How Arlington C-PACE works for you

Arlington C-PACE for Mortgage Holders

Welcome to the Arlington C-PACE website! Commercial property assessed clean energy, or C-PACE, is an innovative, voluntary financing program that enables commercial building owners—your borrowers—to modernize their building through energy efficiency improvements. Across the country, more than 170 national, regional, and local lenders have embraced C-PACE programs, because well-designed C-PACE projects increase their borrowers’ cash flow by reducing their energy costs—all while making their building more valuable. In fact, mortgage holders have found that well-designed C-PACE projects:

  • Increase their borrowers’ repayment ability
  • Decrease their default risk
  • Improve the value of the collateral

C-PACE has been adopted by more than 30 states and the District of Columbia.

How it Works

The Arlington County C-PACE program provides up to 100 percent project financing to building owners who are looking to modernize their commercial, industrial, or multifamily buildings. The affordable, long-term financing (repayments can span up to 25 years) requires no upfront, out-of-pocket costs, and is secured by a special assessment lien (similar to a sewer district assessment) that is recorded on the property. Since the financing is tied to the property, it does not require the owner to sign a personal guarantee. What’s more, the repayment obligation can transfer to the next owner if the property is sold.

Data-driven Due Diligence

Prior to approving a project for C-PACE financing, the Arlington C-PACE program administration team provides an independent review of the project’s technical and financial projections to determine whether the projected cost savings are reasonable and are likely to materialize. Such review is consistent with industry best practice methodology as defined in the Investor Confidence Project protocol. Moreover, the Arlington C-PACE team uses its proven project optimization tools and extensive project experience databases to facilitate quality assurance across the entire project development life cycle.


Because the special assessment lien has the same priority status as a real property tax lien, except that it has priority over any previously recorded mortgage or deed of trust lien on the property, the Arlington C-PACE program requires that property owners receive the written consent of all holders of mortgages or deeds of trust on the property prior to securing C-PACE financing.

If your borrower wishes to pursue C-PACE financing, he or she will meet with you, along with a representative of the C-PACE program, to describe the program’s requirements and answer questions. In particular, you’ll learn about the independent technical review process that validates that the projected energy savings and related key financial metrics associated with the project are consistent with industry best practice.

To view a list of more than 170 mortgage holders nationwide that have consented to C-PACE projects, click here.

Learn More

To learn more about how you can reduce mortgage default risk and increase the value of your collateral, contact us today or visit our FAQ page.

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