C-PACE Project Development Process
New Construction
C-PACE funds new construction projects that exceed minimum energy code required by the property’s building permit (IECC-20XX). An engineering survey determines whether the building meets eligibility requirements.
Building Renovations
C-PACE funds standard or gut renovation projects that involve installing higher efficiency equipment, including building controls, or electrification measures. Water conservation, renewable energy, indoor air quality, and resiliency measures qualify.Retroactive Financing
Property owners can apply for C-PACE funds up to three years after a project is completed. Owners who refinance can offset construction overruns, reduce high-cost capital, and improve their debt-service-coverage ratio (DSCR).
$100,000
Minimum Philadelphia C-PACE loan
25-40%
Of typical new construction capital stack
20-30 years
Average C-PACE repayment period
Application Process
Determine Eligibility
C-PACE financing is available for new construction, renovation, or adaptive reuse properties in good standing. Project sizes range from a minimum of $100,000 and up to 95% of lien-to-value. Financing terms cannot exceed the expected useful life of installed measures (maximum 30 years). Schedule a pre-application meeting for assistance submitting a Pre-Application Form.
PEA Review
Pre-application review is typically completed within 3-5 business days of receipt. Review C-PACE Program Guidelines
Select a C-PACE Capital Provider
C-PACE capital providers manage the full application process on the property owner/developers’ behalf. C-PACE capital providers
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Develop Project
Following approval of the pre-application, the property owner must obtain a project survey from a qualified engineering professional, negotiate a financing agreement with a C-PACE capital provider, and secure consent from all mortgage and lien holders. Download Lender Consent Guide
Submit Final Application
When the C-PACE project’s development work is submitted, PEA’s final application review will typically be completed within 15 business days of receipt. Download Final Application Form
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Execute C-PACE Statement of Levy and Lien Agreement
After the final application is approved, the property owner, C-PACE capital provider, City of Philadelphia, and PEA will execute the C-PACE Statement of Levy and Lien Agreement. This memorializes the C-PACE Special Assessment for the public record.
Close Financing & Execute Project
Financing will close and funds will be made available for the C-PACE project on or after the date on which the C-PACE Statement of Levy and Lien Agreement is fully executed. Once financing closes, the property owner will have the funds to move forward with project implementation.
Frequently Asked Questions
How do I find a C-PACE Capital Provider?
Philadelphia C-PACE operates an “open market” program so that Property Owners can select their preferred C-PACE Capital Provider. The open market model gives eligible Property Owners access to a range of private C-PACE Capital Providers that offer competitive rates and financing terms and conditions. Please visit the Capital Providers page for more details on firms registered as C-PACE Capital Providers in Pennsylvania.
Are multifamily properties eligible for C-PACE?
Effective in September 2022, multifamily properties with five (5) or more units are eligible for C-PACE financing. Regarding residential cooperatives, C-PACE assessments must be associated with a single OPA number. If a multifamily cooperative building has an OPA number with a minimum of 5 units and has an improvement project with eligible measures of at least $100,000, the property is likely to be eligible for C-PACE. We encourage property owners to schedule a pre-application meeting to confirm eligibility for a particular project.
Is it possible to use C-PACE financing retroactively?
Developers and Property Owners can refinance with C-PACE within 1,095 days (3 years) after installation or construction. Retroactive Projects must satisfy the same requirements as other C-PACE projects. Please see Sec. 11 of the Program Guidelines for more details (accessible in Program Resources).
What is a Completion Certificate and do all C-PACE financed projects need one?
The program requires a Completion Certificate for all projects to ensure that the measures approved in the Survey were installed as planned. Commissioning is required for most projects. Please see the Completion Certificate form on the Resources page under “Program Materials.”
