NEW MEXICO – The New Mexico Department of Economic Development (EDD) reported that materials are now available for counties interested in opting for the updated Commercial Property Assessed Clean Energy (C-PACE) Program in the state.
C-PACE is a financing structure permitted by state law and local ordinance that provides eligible homeowners access to long-term, fixed-rate financing for a variety of energy efficiency, renewable energy, water efficiency, and home improvements. resilience. The program allows local governments to secure funding through a special improvement assessment of improved property.
To be eligible, county governments must pass an ordinance opting into the state program for properties within the county. EDD noted that C-PACE Program materials for local governments, including sample county ordinance language, are now available on its website.
New Mexico first enacted C-PACE legislation in 2009, followed by the Special Improvement Assessment Act in 2023, which authorized counties to impose, administer, and disburse special assessments to encourage the development of certain property improvements ( also called C-PACE financing).
The financing approach has been used by similar programs at thousands of properties in more than 24 states and the District of Columbia. Eligible properties include private commercial, agricultural, industrial or multifamily housing units of five or more located within the region’s boundaries (including properties owned by a nonprofit organization).
C-PACE programs offer several benefits, including boosting local job growth Reducing utility bills; Removing the barriers of having a large amount of money up front to make clean energy improvements to properties.
In addition, the program allows amortization over a longer period of time, proportional to the useful life of the improvements; and also allows the amortization obligation to remain with the property at the time of sale.