New loan program will promote sustainable buildings

The Fairfax County Board of Supervisors authorized a new
program to help commercial, industrial, nonprofit, and multifamily property
owners borrow money from private lenders to make buildings more environmentally
sustainable.

The Commercial Property Assessed Clean Energy (C-PACE)
program will make it easier for eligible property owners to take out private
loans for energy efficiency, renewable energy, water-saving, stormwater, and
climate resiliency projects.

While the county neither lends the money nor guarantees its
repayment, it will place a lien on properties that take out C-PACE loans. The
loans are repaid directly to the lender. This enables private lenders who
assume the financial risks to offer loans that are more attractive than
traditional commercial bank loans.

Eligible improvements include heating and ventilation,
lighting, insulation, low-flow water fixtures, reflective or green roofing, and
renewable energy, such as solar or wind. These projects could be undertaken on
existing buildings or when constructing new ones.

Property owners who receive a C-PACE loan won’t have to make
a payment or put up cash up front. The loans are also secured with a lien on the
property — not against the business. C-PACE loans are amortized over a
project’s useful life, often a much longer period than the five years typically
allowed by commercial loans.

C-PACE will benefit the county by enhancing overall property
tax values and supporting employment and economic growth. What’s more
important, the program advances the county’s commitment to cut greenhouse gas
emissions and encourage investment in energy efficiency.

The program will be administered by a private company that the county will select through a competitive bid.

After the county selects a C-PACE program administrator,
detailed information about eligible properties and projects will be available.
For more information, contact the Fairfax County environmental and energy
coordinator, 703-324-1788.