Property Owners

The first step in securing PACE financing is to complete the Pre-Application, which verifies program eligibility before applicants invest in project development.

To get started, visit the Project Center to create an account. The Project Center houses program materials and is where subsequent steps in the application process will take place.

PACE Wisconsin will notify applicants of their status within two business days of receipt of a completed Pre-Application.

Applicants with eligible PACE projects will gain access to all PACE Wisconsin program materials, including the Program Manual and application forms.

Following approval of the Pre-Application, property owners should develop their project. Before filing the Final Application, property owners must:

Complete an Energy Assessment, as defined in the Program Manual. Work with installation contractors to determine the PACE Project scope, cost, and schedule.

NOTE: If the Applicant has a preferred lender who is not yet eligible for PACE Wisconsin, request that the lender submit a Request for Qualification to PACE Wisconsin.

• Obtain consent from any existing mortgage holder(s).
• Contact eligible PACE Lenders to secure PACE Financing.

The Final Application is available to the Applicant upon approval of the Pre-Application, and is accessible through the Project Center (under "Existing Application"). Along with a complete Final Application form, Applicants are required to submit documentation about the PACE Project(s). The Final Application form within the Project Center contains a section wherein Applicants must upload all required documents. Along with a complete Final Application, Applicants shall provide the following supporting documentation:

Signed Installation Contracts from contractor(s) Energy Assessment Savings Guarantee (for PACE Financings greater than $250,000) Most Recent Utility Bill Statement(s) Mortgage Lender Consent (for properties encumbered by a mortgage financing) Mortgage Loan Balance(s) Appraisal (if property value is not based on assessed value) Title Report Signed Final Application

PACE Wisconsin will review the Final Application and provide the Applicant with written Notice of Approval or request for more information within 10 business days of a Final Application submission.

Upon the Program Administrator’s approval of the Final Application, a Notice of PACE Wisconsin Approval will be sent to the Applicant and his or her designated agent. Upon receipt of the Notice of PACE Wisconsin Approval, the Applicant may proceed with closing the PACE Financing.

In addition to any financing agreements required by the PACE Lender, the Borrower, PACE Commission, and PACE Lender are required to execute the PACE Financing and Special Charge Agreement in conjunction with closing the PACE Financing.

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PACE Wisconsin utilizes a "direct billing and payment" system, which requires the PACE Borrower to make annual installment payments directly to the PACE Administrator (or its servicer). The PACE Administrator will be responsible for directing payments to the applicable PACE Lender.

The Program Manual sets forth the PACE Commission’s guidelines and processes for which Applicants seeking to complete a PACE Project may be approved to utilize PACE Financing. The Program Manual is subject to approval by the Wisconsin PACE Commission board of directors. A copy of the program manual is available to Applicants through the Project Center, PACE Wisconsin’s application management system.

The PACE Wisconsin program is currently available to commercial properties (office, retail, warehouse, hospitality, agricultural and industrial) located within a participating community. This includes for-profit businesses and non-governmental, tax-exempt properties such as privately-operated community centers and hospitals. The property may also be a multifamily building with five or more dwelling units.

PACE Wisconsin supports the redevelopment of existing Eligible Properties with energy and water conservation and renewable resource measures (also referred to as “PACE Projects”). New construction PACE Projects are also eligible, but require additional verification and documentation as set forth in the Program Manual.

• PACE Project improvements must reduce energy usage, water usage, or generate renewable power for the property.
• Improvements associated with the PACE Project must have a useful life of at least five years.
• Improvements must be permanently affixed to the real property.
• The PACE Financing amount plus the outstanding principal amount of all mortgage liens secured by the property shall not exceed 95% of the property value, unless otherwise approved by PACE Wisconsin. PACE Lenders may have additional limits based on their underwriting criteria.
• PACE Projects with PACE Financing amounts both above and below $250,000 are subject to specific requirements; see below.

Eligible improvements include but are not limited to:

• High efficiency lighting
• Heating ventilation air conditioning (HVAC) upgrades
• New automated building and HVAC controls
• Variable speed drives (VSDs) on motors, fans and pumps
• High efficiency chillers, boilers and furnaces
• High efficiency hot water heating systems
• Combustion and burner upgrades
• Water conservation measures
• Heat recovery and steam traps
• Building enclosure/envelope improvements
• Building automation (energy management) systems
• Renewable energy systems
• Engineering and project development costs associated with the above improvements

Ineligible projects include but are not limited to:

• Compact fluorescent and LED, screw-in lamps
• Plug load devices
• Measures that are not permanently installed and can be easily removed
• Measures that save energy solely due to operational or behavioral changes
• Power factor correction, power conditioning
• Any measure that does not result in energy, water savings or renewable energy production
• Any measure that cannot be explained in terms of industry-standard engineering or scientific principles
• Refrigerant charge (AC/Split Systems/Heat Pumps)

Yes, PACE Projects can qualify and receive additional rebates and incentives from Focus on Energy and other sources. PACE borrowers are encouraged to obtain all applicable government, utility provider or manufacturer rebates, and other upfront cost reductions to reduce the total PACE Project cost for purposes of calculating the amount of the PACE Financing.

The Applicant must submit an Energy Assessment or Renewable Energy Feasibility Study for the PACE Project that evaluates the proposed improvements the owner is seeking to finance and is consistent with the requirement set forth in the Program Manual. While not explicitly required by the PACE Statute, PACE Financings less than $250,000 are recommended to achieve a Savings-to-Investment ratio greater than 1.0. PACE Lender underwriting requirements may require PACE Projects achieve a SIR that is greater than 1.0.

• The Applicant must submit an Energy Assessment that describes the energy, water and operational benefits that will accrue from the proposed improvements being financed with the proceeds of the PACE Financing. The Energy Assessment must be consistent with the requirement set forth in the Program Manual.
• Combined, these benefits must achieve a Savings-To-Investment Ratio of one or greater.
• Finally, these projected energy, water, and operational benefits shall be guaranteed by the project engineer or the contractor pursuant to a Savings Guarantee that is consistent with the requirements set forth in the Program Manual.
• To verify that the PACE Project is installed and performs according to the projections modeled in the Energy Assessment and/or Renewable Energy Feasibility Study the written Savings Guarantee must include an Engineering Commissioning and Verification process. Additional details can be found in the Program Manual.

Required for projects over $250,000, a written guarantee from the contractor, project engineer, or a third part must cover a minimum of three years. It must provide that the party shall pay the property owner any shortfall between the guaranteed cash flow and the actual cash flow savings derived from the PACE Project. Additional details can be found in the Project Manual.

All Applicants must provide the written consent of the existing mortgage lender or other real property lienholder of record on the Eligible Property prior to Final Application. The Lender Consent template that Applicants need to complete is available. See the Program Manual for additional details.

Property value will be determined by either the assessed value from the appropriate assessor’s office or alternatively Eligible Property Owners may supply an appraisal completed within 12 months of the PACE Financing closing date and prepared by an independent real estate appraisal firm. Eligible Property Owners of property-tax exempt properties must provide an appraisal, as described above.

The PACE Financing term should not exceed the expected life of the proposed improvements as described in the Energy Assessment. For projects that include multiple Energy Conservation Measures, the term of a PACE Financing may not be greater than the Energy Conservation Measure with the longest expected useful life, as described in the Program Manual.

The PACE Project budget may include all costs required to complete the PACE Project

• Installation/construction contract amount
• Engineer’s energy analysis
• Other required design and engineering
• Project development fees
• Engineer or contractor’s guarantee fees
• PACE Wisconsin Program Fees
• Permit fees
• Surveys
• Legal fees
• Financing fees
• Capitalized interest

To be eligible to participate in the program, a property owner must, at a minimum:

• Be the person or persons possessing the most recent fee title or land contract vendee’s interest of an Eligible Property as shown by the records of the Register of Deeds.
• Obtain the written affirmative acknowledgment of existing mortgage lenders of participation in PACE Wisconsin Program.
• Certify they (and its corporate parent if the property owner is a single-purpose entity) are solvent and that no proceedings are pending or threatened in which the property owner (or the corporate parent, as applicable) may be adjudicated as bankrupt.
• Be current in the payment of all obligations secured by the subject property, including property taxes, special assessments, special taxes or any other tax liens.
• Have no involuntary liens, defaults or judgments applicable to the subject property.
• Properties that are currently appealing a property tax assessment will be reviewed, and eligibility for the PACE Wisconsin Program will be determined on a case-by-case basis.
• See complete Eligible Property Owner requirements in the Program Manual

Program Fee

• The Program Fee is one-time administrative processing fee that equals one-and-a-quarter percent (1.25%) of the first $1.75 million of the PACE Financing amount plus one percent (1.0%) of any amount remaining above $1.75 million, and is due at or prior to the PACE Financing closing date.
• The Program Fee shall be no less than a minimum of $2,000, nor greater than a maximum of $85,000.

Annual Fee

• The Annual Fee is collected annually with the PACE Special Charge installment payment over the term of the PACE Financing.
• The Annual Fee equals one tenth of a percent (0.1% / 10 basis points) of the PACE Financing amount and shall be no less than a minimum of $250 per year (or installment payment), nor greater than a maximum of $1,250 per year.

Yes. New construction projects, unlike existing-building retrofits, do not have a history of pre-improvement energy consumption data from which baseline energy consumption can be formulated. Without the benefit of this baseline building performance data, additional Energy Assessment requirements are necessary as set forth in the Program Manual.

Completed installations of eligible Clean Energy Measures are eligible for retroactive PACE Financing. All such retroactive PACE Financings must occur within thirty months of the time elapsed between the completion of the installation and close of the PACE Financing. Retroactive PACE Financings are subject to additional eligibility requirements as defined in the Program Manual.