Working with a c-pace capital povider

Capital Providers

Property owners in Montgomery County are welcome to select a C-PACE provider at will, whether that be a local lender, a large national bank, a designated C-PACE provider, or another type of lender. Montgomery County’s competitive, open C-PACE market helps property owners secure the best financing possible for their property.

Open market structure:

The Montgomery County C-PACE program is an open source funding model – meaning that property owners are welcome to work with their own capital provider. PACE Financial Servicing will accept, review, and approve C-PACE projects that are financed by any lender. Capital Providers should read the Summary of Terms and Conditions of Proposed Standard Offer for information on how capital providers directly originate and fund C-PACE transactions in the county.

C-PACE financing is a great opportunity for lenders because they are secure investments. Like a property tax lien, the surcharge lien securing the C-PACE financing has priority over other liens on the property. Therefore, the risk of loss from non-payment of a C-PACE loan is minimal compared to most other types of loans.

C-PACE surcharges provide lenders with an attractive new product to assist existing and new customers in addressing a growing demand for commercial and industrial property equipment modernization. In order to protect the interests of holders of existing mortgage loans on the property, the Maryland C-PACE statute requires their written consent to the C-PACE surcharge as a condition to obtaining a C-PACE loan. Importantly, the C-PACE surcharge does not accelerate in the case of a delinquency or default.

County designated lender:

The Montgomery County C-PACE program is an open source funding model – meaning that property owners are welcome to work with their own capital provider. PACE Financial Servicing will accept, review, and approve C-PACE projects that are financed by any lender. Capital Providers should read the Summary of Terms and Conditions of Proposed Standard Offer for information on how capital providers directly originate and fund C-PACE transactions in the county.

C-PACE financing is a great opportunity for lenders because they are secure investments. Like a property tax lien, the surcharge lien securing the C-PACE financing has priority over other liens on the property. Therefore, the risk of loss from non-payment of a C-PACE loan is minimal compared to most other types of loans.

C-PACE surcharges provide lenders with an attractive new product to assist existing and new customers in addressing a growing demand for commercial and industrial property equipment modernization. In order to protect the interests of holders of existing mortgage loans on the property, the Maryland C-PACE statute requires their written consent to the C-PACE surcharge as a condition to obtaining a C-PACE loan. Importantly, the C-PACE surcharge does not accelerate in the case of a delinquency or default.

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