Local Law 96 Of 2019: Property Assessed Clean Energy (PACE) Financing Program.pdf

## Local Law 96 of 2019 (PACE Financing) Summary

What it does: Establishes a Property Assessed Clean Energy (PACE) program to fund energy efficiency and renewable energy projects in buildings, helping them comply with the Climate Mobilization Act.

Key Features:

Voluntary property tax charges: Repaid through building's property tax bill, transferred to new owners, and don't accelerate upon default.
100% Financing: No out-of-pocket costs for property owners.
Long Term: Loans often span 20-30 years with competitive interest rates.

Benefits:

Lower upfront costs and immediate cash flow benefits.
Landlord can pass PACE charges through to tenants (for commercial properties).
Recovery of investment in improved tenant spaces.

Eligibility:

Commercial and multifamily buildings (3+ units)
Tax-exempt non-profits, religious facilities, health care facilities, and industrial properties.

Eligible Improvements:

Energy efficiency upgrades
Renewable energy systems
Soft costs like energy audits and feasibility studies

Lenders:

Pre-qualified private lenders (connect through NYCEEC or NYC Accelerator).

Loan Terms:

Up to 30 years, based on equipment lifespan.
Can be prepaid with lender consent.

Interest Rates & Fees:

Varies by project; generally lower due to PACE loan's senior lien status.
Small closing and servicing fees may apply.

Additional Information:

Incentives and utility rebates can offset costs.
Existing mortgages don't prevent PACE financing (lender consent required).
Program expected to launch in early 2020.
NYC Accelerator offers free advisory services and connects with lenders.
* NYCEEC administers the program and qualifies lenders.