ABOUT PACE

ABOUT PACE

Usurp Power will become the B2C marketplace with the largest network of sustainable capital providers in the world. Our platform will provide customers with power in numbers to shatter price inelasticity inmarkets known to favor large corporate buyers, starting with PACE.

ANOTHER BEN FRANKLIN INVENTION
Property Assessed Clean Energy (PACE) may seem to many like a recent innovation, but to one of this country’s founding fathers, it would be old hat. While Benjamin Franklin would not have been familiar with  the  climate  change  motivation  for  PACE,  he  would  be  very  familiar  with  the  property  tax assessment  mechanism  that  allows  private  lenders  to finance  construction  projects  at  low,  fixed interest rates over a period of many years, dramatically improving the economics of the project. (release accordion to see article outline)

In this article, we will present a brief overview of the history of PACE, from its BF-inspired origins that led  Scientific  American  magazine  to  label  it  a  top 20  “world  changing”  idea  and  Harvard  Business Review to call it an “Innovation to Watch” to its embrace by republican and democratic leaders across 36   states,   the   federal   government,   rating  agencies, and  consumer  protection  bureaus  to  its reinforcement by the courts.

Article Summary
1.  Section 1: How PACE came to be
  • Tracing the origins to Ben Franklin
  • PACE becomes the first voluntary tax-assessment
  • PACE passes the test by the FL Supreme Court
2.  Section 2: Years of Building and Tweaking
  • Players and roles in a public-private-partnership model
  • Connecticut takes off with help from a Green Bank
  • PACE gets improved by consumer protection bureaus
3.  Section 3: The Fastest Growing Financial Product in the Country
  • PACE becomes widely available as big players bring big resources to the table
  • PACE reaches $650 million per year in new projects
  • 36 states and over 70% of the population gets access to PACE

 

HOW TO QUALIFY FOR PACE

If a project costs at least $30,000; it is fixed to a commercial property; and it involves repairing, replacing, or newly installing equipment or materia ls that impacts either your water bill or your energy bill, chances are that it would qualify for PACE. From windows, walls, and roof work to HVAC, lighting, and  plumbing  to  renewable  energy,  there  is  a  very  wide  variety  of projects that have received PACE financing.  Once  you  know  what  kind  of  project  you’re  doing,  the  rest  of  the  qualification  process  is usually simpler than applying for a mortgage. (release accordion to see article outline)

In this article, we will review the qualification requirements that are mandated by the state legislation that enables PACE, the underwriting criteria most commonly required by lenders, and the process for applying and receiving PACE funding.

Article Summary

1.  Section 1: Simpler than a mortgage or business loan

  • The benefits of a property-based credit review
  • Required documentation
  • How to overcome the biggest hurdles
  • Application and funding process

2.  Section 2: Meeting program requirements 

  • Types of qualifying projects
  • Consumer protection requirements
  • Common criteria to get approved by a lender

Click Here to Read the Full Article

THE UNIQUE BENEFITS OF PACE COMPARED TO ALTERNATIVE

If a project costs at least $30,000; it is fixed to a  commercial  property;  and  it  involves  repairing, replacing, or newly installing equipment or materials that impacts either your water bill or your energy bill, chances are that it would qualify for PACE. From windows, walls, and roof work to HVAC, lighting, and  plumbing  to  renewable  energy,  there  is  a  very  wide  variety  of projects that have received PACE financing. Once you know what kind of project you’re  doing,  the  rest  of  the  qualification  process  is usually simpler than applying for a mortgage. (release accordion to see article outline)

In this article, we will review the qualification requirements that are mandated by the state legislation that enables PACE, the underwriting criteria most commonly required by lenders, and the process for applying and receiving PACE funding.

Article Summary

1.  Section 1: Benefits that come only to tax-assessment financing

  • Tenant pass-through and split-incentive
  • Reduces the capital reserve requirement of an existing mortgage
  • Increases tax recovery revenue
  • Transfers to new property owner or can be prepaid
  • Limited effect on borrower capacity for other loans

2.  Section 2: PACE compared to business loan, mortgage, or other debt 

  • Simpler qualification criteria and contract documents
  • A growing list of local and national lenders
  • Comparison chart of the most common terms

3.  Section 2: PACE compared to equity 

  • Case study comparing the cash flows to the business
  • Comparing the impact to your existing mortgage

Click Here to Read the Full Article

PACE: Another Ben Franklin Invention

Disruptive times call for transformational leaders with a knack for addressing complex problems. To navigate effectively, we must learn to let go—and become more complex ourselves.

HOW TO QUALIFY FOR PACE

If a project costs at least $30,000; it is fixed to a commercial property; and it involves repairing, replacing, or newly installing equipment or materia ls that impacts either your water bill or your energy bill, chances are that it would qualify for PACE. From windows, walls, and roof work to HVAC, lighting, and plumbing to renewable energy, there is a very wide variety of projects that have received PACE financing. Once you know what kind of project you’re doing, the rest of the qualification process is usually simpler than applying for a mortgage. (release accordion to see article outline)

About PACE