Ohio PACE Financing

Key Features of Ohio PACE Financing

• Eligible Properties: Commercial, industrial, and multifamily properties are eligible for PACE financing in Ohio. Residential PACE (R-PACE) programs are also available in certain counties, including Summit, Franklin, and Lucas, enabling homeowners to finance energy improvements.

• Eligible Improvements: Projects that qualify for PACE financing include energy efficiency upgrades (e.g., HVAC systems, insulation, lighting), renewable energy installations (e.g., solar panels), water conservation measures, and other improvements that reduce energy consumption.

• Financing Structure: PACE financing covers up to 100% of project costs, with repayment terms extending up to 30 years. The financing is repaid through a special assessment on the property tax bill, which remains with the property upon sale, ensuring that future owners continue to benefit from the improvements.

Benefits of PACE Financing

• No Upfront Costs: Property owners can undertake energy improvements without initial capital expenditures, preserving cash flow for other investments.

• Positive Cash Flow: Energy savings from the improvements often exceed the annual assessment payments, resulting in immediate net positive cash flow.

• Transferability: The PACE assessment is tied to the property, not the owner, allowing for seamless transfer upon sale.

• Enhanced Property Value: Energy-efficient upgrades can increase property value and appeal to potential buyers or tenants.

Application Process

1. Initial Eligibility Assessment: Property owners complete an eligibility form to determine if their property and proposed project qualify for PACE financing.

2. Energy Project Summary: Collaborate with a qualified contractor to identify eligible improvements and quantify potential energy savings.

3. Application Submission: Provide financial documentation and project details to Ohio PACE, which will connect you with registered capital providers to obtain financing terms.

4. Mortgage Holder Consent: Obtain written consent from any existing mortgage holders, as the PACE assessment will take precedence over existing liens.

5. Funding and Installation: Upon agreement of financing terms, the PACE assessment is added to the property tax bill, and the project proceeds with installation by a registered contractor.

Considerations

• Program Availability: While PACE is enabled statewide, program availability and terms may vary by locality. It’s essential to consult with local PACE administrators or visit the Ohio PACE website for specific information.

• Mortgage Holder Consent: Securing consent from existing mortgage holders is a critical step, as the PACE assessment creates a senior lien on the property.

• Project Evaluation: Conduct a thorough analysis to ensure that projected energy savings justify the investment and that the improvements align with long-term property goals.