How C-PACE works for you
Delaware C-PACE for Capital Providers
Welcome to Delaware C-PACE — an innovative, voluntary financing program for commercial, industrial, agricultural, nonprofit and multifamily (with five or more units) property owners. We’re delighted that you’re looking to expand your funding opportunities through C-PACE, which helps property owners in Delaware access private-sector financing for the installation of building improvements that can reduce energy consumption and increase the value of their property.
A C-PACE investment is secured by a benefit assessment lien. This lien has the same priority status as a real property tax lien, except that such lien shall have priority over any previously recorded mortgage or deed of trust provided that a written consent agreement is executed by the holder of each such previously recorded lien. However, the C-PACE assessment lien shall not have the effect of extinguishing any subordinate mortgage liens against the qualifying commercial property and shall not be superior to other local property taxes and other governmental service assessment liens. In default, only the C-PACE payments in arrears have priority status.
As a result, capital providers who work with the C-PACE program may receive attractive project funding opportunities.
The C-PACE program seeks to stimulate the market through an open-access-to-capital model. For this reason, any capital provider may submit a simple C-PACE capital provider application.
How to Qualify
To qualify as a capital provider for the C-PACE program, simply download, complete, and submit the Capital Provider Application. The approval process can take up to 10 business days. Once a capital provider is approved, the firm can choose to have its name and logo displayed on the C-PACE website for marketing purposes.
Ways to Participate
Qualified capital providers can participate in two ways:
- Work with property owners to underwrite projects and help them prepare their application for financing approval. We encourage capital providers to submit a Capital Provider Application with the program prior to submitting a project application.
- Collaborate with the program administrator to evaluate funding opportunities. In some instances, property owners may apply for C-PACE financing without a pre-selected capital provider. In this case, the Delaware C-PACE program administrator will share pre-approved project information with qualified capital providers to determine their interest in funding the project.
The C-PACE program reserves the right to revoke the eligibility of any capital provider for any reason that the program administrator finds to be in violation of program’s mission and practices. View a list of frequently asked questions or the Capital Provider Directory.
How to Get Started
Capital providers with an interest in financing eligible projects in the Delaware C-PACE program are encouraged to download, complete, and return the Capital Provider Application. You may download this application here. Once the Application is reviewed and approved, the capital provider will be added to the list of qualified capital providers and posted on the Delaware C-PACE website.
Qualified capital providers, which provide financing to eligible property owners, are responsible for underwriting each C-PACE financing transaction to determine whether or not to invest in a project. Each project will be subject to third-party technical review by Delaware C-PACE.
If a qualified capital provider chooses to finance a project, it will enter into an Assessment & Financing Agreement with the property owner. This document details the terms and conditions under which the financing will be made. The billing, collection and remittance of C-PACE payments will be handled by county tax officials.