Question 1

How does C-PACE fit with my existing senior debt?

Accepted Answer

C-PACE bridges capital gaps alongside senior debt, substitutes for expensive mezzanine financing, and reduces your equity check. The assessment sits on the property tax bill and is non-accelerable, meaning the senior lender retains full foreclosure rights. PLG coordinates lender consent as part of our standard closing process.

Question 2

Who qualifies for C-PACE financing?

Accepted Answer

Commercial property owners and developers with projects of $1 million or more in active C-PACE states. Eligible property types include hotel, multifamily (5+ units, varies by state), office, industrial, retail, mixed-use, senior living, and self-storage. Single-family residential is not eligible.

Question 3

Why would my senior lender consent to C-PACE?

Accepted Answer

C-PACE assessments are non-accelerable and do not restrict the senior lender's foreclosure or workout rights. No intercreditor agreement is required. PLG manages the entire consent process directly with your senior lender. Consent used to be the sticky point of C-PACE; today it is a routine part of closing.

Question 4

Is C-PACE available in my state?

Accepted Answer

Over 35 states have active C-PACE programs, including California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, Michigan, Minnesota, New York, Ohio, Pennsylvania, Texas, Virginia, and Washington D.C. Select your state in the calculator above to check eligibility instantly.

Question 5

How does C-PACE compare to mezzanine or preferred equity?

Accepted Answer

C-PACE is typically 200-400 basis points cheaper than mezzanine debt, with amortization up to 30 years versus 3-5 years for mezz. It is non-recourse with no equity dilution and no co-investment rights for the lender. The longer term significantly lowers annual debt service, improving DSCR.

Question 6

Can I use C-PACE retroactively for completed improvements?

Accepted Answer

Yes. Most active states allow retroactive C-PACE for qualifying improvements completed within the past 1-3 years. This lets you reimburse already-spent equity and redeploy that capital. Select your state and goal in the calculator to see retroactive eligibility.

Question 7

What are typical C-PACE rates and terms?

Accepted Answer

Rates typically range from 6.5% to 9% fixed, depending on deal size, term, and market conditions. Terms range from 10 to 30 years. Longer terms lower annual debt service, making DSCR coverage easier. The calculator above models these economics for your specific deal.

Question 8

How are C-PACE loans repaid?

Accepted Answer

Repayment occurs through a special assessment added to the property tax bill, collected by local government over the loan term. The obligation stays with the property upon sale and can be prepaid (specific terms vary by deal). It is not a personal obligation of the borrower.

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Commonly Asked C-PACE Questions