Code of Maine Rules
95 - INDEPENDENT AGENCIES
648 - EFFICIENCY MAINE TRUST
Chapter 5 - COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY (C-PACE) PROGRAM REGULATIONS
Section 648-5-6 - UNDERWRITING STANDARDS
Current through 2024-13, March 27, 2024
1. Except as provided for a new construction project or a major renovation, the C-PACE Loan may cover up to 100% of an Energy Savings Improvement's costs, including the costs of any audits, development and application fees directly associated with the improvement, less any rebate or other financial incentive provided by the Trust to the Property Owner.
2. For a new construction project or a major renovation, the costs that may be borrowed through a C-PACE Loan are limited to:
3. The term of the C-PACE Agreement shall not exceed the Estimated Useful Life, of the financed Energy Savings Improvements, the duration of which shall be acceptable to and disclosed by the Technical Reviewer.
4. The estimated cost savings from the Energy Savings Improvements over the useful life of such improvements shall achieve for the Property Owner a savings-to-investment ratio ("SIR") of not less than 1.0.
5. The Qualifying Property shall have a debt service coverage ratio of not less than 1.0 at the time the C-PACE agreement is entered into.
6. The Qualifying Property shall have a loan-to-value ratio of not more than 1.0 at the time the C-PACE agreement is entered into, calculated by dividing the total amount of debt secured by the Property by the Property value.
7. The Qualifying Property's C-PACE Assessment-to-value ratio shall be no greater than 0.35.
8. The Qualifying Property securing a C-PACE Loan must be owned by the Property Owner.
9. The Qualifying Property shall:
10. The owner or owners of the Qualifying Property must certify that there are no overdue payments on mortgages secured by the Property.
11. A Registered Capital Provider may require escrows for C-PACE Assessment payments when appropriate.
12. A Registered Capital Provider may apply such other additional underwriting standards as it requires for approval of a C-PACE Loan that will be financed by the Registered Capital Provider, consistent with all applicable laws.