PACE funding is an attractive financing option for many different types of improvements. Commercial PACE is one of the fastest growing funding options for commercial properties. Many building owners are surprised to find that many of the projects they want to undertake are eligible for PACE. For example, flood mitigation improves resiliency and may be eligible for PACE financing.
What is PACE Funding?
PACE stands for property assessed clean energy. These are loans that provide financing for certain types of projects. For instance, eligible projects include things that improve energy efficiency, reduce energy and water consumption, and increase the use of renewable energy. In many areas, PACE funding can also be used for resiliency projects that help your building become less susceptible to events like floods, hurricanes, and earthquakes.
Some benefits of using PACE for your project include:
- Long-term financing
- Low annual payments through tax assessment
- Can fund 1up to 30% of stabilized value
- Loans are transferable with property sale
- No personal guarantees
- Low interest
CPACE is specifically a program for commercial buildings, such as retail stores, industrial plants, and multi-family complexes. It is increasingly common to use CPACE financing for resiliency projects like flood mitigation.
Using CPACE Financing for Flood Mitigation for Commercial Buildings
Eligible projects vary from state to state and even municipality to municipality. However, flood mitigation is a common resiliency project that may be eligible for commercial PACE financing. Despite the number and severity of extreme weather events increasing in recent years, many buildings are still incredibly vulnerable to water damage from floods. Flood mitigation for commercial buildings often require large up-front costs, which makes them difficult to take part in for many commercial building owners. For example, floodproofing your building can include things like building flood walls, completely sealing the building envelope, and elevating critical equipment to help minimize damage from water.
Fortunately, CPACE financing can help provide low cost financing to help you implement flood mitigation strategies. The first step is to conduct a thorough flood risk assessment and discuss potential solutions. If you’re interested in using PACE funding for flood mitigation, you should also talk to our PACE lenders about your project. We offer years of experience to help you with the approval process.
Stonehill PACE – Your Trusted PACE Lenders
When you need creative, low-cost financing options for your building, our team at Stonehill PACE is here to help. We are a direct PACE lender and offer financing for all commercial asset classes. Our team helps you find cost-effective solutions or everything from construction financing to retroactive financing for projects eligible for property assessed clean energy programs. We offer financing in all participating states and work with you to find options that suit your specific needs. Call us now at (678) 823-9313 to schedule a consultation with our professionals.