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
When a C-PACE project is partially funded by both C-PACE and a traditional senior mortgage, the arrangement is often called:
Answer: A blended or stacked financing structure
Blended or stacked financing combines C-PACE with a senior mortgage to fund the full project cost, with each instrument covering a defined layer of the capital stack.
What is the typical maximum term for a C-PACE assessment repayment period?
Answer: 25 to 30 years
C-PACE assessments commonly allow repayment terms up to 25 or 30 years, aligning with the useful life of the installed improvements.
Which government body is usually responsible for collecting C-PACE assessment payments from property owners?
Answer: The local tax collector or county treasurer
Local tax collectors or county treasurers collect C-PACE payments as part of the property tax bill and remit funds to the capital provider.
What is the primary reason C-PACE programs require an independent 'third-party review' of contractor bids and project scope?
Answer: To verify that costs are reasonable and improvements will achieve projected savings
Independent review protects property owners and capital providers by confirming project costs are market-appropriate and savings projections are technically sound.
A C-PACE lien is recorded against a commercial property. If the owner fails to pay the assessment, the most likely first enforcement action is:
Answer: Addition of penalties and interest to the delinquent assessment on the tax roll
Like unpaid property taxes, delinquent C-PACE assessments accrue penalties and interest on the tax roll before escalating to tax lien sale or foreclosure.
Which federal regulatory body has expressed concern about C-PACE super-priority liens affecting federally backed commercial mortgages?
Answer: The Federal Housing Finance Agency (FHFA)
FHFA has issued guidance raising concerns about C-PACE super-priority liens on properties with Fannie Mae or Freddie Mac-backed loans.
How does a C-PACE program ensure that capital is not disbursed for work that has not been completed?
Answer: By using draw schedules tied to contractor milestones and completion documentation
Draw schedules with milestone verification ensure that capital is released only as documented work is completed, reducing the risk of incomplete projects.