New Jersey real estate owners interested in improving their property’s energy or water efficiency, take note: Now is your chance to submit feedback on an aspect of New Jersey’s version of the Commercial Property Assessed Clean Energy (C-PACE) program, a tool designed to help finance sustainability improvements to eligible commercial, industrial, agricultural, and multi-family residential real property.
The New Jersey Economic Development Authority (NJEDA) on August 14 released for public review and feedback draft uniform assessment documents, which are viewable on the right side of this page. The feedback, which interested parties can submit to the NJEDA by writing Gardenstatecpace@njeda.gov, is due before midnight on August 21.
Once the Garden State’s C-PACE program is operational, the draft documents will help the owners of certain properties to finance eligible improvements by paying an additional assessment to their property, similar to a real property tax. These assessments are senior liens secured by the property and—if the property is sold—the next owner is obligated to pay them.
It is worth noting that the program will require holders of mortgage liens on the subject properties to consent to C-PACE financing before it may be utilized.
Established pursuant to legislation signed into law by New Jersey Governor Murphy in August 2021, the Garden State’s C-PACE program will afford the above-described special financing to industrial, agricultural, or commercial properties; residential properties containing five or more dwelling units; common areas of condominiums and other planned real estate developments; and properties owned by a tax-exempt or nonprofit entity, including, schools, hospitals, institutions of higher education, and religious institutions.
Connell Foley is monitoring the NJEDA’s movement on the Garden State’s C-PACE program and will continue to publish updates on its implementation.