FOR MUNICIPALITIES - MUNICIPAL CHOICE
The Illinois Finance Authority is focused on empowering city mayors and village presidents by standardizing the structure of the Commercial Property Assessed Clean Energy (“C-PACE”) financing market in Illinois to facilitate more efficient access to non-recourse capital and lower financing costs for participating cities, villages, and incorporated towns. The merits of financing decisions based on a municipality’s municipal building code should be in the trusted hands of the municipality itself.
Contact Brad Fletcher (email@example.com) to opt into the Illinois Finance Authority’s C-PACE Strategic State Support Model for free!
PACE Areas are unlike Special Assessment Areas because the special assessment imposed by a municipality in a PACE Area is VOLUNTARILY requested by the property owner whereas the special assessment imposed by a municipality in a Special Assessment Area is ordered by the court or local board of improvements (e.g., public roads, sidewalks, etc.). PACE Areas are also unlike Special Service Areas because the special assessment imposed by a municipality in a PACE Area is fixed according to an applicable loan amortization whereas the tax levy imposed by a municipality in a Special Service Area is based on the value of the property (e.g., public property beautification, safety programs, etc.). Thus, PACE Areas are unique because the special assessments imposed by municipalities are voluntary and each request is fixed according to the related loan amortization.
FOR PROPERTY OWNERS - 100% DEBT FINANCING
C-PACE financings offer commercial property owners and developers access to non-recourse capital with no up-front, out-of-pocket costs so energy efficiency and water conservation projects result in positive cash flow.
Municipalities that opt into the Illinois Finance Authority’s C-PACE Strategic State Support Model to create PACE Areas can begin to offer for-profit and non-profit owners of commercial, industrial, and multi-family (of 5 or more units) properties long-term, fixed-rate financing or refinancing for up to 100% of the costs of their respective electric vehicle charging station projects, energy efficiency improvement projects, renewable energy improvement projects, resiliency improvement projects, and water use improvement projects.
Click the table below to view a list of participating municipalities, and check back often for updates:
Updated as of 5/17/2022
FOR CAPITAL PROVIDERS - A STRATEGIC PARTNER
The Illinois Finance Authority’s C-PACE Strategic State Support Model offers capital providers an independent, nonpolitical marketplace for opted-in cities, villages, and incorporated towns in Illinois. In Cook County, the Illinois Finance Authority is also the exclusive conduit bond issuer for PACE programs operated by third parties on behalf of the City of Chicago and Village of Rosemont.
Contact Brad Fletcher (firstname.lastname@example.org) about your projects once verbal awards are made for C-PACE financing to ensure there are no construction delays and interest rate commitments can be honored when requesting that the applicable municipality opts in.
Long-Term Bonds or Notes Issuance
The Illinois Finance Authority has statewide jurisdiction to issue bonds or notes secured by municipal assessment contracts. Opted-in municipalities allow capital providers to administer and service their own C-PACE originations in a free and open marketplace. Capital providers or their servicers reliably bill and collect payments themselves, keep 100% of any default interest on loans they originate, and always have the legal option to pursue a default remedy through either the regular county tax sale process or through an accelerated judicial foreclosure under the State’s Municipal Code.
Short-Term Warehouse Lending Facility
In some cases, capital providers may find that closing and conventionally funding assessment contracts through their creditors’ warehouse accounts will bestow flexibility upon their origination efforts prior to the issuance of bonds or notes to long-term, secured investors. Such capital providers can enter into short-term warehouse agreements with the Illinois Finance Authority for interim financings that can obviate negative arbitrage or achieve economies of scale related to bond transaction fees. The Illinois Finance Authority’s warehouse lending facility is a market accommodation available to all eligible capital providers without bias to save commercial property owners in Illinois money!