Practice Test Geeks(CPACE) Commercial Property Assessed Clean Energy Practice Test
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Property Evaluation 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 Property Evaluation flashcards as text

  1. When conducting a CPACE property evaluation, which document most directly establishes the baseline energy consumption before improvements?

    Answer: Utility bills from the prior 12–24 months

    Utility bills from the prior 12–24 months establish the baseline energy or water consumption used to project savings from CPACE-funded improvements.

  2. A CPACE lender orders a Property Assessed Value report. What is the PRIMARY purpose of this report in the underwriting process?

    Answer: Confirm the property generates sufficient assessed value to support the CPACE lien

    CPACE financing is underwritten against the property's assessed value, so lenders confirm there is adequate value to secure the special tax assessment.

  3. Which metric is typically used to express the relationship between projected annual energy savings and annual CPACE assessment payments?

    Answer: Savings-to-Investment Ratio (SIR)

    The Savings-to-Investment Ratio (SIR) compares projected annual savings to the annual cost of the CPACE assessment, confirming economic viability.

  4. An energy auditor classifies a commercial building as ASHRAE Level 2. What does this signify for the CPACE property evaluation?

    Answer: A detailed energy analysis with capital cost estimates was performed

    An ASHRAE Level 2 audit provides detailed engineering analysis and capital cost estimates for recommended energy conservation measures.

  5. How does a senior mortgage lender's consent requirement affect the CPACE property evaluation timeline?

    Answer: It can delay closing if the lender requires additional property appraisal or legal review

    Many states require senior lender consent before a CPACE lien can be placed, and the lender's review process can extend the overall evaluation and closing timeline.

  6. In CPACE underwriting, what does 'improvement-to-value' (ITV) ratio measure?

    Answer: The CPACE financing amount divided by the assessed value of the property

    ITV measures the CPACE loan amount as a fraction of the property's assessed value, similar to LTV in conventional lending, and most programs cap it at 10–25%.

  7. A commercial property owner wants to include a rooftop solar PV system in a CPACE application. Which element of property evaluation is MOST critical for sizing the system?

    Answer: The property's electricity load profile and roof structural capacity

    Proper solar sizing depends on the building's electricity consumption load profile and whether the roof structure can support the panels.