How C-PACE works for you

Utah C-PACE for Mortgage Holders

C-PACE is an innovative, voluntary financing program that enables owners of commercial and industrial real estate—your borrowers—to modernize their building with eligible energy improvements. Well-designed C-PACE projects may generate cost savings that may, over the finance term, equal or exceed the total finance cost. Owners of such buildings may experience improved net operating income, increased value, and a positive return on their investment.

In such scenarios, the property owner’s increased cash flow may result in your loan being more secure, and the property may be more attractive to current and potential tenants and buyers. In addition, the assessment does not accelerate. In the event of a default, only the amount of the assessment in arrears is due.

Nationwide, C-PACE has been adopted by more than 30 states and the District of Columbia, and is embraced by more than 170 national, regional, and local lenders.

How it Works

C-PACE can provide up to 100 percent financing to owners of new and existing buildings, located in Utah cities and counties that have authorized C-PACE in their jurisdictions, who are looking to modernize and improve the value of their eligible building. The financing, which is based on the estimated useful life of the improvements—up to 30 years—is secured by a special assessment, known in Utah as a voluntary energy assessment and assignable lien, that is levied against the property.

The voluntary energy assessment and assignable lien is senior to all commercial mortgages and deeds of trust and is equal (pari passu) in priority to a property tax lien and senior to other special assessments or mortgages on the property. In the event of a default, only the amount of the assessment in arrears is due, i.e., the assessment is non-accelerating.


Utah C-PACE requires that property owners receive the written consent of all holders of mortgages or deeds of trust on the property prior to securing C-PACE financing.

If your borrower wishes to pursue C-PACE financing, he or she will meet with you to describe the program’s requirements and answer your questions. Assuming all parties agree that a particular project is worth pursuing, the project will proceed to development and underwriting. As part of the underwriting process, the owner will provide a summary of the project’s key assumptions, e.g., financial metrics and projected cash flows to facilitate your due diligence.

To view a list of over 170 mortgage holders nationwide that have consented to C-PACE projects, click here.

Learn More

To learn more about how you can reduce mortgage default risk and increase the value of your collateral, contact us today or visit our FAQ page.

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