New “PACE” Program Will Offer Financing for Buildings to Meet Mandated Emissions Reductions
New York City enacted the Climate Mobilization Act (CMA) in 2019 with the goal of reducing carbon emissions in the city by 40 percent by 2030 and 80 percent by 2050. Many larger buildings throughout the city, including many cooperatives and condominiums, thus must reduce their carbon emissions. In many cases, this will require capital improvement projects to make buildings more energy-efficient. Large fines will be imposed against owners, including co-ops and condos, that fail to cut emissions as required by the deadlines.
To help buildings pay for these improvements, the CMA authorized a financing program, known as Property Assessed Clean Energy (“PACE”). This type of program has been successful in other parts of the country, but is new to New York City. After long delays due to COVID-19, the PACE program is close to being ready to provide financing to building owners.
On October 5, 2021, the New York State Bar Association’s Climate Change Committee and Cooperatives and Condominium Committee of the Real Property Section will be hosting a webinar entitled “Keeping Up With The PACE: Financing Energy Efficient Improvements,” which will act as a beginner’s guide to PACE loans for property owners. Our partner William McCracken (who is also the Co-Chair of the Climate Change Committee) will be a panelist for this program. If you are interested in attending, or would like to learn more about the PACE program, please contact us.