Develop and Design your project with a 360 degree Approach
August 26, 2019Contractor selected for Terraces of Holly Lake – Holly Lake, Texas
September 29, 2019
3 Reasons to Choose C-PACE for your Property Development
If you’re struggling, like most real estate investors and developers, to understand the difference between LEED and PACE, what the benefits of each are for your property, and how to go about implementing them, you’re not alone.
While LEED is a private rating program, PACE – or Property Assessed Clean Energy – is a government regulation that is implemented at the municipal or county level. PACE makes it easier for property owners to reduce their energy and water use, and make their built structures more resilient. Because it’s not an incentive program, it is a fund available to you and it is a low-risk plan to do the right thing.
1. PACE is a financing vehicle for bringing your building energy and water usage to Net 0 – It’s a long-term, fixed-rate loan, NOT an incentive program!
PACE is a private, affordable, long-term financing vehicle that is not available through traditional funding avenues. Funded nationwide by billions of dollars in ethical investments, PACE is arranged to attract people who want to change the world for the better and make our communities more green by reducing our buildings’ energy consumption.
Because PACE is an assessment on your property, much like a tax, it guarantees the loaning authority that they have a lien on the property in effect of a default. That’s if there is no further involvement of the taxing or governing authorities with you or your property. The program is non-recourse – there is no down payment on a 20-year note, and it’s specifically for the purposes of reducing energy and water usage and your building’s impact on the grid. PACE funds have repeatedly been used as an essential item in the proforma. It has often made real estate investments’ cash flow more robust and improved the rate of return. It does this by eliminating the down payment and reducing the interest rates on the debt used to finance the project.
2. If you’re repurposing an existing structure, PACE is a cost-effective way to make your building more energy efficient and profitable in the long-term.
Investing in an existing structure built two decades ago or more, with the vision of making it energy efficient often requires a large amount of money and a significant line item on the proforma. This could mean your budget for architectural design, aesthetics or technology might be slashed in order to fully realize the energy efficiency goal. Because PACE is a targeted fund it replaces a portion of the debt on the proforma for all hard and soft costs associated with PACE-qualified improvements and can increase the return on the initial investment.
3. You don’t have to figure it out or implement the program alone!
As an architect, development adviser and PACE Program Manager, DSGNworks is passionate about creating a better world for future generations through building green and energy efficient structures. Our team of experts is familiar with the program and is available to shepherd you through the process, ensuring accurate and acceptable submissions.
PACE enables low-cost, long-term funding for energy efficiency, renewable energy and water conservation projects, repaid as an assessment on the property’s regular tax bill. It can cover 100 percent of a project’s hard and soft costs, and the annual energy savings usually exceed the annual assessment payment, so property owners are cash-flow positive immediately. Engaging a development adviser like DSGNworks to help navigate the process means you’re getting a partner who is knowledgeable of the program and shares your passion for making the world a better place for our children and grandchildren. With PACE, we can change the world and reduce the energy load for your building!
