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MassDevelopment outlines CPACE financing and invites Northborough to opt in
Summary
MassDevelopment presented the Commercial Property Assessed Clean Energy (CPACE) program to Northborough Select Board, explaining private lenders provide long‑term financing for energy projects repaid via a municipal betterment assessment; staff were urged to follow up with MassDevelopment to assess workload and grant readiness.
Connor Glasheen, a MassDevelopment green‑finance specialist, told the Northborough Select Board on Nov. 24 that the Commonwealth’s Commercial PACE program lets commercial property owners access long‑term private financing for energy upgrades and new construction, repaid through a special betterment assessment on the property tax bill. "PACE allows commercial property owners to access financing for energy improvements," Glasheen said.
Glasheen described how the financing works: approved private capital providers supply funds up front; the municipality bills a PACE betterment assessment on the property tax schedule; Zions Bank, acting as MassDevelopment’s paying agent, remits payments to the capital provider. He emphasized that MassDevelopment’s program uses private capital only and that MassDevelopment pays for a Municap consultant to help towns with betterment billing at no cost to municipal staff.
The presenter cited program scale and recent activity: 32 states plus Washington, D.C. have programs or enabling legislation, and MassDevelopment’s program (launched in 2020 and expanded to new construction in May 2023) lists roughly $9.7 billion in financed projects nationally and multiple Massachusetts case studies, including solar and building‑envelope work that totaled just over $1.1 million in two recent deals.
Board members pressed for concrete examples and asked whether the program creates extra work for town staff. Glasheen outlined the application flow: the property owner applies to MassDevelopment and the Massachusetts Department of Energy Resources (DOER) for technical approval; after DOER sign‑off MassDevelopment notifies the town and coordinates billing setup. "We try our best to ease that burden on town staff," he said, adding that MassDevelopment remains engaged with towns that opt in.
On costs, Glasheen said rates are market‑based rather than statutory and estimated current PACE deals in Massachusetts are often in the mid‑to‑high single digits: "somewhere between the 7 to 8% range," he said. He also clarified that PACE assessments do not lower ordinary property tax collection: the town would still collect 100% of property tax and the PACE betterment appears as an additional line on the bill.
Glasheen answered eligibility questions: municipally owned properties are not eligible under current rules, but multifamily buildings of five or more units are treated as commercial and can qualify; some mixed‑fuel systems may qualify only when paired with higher‑performance certifications under DOER technical guidelines.
Next steps: board members asked staff to consult with MassDevelopment and peer communities about the administrative workload and potential early design work that could make local projects competitive for state grants. Glasheen told the board MassDevelopment would follow up with staff and is available for additional briefings and technical assistance.
