VCC – Impact Lending Across Virginia

Bill Greenleaf

Property Assessed Clean Energy - PACE

• Energy efficiency, renewable energy and water efficiency loan program

• Set up by locality (required by law)• Private lenders make these loans• Repaid on real estate tax bill• Lien is senior to existing mortgage- equal

status as a real estate tax lien• Loan stays with property upon resale

2

PACE- Solution to Market Place Problem

• Property owners unwilling to invest in long payback energy projects due to short duration of property ownership

• No long term loans (beyond 10 years) for energy projects.

• Cashflow positive day one

3

PACE in Virginia

• PACE legislation passed in 2015• Virginia Bankers Association- neutral

position• Existing mortgage holder must subordinate• Commercial, Industrial, Multifamily (not SF)• Requires localities to set up PACE programs• Private lenders can participate• Localities can charge fees to cover costs

4

PACE Legislation Setting the Stage

• Business coalition• Locality support• Lobbyist

– Spend the big bucks to get the best– $35,000 lobbying & education effort (idle time)

5

PACE LegislationPlay Time

• Virginia Bankers Association– deal, no deal, deal– United Bank- the white knight

• Securing legislative sponsors• Virginia Association of Realtors

concerns• Competing PACE bills• Committee assignment- not as

expected• Title insurance company concerns• Foundations- PACE loans 6