The NYC PACE Financing Program has finally released its program guidelines! Prospective qualified PACE lenders are now carefully reviewing the guidelines, applying for approval to be a PACE lender in New York City, and seeking projects that may benefit from PACE financing. It is time to get ready, but the official launch date for the program is being delayed a bit and has not yet been set. We expect the launch soon.
New York’s Law Will Motivate Building Owners to Reduce Greenhouse Gas Emissions
While PACE financing has been available throughout the country for years, the PACE program for New York State was enacted in 2019 as part of the Climate Mobilization Act. As part of that law, Local Law 97 (which has been subsequently amended by Local Law 147 and Local Law 95), established greenhouse gas emission limitations for certain large buildings in New York City. Buildings covered by the law will be required to report greenhouse gas emissions commencing in 2024, and penalties will be assessed for exceeding the established limitations. The legislature enacted the law with the expectation that it will be more expensive to pay the penalties than to renovate the building to reduce emissions.
New York’s PACE Program Will Provide the Financing to Retrofit Buildings The State’s Commercial PACE Program was then concurrently implemented to provide building owners with a low-interest (usually around 6+/-%), long-term (usually 20-30 year amortization) financing option to support the required energy efficiency retrofits and to support renewable energy projects generally. It is also a form of financing that will result in significant mortgage tax savings (there is not mortgage recorded with PACE Financing) and other benefits. CONTINUE READING →