What are the benefits of Figtree PACE financing?

Figtree PACE offers property owners financing that is specifically designed to meet the needs of energy efficiency and renewable energy upgrade projects. The financing requires no money down, has fixed low interest rates, is long term up to 20 years, and qualifying is easier than traditional lending. It does not require a personal guarantee or a high business credit rating. In addition, with PACE financing property owners:

  • Own the system and can qualify for rebates and tax incentives
  • Get low annual payments with long term 20 year financing
  • Free up capital budgets that were meant for building upgrades to be used for other projects
  • Transfer the lien with the sale of the building
  • Share the benefits with tenants under a triple net lease
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How is Figtree PACE different from traditional financing?

In 2008, California passed legislation that gives property owners a new financing option for energy efficient building upgrades. This program operates under State Assembly Bill 811, which authorized all cities and counties in California to designate areas where property owners can voluntarily have their properties assessed for loans to finance renewable and efficient energy upgrades permanently fixed to their property.

The Figtree Property Assessed Clean Energy (PACE) Program allows up to 20% of a property’s value to be financed for energy efficiency, renewable energy, or water conservation upgrades. The financing creates an assessment lien on the property and is repaid as semi-annual installments on the property tax bill. Payments for the PACE lien are made at the same time and in the same manner as the regular property taxes for the property.

Unlike traditional financing, qualification for Figtree PACE is based on the property not business credit. As a result more property owners and businesses are eligible for the financing.

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Can Figtree PACE finance solar leases or PPAs (Power Purchase Agreements)?

Figtree does not offer a PPA or lease product at this time.

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Can I keep the rebates associated with my project?

Yes. Figtree does not require rebate funds to be applied to reduction of project costs.

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How do I know if my property or project qualifies for PACE financing?

All commercial property types are eligible including office, industrial, agriculture, retail, hotel, and multi-family.

Most energy efficiency, renewable energy, and water conservation projects are eligible including solar, HVAC, boilers & chillers, lighting, building controls, windows, cool roofing, water-efficient plumbing, and more. The minimum project size is $100,000. Click here to see a sample list of qualifying improvements.

To be eligible the property must be located in a participating area. Please click here to see our online map for the latest list of cities and counties that have made the Figtree PACE Program available to their property owners.

In addition, the property owner will need to meet the following requirements:

  • Current on taxes owed on the property and must not have been delinquent in the past three (3) years or since owning the property, if less than 3 years.
  • Current on mortgage payments and must not have been delinquent in the past three (3) years or since owning the property, if less than 3 years. This is not applicable if there is no mortgage on the property.
  • Not be in bankruptcy and must not have been in bankruptcy in the past five (5) years. The property must not be an asset in bankruptcy.
  • Mortgage balance outstanding must not be an amount greater than the property’s total value.
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How long can I finance my improvement project?

Figtree PACE financings can be structured from 5 to 20 years. The length of your repayment period will depend on the useful life of the equipment upgrades you choose. For projects with multiple improvements the weighted average useful life will determine the lien term. For example solar and cool roofing can be financed for up to 20 years. HVAC upgrades can be financed up to 15 years. And LED lighting can be financed up to 10 years.

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Must I have an energy audit of my property?

Figtree does not require an energy audit to be eligible for PACE financing.

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What does the processing fee cover?

A fee of $995 - $4,995, pending on the project size, will be added to the total amount of the assessment at the time of closing. This fee is included in the total amount of financing.

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Once I submit my application, how long does it take to be approved?

Figtree will typically approve your application to participate in the PACE program within a week of receiving it. Approval to participate means that your property meets eligibility requirements. If your property is mortgaged, Figtree must obtain the consent of your mortgage lender before funds are approved.

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Once my application is approved, when can my contractor commence to install the new equipment?

Figtree will issue you and your contractor a Notice to Proceed when your project is eligible to commence. Purchase, construction, and/or installation of improvements before receiving a Notice to Proceed may not be funded. The Notice to Proceed will be issued after closing the financing.

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What is lender consent?

PACE liens to secure the financing are at parity with general property taxes and, therefore, senior to mortgage liens. Figtree obtains lender consent to ensure that property owners are not in violation of existing mortgage covenants.

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Does Figtree contact lenders for both residential and commercial projects?

No. Figtree only contacts and works with commercial property owner mortgage holders to obtain lender consent. See the FAQ above. Figtree does not contact residential mortgage holders. A residential homeowner may be required to pay off the remaining balance of this obligation by the mortgage lender refinancing a home. In addition, if a property owner sells their home the buyer or their mortgage lender may require the owner to pay off the balance of this obligation as a condition of sale.

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How long does the lender consent process take?

Typically, obtaining lender consent will take 4 to 6 weeks.

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When do I make my first annual assessment payment?

Your first annual assessment payment will be made in the first tax year following levying of the assessment lien. If funding is before June 30, the assessment will appear on the December tax bill of the same calendar year. If the funding is after June 30, it will appear on the December tax bill of the next calendar year.

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Can I pay off my PACE assessment early?

Yes. A prepayment fee will apply as detailed in the term sheet and application form. Participating property owners should contact Figtree for a payoff amount. Prepayment must be coordinated through Figtree. Overpaying the property tax bill will not pay down the PACE lien.

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If I want to use Figtree PACE financing but my city is not currently participating in the program, what should I do?

Figtree PACE is available to all cities and counties in California. Please contact a Figtree representative if you would like to learn about how to bring Figtree PACE to your community. We may ask you to submit the details of your project to determine the best approach.

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