mid-sized multifamily buildings that are greater than 5 units and less than 50,000 square feet (approximately 50 units).

New York City Energy Efficiency Corporation (NYCEEC)

The New York City Energy Efficiency Corporation (NYCEEC) is a non-profit dedicated to financing energy efficiency and clean energy projects in both multifamily and commercial buildings. NYCEEC can finance up to 100 percent of project costs, including construction and soft costs, and bridge incentive payments to match construction milestones. NYCEEC provides loans starting at $50,000 and up to $6 million.

Source: https://www1.nyc.gov/site/nycaccelerator/resources/financing.page

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WHY USE PACE FINANCING?

Easier to Qualify: PACE eligibility is based primarily on the equity value of the subject building. This makes the application and approval process generally easier than more traditional loan products.

Advantageous Terms: PACE loans often have superior interest rates and loan maturities making for smaller payments than traditional loans. There will be a several PACE lenders in NYC, allowing Borrowers to find the best terms for them.

Convenient: PACE loans are paid right along with property tax payments. Borrowers make one convenient payment. Like tax assessments, PACE loans do not accelerate and remain with the building upon transfer.

Funds Availability: PACE loans can fund up to 100% of the project costs, more than traditional loan options

PACE FINANCING IS BE AVAILABLE FOR:

Energy efficiency equipment upgrades
On-site renewable energy generation
Related work

See the NYC Accelerator for PACE Program Guidelines.

However…

Before applying for a PACE loan, make sure you are up to date on all property tax and mortgage payments.

As always, before entering into a PACE loan or any loan, make sure you fully understand all loan terms and your obligations under any loan agreement.

Want to stay in the loop on all developments on PACE in New York City? Then contact info@nyceec.com with the subject line “NYC PACE.”

Source: NYCEEC.com