Frequently Asked
Questions

General
Pace

What is PACE financing?

Property Assessed Clean Energy (PACE) financing is a lending program that provides propertyowners with funding for construction components that improve energy efficiency, renewableenergy, water conservation, or building resiliency. These long-term, fixed-rate, non-recourse loans are repaid as a special assessment on your property tax bill.

What is the difference between PACE and C-PACE?

C-PACE (Commercial PACE) refers specifically to PACE financing programs available for commercial properties. PACE, as general term, includes both commercial and residential programs. EverPace Capital provides C-PACE loans and does not offer residential PACE financing.

Is PACE a government grant or subsidy?

No. PACE financing is provided by private lenders and investors - not by the government. However, it is enabled by state legislation and administered locally through special assessments on your property.

Can I get PACE financing everywhere in the U.S.?

PACE financing is available in about 40 states across the country, though each state has its own program rules.

Does PACE rules vary by state?

PACE is repaid as a special assessment on your property tax bill over the term of your loan.

PACE
Eligibility

Is PACE Financing only for projects focused on energy savings?

No. Most construction projects include components that qualify. Common eligible items include HVAC, boilers, chillers, furnaces, elevators, lighting, plumbing, mechanicals, electrical, windows, roofs, insulation, elevators, and building envelope improvements.

Does my project qualify for PACE financing?

Most likely, yes. If your project involves mechanical, electrical, plumbing, or other efficiency-related systems, it probably qualifies. If your building has a roof and walls and you’re doing construction, there’s a good chance it’s eligible.

What types of buildings are eligible for PACE financing?

PACE financing is available for a wide range of commercial property types, including office buildings, self-storage and industrial facilities, retail centers, hotels, multifamily properties (typically five units or more), student housing, healthcare facilities, nonprofit-owned properties, and more.

Are nonprofit-owned properties eligible for PACE financing?

Yes. Nonprofit- owned properties are fully eligible for PACE financing. In fact, many nonprofits find PACE financing especially valuable because their projects are often funded by pledges that are collected over several years. With PACE, nonprofits can move forward with their projects today while deferring payments for up to three years—giving time for pledges to be fulfilled before debt service begins. Nonprofits also appreciate the long-term fixed rates PACE provides, removing interest rate risk and offering predictability without the need to refinance down the road.

What stages of a project are eligible for PACE financing?

PACE can be used for new construction, gut renovations, retrofits, and even refinancing of completed projects. Whether you are planning your project, currently under construction, or looking to refinance up to three years after completion, PACE may be a great fit for your project.

What percentage of my project typically qualifies for PACE?

For new construction, typically 30%–40% of total project costs qualify. For renovations, the percentage may exceed 70%, depending on the scope.

What stages of a project are eligible for PACE financing?

Do I need to change my project scope to qualify?

No. Your existing project will likely have eligible components as is. However, we can help identify additional measures that may increase eligibility if desired.

Can PACE be used for just a portion of my project?

Yes. PACE can fund eligible components only – there is no requirement to finance the entire project.

Can PACE financing cover soft costs associated with the project?

Yes. PACE financing will cover a portion of your soft costs in proportion to the percentage of your construction budget that qualifies for PACE. For example, if 40% of your project qualifies, then 40% of your related soft costs may also be eligible for financing.

How PACE Works

How is a PACE loan repaid?

PACE financing is repaid as a special assessment on your property tax bill. Your local municipality collects the payments and remits them to the PACE lender.

What if my property is tax-exempt (e.g., a nonprofit)?

PACE can still apply. Every property has a Property Identification Number (PIN), which allows a special assessment to be placed—even if the property doesn’t pay traditional taxes.

What happens if I miss a PACE payment?

Missed payments are subject to your local county’s rules for unpaid property taxes or assessments.

Does PACE impact my mortgage?

Yes—PACE assessments are senior to the mortgage because they are collected as property taxes. That’s why senior lender consent is required.

Lender Consent and Process

Why does my senior lender need to provide consent?

PACE assessments take priority over the mortgage in the event of default. Lender consent ensures the senior lender agrees to the structure of the financing.

Why would my senior lender agree to consent?

PACE funds permanent improvements that increase property value and collateral strength while boosting cash flow and NOI. The loan is also non-accelerating, meaning if an assessment payment is missed, the senior lender can choose to cover the single assessment without triggering foreclosure.

Do Lenders actually approve PACE loans?

Yes. Hundreds of lenders across the country have provided consent for PACE loans.

What if my lender won’t provide consent?

Our team works directly with your lender to address concerns and help them understand the value of PACE. In many cases, lenders are willing to consent after these conversations.

Is an energy study required to qualify for PACE financing?

Yes. Every PACE loan requires an energy study (or qualifying report) to confirm that the funded improvements meet the program’s eligibility criteria. EverPace Capital will coordinate the entire process and handle everything for you ensuring a smooth and seamless experience.

Benefits and Features

What are the advantages of a PACE loan over traditional financing?

PACE offers long-term, fixed-rate, non-recourse financing with terms of up to 30 years.
Key advantages include: 

Ability to defer payments for up to 3 years 
High loan-to-value ratios (up to 95% combined with senior debt) 
No personal guarantees
Lower cost of capital compared to mezzanine debt or equity
Flexible payment options

How does PACE improve cash flow?

By deferring debt service payments for up to three years, PACE preserves cash during construction and lease-up—when liquidity matters most. In addition, PACE offers very competitive rates which reduce your debt payments.

Can I use PACE after my project is completed?

Yes. PACE can be used to refinance eligible improvements for up to three years after project completion—replacing existing debt and unlocking all the beneficial PACE terms.

What happens to the PACE loan if I sell the property?

PACE financing stays with the property, not the owner. The assessment transfers to the new buyer automatically unless you choose to pay it off at the time of sale.

Cost, Timing and Getting Started

What are the typical interest rates on PACE loans?

PACE rates are usually priced off the 10-year Treasury and are competitive with senior debt—typically much lower than mezzanine or equity alternatives and often below construction loan rates.

Are the fees and closing cost higher than traditional loans?

While PACE loans may have slightly higher closing costs upfront due to program fees paid to the local government, they are often more cost-effective over time. With fixed rates and terms of up to 30 years, there is no need for ongoing refinancing, renewals, or extension fees. This long-term stability—combined with other key  advantages like payment deferral and non-recourse structure—more than offsets the initial closing costs for many property owners.

How long does it take to close a PACE loan?

Most PACE loans close within 60 to 75 days, depending on project complexity and lender coordination.

When will PACE financing fund my project?

PACE funds are typically disbursed as the project progresses, alongside your construction lender. Funding is made on a pari passu basis, meaning PACE advances proportionally with your senior lender throughout the construction process.

Is the process complicated?

Not with EverPace Capital. Our team manages the entire process from start to finish—including working with your senior lender, coordinating the required energy study, and ensuring a seamless experience for you.

How do I get started?

Contact us and send your construction budget and financials. We’ll provide a preliminary term sheet and show you exactly what we can finance.

Finance your project with EverPace Capital

If your project has walls and a roof, chances are, it qualifies for PACE financing. No personal guarantees, no large upfront costs—just long-term, low-cost funding that works with your capital stack. Send us your construction budget, and we’ll show you exactly how much PACE can cover.

Get in touch

Frequently AskedQuestions

General Pace

PACE Eligibility