Using CPACE for Retroactive Financing

Jared Schlosser
EVP, Hotel Lending & Head of CPACE, Credit
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If you've recently made upgrades to your building or used innovative energy-efficient design and building elements on your completed construction project, you could qualify for retroactive CPACE financing, a long-term, low-cost option that can inject liquidity into your property to improve cash flow, set aside reserves or recapitalize equity. 

Retroactive CPACE funding works much the same as normal pre-project funding. However, one of the main differences is that 100% of the loan proceeds go directly to reimbursing the property owner for costs already spent. Additionally, the loan term is usually based on the remaining useful life of your upgrades. For instance, if the useful life for the improvements is 30 years and you apply for financing one year later, the loan term would likely be 29 years or less.

CPACE By State

CPACE financing varies by state, and not all states or municipalities offer retroactive CPACE funding. There are over 25 states that allow for retroactive commercial PACE, including (but not limited to):

  • California
  • Connecticut
  • Florida
  • Kentucky
  • Michigan
  • Minnesota
  • Missouri
  • New York
  • Ohio
  • Pennsylvania
  • Rhode Island
  • Wisconsin

If you have questions about the location of your project, don't hesitate to reach out to our team. If you are in a state that does allow retroactive PACE, we have strong relationships with administrators to help you through the qualification process. 

In addition, the amount of time we can retroactively finance your project depends on your location. Some limit it to a few months. By contrast, other states allow up to three years of look back. Our CPACE lenders can help you determine if you qualify and help make the process simple and convenient. 

Projects that Qualify for Retroactive CPACE Financing

You may be surprised at the many different upgrades and building features that can qualify for retroactive CPACE funding. Each state has different requirements for what improvements are eligible.

Some projects our CPACE lenders may offer retroactive funding for include:

  • LED lighting installation
  • Low-E windows
  • Water-conserving plumbing fixtures
  • High-efficiency insulation
  • Energy-efficient roofing
  • HVAC Upgrades

The basic requirements for CPACE financing generally are that there are no liens or unpaid property taxes, the project will help save more money than the cost of the loan, and the value of the project should last longer than the loan term. 

Many property owners are pleasantly surprised when they speak to our CPACE team about projects that qualify. Even no-brainer projects like replacing an old appliance (like water heaters and HVAC systems) with a new, energy-saving one may qualify. 

Have more questions about CPACE financing? Contact Peachtree's CPACE team or visit our FAQ page.

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