Practice Test Geeks(CPACE) Commercial Property Assessed Clean Energy Practice Test
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Assessment Process Flashcards

7 cards from real CPACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Assessment Process flashcards as text

  1. Which entity typically initiates the PACE assessment by filing a notice with the county or municipality?

    Answer: The property owner

    The property owner voluntarily initiates the C-PACE assessment by applying to the program and agreeing to the lien on their property.

  2. What happens to a C-PACE assessment lien when a commercial property is sold?

    Answer: It transfers to the new property owner

    C-PACE assessments are attached to the property, not the borrower, so the obligation transfers to the new owner upon sale.

  3. Which professional typically conducts the energy audit required before a C-PACE assessment is approved?

    Answer: A qualified energy auditor or engineer

    A qualified energy auditor or engineer assesses existing conditions and projects the savings from proposed improvements.

  4. The 'savings-to-investment ratio' (SIR) in C-PACE underwriting is used to verify that:

    Answer: Projected energy savings meet or exceed the financing cost

    An SIR of 1.0 or greater confirms that projected savings are sufficient to cover the assessment payments, a key underwriting requirement.

  5. What is the purpose of the 'notice of assessment' recorded in land records during the C-PACE process?

    Answer: To publicly disclose the lien and its terms on the property

    Recording the notice of assessment creates a public record of the lien, putting future purchasers and lenders on notice of the encumbrance.

  6. Under most C-PACE programs, how is the assessment payment typically structured for the property owner?

    Answer: Semi-annual or annual payments added to the property tax bill

    C-PACE assessments are typically repaid through semi-annual or annual installments billed alongside the property's regular tax obligations.

  7. Which scenario would most likely trigger a mandatory lender consent requirement before a C-PACE assessment is approved?

    Answer: The property has an existing senior mortgage lien

    Because C-PACE assessments can hold super-priority or senior lien status in some states, existing mortgage lenders typically must consent to protect their collateral position.