C-PACE: Efficiency Maine

Summary

Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing, and for a comprehensive list of all PACE programs across the country.

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Maine has authorized certain local governments to establish such programs, as described below.

In June 2021, the Maine State Legislature enacted L.D. 340, establishing a commercial property assessed clean energy program. This legislation allows owners of commercial property to access financing for energy efficiency and clean energy improvements on their buildings and repay their investment over time. Municipalities that wish to participate in the C-PACE Program must adopt a C-PACE Ordinance within their jurisdiction. Financing for commercial property owners is exclusively available within communities that have adopted the necessary ordinances. Certain written notices, consent and acknowledgements must be conveyed before a project may be approved for a C-PACE Loan. The C-PACE lien remains on the property until the financed amount is fully repaid. To view participating municipalities, click here.

Eligibility

• Commercial property located in participating community
• Current on all property taxes and charges
• Contain at least one Energy Savings Improvement
• Qualifying improvements must be new and permanently affixed to the Qualifying Property