We can provide funding, obtain senior lender consent and guide you through the PACE process. We’ll look at your project’s details—location, property appraisal and construction budget—to determine the approximate amount you qualify for. Typically, PACE can cover about 25% of your project’s construction hard and soft costs.
Before you can receive funding, you’ll need to be approved by your local PACE program. Your Clearwater Capital Advisor will help you work with an energy auditor, typically from a third-party engineering firm, to identify measures within your existing budget that justify the amount of funding you’re seeking.
Depending on your state and municipality, the approval process averages 30-60 days. Once you’ve received approval from the PACE Administrator, we can close quickly. PACE typically closes at the same time as remainder of construction capital stack, and proceeds are disbursed as the cost of the improvements are incurred.
PACE financing is non-recourse and tied to the property. As such, PACE is repaid through a special assessment collected with property taxes, and the energy savings typically cover the cost of the loan. Hotel owners can pass the cost to guests in a tax on their bill, and triple-net leases can pass it to commercial tenants if they wish.