Construction
C-PACE
Commercial Property Assessed Clean Energy (C-PACE) is a financing structure in which a property owner funds eligible energy, water and resilience improvements with capital that is repaid through a special assessment on the property's tax bill, with the obligation running with the property rather than the borrower.
Key facts
Figures as of 2026-10-31. Program rules change by notice, so an advisor confirms current terms with lenders before you rely on any figure.
| Item | Figure | Source and date |
|---|---|---|
| Repayment | Special assessment collected with property taxes | State and local C-PACE enabling law; as of 2026-10-31 |
| Eligible uses | Energy efficiency, water conservation, renewable energy and resilience improvements | State and local C-PACE enabling law; as of 2026-10-31 |
| Availability | Set by state and local program; confirm for the property's jurisdiction | State and local C-PACE enabling law; as of 2026-10-31 |
| Existing mortgage holder | Consent is generally required | Program guidelines; as of 2026-10-31 |
| Stack position | Can sit beside senior, mezzanine or preferred equity capital | Corin sizing estimate; as of 2026-10-31 |
Where C-PACE fits
C-PACE can replace a portion of equity or mezzanine debt in a construction or renovation budget because it is long-term and non-recourse to the owner, and it is typically ranked ahead of the mortgage as a tax lien. That priority is why senior lenders review it and often must consent.
C-PACE is arranged with programs and capital providers that fund at closing. Corin brokers the introduction and coordinates the capital stack and does not fund or hold any money.
- New construction that exceeds code in energy or water performance
- Renovation with qualifying systems such as HVAC, envelope, lighting, solar or resilience upgrades
- Refinancing recently completed improvements, where the program allows
What to check first
Confirm that the property's jurisdiction has an active program, that the improvements qualify, and that the senior lender will consent. The assessment stays with the property if it is sold, which buyers and lenders will factor in.
Frequently asked questions
Is C-PACE a loan?
Economically it works like a loan, but it is structured as a voluntary assessment on the property. Documents and rights differ from a mortgage.
Does a senior lender need to approve C-PACE?
Generally the existing mortgage holder must consent, since the assessment ranks ahead of the mortgage. Many construction lenders have standard consent processes.
Can C-PACE be used for senior housing or hotels?
Often yes, where the state program covers the property type and the improvements qualify. Check program rules for the specific property.
Related programs
- Construction loansGround-up and heavy-renovation financing from banks, debt funds and private lenders.
- Construction-to-permanent loansOne loan that funds construction and converts to long-term debt.
- Hotel to senior living conversionAcquisition and conversion bridge for turning a hotel into licensed senior living.
- Multifamily bridgeFloating, interest-only debt for value-add apartment business plans.
- Construction financingBank, debt fund, HUD and C-PACE options for construction projects.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.