An exciting new financing tool is now available to San Diego’s commercial and multifamily residential property owners. While it involves no public monies, this tool was inspired by local government -- specifically, the mayor and San Diego City Council.
Late last year, the city unanimously authorized San Diego-based Figtree PACE to begin accepting applications to provide its unique brand of PACE financing to commercial property owners.
PACE (Property Assessed Clean Energy) is a municipal funding mechanism that provides 100 percent upfront financing for property owners to improve their assets and realize the money-saving benefits of energy efficiency, renewable energy and water conservation upgrades utlizing no public dollars.
PACE requires no minimum FICO score and no money down. Financing is based strictly on assessed property values -- usually 10 percent; sometimes more. PACE provides for potential attractive off balance sheet financing that can be amortized for periods of up to 20 years via property tax bills. And it’s transferrable to subsequent property owners.
Figtree PACE provides contractors with a financing option to help clients invest in energy-related building improvements without adversely impacting their credit scores, net worth or borrowing capacity.
Eligible PACE improvements include solar PV and solar hot water systems, HVAC, fuel cells, cool roofs, boilers, chillers, elevator upgrades, energy management systems, electric vehicle charging stations, water conservation, xeriscaping and more. Figtree finances projects ranging from $5,000 to those in the millions of dollars (contingent upon qualified property values).
PACE also provides commercial property owners with a useful vehicle to address the provisions of California Assembly Bill 1103, which requires benchmarking and disclosure of energy usage for nonresidential buildings (more than 5,000 square feet) being leased sold or refinanced. Financing terms are based on the useful life/warrantees improvement, 10 years for HVAC upgrades or 20 years for solar PV.
Figtree's PACE funding can put cost-cutting, property-improving energy and water upgrades within reach of most any property owner. It’s a pay-as-you-save solution. PACE reinforces that economics and sustainable practices are no longer mutually exclusive.
To learn more about how Figtree can help improve your property, call (877) 577-7373 or visit figtreecompany.com.
Submitted by Mahesh Shah, CEO of FIGTREE Energy Financing