CPACE Property Evaluation 4

Question 1

Which scenario would most likely REDUCE the eligible CPACE financing amount after property evaluation?

Accepted Answer

Discovery of asbestos-containing materials requiring abatement before installation

Answer

The property having multiple tenants

Answer

The building being located in a Qualified Opportunity Zone

Answer

The project including both solar and HVAC improvements

Question 2

In evaluating a multi-tenant commercial property for CPACE, what key lease provision must the evaluator review?

Accepted Answer

Triple net (NNN) lease clauses that determine who pays utility and tax costs

Answer

Tenant improvement allowance schedules

Answer

Percentage rent provisions

Answer

Tenant renewal option windows

Question 3

What is the purpose of a 'desktop appraisal' versus a 'full appraisal' in CPACE property evaluation?

Accepted Answer

A desktop appraisal uses existing data without a site visit and is faster but less thorough

Answer

A desktop appraisal is required by law for all CPACE transactions over $1 million

Answer

A full appraisal considers only the land value, not improvements

Answer

A desktop appraisal is performed by county assessors only

Question 4

When a CPACE project includes a battery energy storage system (BESS), how is the resiliency benefit typically quantified in the property evaluation?

Accepted Answer

By estimating avoided downtime costs and backup power duration in outage scenarios

Answer

By the battery's weight and physical footprint

Answer

By the manufacturer's warranty length

Answer

By the property's distance from the nearest utility substation

Question 5

A CPACE evaluator reviews a building with a 'green lease' provision. Why is this relevant to the evaluation?

Accepted Answer

Green leases may align landlord and tenant incentives, improving the viability of energy savings projections

Answer

Green leases automatically qualify the building for federal tax credits

Answer

Green leases eliminate the need for senior lender consent

Answer

Green leases guarantee CPACE assessment payments through tenant escrow

Question 6

Which element is NOT typically included in a CPACE Project Completion Certificate?

Accepted Answer

Owner's personal income verification

Answer

Contractor attestation that work was completed as specified

Answer

Final installed cost of eligible improvements

Answer

Confirmation that required permits were obtained and inspections passed

Question 7

How does seismic retrofitting factor into CPACE property evaluation in eligible jurisdictions?

Accepted Answer

It can be eligible as a resiliency improvement, and its value is quantified through reduced expected annual loss (EAL)

Answer

It is never eligible because it is not an energy improvement

Answer

It qualifies only if combined with a solar PV installation

Answer

It is eligible only for properties built before 1950