Financing C-PACE in Connecticut

CEFIA’s “open market” PACE program

In the initial phase of the C-PACE program in Connecticut, CEFIA is pursuing an “open market” program. In this model, financing is provided by provided by private investors. Investors are attracted to the security of the tax lien and work directly with property owners to negotiate rates and terms. CEFIA acts as a conduit for the repayment of the assessment. In the program’s infancy, CEFIA intends to use various credit enhancements to accelerate the use and adoption of this financing.

The “pooled bond/warehouse” model for PACE

Once the PACE program ramps up to scale, CEFIA intends to explore developing a pooled bond model for PACE. In this model, CEFIA will secure a line of credit from a private investor to use in funding the PACE program. The private investor will warehouse the assessments until it reaches a certain size and then CEFIA would issue a bond to replenish the line of credit.

 

 

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