Displayed below is a list of Frequently Asked Questions (FAQs). Click on the “>” icon associated with each question to view the answer.

What happens if the property owner defaults on a C-PACE payment?

Under the C-PACE Act, the voluntary energy assessment is subject to the same penalties and the same procedures in the case of delinquency as is provided for through ad valorem (i.e., property) taxes. The C-PACE voluntary energy assessment has priority over all private liens on the property, is of equal priority to other special assessments and general property taxes. In the event of a default, only the amount of the assessment in arrears is due.

What are the risks associated with C-PACE financing?

If a property owner is deficient or delinquent on the C-PACE payment, the C-PACE program is not responsible for covering the shortfall. In the case of a non-payment, the voluntary energy assessment (which is a priority lien) will fall into arrears and be repaid after all other taxes are satisfied and prior to any outstanding mortgage.

In the event of a bankruptcy, how is recovery money allocated?

Municipal liens related to real property have first priority, followed by any C-PACE payments in arrears, followed by non-real property municipal liens and assessments, followed by the first mortgage holder.

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