The View From Here
by Ric Jackson
September 29th, 2017

Banks Oppose C-PACE Despite Adoption in Major U.S. Cities

Commercial Property Assessed Clean Energy, or C-PACE, is a financing program for commercial property owners that allows them to fund improvement projects with no upfront out-of-pocket costs. The program, which serves to benefit both property owners and local governments, has caught on and is now being adopted by some of the largest cities in the U.S., including Dallas, Denver, Detroit, Houston, Los Angeles, Miami, Salt Lake City, San Diego, San Francisco, St. Louis, and Washington, D.C – and most recently New York City.

This is a program I’ve been following closely for some time. When I attended the PACE Nation Summit earlier this year, the one thing that really surprised me was that there was only one major bank in attendance. But why?

Since then, I have discovered there was a good reason for that: PACE lending could be in violation of banking mortgage regulations. And now it appears that some financial institutions are lobbying to shut down PACE lending under the guise of consumer protection. To date, neither the House or the Senate bills have passed – and hopefully they will not.

The View from Here is that both C-PACE and the residential version are doing a lot of good. According to recent estimates by PACE Nation, more than 160,000 homes and building owners have used PACE to improve their properties with investments in energy efficiency, renewable energy, and more recently hurricane resistance measures. Previous estimates credit PACE for creating more than 30,000 jobs and saving $5 billion in energy savings already.

Despite difficult hurdles, PACE is continuing to grow, and I believe that is the best testimony for its merits. PACE Nation is encouraging individuals and organizations to oppose the two bills S. 838 and HR. 1958 that stand to kill PACE financing nationwide. Learn more about PACE and how you can take action.

You can also check out my previous blog posts on the topic and potential impacts on our industry:

PACE Picks Up Momentum, But Challenges Remain

PACE Yields Opportunity for Window Contractors

What’s your View? Email me directly at Eric.Jackson@Quanex.com.

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