As the Commonwealth's administrator for the C-PACE Program, we are the entity that educates and promotes C-PACE to jurisdictions, property owners and developers, and the A/E/C industry. We are also the entity that designed the Program and is the entity that approves C-PACE transactions based on our Program Guidelines. Seventeen jurisdictions have joined the state program (with an 18th about to join) since it opened in late 2022, representing around 50% of the state's population. Despite the difficult lending environment in 2023-2024, we closed three transactions in three different localities totaling $15,4 million with another anticipated to close in February. This is in four different jurisdictions which shows the broad interest for PACE. These projects have resulted in job creation (two hotels and an assisted living facility) as well as a reduction in energy usage and GHG emissions.
As we are the entity in the so-called trenches, we see the roadblocks that developers and property owners encounter when wanting to use C-PACE. The amendments presented to you today are specifically tailored to address these roadblocks and make it easier to use C-PACE. A win-win for all. In summary, these include:
1. Clarifying use of ground leases under specific circumstances
2 Clarifying definitions around eligible properties that had incorrect references
3. Clarifying that recordation taxes are not due as it is not a DOT but a special assessment
4. Requiring timely action on the part of localities to opt into the program and
5. Increasing the lookback financing provision from 2 to 3 years to allow for greater flexibility to owners/developers.
We kind ask for your support for these modifications that will increase economic development through the use of this important financing tool in the Commonwealth.
As the Commonwealth's administrator for the C-PACE Program, we are the entity that educates and promotes C-PACE to jurisdictions, property owners and developers, and the A/E/C industry. We are also the entity that designed the Program and is the entity that approves C-PACE transactions based on our Program Guidelines. Seventeen jurisdictions have joined the state program (with an 18th about to join) since it opened in late 2022, representing around 50% of the state's population. Despite the difficult lending environment in 2023-2024, we closed three transactions in three different localities totaling $15,4 million with another anticipated to close in February. This is in four different jurisdictions which shows the broad interest for PACE. These projects have resulted in job creation (two hotels and an assisted living facility) as well as a reduction in energy usage and GHG emissions. As we are the entity in the so-called trenches, we see the roadblocks that developers and property owners encounter when wanting to use C-PACE. The amendments presented to you today are specifically tailored to address these roadblocks and make it easier to use C-PACE. A win-win for all. In summary, these include: 1. Clarifying use of ground leases under specific circumstances 2 Clarifying definitions around eligible properties that had incorrect references 3. Clarifying that recordation taxes are not due as it is not a DOT but a special assessment 4. Requiring timely action on the part of localities to opt into the program and 5. Increasing the lookback financing provision from 2 to 3 years to allow for greater flexibility to owners/developers. We kind ask for your support for these modifications that will increase economic development through the use of this important financing tool in the Commonwealth.