NYC Program Releases Updates
Just this week, New York City releases its C-PACE program guidelines. The guidelines are expected to pave the way for new construction and energy retrofits on thousands of NYC buildings.
• New Construction and Major Renovations must be defined as a “Low Carbon Building”
• C-PACE loans are capped at 30% of the total construction costs, excluding land/property acquisition costs
• No term limit
• No SIR requirement for New Construction, Major Renovation or Pre Qualified Energy Efficiency projects
• The property must be located in one of the five boroughs of NYC
What is a Low Carbon Building?
A low-carbon building is one that is designed to minimize emissions. Specifically, any device, machinery, or system installed in the building must not emit more than 25 kilograms of carbon dioxide per million British thermal units (BTU) of energy. See program guidelines for more details.
What is C-PACE?
Commercial property assessed clean energy (C-PACE) financing provides a low-cost, long-term financing options for new and existing commercial properties. Eligible improvements may include energy efficiency, renewable energy, seismic, storm-water measures, and other property enhancements. View typical measures here. C-PACE loans are structured as assessments that are repaid through the property owner’s property tax bill over a 20 to 30 year period.
Recent Data
Recent data reveals that, by the end of 2023, the market had exceeded $7 billion in financing activity across 2,300 projects in the United States. C-PACE continues as a mainstream financing tool and is now active in 40 states. View active C-PACE states here.
Tim Finiki
VP, Originations
[email protected]