Senate Bill 42: C-PACE Program Summary

• Establishes a statewide Commercial Property Assessed Capital Expenditure and Resilience Act (C-PACE) program allowing local governments to voluntarily participate in financing commercial, industrial, agricultural, nonprofit, and multifamily (5+ units) property improvements through property assessments and liens.

• Eligible improvements include energy efficiency measures, renewable energy installations, water conservation projects, and resilience improvements (storm retrofits, flood mitigation, energy storage), with financing terms not exceeding the useful life of the improvements.

• Property owners must obtain written consent from mortgage or deed of trust holders before entering into C-PACE assessment contracts; the C-PACE lien is superior to all liens except state, local, and federal taxes but cannot be accelerated or eliminated by foreclosure of past due amounts.

• Establishes fees capped at $150 application fee and 1% processing fee (not to exceed $15,000) to offset program administration costs; capital providers are solely responsible for billing, collection, and enforcement through deed of trust foreclosure procedures.

• Prohibits local governments from using public funds to enforce or repay C-PACE financing and from making permits or licenses conditional on PACE participation; becomes effective July 1, 2023.