The enabling legislation for C-PACE (HB 80) was signed into law August 2017 and codified at AS 29.55.100 – .165, and allows local governments to create and manage C-PACE programs. On June 30, 2022, Governor Dunleavy signed House Bill 227 into law. This Bill included several changes to the state program including allowing new construction projects to qualify for PACE funding; adding resiliency projects; allowing C-PACE refinancing with a two year “look back” period; considering a property’s “market” value rather than assessed value; and eliminating the Savings-to-Investment Ratio and extending the maximum loan term from 20 to 30 years.
The timeline of the Matanuska-Susitna Borough’s C-PACE Program is as follows:
On October 19, 2021, the Matanuska-Susitna Borough Assembly adopted a resolution of intent establishing that the PACE Program provides a valid public purpose.
On February 15, 2022, the Matanuska-Susitna Borough Assembly adopted a noncodified ordinance that outlined the terms and conditions of the Borough’s C-PACE Program.
The Assembly unanimously adopted Ordinance No. 22-100 on September 27, 2022. This ordinance established the C-PACE Program in Borough Code.
The MSB and the Municipality of Anchorage are now working together on a partnership agreement. More info coming soon on this partnership and the implementation of the C-PACE program! Projected open application period beginning in Spring 2023.
For more information on the C-PACE Program, refer to the Alaska C-PACE website: https://akcpace.wordpress.com/
From the Alaska C-PACE Website:
C-PACE boosts the economy and creates jobs by funneling private investment into C-PACE enabled communities. The contributions of C-PACE to the economy measure in the billions for private investment and tens of thousands for jobs created. Local governments desire to create greater prosperity in their jurisdictions but are hampered by lack of funds and inability to attract new business and younger demographics. Many architectural and development trends point to the high marketability of “green buildings,” and studies indicate that a younger workforce prefers to live and work in spaces that are friendly to the environment. Finally, C-PACE helps local governments meet federally- or state-mandated efficiency and clean energy standards as well as accomplish local energy efficiency goals while requiring no government funding as the financing is offered by private capital providers.
C-PACE is, at its core, a reliable source of affordable financing for property owners to make money- and energy-saving improvements to their buildings. Property owners are able to procure and install efficient, triple-glazed windows for their storefronts that reduce heat transmission, high-efficiency HVAC models, interrelated systems that synergize temperature control and lighting, and much more. C-PACE is growing in the United States real estate industry is because it is an effective tool for defraying upfront cash expenses and allowing businesses and developers to enjoy utility savings without the burden of utilizing existing credit capacity. Fixed interest rates are competitively set by the market and C-PACE typically requires no down payment. The assessment is attached to the property, so there is typically no personal or corporate guarantee required by capital providers that fund projects.