Effective in September 2022, multifamily properties with five (5) or more units are eligible for C-PACE financing. Regarding residential cooperatives, C-PACE assessments must be associated with a single OPA number. If a multifamily cooperative building has an OPA number with a minimum of 5 units and has an improvement project with eligible measures of at least $100,000, the property is likely to be eligible for C-PACE. We encourage property owners to reach out to cpace@philaenergy.org to confirm eligibility for a particular project.

As of September 2022, C-PACE financing may be used for Indoor Air Quality projects. For new construction or gut rehab, IAQ projects must be designed for performance-based indicators listed in the Program Guidelines Addendum.

For existing buildings,  eligible measures include:

Filtration and air cleaning measures identified by ASHRAE in its technical resource guidance including:

• Upgrading HVAC equipment to accommodate higher MERV-rated filters than currently installed
• HEPA filtration systems
• Electronic air cleaners
• Gas-Phase air cleaners
• Ultraviolet Energy (UV-C)
• Photocatalytic Oxidation (PCO) and Gaseous Hydrogen Peroxide
• Photocatalytic Oxidation (PCO)
• Bipolar Ionization/Corona Discharge/Needlepoint Ionization and Other Ion or Reactive Oxygen Air Cleaners

Electrification equipment and upgrades:

Indoor combustion of fossil fuels contributes to indoor air contamination. Replacement of combustion equipment with permanently affixed electric equipment is considered an eligible measure. These measures include but are not limited to electric heat pumps, electric water heaters, electric commercial-scale cooking equipment, and upgrades to electrical systems.

Complete program requirements are available in the Program Guidelines Addendum (accessible in Program Resources).

As of September 2022, C-PACE financing may be used for resiliency projects. Eligible measures include those which improve the ability of properties to withstand damage from wind, precipitation, flooding, fire, and earthquakes

• Stormwater management (Philly only)
• Energy Reliability Improvements
• Flood mitigation
• And more

Complete program requirements are available in the Program Guidelines Addendum (accessible in Program Resources).

Developers and Property Owners can refinance with C-PACE within 730 days after installation or construction. Retroactive Projects must satisfy the same requirements as other C-PACE projects. Please see Sec. 11 of the Program Guidelines for more details (accessible in Program Resources).

The program requires a Completion Certificate for all projects to ensure that the measures approved in the Survey were installed as planned. Commissioning is required for most projects. Please see the Completion Certificate form on the Resources page under “Program Materials.”

Yes. In 2018-2019, PEA partnered with the Sustainable Energy Fund, Keystone Energy Efficiency Alliance, Pittsburgh Office of Sustainability and Pennsylvania Department of Environmental Protection to help create a standard set of Pennsylvania Program Guidelines and C-PACE documents for use across the state. PEA based the Philadelphia program’s documents and guidelines on these documents, while making some material adjustments to account for unique characteristics of running C-PACE in Philadelphia.

Many other Pennsylvania counties have active C-PACE programs and each uses a set of standardized documents. For a complete list of Pennsylvania counties with active C-PACE programs, visit Pennsylvania PACE.

Roof replacements are eligible under the Philadelphia C-PACE program so long as the replacements improve both the roof (membrane, coating, sealing, etc.) and the system below (insulation). In the case of new construction, the eligible roof work must exceed the baseline code requirements. In the case of a retrofit, an eligible roof replacement must result in a more efficient roof system than what is being replaced.

Structural roof improvements that facilitate the installation of rooftop solar are considered ancillary costs that are also eligible for C-PACE.

Eligible soft costs are those that are necessary to directly install the C-PACE project or for the C-PACE Capital Provider to perform their due diligence/underwriting. As such, eligible soft costs may include the cost of the following: Program Fees, energy or water survey, other required design and engineering, project development fees, permit fees, surveys, legal fees, other third-party reports, inspection fees, financing fees, fees associated with the issuance of bonds for the financing, any required reserves deposits, recordation fees, capitalized interest and commissioning. The applicant may request consideration of additional soft costs not listed above.

Yes, C-PACE can be included in deals which include NMTC and HTC. The Philly Met which obtained retroactive C-PACE financing in 2020, includes both NMTC and HTC in the capital stack.

• C-PACE financing can cover 100% of hard and soft costs, which limits upfront cash out of pocket.
• Many C-PACE projects result in utility bill savings that exceed the annual C-PACE repayment amount, producing positive net operating income.
• Competitive interest rates are especially helpful for displacing mezzanine debt and equity
• Long financing terms (up to 30 years) can allow Property Owner to match project payback period to useful life
• Under certain leases, building owner can pass through C-PACE repayment obligation to tenants
• If sale of property occurs, C-PACE repayment obligation transfers to the new owner

Philadelphia C-PACE operates an “open market” program so that Property Owners can select their preferred C-PACE Capital Provider. The open market model gives eligible Property Owners access to a range of private C-PACE Capital Providers that offer competitive rates and financing terms and conditions. Please visit the Capital Providers List page for more details on firms registered as C-PACE Capital Providers in Pennsylvania.

Not all capital providers are willing to do “small” C-PACE deals. Capital providers which have informed PEA they are willing to lend $2MM or less are:

1. Allectrify – works to find lenders for small projects (Mitchell Houff mitch@allectrify.com)
2. PowerGreen Capital, Rick Moseley, rmoseley@powergreencapital.com
3. PACE Equity, Steve Arrivello, sarrivello@pace-equity.com
4. Counterpointe, Michele Pitale,  mlp@counterpointesre.com
5. Inland Green Capital, Jason Stringer, jason.stringer@inlandgroup.com

The minimum financing amount in the Philadelphia C-PACE program is $100,000. Smaller projects may be considered on a case-by-case basis at the discretion of the Program Administrator.

There is no absolute maximum financing amount, however there are two limitations that apply. First, the amount financed cannot exceed the sum of hard and soft costs of the C-PACE project. Second, the C-PACE financing amount, when combined with existing mortgage and other lien obligations, shall not exceed 95% of the assessed or appraised value of the property. New construction and gut rehab projects may use post-construction appraised value.

The loan to value (LTV) maximum of 95% is based on secured debt only. For example, New Market Tax Credit B Notes are not secured and therefore not included in the “loan” total of LTV.

No, the Philadelphia C-PACE Program does not have an SIR requirement. All C-PACE projects must generate measurable energy savings or reductions in water usage or improve IAQ or resiliency according to the Pennsylvania C-PACE Statute (accessible on the Program Resources page). But Capital Providers do not have to size the financing amount based on the expected savings of the project.

Properties with a ground lease are eligible for C-PACE only if the owner of the tax parcel  according to City of Philadelphia Office of Property Assessment (OPA) is the borrower and is not a government entity.

The C-PACE program and C-PACE Special Assessment payment schedule follow the City of Philadelphia’s real estate taxes and enforcement schedule.

As such, PEA invoices the Property Owners in December of each year. The payments are due on March 31 of the following calendar year, in line with the City’s property tax payment schedule. PEA has engaged a paying agent to collect payments and remit funds to the Capital Providers. The paying agent distributes funds on the 1st and 15th of each month.

Any unpaid assessments as of April 1 are considered past due and subject to a 1.5% penalty per month. In the January following the missed payment, PEA can pursue lien enforcement on properties with overdue C-PACE Special Assessment payments from the previous calendar year.

In the event the City changes its real estate tax schedule in a given year, the C-PACE repayment schedule will change accordingly.

In the event the Property Owner fails to make the C-PACE Special Assessment payment, funds recovered either from delinquent payment by Property Owner or in the event of a Sheriff’s sale shall be paid to the Capital Provider (up to the amount owed). The process for pursuing a Sheriff’s sale is described in the Lien Enforcement Memo (accessible on the Program Resources page).

Pursuant to the Philadelphia C-PACE Statute and the Statement of Levy and Lien Agreement, in any action to collect delinquencies owed to the Capital Provider, the proceeds of any sale of the property are first to be distributed to pay any outstanding municipal liens before the Capital Provider recoups its debts.

Yes. C-PACE Financings may be structured to include up to five years of the combination of interest only and/or capitalized interest payments

Each tax parcel (with an associated OPA number) must have its own C-PACE Assessment and Statement of Levy and Lien. The one-time fee payable to the Program Administrator at close of the C-PACE Financing is calculated based on the total C-PACE financing. The annual fee of $750 is applied to all tax parcels.

View the Qualified Engineers page for a list of required certifications

Yes, the Survey is a soft cost eligible for inclusion in the C-PACE financing. For more information on eligible soft costs, see Section 4.4.1 of the Program Guidelines (accessible in the Program Resources page).

The ECM Survey for a new construction project may demonstrate expected energy and/or water savings over this baseline in one of two ways:

• New construction ECM Surveys may itemize energy- or water-related measures and describe each ECM’s characteristics. The Survey must provide supporting documentation showing the extent to which each ECM exceeds minimum code requirements using the prescriptive path to code compliance per the 2018 IECC.
• New construction ECM Surveys may demonstrate overall savings on a whole building level, following a methodology consistent with ASHRAE 90.1 Appendix G guidelines. Estimated whole-building energy savings above the minimum baseline should be calculated using a DOE-approved building energy modeling software or detailed engineering calculations. Building-level savings calculations shall state the building’s total anticipated performance that is better than the building code (baseline) with a summary percentage of the performance of the whole building that is above the code baseline.

New construction projects that exceed the minimum code requirements in Philadelphia (IECC-2018) are eligible for C-PACE Financing. One hundred percent (100%) of the cost of the outlined ECMs will be eligible, including soft costs.

The ECM Survey for a new construction project may demonstrate expected energy and/or water savings over this baseline in one of two ways:

• New construction ECM Surveys may itemize energy- or water-related measures. The ECM Survey must describe each ECM’s characteristics and provide supporting documentation showing the extent to which each ECM exceeds minimum code requirements using the prescriptive path to code compliance per the 2018 IECC. One hundred percent (100%) of the C-PACE Project Costs of each water or energy-related measure that demonstrably exceeds minimum code requirements can be financed through C-PACE.
• New construction ECM Surveys may demonstrate overall savings on a whole building level, following a methodology consistent with ASHRAE guidelines. Estimated whole-building energy savings above the minimum baseline should be calculated using a DOE-approved building energy modeling software or detailed engineering calculations. Building-level savings calculations shall state the building’s total anticipated performance that is better than the building code (baseline) with a summary percentage of the performance of the whole building that is above the code baseline. One hundred percent (100%) of the C-PACE Project Costs of all water or energy-related measures in new construction projects that demonstrate a whole-building summary performance above the minimum code baseline are financeable through C-PACE.

Energy projects financed through C-PACE generally reduce building operating costs and therefore increase a property’s collateral value. Under the Philadelphia C-PACE eligibility requirements, a proposed project must include a scope of work, an energy baseline or water usage baseline, and the projected energy savings or water usage reductions. A third party Qualified Engineering Professional will confirm the energy savings assumptions prior to closing the financing. Lower operating costs typically raise a property’s value, improving its collateral value for your Financial Institution’s mortgage.

C-PACE payments do not accelerate. In the event a mortgage holder or lienholder forecloses on the property for any reason, only the C-PACE payments currently due and in arrears would be payable, which is likely a relatively small proportion of the total amount financed. In the event of a property sale, the remaining C-PACE Financing runs with the land and would be paid by the new property owner as property taxes are due.

Projects financed through C-PACE often reduce maintenance and repair costs, and improve a building’s health and comfort, making it more attractive to tenants and future owners.

Yes! In Pennsylvania as of the end of 2023, 24 lending institutions have consented to C-PACE. Those which have consented more than once have “*” following their name:

100 Mile REIT, Inc
Access Point Financial LLC (APF)
Andrews Federal Credit Union
Berkshire Bank
Central National Bank
Citizens Bank
Forbright Bank*
Fulton Bank*
Lincoln Financial
MCB Bank
Meridian Bank
M&T
OceanFirst Bank NA
PCCP Credit
PIDC*
PNC Bank
Somerset Trust Company
TriState Capital Bank
Torchlight Investors LLC
Valley National Bank*
Washington Capital Management
Wells Fargo
WSFS Bank*

Over 300 financial institutions nationwide have already consented to C-PACE financings. Please see the Lender Consent Guide on the Program Resources page for more information.

Please see Appendix J of the Program Guidelines (accessible on the Program Resources page).