STATE AND LOCAL GOVERNMENT COLLABORATION
The nonpartisan, nonpolitical Illinois Finance Authority PACE Program (“IFA PACE Program”) can accelerate private investment in PACE Projects (see below) in any county, city, village, or incorporated town throughout Illinois.
Under the IFA PACE Program, counties and municipalities can avoid using their own time and resources to issue bonds or notes to fund PACE Projects. IFA has statewide authorization to issue bonds and notes to fund PACE Projects in any PACE area. IFA utilizes a standardized, statewide open indenture with each capital provider to lower legal and financing costs for eligible record owners of eligible properties. Counties and municipalities establishing the IFA PACE Program benefit by not incurring any related conduit debt compliance or accounting obligations. Moreover, counties and municipalities have no legal obligation to execute and deliver any assessment contract for a PACE Project if they are not satisfied.
The IFA PACE Program is administered by a newly organized component unit of IFA known as the C-PACE Open Market Initiative, which is a 501(c)(3) organization. Referred to as the PACE Area Administrator, it is the independent, neutral program administrator of the IFA PACE Program, and provides a fair and competitive, statewide open market. Any county or municipality that desires to make Commercial Property Assessed Clean Energy ("C-PACE") financing available can do so by adopting the enabling PACE Ordinance and related Program Report available for download at the links posted below. The enabling PACE Ordinance and related Program Report creates a PACE area and establishes the IFA PACE Program within the PACE area.
FEWER AND LOWER FEES
C-PACE Open Market Initiative administers the IFA PACE Program free of charge, and the suggested fee payable to the applicable county or municipality is $150 per PACE Project (unless otherwise waived). Counties and municipalities will have no risk or liability or operational responsibilities. PACE Projects approved under the IFA PACE Program do not require billing and collecting by the county or municipality or any use of public funds, similar to the structure of commercial real estate mortgages.
ABOUT PACE PROJECTS
C-PACE financing can be used by owners and developers to finance or refinance eligible improvements affixed to any privately-owned commercial, industrial, non-residential agricultural, or multi-family (of 5 or more units) property or any property owned by a not-for-profit in connection with renovations of existing buildings and new construction, in each case up to 25% of the value of the property. Eligible improvements generally include fixtures, products, systems, equipment, devices, and materials intended for energy efficiency, renewable energy, resiliency, or water use; electric vehicle charging stations are eligible improvements too. C-PACE financing is non-recourse to the record owner and assignable upon transfer of the property. C-PACE financing does not accelerate upon a default (payment or otherwise), permits terms of up to 40 years, and allows financing of up to 100% of all project and closing costs.
Contact Brad Fletcher (firstname.lastname@example.org) to discuss the financing or refinancing, or interim financing, of PACE Projects. Application forms for PACE Projects are available for download at the link posted below.