Property Assessed Clean Energy (PACE) is a financing mechanism that enables private lenders to finance building upgrades and new construction of high-performance buildings and then receive their loan repayment through the city’s property assessment.
PACE assessments are paid by the property owner through property taxes, so the repayment of PACE funded upgrades remain with the property when a property is sold. Property owners can implement energy efficiency enhancements without large upfront costs, and typically repay them over 15 or 20 years along with the property tax bill.
Cities that offer PACE programs as a key tool to spur growth in improvement districts stimulate the flow of private capital and economic growth in critical areas of cities without jeopardizing general funds