2018 List of Consenting Lenders to Date

America’s Christian Credit Union, A2B2 LLC, Academy Bank, Ally Bank, Ally Capital, Amalgamated Bank, American Agricultural Bank, American River Bank*, American West Bank, Ameriprise Financial, Ameritas Investment Partners, Bank of America*, Bank of Ann Arbor, Bank of New York Mellon (as Trustee), Bank of Sullivan, Bank of the West*, Bank Rhode Island, Bankwell, Banner Bank, BBCN Bank, Berkshire Bank*, BMO Harris Bank, Bremer Bank, Bridge Bank, Business Lenders LLC, Byzantine Diocese of Stamford, CAB Associates, California Bank and Trust*, California Plan of Church Fi-nance, Inc, Capital Region Development Authority, Cen-Cal Business Finance Group, Charter Oak Federal Credit Union, Chase, Chelsea Groton Bank, Chelsea State Bank, Chestnutz, Cheviot Savings Bank, Circle Bank, Citibank, Citizens Bank*, Citizens Business Bank, City National Bank, Connecticut Innovations, CT Dept of Economic & Com-munity Development, CTBC Bank Corporation, CW Capital, Department of Economic and Community Development (CT), Deutsche Bank*, Dime Bank, District of Columbia Housing Authority, Eagle Bank, Exchange Bank*, Fairfield County Bank, Farm Credit East, Farmington Bank, Fifth Third Bank*, First Bank of Boulder*, First Bank of Lake Forest, First Citizens Bank & Trust, First Community Bank*, First County Bank, First Mountain Bank, First National Bank of Boulder*, First Niagara Bank*, First Republic Bank*, First State Bank & Trust, First Utah Bank, Five Star Bank, Flatirons Bank of Boulder, Folsom Lake Bank, Free and Clear, Genworth Life Ins. Co, Golden Pacific Bank, Great Western Bank, Greater Sacramento Development Corp., GRS Realty, LLC, Guaranty Bank and Trust*, Hanmi Bank, Helaba Landesbank Hessen-Thüringen, Heritage Bank of Commerce, Hometown Bank, HSH Nordbank, JP Morgan Chase*, Key Bank, Layne Foundation, Lehman Brothers, Liberty Bank, Litchfield Bancorp*, M&T Bank, Marion Haddad, McCoy Ventures, Mechanics Bank, Mercedes Benz Financial Services, Metropolitan Life Insurance(and as LIHTC Investor)*, Michigan Business Connection LLC, Monson Savings Bank, Mortgage Calmwater Capital, Mutual of Omaha Bank, National Iron Bank, New Resource Bank*, Newtek Small Business Finance, LLC, Newtown Savings Bank, NorthEast Community Bank, Northwest Mutual Insurance, NUVO Bank, NY State Teachers’ Retirement System, Oritani Bank, Pacific Alliance Bank, Pacific Premier Bank, Pacific Union 7th Day Adventists (Parker Mortgage & Investment Co.), Patriot Bank, People’s National Bank, Peoples Bank of Massachusetts, Peoples United Bank, Plumas Bank, Preferred Bank, Premier Valley Bank, Presbyterian Church Investment & Loan Program, Inc., ProAmerica, Prosperity Bank, Protective Life Insurance, Prudential Insurance, PyraMax Bank, Milwaukee Economic Develop-ment Corporation, Redwood Credit Union*, Riversource Life Insurance Company, Rockland Trust*, Rockville Bank, Royal Bank of Canada (as LIHTC Syndicator), Royal Credit Union, Salisbury Bank & Trust, Santa Cruz County Bank, Savings Institute Bank & Trust, Security Bank of Kansas City Simsbury Bank, Sonoma Bank*, Stancorp Mortgage Investors*, Standard Life Insurance, State Bank of Delano, Sterling Savings Bank*, Summit State Bank, TD Bank, The Private Bank & Trust, Thomaston Savings Bank, Torrey Pines Bank, Toyota Financial Services, TriCounties Bank/Private party, Umpqua Bank*, Union Bank of California, Union Savings Bank*, United Bank*, UPS Capital Business Credit, US Bank*, US Department of Agriculture (USDA), US Small Business Administration (SBA)*, Vectra Bank, Washington D.C. Housing Authority, Washington Trust*, Waterbury Development Corporation, Webster Bank, Wells Fargo*, West America Bank*, Westerly Community Credit Union, Westfield Bank, Whitcraft, LLC, Whittier Trust Company of Nevada, Wilshire Bank, Windsor Federal Savings

* More than one consent provided

Source: PACENow

All Star Panel Speaks at PACE Sustainability Event

All Star Panel Speaks at Bisnow Sustainability Event

Source of Excerpts: Houston Sustainability  Kyle Hagerty, Bisnow Houston Jul 29, 2016

Senior adviser in the Mayor's Office of Sustainability Marina Badoian-Kriticos said "The goal of the city is to make it more than the energy capital of the world. Houston can also be the efficiency capital of the world. The key to achieving that is through improvements in construction, renovation and property management."  

"Sustainability and business are [often] inconsistent. Capital improvements and investment decisions often work against each other. PACE is a new financing concept to solve that problem. Started about eight years ago, fairly new to Texas, and brand-new to Houston, the program allows property owners to access 100%, fixed-rate, long-term non-recourse financing on building improvements that conserve energy or water. The loans require the savings be greater than the cost of implementation, so they're actually self-funding. This effort isn't about being green, it’s not about decreasing electricity or saving water. It’s about increasing NOI. Economics is the primary driver, but sustainability and efficiency are the primary benefits. Think this sounds like a great idea? So do others. Harvard named PACE one of the top five breakthrough ideas and Scientific American named PACE one of the 20 best ideas in the world." PACE Houston president, Tim Crockett

"Texas was actually already at the forefront of green building, so this push could make us one of the leaders in the space. The US Green Building Council ranked Texas eighth in the country (to many's surprise, we're sure) largely due to sustainability efforts in Houston." 

Skanska chief sustainability officer Elizabeth Heider shared the stats: "In 2005, Doge (at the time, McGraw-Hill), found only 2% of real estate was green. By next year, between 48% and 54% of the market will be green. She says sustainability is no longer a fad, it is a trend." 

JLL EVP of sustainability, energy and safety Robert Best (co-author of "Green + Productive Workplace The Office of the Future"  (available on Amazon) noted: 
 "Not only does sustainability help your bottom line and the environment, but it can also improve productivity. All nine cognitive aspects that make up productivity (like memory, mental acuity and math ability) are improved by sustainable efforts, according to research. A study about kids taking the SAT found they do consistently better when they take the test in a room filled with daylight. Minimizing CO2 in the workplace is another focus of the USGBC. A study by three Harvard professors found a stunning correlation in how people perform across the nine cognitive area while in the presence of varying levels of C02. These can have a major impact on your bottom line. Energy savings at best are a few dollars per SF, but if you can improve productivity, it blows energy savings out of the water. That's the potential building owners and managers are dealing with." 

TrueGrid CEO Barry Stiles noted an innovative solution to Houston's reliance on concrete in parking lots. "True Grid is a form of permeable pavement made from a unique design of plastic and gravel that not only saves concrete, but also functions as stormwater retention. Businesses all around Houston have seen the benefit, and True Grid is in talks to work with the largest building in the world, the 13.1M SF Tesla factory. Because of potential cost savings on land required for stormwater retention, True Grid is a prime candidate for PACE funding." Their website is www.truegridpaver.com

 

Read more at: BISNOW's complete article is at Article by Kyle Hagerty, Bisnow Houston Jul 29, 2016

New Capital Source as Credit Markets Tighten

"Lenders are getting stingier when it comes to funding risky U.S. real estate developments ... Property owners are facing a host of challenges. Overbuilding in some areas, the protracted slump in oil prices, a strong dollar eating into tourism, declining stock values and slowing growth in China are all weighing on landlords. At the same time, the Federal Reserve is raising interest rates for the first time in nine years." Furthermore, the breakdown of the CMBS market is choking off funding for maturing debt. And borrowers are seeking out alternative sources of capital that may offer less-generous terms." Bloomberg March 15, 2016

For Houston the drop in oil prices, layoffs in the energy sector and uncertainty about near-term inventory absorption have further contributed to tighter bank and mortgage underwriting standards - constraining capital budgets; even for necessary capital improvements. Against this backdrop, many are struggling both to maintain their NOI levels and to obtain capital to finance improvements. 

For those investors who can access capital, many with financing needs must now pay higher rates and put up more equity. Many must even postpone projects that would improve their NOI and property valuation.  

The timing could not be better for the arrival of PACE. 

PACE addresses the tighter capital market with 100% long term fixed rate financing that can improve the property's NOI and valuation; both addressing existing lender credit concerns and enabling the owner to make the needed improvements.

Since PACE allows a property owner to borrow 100% of the capital required for the weighted average useful life of the improvements (up to 30 years), the annual loan repayment is a fraction of the amount of a typical short term loan amortization.  This smaller annual loan payment results in the annual energy savings exceeding the annual loan payment - resulting in improved property cash flow. The PACE loan is secured by and repaid through the property’s annual property tax bill verses the typical monthly P&I to a bank.  

So instead of putting down the required equity on a traditional loan and making larger payments, consider utilizing PACE’s 100% financing to pay for your energy saving improvements.