Finer Aspects of the Ohio PACE Program: Why Go For It?

cpace program ohio

 

PACE is a special assessment, which is often referred to as the PACE assessment – one that’s tied to the property and not to an individual. So, should a property change hands, the PACE assessment obligation stays with the property and moves on to the next property owner. This is a big win! Again, this is where the Ohio PACE program differs from other traditional financing options.

All that said, there’s a lot more to consider! Why? Well, because your mortgage company may require you to pay off the assessment – the remaining balance of it, before the property can be refinanced or sold off. 

However, what still works in favor of PACE is its low interest rate! Currently, this ranges between 6-8 percent, with some additional associated fees. The amount itself is collected over a period of 20-30 years, so that’s a big plus again!

What kind of improvements qualify for the PACE program?

Wondering about the PACE qualifying improvements? This refers to all such improvements to the real estate property that’s linked to energy efficiency, energy conservation, and renewable energy, just to name a few. These can be in the form of solar panels, new roofs, impact windows, and more. However, the PACE program rules may vary from one place to another, and thus, you must consult with a PACE provider in Ohio to know the specifics and figure out if the project is applicable for it.

Do I need to pay the remaining PACE assessment before selling the property?

As we’ve mentioned before, the Ohio PACE program is designed such that the assessment stays with the property, however, if you want to sell the property, you may have to pay off the remaining debt in advance. Why? This happens because when a property owner decides to sell a property, the seller’s lender or the buyer’s lender, i.e. the mortgage company, may ask the property owner to first settle the outstanding balance of the assessment.

What does one do? Well, during the time of the refinance or sale of property, property owners should consult with their PACE lender in advance to figure out if they’d have to pay off the assessment in full. In fact, according to the rules, the property owner must send a written notice about the assessment to the buyer, prior to the sale of the property. There are some other rules as well, for all of which the  PACE program lenders in Ohio will guide you through.

Can you pay off the PACE assessment early?

If you’re not sure of whether or not you’d have to pay off the PACE assessment before selling off the property, but you don’t want the hassle anyway, you can definitely pay off the PACE assessment early.

There’s usually a small fee associated with paying off the PACE assessment early, but your PACE lender can fill you in on that when you reach out for the same.

Key takeaway

As a commercial real estate developer or a property owner, do you wish to explore green building initiatives? If yes, you should give the C-PACE financing in Ohio some serious thought. The program/ tool is a great way to finance energy-efficient improvements without the pressure of financing the upgrade out of one’s own pocket. The fact that it requires no upfront investment is a big reason why property owners and CRE developers across the country are opting for it. The financing option is making sustainable properties much more accessible to people.