How PACE Works:
New York’s Property Assessed Clean Energy (PACE) public benefit statute Article 5-L facilitates paying for the upfront costs of energy related improvements to eligible buildings.
- Legislation enables participating municipality to make funds available to finance clean energy projects and secure repayment through a benefit assessment lien.
- Property owners contact participating capital providers who determine if financing is provided.
- Energize NY qualifies the project according to Article 5-L and NYSERDA’s C-PACE Guidelines and enters into a Finance Agreement with the property owner and capital provider. Consent from existing mortgage holders is required.
- Energize NY verifies the installation and performance of the project.
- Energize NY records the property’s Benefit Assessment Lien in the land records of the municipality. The Benefit Assessment Lien is subordinate to municipal taxes and senior to any other lien on the property.
- All billing and collecting of the finance payments are handled by Energize NY directly with the owner of the benefitted property. In the case of default, the municipality may foreclose on the property or the capital provider will have the right to foreclose
- Energize NY supplies the municipality with an Annual Report detailing which properties received financing and the amount of the property’s total benefit assessment and annual installments.