As of August 11, 2017, the Property Assessed Clean Energy Act (50 ILCS 501/ et seq.) became law in Illinois. On February 15, 2018, the Illinois Finance Authority (the “Authority”) approved a resolution to create statewide, centralized financing options for Illinois local units of government establishing Commercial Property Assessed Clean Energy (“C-PACE”) programs in their communities. On Friday, August 17, 2018 and Sunday, August 19, 2018, Governor Bruce Rauner signed legislation adopted by the Illinois General Assembly that makes these centralized financing options a reality. CLICK HERE for the press release.
Already under development, the Authority’s C-PACE program will offer local governments a turnkey solution for bond issuance and standardized bond documents. Local governments can assign C-PACE assessment contracts to the Authority, which can effectively pool contracts across multiple jurisdictions to achieve economies of scale and cost savings for all. Illinois local units of government develop C-PACE programs to allow commercial property owners the ability to finance or refinance up to 100% of their energy efficiency, renewable energy, and water conservation projects on a long-term basis, which exceeds standard commercial lending terms that are typically only 5-7 years.
C-PACE financings in Illinois are attached to the commercial property and “run with the land.” Repayment obligations from C-PACE projects financed through a voluntary C-PACE assessment seamlessly transfer to any new owner upon sale of the commercial property. Similarly, the new owner of the commercial property continues to benefit from the ongoing savings from the energy efficiency, renewable energy, and water conservation property enhancements. Use the links on this page to explore program details and eligibility requirements, and to find additional help and information.
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