top of page
  • Is C-PACE a loan?
    No. C-PACE is an assessment tied to the property.
  • How does C-PACE benefit the senior lender?
    C-PACE financing improves infrastructure and can increase collateral value. Replacing aged equipment typically reduces a building’s operating costs.
  • Why do senior lenders consent to C-PACE financing?
    "C-PACE Assessments Cannot be Accelerated. While the full assessment amount is recorded on the property records, only the annual payment may be collected, even in a default situation. The past due portion that is senior to a mortgagelender’s claim is typically, only 1-3 percent of the property value. For example, consider a $1 million C-PACE financing on a property valued at $5 million. The annual assessment for a 20-year term financing would be $87,185. If the property owner did not pay the C-PACE assessment in year 1, the C-PACE funder can collect only the delinquent payments. The PACE funder’s claim is limited to $87,185 or 1.75 percent of property value. The remaining payments are due according to the original repayment schedule. C-PACE Financing Does Not Restrict a Senior Lender’s Foreclosure Rights. Unlike other debt, C-PACE does not require an inter-creditor agreement. Rather, in the event of a default on the senior lender’s debt, the senior lender can foreclose on its mortgage interest in the property in the same manner as if it were the sole financing on the property. C-PACE does not affect any existing remedies under the loan documents. The C-PACE capital provider may not prevent, restrict, or otherwise impact the senior lender’s foreclosure. Senior Lenders May Escrow the C-PACE Assessments. Some senior lenders require property owners to escrow the annual C-PACE assessment obligation monthly in the same manner as property tax and insurance escrow requirements. The C-PACE escrow mitigates any risk associated with failure to pay the C-PACE assessment when due. In addition, a lender may request the C-PACE capital provider to capitalize an interest reserve to carry the payments through a construction period. C-PACE Funds Are Fully Available as of Date of Closing. The C-PACE financing typically closes simultaneous with the senior lender, and all the C-PACE funds are deposited into an escrow account. Therefore, senior lenders have the comfort of knowing that all funds are available to be drawn as of the closing date. C-PACE Financing May Increase the Value of the Senior Lender’s Collateral. Most states require that an engineer establish the monetary savings expected to result from the C-PACE project. Therefore, a PACE project directly reduces a building’s operating costs, increasing its net operating income and valuation. C-PACE Financing May Improve Debt Service Coverage. C-PACE interest rates are typically lower than other forms of financing (e.g. mezzanine debt or preferred equity) and offer longer maturities, resulting in lower payments and a higher debt service coverage ratio. Relationships matter. Nearly every C-PACE project involves a customer who wants to complete a project to upgrade their property. C-PACE funded projects make good business sense for the building owner, and therefore the building’s mortgage lender, too."
  • How are C-PACE assessments repaid?
    CPACE is billed around the same time as the annual tax bill and collect through a third party collect named Amerinat.
  • What do you need from me as a mortgage lender?
    Set the PACE STL requires the mortgage holder to consent to the assessment.
  • What are the costs associated with Show Me PACE?
    Show Me PACE lenders may charge the market interest rate on PACE loans, plus applicable fees. PACE market and the particular terms of each loan should not be confused with the market rate of traditional commercial mortgage financing. Show Me PACE has the following fees for PACE projects: One-time application fee of 1.25% for projects under $1,000,000 and a 1% fee for projects over $1,000,000 with a cap of $40,000. This fee will be collected as part of closing. Annual administrative servicing fees is 1% of the annual collected amount not to exceed $1,000. Projects closed after 2022 will be collected by the administrators' third-party servicer, the fee for this service is a flat $400. If the assessment is collected by the Jackson County each annual assessment payment provided to the Assessor of Jackson County it will assess a 0.625% fee. Additionally, those assessments collected by the City Collector of Revenue will be assessed a 1.5% fee for each annual assessment payment. These fees are subject to adjustment by changes in state statute. Amerinat provides servicing for the assessment at $400 per assessment per year, whether collected directly by AmeriNat or by the City of St. Louis.
  • What is PACE?
    Property Assessed Clean Energy (PACE) financing is a finance program available to both commercial and residential property owners. The program provides financing for all upfront costs of energy-efficient upgrades, renewable energy upgrades. It can cover both hard and soft costs for commercial and nonprofit owned properties. It is paid through a voluntary assessment on the property paid annually.
  • Can I receive PACE financing for my property?
    Privately owned properties, including property owned by nonprofit entities, that can benefit from energy efficient and renewable energy projects are eligible for PACE financing, if they are located in a participating municipality. The outcome of the project must save energy and money, meaning the economic benefits have to outweigh the costs. Energy audits, engineering and other soft costs can be included in the overall cost of the project.
  • What types of properties are eligible?
    The PACE program will accept applications for the following property types: Commercial Industrial Agricultural Multi-family Not-for-profit Public facilities Cannabis Hospitality Healthcare Long-term Care Mixed-Use
  • Where can I find a copy of the Set the PACE manual?
    Please email PACE@moenergy.org for a copy of the STP manual.
  • What if I want to sell my property before the financing is repaid?
    The PACE financing is tied to the property and can transfer to the next owner, along with the energy savings created by the energy efficient and renewable energy project performed on the property. Please notify your PACE lender if you are interested in selling your property.
  • How do I repay my PACE financing?
    PACE is paid at the same time as your property tax assessment, in a once a year fixed payment. You will be billed at the same time as your tax assessment and you must remit payment prior to December 31st to avoid penalty interest and fees. Missouri PACE statute allows for 20 year terms. As such, PACE can be passed through to renters or tenants.
  • What does the financing cover?
    There are a number of energy efficient and renewable energy projects which can be covered under the PACE program, including but not limited to: Insulation in walls, roofs, attics, floors, foundations Insulation in heating and cooling distribution systems Storm windows and doors, multi-glazed windows and doors, heat-absorbing or heat-reflective windows and doors Automatic energy control systems Heating, ventilating, or air conditioning distribution system modifications and replacements Caulking and weather-stripping Replacement or modification of lighting fixtures to increase energy efficiency Energy recovery systems Day lighting systems Photovoltaic systems Solar thermal systems Wind systems Biomass systems Geothermal systems White/green roofs Soft costs (engineers, architects, legal) Does the project save money, energy or generate renewable energy? If so, it is likely eligible.
  • How does PACE financing work?
    Property owners don’t have to bear the cost of energy-efficient and renewable energy projects up front. Instead, they can receive 100% of the project cost upfront with a payback period of up to 20 years. This prevents projects from stalling because of inefficient funding and it enables contractors and their employees to complete projects. The expectation is that a properly designed and installed clean energy project will produce substantial energy savings for the property owner with the potential to be cash flow positive within one year. Additionally, since the financing is tied to the property, upon its sale the remaining tax liability transfers with ownership, and the energy savings are passed along to the next owner. Set the PACE project funding is provided by private equity funders that provide on-demand cash to immediately support projects meeting their underwriting requirements and Set the PACE requirements.
  • How is PACE managed in Missouri?
    There are currently four PACE programs operating in Missouri. The Show Me PACE Clean Energy District, available throughout the state, is administered by the Missouri Energy Initiative. The Missouri Clean Energy District (MCED) is available throughout the state and is administered by Missouri Clean Energy Funding (MoCEF). The County of St. Louis created a program called Missouri Energy Saving Program, is administered by the Missouri Energy Initiative. The City of St. Louis has created a program called Set the PACE St. Louis, is administered by the Missouri Energy Initiative.
  • Do I need to contact my mortgage provider?
    For Commercial PACE, it is necessary to contact your mortgage provider since you will need to acquire a lender consent from each lender that holds a lien on the property.
  • How do I become a lender in this open market?
    Missouri Energy Initiative is the administrator of three open market districts. Within an open market, a wide range of parties can make PACE loans. Eligible third-party lenders may include: Any registered investment company registered business development company or a Small Business Administration small business investment company; Any publicly traded entity or any private entity that has a minimum net worth of $5 million; that has at least three years experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years experience in business or industrial lending or commercial real estate lending; and can provide independent certification as to the availability of funds. Any insurance company authorized to conduct business in one or more states; All lenders must have the ability to carry out, either directly or through a servicer, the bookkeeping, and customer service work necessary to manage the assessment accounts. All new lenders are required to submit an application of interest to MEI, who will then submit it to Set the PACE, Show Me PACE and MoEnergySaves for approval. Please contact PACE@monergy.org for a lender application.
  • Where can I find a copy of the Set the PACE manual?
    Please email PACE@moenergy.org for a copy of the STP manual.
  • What is the benefit of the PACE program?
    For contractors, PACE makes it easier to close a larger sale. Since property owners can finance 100% of a project up front, the biggest obstacle to initiating a project is eliminated, making comprehensive energy efficiency and clean energy improvements affordable. Additionally, PACE provides the funding necessary to generate jobs locally. These jobs further promote the clean energy movement within Missouri.
  • Where is the Show Me PACE Clean Energy District operating?
    The Show Me PACE Clean Energy District operates across Missouri. See the Participating Municipalities page to find out if PACE is in your community.
  • What does the PACE financing cover?
    There are a number of energy-efficient and renewable energy projects which can be covered under the PACE program, including: Insulation in walls, roofs, attics, floors, foundations Insulation in heating and cooling distribution systems Storm windows and doors, multi-glazed windows and doors, heat-absorbing or heat-reflective windows and doors Automatic energy control systems Heating, ventilating, or air conditioning distribution system modifications and replacements Caulking and weather-stripping Replacement or modification of lighting fixtures to increase energy efficiency Energy recovery systems Daylighting systems Photovoltaic systems Solar thermal systems Wind systems Biomass systems Geothermal systems White/green roofs This is not a comprehensive list of all upgrades available under the Show Me PACE programs. If there are any other projects which you are interested in performing that you believe might fall under the scope of the Missouri PACE statute, contact the PACE manager at PACE@moenergy.org, 573-616-1046.
  • What permits do I need to acquire?
    All contractors must maintain all necessary business licenses and permits to work in the city or municipality in which the work is to be performed. It is the contractor's responsibility to obtain the proper work permits a particular project.
  • What is the Commercial Contractor program and how does it work?
    MEI has created a Contractor Program to help contractors better understand PACE and to be recognized as entities knowledgeable about PACE. Firms that have been approved to participate in our Contractor Program are the only ones MEI can recommend. There is an application and a small $25 registration fee. We will then place your information on our websites and be able to share your interest in PACE to the potential projects that come through our three districts. Contractors that are members of MEI will have their fee waived.
  • Who do I contact if I have questions?
    Contact the PACE manager at PACE@moenergy.org or 573-616-1046 if you have any questions.
  • Where can I find a copy of the Set the PACE manual?
    Please email PACE@moenergy.org for a copy of the STP manual.
bottom of page