Two New Counties Join the C-PACE Club and Updates in Baltimore City

Two New Counties Join the C-PACE Club and Updates in Baltimore City

Legislative Updates

Bethesda, MD (September 26, 2018) — As the year unfolds, Maryland continues to experience successful C-PACE expansion across the state. Most recently, Cecil County voted to pass Bill No. 2018-13 on September 4th of this year, enabling C-PACE in the county. Prince George’s County Executive signed their own ordinance implementing C-PACE financing on August 8th of this year. The result of these developments is that in just a few short years, 17 jurisdictions in Maryland have enabled C-PACE programs. Of these, 15 have opted into the MD-PACE program (Montgomery County and Prince George’s County operate their own C-PACE programs).

Pace legislation is passed in Cecil and Prince George's Counties
Pace legislation has been passed in Cecil and Prince George’s Counties

Furthermore, in July the City of Baltimore passed an amendment to Council Bill 18-195 substantially changing the rules guiding C-PACE project eligibility. This amendment allows otherwise eligible projects that have already begun construction to qualify for C-PACE retroactively. Specifically, projects initiated as of July 1st, 2016 may now apply for C-PACE financing up to 30 months after qualifying improvements have been placed on the property. This option will be available through December 31st of 2019. The exact updated text of the legislation is included below:

For projects initiated on or after July 1, 2016, through December 31, 2019, the Administrator may approve a clean energy loan up to 30 months after the property owner places qualifying energy improvements in service, as long as the property owner has filed an initial PACE loan application on or before December 31, 2019.

If you have any questions about the content of C-PACE legislation that has been passed in Maryland or where to find such information, please reach out to PFS.

Jurisdictions in Maryland with a C-PACE Program:

  • Allegany County
  • Anne Arundel County
  • Baltimore County
  • Baltimore City
  • Carroll County
  • Charles County
  • Frederick County
  • Garrett County
  • Harford County
  • Howard County
  • Kent County
  • Montgomery County
  • Prince George’s County
  • Queen Anne’s County
  • Talbot County
  • Wicomico County

Simon Property Group Implements Largest PACE Deal in MD-PACE

Simon Property Group Implements Largest PACE Deal in MD-PACE

Hanover, MD (September 26, 2018) — Anne Arundel County may already claim the seat of the Maryland state government in Annapolis, but it can now lay claim to the site of the largest C-PACE deal in the state, as well. The well-known Arundel Mills Mall used C-PACE financing to implement comprehensive energy efficiency improvements throughout the building. With the closure of this deal, Maryland has surpassed $12 million in C-PACE financing.

Arundel Mills Mall by Simon Property Group
The Arundel Mills Mall is the recipient of the largest PACE deal in Maryland as of September 2018.

The project was funded by Petros PACE Finance, LLC. Petros has been involved in the PACE market since 2010. Based in Texas, this is their first deal to close in Maryland. CEO of Petros PACE Mansoor Ghori says, “We are pleased to have closed our first transaction in Maryland, which was also the first PACE transaction to close in Anne Arundel County. We look forward to working with potential partners in the state.”

To learn more about Petros PACE Finance, visit https://www.petros-pace.com/.

To learn more about the MD-PACE program, visit https://www.md-pace.com/.

First C-PACE Project in Kent County

Maryland Commercial PACE Announces First C-PACE Project in Kent County

Green Energy Upgrades for ‘Main St.’ Business &
Commercial Properties Can Drive Down Operating Expenses

Chestertown MD (October 18, 2017) — Maryland PACE, a statewide partnership anchored by The Maryland Clean Energy Center to promote the finance of energy saving projects for commercial properties, announced today that the first C-PACE (Commercial Property Assessed Clean Energy) financed project in Kent County has been approved.  State-wide, the approval marks the third in the nascent program’s history and the first for a ‘main street’ retail business.

The Finishing Touch, a custom frame and print boutique in downtown Chestertown, owned by Robert Ramsey, will utilize the commercial PACE (C-PACE) program to finance $134,438 in energy savings improvements including new windows and a full HVAC system upgrade.

Photo of The Finishing Touch after C-PACE was applied
The Finishing Touch represents a model for “Main St.” businesses to save on operating expenses with C-PACE.

The program is not a grant as private capital is provided, in this instance by Greenworks Lending, a specialty C-PACE lender. Rather than a traditional working capital loan or cash-out from a commercial mortgage refinance, Ramsey will repay his investment in reduced operating expenses via a special tax assessment with a term of 20 years.

“One of the key advantages of the MD-PACE program is that it allows the commercial property owner to match the financing term to the useful life of the investment,” said Gerard Neely, MD-PACE program manager. “For The Finishing Touch and Robert Ramsey, this gives them the ability make a long-term investment in energy savings, comfort and efficiency while realizing positive cash flow from the onset.”

The project at 309 and 311 High St. in Chestertown will replace air conditioners and windows that date back to 1978. Pinder and Blue Heron Contracting, top providers of energy efficiency projects on the Eastern Shore, will develop and install the upgrades.  The HVAC upgrades are projected to save $6,420/year in energy expenses while more than 1,000 sq.ft. of low R-value glass will be replaced, improving the building’s overall energy efficiency year-round.

“We are so pleased to see the MDPACE program at work, especially since with this project, it is being used to finance a project on the main street in a classic Maryland small town,” said Kathy Magruder, Executive Director of the Maryland Clean Energy Center. “This financing model makes it so much more workable for a variety of small and large-scale businesses to fund energy measures and free up their own operating capital in a very advantageous way.”

“This project is a perfect fit for the MD C-PACE program.  The property is in a Maryland designated Arts & Entertainment District, a Historical District, and on a Maryland Main Street.  Mr. Ramsey, a Downtown Chestertown business owner for almost 40 years, will be able to upgrade his commercial property and take immediate advantage of decreased operating costs, while increasing energy efficiency”, said Kent County Commissioner William Short.  “The work is being done by local contractors and adds to the enthusiasm of the project.  Kent County has been hard at work identifying, implementing, and promoting incentives for businesses to grow, locate, and prosper here.  The expertise and professionalism provided by the Maryland Commercial PACE team have been a great asset to economic development in our community.”

MD C-PACE is an innovative and affordable way for commercial, industrial and nonprofit building owners to pay for green energy upgrades. The program provides 100% up front financing that is repaid over long terms (often 20+ years) via a property-tax surcharge. The structure allows owners to replace end-of-life equipment with no upfront capital outlay and to see immediate net operating income (NOI) improvement when upgrading a wide variety of equipment including HVAC, lighting, roof, envelope, solar, and cogeneration.

Maryland passed policy enabling C-PACE in May 2014 and Kent County passed an ordinance establishing its program in September 2016. Kent County became one of the first counties on the Eastern Shore to enable C-PACE financing for its business community. To see a list of current jurisdictions that have enabled PACE in Maryland, please click here.

About MD-PACE:
MD-PACE is a statewide partnership between PACE Financial Servicing and the Maryland Clean Energy Center to build a statewide commercial Property Assessed Clean Energy (C-PACE) program.