PACE FlyerPACE - Clean Energy Financing for
Northampton’s Multi-Family & Commercial Property Owners
Public Hearing: June 7, 2011, 6:30 PM, City Council Chambers, Puchalski Municipal Building
In July 2010, Massachusetts enabled municipalities to establish Property-Assessed Clean Energy (PACE)
programs as an alternative means for homeowners and businesses to finance energy efficiency and renewable
energy improvements to private property. Northampton PACE program(s) will provide long-term financing (up
to 20 years) to private property owners to install energy efficiency and/or clean energy improvements that are
repaid through an assessment on their property taxes.
PACE financing lets property owners use future energy savings to pay for current building improvements (e.g.,
upgraded insulation, sealing air leaks, or energy efficient boilers) that lead to those savings and automatically
transfers the repayment obligation to the next property owner if the property is sold.
Currently, a federal policy ruling has paused PACE programs for most residential home mortgage holders. Due to
this, Northampton will design initial PACE programs for multi-family and commercial properties.
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· Creates PACE program and project
approval process
· Provides upfront capital
· Attaches repayment obligation to the
property deed
· Identifies work and chooses contractor
· Accrues energy savings
· Repays financing as a line item on the
property tax bill
· Repayment obligation (and energy
savings) transfer with ownership
Benefits of PACE to Northampton Multi-Family & Commercial Property Owners
· Reduces Lost Capital – Money wasted on excessive energy use is instead used to pay for building
improvements.
· No Upfront Cost – No money down financing. (Note: PACE can be coupled with utility rebates to reduce
costs needing to be financed.)
· Improved Cash Flow –More money in your pocket at the end of each year! PACE’s 20 year finance option
enables annual energy savings (from building improvements) to exceed annual assessment payments.
· Low-risk Investment – No need to worry about owning the property long enough to recoup your
investment. Upon sale, the payment obligation passes on to the next owner (as do the efficiency savings).
· Increased Customer Comfort – Energy efficient buildings are more comfortable for staff and customers.
· Ability to Market “Green” Business – Owner can increase how “Green” a building is by accessing 20 years of
energy savings to fund building efficiency improvements now.