PACE is a financing solution based on the land value of grain producers. PACE financing makes previously unaffordable or financially unattractive green infrastructure measures both affordable and desirable.
Property value-based financing has the following characteristics:
- It is not a loan, but private funds managed by the municipality. and allocated per project based on property valuation.
- The owners therefore retain their credit capacity.
- The allocated funds can cover 100% of all eligible costs (soft, hard and associated).
The duration and the interest rate are fixed for the entire duration of the project. - Funds advanced are secured by a tax lien and can be transferred to the new owner upon resale.
- Repayment terms can extend up to 30 years, and
- Finally, there is no acceleration in the event of a tax default or foreclosure; only outstanding annual tax assessments become payable.
Together, these characteristics distinguish PACE-type financing from other forms of financing and make it particularly attractive to agricultural producers and municipalities.