Orange County NC Website
Browse       Search
22 <br /> I. Introduction to C-PACE <br /> In 2024, the North Carolina State legislature passed SB 802, with the following purpose: <br /> "The use of a C-PACE Program creates an additional financing mechanism for property owners to <br /> use private funds to finance improvements to their eligible property, thereby driving economic <br /> development by creating a diversity of jobs in the resilience and clean energy sectors of the <br /> economy.The assessment requires minimal upfront costs and provides a more accessible financial <br /> mechanism to fund improvements that will increase the tax value of the affected properties at <br /> minimal administrative cost to local governments. C-PACE improvements allow property owners to <br /> save on their utility bills because the improvements lead to energy or utility savings and will result <br /> in improved indoor air quality or increased resilience, which will increase the ability of communities <br /> and local governments to respond to natural disasters and improve public health." <br /> Under North Carolina General Statutes §160A-239.11 et seq. (the "C-PACE Act"), The Economic <br /> Development Partnership of North Carolina (EDPNC) is designated to administer a Commercial <br /> Property Assessed Capital Expenditure (C-PACE) Program. This Program allows owners of <br /> qualifying commercial property to obtain long-term financing from private capital providers for <br /> certain qualifying improvements up to 35% of the value of the property. Qualifying Improvements <br /> include energy efficiency, renewable energy, resiliency, and water conservation as well as <br /> improvements made to address safe drinking water. Similar C-PACE programs are active in over <br /> 36 states and have attracted more than $7 billion in private investment for thousands of properties. <br /> Counties and cities in North Carolina may participate in the statewide C-PACE Program to support <br /> commercial, industrial, agricultural, and multifamily property owners with access to financing for <br /> efficient and resilient building improvements (N.C.G.S. §160A-239.15). Joining the statewide <br /> program does not expose a local government to any financial or legal liability (N.C.G.S. §160A- <br /> 239.16 (a)). Private capital providers and the statewide administrator, EDPNC, will assist <br /> interested commercial property owners to apply for C-PACE financing. Local governments that <br /> join the C-PACE Program will be reimbursed for actual and reasonable costs associated with <br /> executing documents related to C-PACE assessments (N.C.G.S. §160A-239.15a(5)). To cover <br /> these costs, EDPNC will collect a $500 administration fee for approved C-PACE projects at time <br /> of closing. Except for executing documents necessary for a C-PACE financing, there is no other <br /> administrative involvement by the local government. Joining the C-PACE Program is a voluntary <br /> 3-step process, with support of EDPNC: <br /> 1) Adopt a Resolution of Intent <br /> 2) Hold a public hearing <br /> 3) Adopt a final Resolution to join the C-PACE Program <br /> A C-PACE assessment is secured by a voluntary senior lien on the property imposed by the local <br /> government at the property owner's request and is paid back over time. The security of the C- <br /> PACE lien enables capital providers to offer C-PACE financing which spreads the cost of <br /> qualifying improvements over the useful life of the measures, a term generally lasting between <br /> 20-30 years. <br /> C-PACE liens are junior in priority to all taxes and other governmental liens. Like other <br /> assessments, C-PACE financing is non-accelerating, which means only current or past due <br /> payments can be collected. In the event of default, only the payments in arrears are due. If the <br /> property is sold, the C-PACE repayment obligation transfers automatically to the next owner <br /> unless it is fully repaid. No change in the Program or in North Carolina's C-PACE legislation will <br /> affect a property owner's eligibility or obligation to pay C-PACE assessments incurred. Local <br /> governments are not responsible for collection; duties for billing and collection will be delegated <br /> to and handled privately by the capital provider for the project financed (§160A-239.16 (b)). <br /> 2 <br />