- PACE financing can be used for both building retrofits as well as new construction projects. A key element of the capital stack, it helps fill the gap between what traditional lenders are willing to finance for simply meeting building codes, and the energy efficiency and water conservation upgrades needed to place properties at the forefront of the market.
- Because most cutting-edge energy technology is over and above the minimum standards of local building codes, traditional financing lenders prefer to exclude them believing they’re simply luxury upgrades negatively impacting the project’s financial return.
- For the affordable housing market, developers are looking at energy efficiency as a necessity – it makes the cost of living truly more affordable. The reduced energy consumption results in more appealing “green” properties with higher occupancy rates – a big plus for developers, building owners, as well as the lender.