Capital Providers

Capital Providers provide funds and typically manage the C-PACE application process on the borrower’s behalf, bringing valuable experience to property owners looking to complete a new C-PACE project. This expertise includes insights into structuring C-PACE financing agreements appropriate for each project.

How It Works

1) Consult with PEA on Project Eligibility

Schedule pre-application meeting with PEA.

2) Select Capital Provider

The Philadelphia C-PACE Program recommends obtaining term sheets from 2-3 Capital Providers.

3) Prepare Final Application

Capital Provider facilitates the final application including the engineering survey and mortgage lender consent.

4) Financial Close

The Property Owner, Capital Provider, City, and PEA memorialize the Statement of Levy and Lien.

5) Project Implementation

Funds are available from the Capital Provider.

Schedule Pre-Application Meeting

Frequently Asked Questions

What are the minimum and maximum financing amounts allowed in the Philadelphia C-PACE Program?

The minimum financing amount in the Philadelphia C-PACE program is $100,000. Smaller projects may be considered on a case-by-case basis at the discretion of the Program Administrator.

There is no absolute maximum financing amount, however there are two limitations that apply. First, the amount financed cannot exceed the sum of hard and soft costs of the C-PACE project. Second, the C-PACE financing amount, when combined with existing mortgage and other lien obligations, shall not exceed 95% of the assessed or appraised value of the property. New construction and gut rehab projects may use post-construction appraised value.

What types of debt are included in the loan to value calculation?

The loan to value (LTV) maximum of 95% is based on secured debt only. For example, New Market Tax Credit B Notes are not secured and therefore not included in the “loan” total of LTV.

Does the Philadelphia C-PACE Program have a savings-to-investment ratio (SIR) requirement?

No, the Philadelphia C-PACE Program does not have an SIR requirement. All C-PACE projects must generate measurable energy savings or reductions in water usage or improve IAQ or resiliency according to the Pennsylvania C-PACE Statute (accessible on the Program Resources page). But Capital Providers do not have to size the financing amount based on the expected savings of the project.

Are properties with a ground lease eligible for C-PACE?

Properties with a ground lease are eligible for C-PACE if the borrower has the consent of the land owner and the land owner is not a government entity. The ground lease term must not expire before the last C-PACE payment in the amortization schedule is due. It is important to review the ground lease default provisions to ensure that they integrate with the C-PACE enforcement process.

When are C-PACE assessments paid?

The C-PACE program and C-PACE Special Assessment payment schedule follow the City of Philadelphia’s real estate taxes and enforcement schedule.

As such, PEA invoices the Property Owners in December of each year. The payments are due on March 31 of the following calendar year, in line with the City’s property tax payment schedule. PEA has engaged a paying agent to collect payments and remit funds to the Capital Providers.

How does PEA enforce a lien on a property with a delinquent C-PACE assessment payment?

In the event the Property Owner fails to make the C-PACE Special Assessment payment, funds recovered either from delinquent payment by Property Owner or in the event of a Sheriff’s sale shall be paid to the Capital Provider (up to the amount owed). The process for pursuing a Sheriff’s sale is described in the Lien Enforcement Memo.

Pursuant to the Philadelphia C-PACE Statute and the Statement of Levy and Lien Agreement, in any action to collect delinquencies owed to the Capital Provider, the proceeds of any sale of the property are first to be distributed to pay any outstanding municipal liens before the Capital Provider recoups its debts.