New York City made history when it passed legislation enabling the PACE (Property Assessed Clean Energy) loan program in 2019. Enabling PACE in New York City brought a brand new source of financing to New York City owners for energy-efficient capital improvements. The authors first introduced how PACE loans work in an article, How New York City Is Picking Up the ‘PACE’, published in the Law Journal on Nov. 5, 2019.
Before the PACE program could “go live” and become fully activated in New York City, the public awaited the publication and adoption of proposed PACE program rules, guidelines and loan documents, which were all delayed due to the pandemic. The good news is that the rules were adopted earlier this year, and the guidelines and draft loan documents were released shortly thereafter, leading up to New York City’s first PACE loan closing in June at 111 Wall Street. The $89 million PACE loan closing at 111 Wall Street effectively marked the “grand opening” of the New York City PACE loan program. Recently, another PACE loan closed at 730 Third Avenue.