Senior living facilities are incredibly common, with many older adults calling them home. As the population ages, there will be an increase in demand for senior living solutions. One differentiator for these facilities is sustainability, which can be a huge selling point to residents and their families and can also reduce overall operating costs. However, including sustainable features in senior living construction or through renovations does cost money. PACE loans offer a low cost, long-term financing option for “green” improvements to your property. In this article, we’ll discuss how to use PACE loans for more sustainable senior living facilities.
If you need commercial PACE financing, contact our team now for assistance.
What are PACE Loans?
PACE stands for property assessed clean energy. This is a special type of financing allowed by state legislature that lets PACE lenders get repayments through an assessment on the property’s tax bill. This reduces a lot of the risk of loan default compared to many other loan types. As such, lenders can provide financing with low rates and over long periods of time, even up to 30 years.
States allow this type of financing under special circumstances. Namely, for projects that improve energy efficiency and sustainability for properties. Since commercial properties are some of the largest consumers of energy, water, and other resources, commercial PACE loans are allowed in many states throughout the country.
You can use CPACE financing for a variety of projects. The key criteria is that the projects must improve energy efficiency, reduce water consumption, or increase building resiliency. Also, usually these projects must provide enough cost savings to pay for the loan over time. Finally, these improvements must be permanent to the building and not something easily removed, like appliances.
When projects meet these criteria, PACE loans can provide capital to fund both hard and soft costs for things like lighting upgrades, HVAC improvements, and other similar projects. Additionally, the loans stay with the property and transfer to the new owner in case of a sale.
Using CPACE Financing for Senior Living Facilities
You can use PACE loans for a variety of properties, including senior living and assisted living facilities. You can use PACE for both upgrades to existing buildings as well as sustainable features for new construction projects.
This is important, as sustainability is becoming increasingly popular in senior living facility design. There are several reasons for this. One is the increased awareness in environmental issues across generations. Both seniors and their families are looking for ways to reduce their carbon footprint and many prefer more eco-friendly options.
In addition, green senior living buildings often reduce total operations costs. Because sustainable building features aim to reduce energy consumption and water consumption, this also decreases utility bills required for the facility. Therefore, it’s a good business move to choose more efficient building features, and PACE loans can help you get the low-cost financing you need to do so.
Stonehill – Your Trusted PACE Lenders
When you need PACE financing for your commercial property, contact our team at Stonehill PACE. We are a direct PACE lender in all states that have PACE programs. Our experts are here to help you find the right financing solutions without changing the scope or cost of your project. Get in touch with our team now to get started.