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County attorney briefs commissioners on new North Carolina CPACE program; board asks for follow-up information
Summary
Johnston County's county attorney briefed commissioners on the newly available North Carolina CPACE program, a voluntary statewide financing mechanism that enables private long-term funding of energy-efficiency and resiliency upgrades and is administered by the Economic Development Partnership of North Carolina.
Jennifer Slusher, Johnston County's county attorney, introduced the North Carolina CPACE program to the Board of Commissioners on Aug. 4, describing it as a newly authorized financing tool that allows private capital providers to fund energy-efficiency, resiliency and water-conservation improvements on qualifying commercial, industrial, multifamily (five or more units) and certain nonprofit properties.
"In 2024, the General Assembly created the CPACE Act," Slusher said. She told the board the Economic Development Partnership of North Carolina (EDPNC) administers the statewide program, that participation by counties and cities is voluntary, and that the program does not expose the county to financial obligation or legal liability because the financing is private and collection is handled by the capital provider.
Slusher outlined key program features: qualifying improvements include energy-efficiency measures, stormwater and flood-resiliency work, indoor-air-quality upgrades and water-conservation projects; financing can provide 100% of direct and soft costs and is repaid via a voluntary assessment that runs 20 to 30 years; liens created under CPACE are senior to many private liens but subordinate to tax liens; and typical fees include a $750 application fee, an administrative fee to EDPNC of 1% of financing (capped at $25,000) and potential reimbursement to the county of up to $500 for local administrative costs. She emphasized that no taxpayer funds are used to repay CPACE assessments.
Several commissioners pressed for clarification about how CPACE differs in practice from existing commercial loans and whether private capital would invest in projects that banks would not finance. Slusher said examples from other jurisdictions and a commercial developer's input suggest the program can make long-term, 100% financing more available for improvements with longer payback periods, and offered to provide the EDPNC toolkit, white paper and to invite EDPNC staff to present to the board.
The board did not take action on CPACE during the meeting; commissioners asked staff for more information and a possible future presentation by EDPNC.
