As of August 11, 2017, the Property Assessed Clean Energy Act (50 ILCS 501/ et seq.) became law in Illinois. On February 15, 2018, the Illinois Finance Authority (the “Authority”) approved a resolution to develop financing options for Illinois local units of government establishing Commercial Property Assessed Clean Energy (“C-PACE”) programs in their communities. On August 17, 2018, and August 19, 2018, legislation adopted by the Illinois General Assembly was signed into law by the Governor permitting the Authority to make loans and issue bonds for C-PACE projects on behalf of local units of government. CLICK HERE for the press release.
The Authority’s C-PACE program offers counties, cities, and villages a turnkey solution for affordable interim funding and efficient bond issuance. Local units of government assign assessment contracts originated by Capital Providers to the Authority in order to utilize standardized bond documents and effectively pool assessment contracts across multiple jurisdictions in a Program Administrator’s market area to achieve economies of scale. The Authority’s C-PACE program promotes standardization of the Illinois C-PACE market to improve liquidity and bring about cost savings for all.
Illinois local units of government develop C-PACE programs to allow commercial property owners the ability to finance or refinance up to 100% of their energy efficiency, renewable energy, and water conservation projects on a long-term basis, which exceeds standard commercial lending terms that are typically only 5-7 years.
C-PACE financings in Illinois are attached to the commercial property and “run with the land.” Repayment obligations from C-PACE projects financed through voluntary assessment contracts seamlessly transfer to any new owner upon sale of the commercial property. Similarly, any new owner of the commercial property continues to benefit from the ongoing savings from the energy efficiency, renewable energy, and water conservation property enhancements. Use the links on this page to explore program details and eligibility requirements, and to find additional help and information.
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