Do more with C-PACE
Delaware C-PACE FOR DEVELOPERS
What if, when you were developing your next property, you could:
- Finance up to 20 percent of your construction costs with affordable, fixed-rate, non-recourse financing?
- Reduce your owner-equity contribution, mezzanine financing and other forms of high-cost capital?
- Fill gaps in your financing plan?
- Install higher energy efficiency equipment to reduce your building’s operating cost?
- Build a more valuable and competitive building?
It’s possible, thanks to Delaware C-PACE.
What is Delaware C-PACE for new construction?
Delaware C-PACE is an innovative new financing mechanism for commercial real estate developers. It enables you to access affordable, long-term, non-recourse financing for the installation of energy efficiency and renewable energy measures, and the more efficient your building design, the more financing you can receive!
Developers or owners planning to construct a new building can use C-PACE financing to lower their weighted average cost of capital, reduce their owner equity contribution or their need for other types of financing, such as high-cost mezzanine financing. With C-PACE, developers and owners can access, from October 1, 2020 to September 30, 2021, up to 15% of total eligible construction cost (TECC) provided they design the new building to meet the current Delaware energy code (IECC 2018/ASHRAE 90.1-2016), and are eligible for up to 20% of TECC by exceeding the IECC 2018 by at least 5%. Effective October 1, 2021, developers and owners can access up to 20% of TECC by exceeding IECC 2018 by 5%.
Financing is provided by private capital providers in an open market. This means you can choose the most competitive rates and terms, and loan is repaid through a voluntary benefit assessment that is recorded on the property, similar to a sewer assessment. Repayment terms can extend up to 25 years—and you can transfer the assessment to a new owner if you sell the property.
Today, there is no longer any reason to “value engineer” energy efficiency and renewable energy measures out of a project! Thanks to Delaware C-PACE, you can build a sustainable, high-performing building right from the start, while reducing your weighted average cost of capital.
How Does It Work?
You start by either engaging with a C-PACE project developer to help you through the process, or by submitting a project application, on which you’ll be asked to confirm that your proposed building will be designed to meet or exceed IECC 2018/ASHRAE 90.1-2016). You’ll also need to provide construction costs by trade component to determine the total eligible construction cost.
Next, the Delaware C-PACE program administrator will coordinate with you and your engineering/construction/energy modeling firms, where necessary, to ensure that all parties understand the C-PACE program requirements, and that the project is consistent with potential utility incentives.