Mortgage Holders

C-PACE provides an affordable, long-term financing opportunity that empowers borrowers to install qualifying energy and water savings, indoor air quality or resiliency projects. Property Owners must obtain consent from all mortgage and lien holders before PEA will approve their C-PACE projects.

How It Works

Mortgage and lien holder notification and consent are required per the Pennsylvania C-PACE statute and Philadelphia C-PACE ordinance.

  1. Rationale for Consent

    Over 300 financial institutions have consented to C-PACE financings throughout the country. See the Lender Consent Guide on the Resources page for more details.

    Lenders provide consent for many reasons:

    • C-PACE financed projects generally reduce building operating costs, thereby increasing a property’s cash available for debt service.

    • C-PACE projects generally add new equipment to a building, thereby increasing the mortgage holder’s collateral.

    • C-PACE payments do not accelerate.

    • 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.

  2. Notification from Property Owner

    The Property Owner must notify all mortgage and lien holders of its intent to execute a C-PACE financing.

    A draft notice is included in Appendix J of the Program Guidelines, which can be found on the Resources page.

  3. Consent from Mortgage/Lien Holders

    Property Owners must receive consent from all mortgage and lien holders prior to PEA’s approval of a C-PACE project’s Final Application.

    A form of consent is included in Appendix J of the Program Guidelines, which can be found on the Resources page and below.

Have questions?

Visit the FAQs page or contact PEA to learn more about the C-PACE process.

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Related Resources

What is C-PACE?

C-PACE is a financing structure that allows commercial property owners to borrow money for energy and water efficiency improvements and renewable energy installations via a special assessment similar to a property tax assessment.

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Ready to Apply?

Complete the form on application page or contact us for more information.

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