Capital Providers
C‑PACE gives capital providers a secure, property‑based repayment structure through an assigned assessment lien approved by the local government and that runs with the land, offering strong collateral and predictable cashflow. This means the obligation stays with the property even if ownership changes. Each capital provider sets the Interest rates and terms associated with their C-PACE financing, and also is responsible for billing and collecting repayments directly to the borrower.
Why Capital Providers Choose C-PACE
- Secure, low-risk property-based repayment mechanism
- Reliable cashflow with low default risk
- Access to qualified, vetted projects
- Support local businesses
- CRA investment opportunities
How to Participate
- Register as a Qualified Capital Provider in the applicable jurisdiction.
- Underwrite owner and project per your criteria and program guide requirements.
- Close & assignment: Jurisdiction records the assessment; assignment to the provider is executed; capital provider handles billing/collection (or designated servicer).
Information for Mortgage Lenders
Any existing lender with a lien on the property must provide written consent before the C-PACE assessment can be recorded, ensuring compliance with existing loan agreements. C-PACE financing under the Program cannot be accelerated in the event of default. While the full assessment amount is recorded in the property records, only the annual payment may be collected, even in a default situation. In addition, C-PACE financing does not restrict a senior lender’s foreclosure rights. C-PACE financing may also increase the value of the senior lender’s collateral and improve debt service coverage.