30 April 2021
See how JMBM’s Global Hospitality Group® can help you.
Click here for the latest articles on C-PACE Financing, as well as other Hotel Finance strategies.
Commercial PACE (C-PACE) financing guidelines are finally available for New York City, and while the program has not officially launched yet, hotel owners and developers in the area should start planning how to use these loans to retrofit their properties. My Partner David Sudeck discusses the program requirements, below.
New York City Releases Commercial PACE Program Guidelines :
A Big Step Toward Opening a Big Market for C-PACE Financing
David A. Sudeck, Partner & Senior Member of
JMBM’s Global Hospitality Group®
The NYC Commercial PACE Financing Program has finally released its program guidelines! Prospective qualified C-PACE lenders are now carefully reviewing the guidelines, applying for approval to be a C-PACE lender in New York City, and seeking projects that may benefit from C-PACE financing. It is time to get ready, but the official launch date for the program is being delayed a bit and has not yet been set. We expect the launch soon.
New York’s Law Will Motivate Building Owners to Reduce Greenhouse Gas Emissions
While C-PACE financing has been available throughout the country for years, the C-PACE program for New York State was enacted in 2019 as part of the Climate Mobilization Act. As part of that law, Local Law 97 (which has been subsequently amended by Local Law 147 and Local Law 95), established greenhouse gas emission limitations for certain large buildings in New York City. Buildings covered by the law will be required to report greenhouse gas emissions commencing in 2024, and penalties will be assessed for exceeding the established limitations. The legislature enacted the law with the expectation that it will be more expensive to pay the penalties than to renovate the building to reduce emissions.
New York’s C-PACE Program Will Provide the Financing to Retrofit Buildings
The State’s Commercial PACE Program was then concurrently implemented to provide building owners with a low-interest (usually around 6+/-%), long-term (usually 20-30 year amortization) financing option to support the required energy efficiency retrofits and to support renewable energy projects generally. It is also a form of financing that will result in significant mortgage tax savings (there is not mortgage recorded with C-PACE Financing) and other benefits. CONTINUE READING →