CPACE financing is a great financing option for many projects. This type of financing helps make permanent changes to buildings that reduce environmental impacts. This includes minor projects that can increase energy efficiency, water conservation, and building resiliency. One sector that can really benefit from CPACE eligible upgrades is student housing. This special form of multifamily is well overdue for a serious overhaul for efficiency. That’s exactly what we’ll discuss in this article.
If you need CPACE financing for your property, contact us now to get started.
Why Use CPACE Financing to Make Upgrades?
PACE loans offer many benefits to the borrower. These loans are a special type of financing that legislation allows for projects that improve energy efficiency and sometimes water conservation and resiliency, depending on the area.
With these loans, you can fund up to 100% of the hard and soft costs for a qualified project. CPACE financing is available for up to 25% of the property value. It also is long-term, up to 30 years, and low-cost with low fixed rates. Additionally, commercial property assessed clean energy financing non-recourse with no personal guarantees.
These loans are designed to be used for specific projects, as we mentioned, so there is a qualification process. The good news is that our PACE lenders can walk you through this process with ease. Our goal is to provide you with financing without making major changes to your upgrades or the scope of your project. You may be surprised at just how many upgrades may be eligible for CPACE financing.
Potential Upgrades for Student Housing Using PACE Loans
There are many potential upgrades that you may be able to use PACE loans for. Basically, anything that is a permanent feature of the building and improves energy efficiency is fair game. For instance, some common projects include:
- LED lighting
- HVAC upgrades
- Electrical upgrades
- Low flow plumbing fixtures
- Efficient water heating systems
- Occupancy based lighting
- Occupancy based HVAC controls
- Resilient building envelopes
This is really important for student housing, as many students and their parents are environmentally conscious. Some may even choose universities and colleges based on their efforts to reduce carbon footprints. This means reducing waste wherever possible, which is incredibly common on college campuses and in student dorms. It also means using non-renewable resources as sparingly as possible.
Making efficient upgrades also has an added benefit: reducing total costs. Generally, the building owner pays for all utilities in student housing, which quickly adds up. However, more efficient features for the building can go a long way in reducing utility costs. With the right projects, you may see a significant decrease in bills for energy use, natural gas use, and water use. So, eligible upgrades may improve energy efficiency, attract more students, and reduce operating costs for maximum profitability.
Stonehill PACE – Your Trusted PACE Lenders
When you need commercial PACE financing, contact our team at Stonehill PACE. We are a direct PACE lender with years of experience providing financing and support for PACE borrowers. Our team maintains close relationships with PACE administrators to assist with every phase of the process to get you the funding you need. Get in touch now to discuss your options with our experts.