EXISTING MORTGAGE HOLDERS: INVEST IN THE ENERGY EFFICIENCY MARKET

EXISTING MORTGAGE HOLDERS: INVEST IN THE ENERGY EFFICIENCY MARKET

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PACE financing is an effective and proven option that provides 100%, extended-term, fixed rate funding to commercial property owners for energy and water saving improvements. It is repaid via a voluntary special assessment added to the property tax bill. Owners of commercial buildings use PACE to finance improvements which reduce their utility costs and improve the value of the property.

Mortgage holders can benefit from PACE financing

Here are a few of the reasons why over 100 mortgage lenders have provided written approval for PACE financed projects:

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    PACE assessments are small in comparison to the property value & mortgaged amount and have a minimal effect on overall economics. PACE assessments generally do not exceed 20% of the total property value; therefore, the PACE exposure in any given year is typically no more than 1% of the property value when PACE financing is extended over a 20-year term.

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    PACE assessments do NOT accelerate in the event of a mortgage loan default or tax foreclosure, ONLY the PACE assessment amount that is in arrears becomes due. The remaining PACE assessment balance continues with the property until the term end date.

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    PACE assessments stay with property upon sale and transfers to new owner.

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    PACE assessments can be prepaid before the term end date (penalties may apply).

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    PACE requires no funds from the existing mortgage holder.

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    PACE improvements reduce energy expenses and increase cash flow of the property owner.

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    PACE improvements increase the value of the property.

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    PACE capital typically comes from private sources. This enables property owners to reserve other lines of credit for working capital or non-energy related improvements.

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    PACE capital does not rely on government funds.

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    PACE financing repayment process is secure and proven due to using the same special tax assessment structure that has been in place for over 100 years.

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    For Commercial Real Estate (CRE) property owners with tenants, PACE improvements increase Net Operating Income (NOI).