Approval lays the groundwork to broaden the benefits of C-PACE financing to HUD-insured multifamily properties in low-income and disadvantaged communities across Colorado.
Lafayette, CO, November 28, 2023—Colorado C-PACE today announced that the U.S. Department of Housing and Urban Development (HUD) has approved C-PACE financing for the owners of HUD-insured multifamily properties in Colorado.
To access cost-effective C-PACE financing, which is used for energy efficiency, renewable energy, water efficiency and resiliency improvements, building owners with mortgages held by federally insured institutions, e.g., Fannie Mae or Freddie Mac, need to obtain mortgage holder consent from their Federal Housing Administration (FHA) lender and HUD prior to financing their projects. The CO C-PACE program administration team will support building owners’ applications to the FHA lender and HUD.
Tracy Phillips, Director of the CO C-PACE Program, said, “This is great news for owners of HUD-insured properties who can now take advantage of 100%, long-term, low-cost C-PACE financing to improve the energy efficiency of their buildings.” Phillips added, “HUD, recognizing that this presented an excellent opportunity to help their insured property owners take advantage of this very attractive financing solution promptly approved the request to approve the CO C-PACE program.”
Michael Turner, Strategic Initiatives and Finance Director for the Colorado Energy Office, said, “This is a welcome development that will increase energy efficiency and reduce the energy cost burden for residents of low-income multifamily buildings.” He added, “There is considerable pent-up demand for improving the energy efficiency of HUD-insured properties that, thanks to HUD, can now utilize attractive C-PACE financing to upgrade their buildings and make a significant contribution to the state’s climate action goals.”
About Colorado C-PACE
A program of the New Energy Improvement District (NEID), administered by Sustainable Real Estate Solutions, Colorado C-PACE facilitates financing for energy efficiency, water efficiency and resiliency improvements in new and existing commercial buildings, including new heating/cooling systems, lighting, water pumps, insulation, and renewable energy projects.
C-PACE offers long-term financing that covers 100 percent of the cost of energy efficiency upgrades to an existing building or, in new construction, up to 35 percent of eligible construction costs. These loans can be repaid over a period of up to 25 years and are structured as a regular line item on the property tax bill. When a property is sold, the C-PACE assessment can stay with the property and transfer to the new owner, who will enjoy the ongoing utility cost savings associated with the project.
Sustainable Real Estate Solutions (SRS) partners with state and local governments to administer commercial property assessed clean energy (C-PACE) programs. Founded in 2010 by experienced commercial real estate and energy efficiency professionals, the company’s proprietary technology-enabled Energy Performance Improvement Calculator (EPIC™) tool streamlines the management of the data-intensive C-PACE technical and financial underwriting process. SRS’s Investor Confidence Project-credentialed quality assurance methodology has facilitated over $650 million in C-PACE financing nationwide. SRS empowers C-PACE public-private partnerships across the country. The company is based in Monroe, Connecticut.