vcc – impact lending across virginia bill greenleaf
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VCC – Impact Lending Across Virginia
Bill Greenleaf
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Property Assessed Clean Energy - PACE
• Energy efficiency, renewable energy and water efficiency loan program
• Set up by locality (required by law)• Private lenders make these loans• Repaid on real estate tax bill• Lien is senior to existing mortgage- equal
status as a real estate tax lien• Loan stays with property upon resale
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PACE- Solution to Market Place Problem
• Property owners unwilling to invest in long payback energy projects due to short duration of property ownership
• No long term loans (beyond 10 years) for energy projects.
• Cashflow positive day one
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PACE in Virginia
• PACE legislation passed in 2015• Virginia Bankers Association- neutral
position• Existing mortgage holder must subordinate• Commercial, Industrial, Multifamily (not SF)• Requires localities to set up PACE programs• Private lenders can participate• Localities can charge fees to cover costs
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PACE Legislation Setting the Stage
• Business coalition• Locality support• Lobbyist
– Spend the big bucks to get the best– $35,000 lobbying & education effort (idle time)
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PACE LegislationPlay Time
• Virginia Bankers Association– deal, no deal, deal– United Bank- the white knight
• Securing legislative sponsors• Virginia Association of Realtors
concerns• Competing PACE bills• Committee assignment- not as
expected• Title insurance company concerns• Foundations- PACE loans 6