News & Blog

RenewPACE Program Launches in Florida for Millions of Homeowners

Clean energy home improvement financing program now available to both residential and commercial property owners in the cities of Orlando, Satellite Beach and Doral, and cities and counties in Broward, Pasco, Pinellas, Alachua, Escambia (commercial only), Indian River, Martin and Palm Beach.

Innovative program recently received backing from the Federal Housing Administration (FHA)

FT. LAUDERDALE, Fla., and OAKLAND, Calif., Sept. 8, 2016 /PRNewswire/ — Renew Financial, a leading clean energy finance company, today announced the launch of its successful RenewPACE financing program across many of Florida’s largest cities and counties. Residential and commercial properties in major Florida areas can now benefit from RenewPACE for a wide variety of energy efficiency, renewable energy, and wind resistance initiatives. This comes on the heels of a major gesture of support for PACE from the Obama administration and the Federal Housing Administration just last month.

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MikeRenewPACE Program Launches in Florida for Millions of Homeowners

Largest Ag project to use Property Assessed Clean Energy Completed

PLEASANT HOPE, Mo. — The Show Me PACE Clean Energy District has announced the completion of the largest agricultural PACE project in the country – a farm-to-plate hog processing facility in southwest Missouri which utilized $4 million in Property Assessed Clean Energy (PACE) financing for energy and water improvements.

The project is a unique blend of a commitment to healthy food production, sustainable farming and preservation of natural resources. The driving force of facility owner/operator Moon Ridge Foods, LLC is to produce the safest, highest-quality, best-tasting pork products possible while enhancing the lives of their workers, local communities and supplying farmers – all while being good stewards of the environment.

Moon Ridge Foods retrofitted a 75,000-sq.-ft. steel-framed facility in Pleasant Hope, Missouri to accommodate their progressive production and processing methods. PACE financing paid for HVAC upgrades, a high-efficiency boiler, a solar photovoltaic system, an energy-efficient hog harvesting system, an insulated roof upgrade, LED lighting and energy-efficient packaging equipment.

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MikeLargest Ag project to use Property Assessed Clean Energy Completed

Executive Director’s Column: R-PACE and FHA

Dear PACENation members,

Last month, the US Department of Housing and Urban Development and its Federal Housing Administration issued long-awaited guidance that leads us on a path for broader availability of residential PACE financing throughout the United States. These two tremendously important federal agencies have, after thorough review, concluded that PACE is an entirely valid use of the local government assessment financing mechanism, used for decades by nearly 40,000 assessment districts throughout the US to fund projects that benefit property owners and meet a clear public purpose.  PACENation applauds and strongly supports the guidance, and you can read our full statement here.

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MikeExecutive Director’s Column: R-PACE and FHA

PACE Guidance from HUD/FHA is an Important Step Forward

PACENation applauds and strongly supports guidance for residential PACE issued today by the U.S. Department of Housing and Urban Development (HUD). The guidance clearly shows the Obama Administration’s strong commitment to Property Assessed Clean Energy financing, a bipartisan initiative adopted by 18 states thus far that encourages home owners to make energy efficiency and renewable energy upgrades to their properties. To date, over 100,000 households have made their homes more valuable, healthier and comfortable using PACE. The nearly $2.25 billion spent has created 22,000 jobs, many of them in the communities that offer PACE, and will save the equivalent of 12.5 billion kWh’s over the life of the measures.

The guidance issued today by HUD’s Federal Housing Administration (FHA) sets standards that will allow qualifying homes with PACE assessments to be purchased or refinanced with mortgage products provided by FHA.

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MikePACE Guidance from HUD/FHA is an Important Step Forward

IRS says PACE interest falls under mortgage deductibility guidelines

The IRS June 20, 2016 update on deductible taxes includes language that clarifies an issue which has been a source of confusion and disagreement among many in the PACE community: whether or not all or a portion of a property owner’s PACE payment may be deducted from one’s income tax. The IRS finds that subject to various restrictions, the interest portion of a PACE payment can be treated as a deduction to personal income taxes.

Here is the relevant excerpt from the IRS guidance, which can be found at https://www.irs.gov/taxtopics/tc503.html:

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MikeIRS says PACE interest falls under mortgage deductibility guidelines

HERO Program Partners with Missouri Clean Energy District to Offer Residential PACE in Kansas City Area

Renovate America and the Missouri Clean Energy District partner to give home improvement contractors new tools for their customers to finance energy-efficient upgrades

KANSAS CITY, Mo., July 5, 2016 /PRNewswire/ — Renovate America, the leading provider of residential Property Assessed Clean Energy (PACE) financing in the U.S., and the Missouri Clean Energy District (MCED) today announced a recruitment effort to register local contractors to offer new kinds of financing for Missouri homeowners to make energy-efficient and renewable energy improvements. HERO, Missouri’s new residential PACE program, will give local contractors an important new tool for growing their businesses and reaching more customers with energy-saving technologies. The program enables clean energy upgrades to be paid for over time through local property taxes, at a fixed interest rate for terms of five to 20 years, based on the useful life of the product. The name HERO stands for Home Energy Renovation Opportunity.

“Every year, one in six homeowners replaces a system that consumes energy. Three-quarters of the time they choose inefficient technology that ends up costing them more over the long term in higher energy bills,” said Joe Suggs, Vice President for Operations in Missouri for Renovate America. “HERO can solve that marketplace failure while helping homeowners save on energy bills, local contractors create clean energy jobs, and local governments reduce emissions.”

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MikeHERO Program Partners with Missouri Clean Energy District to Offer Residential PACE in Kansas City Area

Petros PACE Finance, LLC Continues Investing in PACE Upgrades for Commercial Properties in St. Paul, Minn

U.S. Bank Center and 375 Jackson Street buildings receive energy efficient improvements through innovative tax-based financing tool.

 

AUSTIN, TexasJune 22, 2016PRLog — Having recently closed PACE financing (Property Assessed Clean Energy) for the iconic First National Bank Building, Petros PACE Finance of Austin, Texas announced today that they have funded improvements for two additional Madison Equities properties in downtown St. Paul, Minn.: the U.S. Bank Center and the 375 Jackson Street buildings. These latest two projects reflect a doubling of the firm’s investments for Madison Equities’ properties, which now total more than $10 million.

Petros PACE Finance funded 100% of the $5.2 million required to upgrade the energy management and HVAC systems for the two commercial properties, as well as retrofit the buildings with LED lighting and occupancy sensors. These improvements are expected to reduce energy consumption and related costs by 35-40% for each building.

“With Madison Equities’ vision and the transactional expertise of Petros, we are experiencing an energy efficiency transformation in downtown St. Paul,” said Peter Klein, Vice President of Finance for the Saint Paul Port Authority, which serves as administrator for Minnesota’s PACE program. “This is exactly what the PACE program was created to do, and this is the type of investment that every building owner in Minnesota should be pursuing for their own economic benefit.”

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MikePetros PACE Finance, LLC Continues Investing in PACE Upgrades for Commercial Properties in St. Paul, Minn

Largest PACE Bond Securitization Completed by Renovate America

Seventh Securitization of PACE Bonds by Renovate America Totals $305.3 Million; Brings Company’s Total of Widely Marketed PACE Green Bonds to $1.35 Billion

SAN DIEGO, June 6, 2016 /PRNewswire/ — Renovate America, the largest provider of residential Property Assessed Clean Energy (PACE) financing in the U.S., announced the closing of its seventh securitization of PACE bonds – the largest ever completed to date by any issuer and a designated green bond. The securitization, HERO 2016-2, includes $305,313,000 in Class A Notes rated AA (sf) by Kroll and AA (sf) by DBRS, secured by 13,432 PACE assessments levied on residential properties in 31 California counties. The PACE assessments have an average balance of approximately $24,433, a weighted-average annual interest rate of 7.96 percent and a weighted-average original term of 14.95 years. The PACE assessments were originated between January 2016 and April 2016.

“This transaction is our most successful issuance so far in terms of the level of interest from investors including, for the first time, international investment,” said Renovate America’s CEO J.P. McNeill. “This private capital is directly benefitting homeowners and communities by lowering utility bills, reducing carbon emissions, and creating clean energy jobs. This all comes at no cost to taxpayers.”

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MikeLargest PACE Bond Securitization Completed by Renovate America

Petros PACE Finance, LLC Announces Property Assessed Clean Energy (PACE) Financing for Iconic First National Bank Building in St. Paul, Minn

12560811-first-national-bank-building-at-nightAUSTIN, TexasMay 25, 2016PRLogPetros PACE Finance of Austin, Texas announced today that they have closed PACE financing (Property Assessed Clean Energy) for environmentally-friendly upgrades to St. Paul, Minn.’s most recognized commercial property: the more than 80-year-old First National Bank Building. The high rise complex is owned by Minnesota-based Madison Equities, one of the largest property owners in St. Paul.

Petros PACE financed $5 million of the $6.8 million total project, which involves replacement and/or repair of the 32-story building’s HVAC and lighting systems. These improvements are expected to reduce energy consumption and costs by 40% for the 1 million-square-foot property.

The First National Bank Building, with its large red neon “1st” fixture in the skyline, is one of St. Paul’s oldest and most prestigious business addresses.

“When we purchased this historical property last year, it was clear that we could make this class-A building substantially more energy-efficient,” said Jim Crockarell, a principal of Madison Equities. “We feel a great responsibility to preserve the integrity of this landmark. Working with the St. Paul Port Authority and Petros PACE Finance made this extensive revitalization undertaking a manageable process,” he added.

Property Assessed Clean Energy (PACE) financing is an innovative funding mechanism that allows commercial property owners to retrofit their buildings with renewable energy and energy efficient systems by borrowing money from a private lender and repaying the loan via a special assessment on their local property taxes. In Ramsey County, the PACE program is made available through a Joint Powers agreement with the St. Paul Port Authority. The Port Authority’s PACE program is available to all cities and counties in Minnesota, making such energy projects possible for property owners across the state.

“We enjoyed working with the team at Madison Equities on their mission of reducing their carbon footprint,” said Mansoor Ghori, CEO of Petros PACE Finance, LLC. “These clean energy upgrades will allow significant energy savings throughout the years, and that’s what the PACE financing tool is all about.”

Petros PACE Finance is one of the first specialty finance firms in the U.S. to dedicate all of its resources to the commercial PACE market nationwide.

PACE financing makes comprehensive clean energy projects possible on a broader scale for the first time by:

· Providing up to 100% financing to commercial property owners in order to fund EE projects that deliver deep energy cost savings through the life of the loan.

· Rendering a private loan into a property tax obligation and enabling lenders to grant longer terms of up to 30 years or the useful life of the upgrades.

· Allowing commercial property owners to increase the value of their existing buildings by reducing total energy costs and increasing net operating income. Additionally, because the loan is attached to the property, the owner can sell the property and the new owner will inherit the obligation as well as the benefits of the EE upgrades.

For more information on obtaining PACE financing for your project, visit www.petros-pace.com.

Petros PACE Finance, LLC is solely dedicated to providing long-term PACE financing to commercial property owners across the U.S. looking to increase their property values and reduce their carbon footprint. The principals of Petros PACE Finance – Mansoor Ghori, Tommy Deavenport, Jim Stanislausand Ben Davis – have substantial experience in structured finance and lending, and bring significant value to all parties involved in the transactions in which they participate.

 

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MikePetros PACE Finance, LLC Announces Property Assessed Clean Energy (PACE) Financing for Iconic First National Bank Building in St. Paul, Minn

R.I. Infrastructure Bank Launches Commercial PACE Program

FOR IMMEDIATE RELEASE: May 13, 2016
CONTACT: Kevin Tente 401.831.1200

R.I. Infrastructure Bank Launches Commercial PACE Program

West Warwick first to opt-in to new energy efficiency financing program

PROVIDENCE, RI (May 2016) – The Rhode Island Infrastructure Bank (RIIB) today announced the launch of an initiative that will allow commercial and industrial property owners to finance energy efficiency and clean energy projects that will lead to significant savings. Projects that qualify under the statewide Commercial Property Assessed Clean Energy ( RI C-PACE ) program will be financed through a voluntary assessment on property tax bills similar to a sewer or other benefit assessment.

Projects must be located in cities or towns that have opted into the program to be eligible for PACE financing. West Warwick was the first municipality to opt-in, while several others located throughout Rhode Island have indicated their interest in participating in RI C-PACE.

“The RI C-PACE program is a great example of an initiative that’s good for the economy and good for the environment,” said Governor Gina M. Raimondo. “This program is making it easier to do business in Rhode Island – it’s putting people to work, protecting our natural resources and saving money. I applaud West Warwick for taking an early interest in this program and encourage other towns and municipalities across our state to do the same.”

The RI C-PACE program provides financing for a variety of energy efficiency improvements, including lighting, insulation, heating, and cooling systems. Water pumps, solar panels and other renewable energy projects are also eligible. Eligible RI C-PACE properties include office buildings, hotels, retail, agricultural, non-profits, and industrial buildings, as well as multi-family properties containing five or more units.

“As Treasurer, I have pushed to create new green finance programs at the Rhode Island Infrastructure Bank to make our state more economically competitive, improve energy efficiency and put Rhode Islanders to work,” Treasurer Seth Magaziner said. “Rhode Island C-PACE program will support Rhode Island businesses by enabling them to lower their energy bills, and will make our state more sustainable by reducing our carbon footprint.”

Long-term C-PACE financing covers 100% of a project’s cost and is repaid in quarterly payments for up to 25 years. For convenience sake, the payments are made in the same manner as property tax payments. When the property is sold, the PACE assessment stays with the property and transfers to the new owner, who will continue to benefit from the ongoing energy and cost savings from the project. Additionally, most lease agreements allow RI C-PACE payments to be split among multiple tenants.

RI C-PACE is an open-market model, using private capital to finance C-PACE projects: no taxpayer dollars are used to finance projects.

“As we worked to develop the RI C-PACE program, we placed a particular emphasis on minimizing the administrative hurdles that municipalities and businesses would face,” said Jeffrey Diehl, Executive Director of the Rhode Island Infrastructure Bank. “The result is a program that will allow interested municipalities to participate without adding a substantial administrative burden and makes it easy for interested business owners to finance energy efficiency and renewable energy projects.”

Sustainable Real Estate Solutions (SRS) – a provider of services and tools to assist contractors, project developers, and energy service companies develop projects for energy efficiency financing – was selected as the RI C-PACE Program Administrator through a competitive process. The company will supervise an open, competitive lending model that will allow local lenders, national banks, and PACE capital providers to participate in financing of projects.

“The RI C-PACE program is poised to jumpstart energy efficiency and renewable energy investment across the state”, said Brian McCarter, CEO of SRS. “The SRS team is excited to bring contractors and building owners lessons learned from other successful C-PACE programs enabling large scale adoption of clean energy in Rhode Island.”

SRS will conduct a series of workshops for contractors in the Rhode Island area to demonstrate how commercial and industrial real estate project developers and energy service companies can expand their businesses and reduce costs using C-PACE financing. The free workshops are scheduled on Tuesday, May 17th and Wednesday May 18th from 8:30 AM to 12:00 PM at the RI Department of Environmental Management, located at 235 Promenade Street, Providence, RI 02908. Registration is currently open at http://www.eventbrite.com/o/sustainable-real-estate-solutions-10672546506 for the sessions.

Additionally, a meeting for capital providers interested in participating in the RI C-PACE program will be held on Wednesday May 18th from 3:30 PM to 5:00 PM at the Rhode Island Infrastructure Bank, located at 235 Promenade Street, Suite 119, Providence, RI 02908.
Interested lenders can also find the capital provider application on the RI C-PACE website.

“The C-PACE program is a great opportunity for West Warwick businesses to fund projects that will result in greater energy efficiency and reduce costs,” said Frederick Presley, Town Manager of West Warwick. “For the Town, it is essential that we do whatever we can do to help local businesses to be as competitive as possible. The C-PACE program is a great tool for companies
and organizations of all sizes to reduce their operating costs without having to outlay the capital up front. This is a truly win-win program.”

For more information, visit http://www.ri-cpace.com

About the Rhode Island Infrastructure Bank

Rhode Island Infrastructure Bank (“RIIB”), formerly known as the Rhode Island Clean Water Finance Agency is a quasi-public agency which issues tax-exempt, AAA-rated bond securities, the proceeds of which are used to provide low cost financing to Rhode Island’s municipalities and sewer and water utilities for infrastructure projects to enhance the waters of the State. Recently enacted legislation changed the name of the agency and expanded its mission to establish and finance newly created programs for energy efficiency and renewable energy projects in public, commercial, and residential properties.

For more information please visit http://www.riinfrastructurebank.com/

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MikeR.I. Infrastructure Bank Launches Commercial PACE Program