"Property Assessed Clean Energy,” or PACE, is a new mechanism for financing energy efficiency, renewables, and resiliency in both residential and commercial buildings. Proponents expect a “veritable tsunami” of PACE projects once the new legislation is in place and LEW Corporation is well prepared to assist you once effective!
How can you make real money from nothing?! The financing, which can cover 100% of the costs of improvements, including soft costs, is secured by a special assessment against the property. It is not a loan to the owner. In fact, PACE is an off-balance-sheet, non-recourse financing with payments spread over terms of up to 30 years, and transferable on sale to a new owner. Projects are typically designed to be cash-flow positive immediately, allowing property owners to put money in their pockets from day one. Interest rates are market-based and while they have been trending 6.5%-7.5%, rates are expected to fall as this new asset class becomes better understood.
PACE legislation, which now exists in some form in thirty-one states and the District of Columbia, is being revised and amended in New Jersey through Assembly Bill 2579, which sailed through the NJ Legislature with large bipartisan majorities in June and is now awaiting the Governor’s approval. Unless signed or vetoed before the election in November, the bill should go into effect as soon as the Assembly reconvenes.
Since its inception in California in 2007, PACE has been used to finance nearly $2 billion worth of projects, mainly in California, Connecticut, and a handful of other states. The program has been growing exponentially, and has been extended in many states, including New Jersey, to cover water conservation, flood proofing, hurricane-resistant construction, and other resiliency improvements.
The way each state handles PACE is slightly different. In New Jersey, each municipality will have to approve an ordinance in order to establish a local program and then approve one or more PACE program administrators to process applications. New Jersey PACE, (www.NewJerseyPACE.org), is one such program, operating on a nonprofit basis throughout the state. County improvement authorities can also play a role securing bonds for low-cost financing, and provide services to municipalities.
“We expect a veritable tsunami of demand for clean energy products and services in New Jersey this fall,” said Jonathan Cloud, executive director of the 501(c)(3) organization responsible for bringing PACE to New Jersey. “We at NJPACE believe the signing of the new legislation will open the floodgates for private investment through PACE.” “We expect to be first out of the gate with a robust commercial program,” said Cloud.
Municipalities interested in establishing their own local PACE programs can contact NJPACE directly for assistance, or follow the simple step-by-step guide on its web site.
The potential benefits to municipalities include strengthening local economic development, business attraction and retention, local jobs, increased investment, reduced pollution, and a more sustainable built environment. The direct benefits to property owners include cost savings, better buildings, indoor environments, as well as, increased asset values. The benefit to investors is the security of the special assessment and the sense of social impact of having invested into the next trillion-dollar economy.
In cooperation with NewJerseyPACE.org, coupled with LEW Corporation’s two decades of performing site inspections and surveys, once passed, Team LEW Corp. will be ready to discuss the next steps on how to make real money from nothing with NO personal commitment and no cash out of pocket. No it’s not magic. It is PACE’s legislation and LEW Corporation’s expertise to assist.
For more information, please email, info@LEWCorp.com, call Lee E. Wasserman at 908-654-8068, x18 or visit www.NewJerseyPACE.org.
Lee Wasserman is president of LEW Corporation.