Senate Bill 358 - C-PACE Program Summary

• Establishes the Commercial Property Assessed Capital Expenditure and Resilience Act (C-PACE), a statewide program allowing local governments to voluntarily participate in financing improvements for commercial, industrial, agricultural, nonprofit, and multifamily residential properties (5+ units) through private capital providers.

• Finances qualified improvements including energy efficiency, renewable energy, water conservation, and resilience projects (storm retrofits, flood mitigation, microgrids) through voluntary assessments secured by liens recorded in the register of deeds.

• Creates a statewide administrator role under the North Carolina State Energy Office to develop program guidelines, establish documentation requirements, and approve qualifying projects; requires property owner certifications that they are current on mortgages and property taxes and not insolvent.

• Sets administrative fees capped at $150 application fee and 1% processing fee (maximum $15,000) for approved applicants; designates private capital providers as solely responsible for billing, collection, and enforcement of assessments through foreclosure procedures similar to deed of trust enforcement.

• Requires participating local governments to adopt resolutions, hold public hearings, and obtain written consent from existing mortgage holders before liens can be placed; prohibits use of public funds and prohibits conditioning permits or licenses on participation in the program.

• Becomes effective July 1, 2021.