PACE DIRECT

Through our Property Assessed Clean Energy (PACE) Direct program, we can provide financing for Montgomery County businesses, non-profits and local governments to fund cost-effective, energy efficiency improvements to buildings resulting in lower energy costs.

We target our financing to support:

  • Multi family housing

  • Owner occupied commercial business property

  • Expansion or energy improvement project of a current facility

  • Redevelopment projects or new construction 

  • Experienced property owners or operators, not necessarily for ‘startups’ 

Our financing supports facilities infrastructure and encourages property owners to invest in their assets and improve their properties. Improvement Projects with an energy savings often include; 

  • Heating, ventilation, air conditioning

  • Boilers

  • Roofs & windows

  • Lightening, controls and electrical upgrades 

  • Solar panels

TYPICAL LOAN SIZE

Typical loan size is over $250k and amortized over the useful life of the project financed; repayments are made through a real estate property tax bill via a special assessment (PACE). 

UNDERWRITING CRITERIA

Underwriting criteria include but are not limited to the following:

  • Property owner must provide a qualified ASHRAE level 2 energy audit for retrofits, a certified engineer or architect certification for new construction, or otherwise approved equivalent acceptable to the lender that demonstrates that the Project improvements are eligible under statute. 

  • The Project must be within the Dayton Regional ESID (“ESID”) or municipality must be able to petition to join the ESID;

  • A PACE Financing to as-built appraised value of the property ratio of no greater than 40%;

  • Project Owner must have enough cash flow to pay all future debt service (including the PACE assessment), with a minimum debt service coverage ratio of 1.10x at stabilization;

  • The proposed Project Owner must demonstrate that all other sources of funds to complete the Project are secured; 

  • Mortgage holder, if any, must execute a consent to the PACE financing form prior to closing;

  • Term of the repayment up to 25 years, however term cannot exceed the weighted useful life of the financed assets; and, 

  • No tax defaults can exist on the subject property or payment defaults exist by the property owner

If interested in this project we encourage you to complete the PACE Program Interest Form and return it to Joe Geraghty at joe@daytonport.com.