How Pace Works
PACE is used to supplement traditional mortgage debt proceeds and complete a capital stack. PACE is instrumental in bridging funding gaps between the mortgage and equity. As an alternative form of capitalization, PACE may not apply toward HVCRE requirements.
Pace is not a mortgage
PACE assessments are collateralized by a special assessment lien, not a mortgage. Unlike mortgages, PACE liens cannot be accelerated – meaning the loan cannot be called in the event of a default. This is an importance distinction and gives mortgage lenders comfort when consenting to PACE.
PACE is available in 35 states plus the District of Columbia for eligible improvements.