In January 2015, the US Department of Housing and Urban Development (HUD) began a pilot program for providing consent on C-PACE (Commercial Property Assessed Clean Energy) projects. As the leader in C-PACE project development and funding, PACE Equity began developing a project with a HUD loan on it. Working through the requirements, we were eventually able to gain consent and be one of the few groups in the country that has successfully obtained HUD approval for a PACE project.
For the past two years, PACE Equity has been working with HUD to provide feedback on the pilot program and expand the approvals nationwide. On January 11th, 2017, our hard work came to fruition when HUD issued guidance for approving CPACE projects across the country. The approval process and requirements are very similar to the California pilot program.
Through our turnkey C-PACE process, PACE Equity can manage the PACE project to meet the requirements to obtain HUD consent. This includes:
- Lender consent by any mortgage holder (or holders)
- An ASHRAE II
- A savings-to-investment ratio greater than one
- Local PACE program operational confirmations
HUD financing is very attractive for building owners and real estate developers. This is an exciting development for PACE. Now, you can tap HUD and PACE on the same project. For more information on the requirements and PACE Equity, contact us or visit our Insights page.
Key Takeaways:
- HUD Approval for PACE is now nationwide
- PACE Equity is one of the only groups that has obtained HUD approval and helped shape the approval process
- PACE Equity will manage the PACE project to obtain HUD approval
