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Capital Providers

MOESP is an open market program that welcomes multiple funding originators. Our lending partners allow us to offer on-demand cash for your PACE project, reducing the approval process to mere days.

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Mortgage Lenders 

Learn more about PACE

To become a PACE lender or

To provide consent

Lenders

Learn about the role of energy efficiency in lowering the default rate

Community Banks 

Learn about the role of community banks and PACE

MOESP requires mortgage holders to consent to the assessment.

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"Why do senior lenders consent to C-PACE financing?

  1. C-PACE Assessments Do Not Accelerate – only current & past due C-PACE payments can be enforced through a tax lien and are senior to a mortgage lender’s claim; the full principal balance can never be called due, unlike a traditional mortgage.

  1. C-PACE Does Not Restrict a Senior Lender’s Foreclosure Rights – the senior lender can foreclose on the property in the same manner as if it were the sole financing on the property; there is no “workout” with mezzanine debt or equity providers.

  2. Escrow the C-PACE Assessments – senior lender may require borrower to escrow annual C-PACE payments on a monthly basis, similar to property tax and insurance escrows, to mitigate risk of non-payment.

  3. C-PACE Capitalized Interest – interest can be capitalized for up to 24 months (longer for select projects) to push the first payment beyond project completion or stabilization.

  4. Ample C-PACE Cure Period – mortgage lender receives notice & cure rights with ample time to bring the C-PACE current given that a tax lien foreclosure/sale typically takes 12-24+ months.

  5. C-PACE OpEx Savings May Increase Property Value – many states require that a third-party engineer verify that the monetary savings from C-PACE funded improvements exceed the cost of the financing, supporting a higher property NOI and valuation.

  6. C-PACE Wins Deals & Build Relationships – the combination of a traditional mortgage and C-PACE typically offers the lowest blended cost of capital to borrowers, allowing senior lenders to fund more projects and offer a differentiated product to the market without having to build out C-PACE expertise or compete on pricing alone."​​

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Access more at PACENation  

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 Click here to access the Lender Consent Form

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