Program Structure 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 Program Structure flashcards as text
Which entity typically administers a C-PACE program at the local level?
Answer: A state-chartered special assessment district or program administrator
C-PACE programs are administered through state-chartered special assessment districts or designated program administrators authorized by state enabling legislation.
What role does a 'program administrator' play in C-PACE financing?
Answer: They oversee program compliance, coordinate between parties, and manage the assessment process
The program administrator coordinates between lenders, property owners, and local governments while ensuring compliance with program requirements.
In a C-PACE transaction, who typically holds the lien on the property?
Answer: The local government or assessment district
The C-PACE assessment lien is held by the local government or assessment district, similar to a property tax lien.
What is the typical maximum term for a C-PACE financing agreement?
Answer: 25–30 years
C-PACE financing terms typically range up to 25–30 years, allowing repayment periods that align with the useful life of improvements.
Which of the following correctly describes the 'voluntary assessment' nature of C-PACE?
Answer: Property owners opt in voluntarily; no assessment is placed without owner consent
C-PACE is strictly voluntary — property owners must apply and consent before any special assessment is placed on their property.
How does a C-PACE program typically handle the transfer of the assessment obligation when a property is sold?
Answer: The assessment obligation transfers automatically with the property to the new owner
Like other property tax assessments, the C-PACE obligation runs with the land and transfers to subsequent property owners at sale.
What document formally establishes the terms of a C-PACE financing and triggers the special assessment?
Answer: A C-PACE assessment agreement or financing agreement recorded against the property
A recorded C-PACE assessment or financing agreement is the legal instrument that establishes the special assessment lien and financing terms.