HI C-PACER

HI C-PACER

Hawaii’s Commercial Property Assessed Clean Energy and Resiliency (“HI C-PACER”) financing program is a state-sponsored program that provides a new form of financing that helps building owners and property developers access private-sector financing for the installation of energy efficiency, water conservation, renewable energy, resilience and other qualifying improvements.  HI C-PACER projects typically lower energy, water or insurance costs, increase renewable energy deployment, reduce greenhouse gas emissions, and create local jobs.

HI C-PACER Program Guide

What types of properties are eligible for financing?

Any existing or new fee simple or leasehold non-residential real property with one of the following uses:

  • Commercial
  • Industrial
  • Agricultural
  • Nonprofit (e.g. houses of worship, private educational institutions)
  • Multifamily housing with five or more dwelling units (apartments, townhouses)

Qualifying Improvements

HI C-PACER provides both retrofit financing and new construction financing of Qualifying Improvements (QI).  QIs must be permanently
affixed to the building or property, including but not limited to:

Clean Energy

Solar PV Systems
EV Charging Stations
Wind
Fuel Cells
Geothermal

Resiliency

Improve the durability of infrastructure

Flood mitigation
Hurricane mitigation
Storm / sea level rise
Energy storage systems
EV charging systems
Indoor air quality
Seismic measures
Fire suppression systems
Re-roofing

Energy Efficiency

Insulation
Building envelope
HVAC
Lighting
Solar Thermal
Heat Pumps
Other measures approved by HGIA (in concert with Hawaii Energy)

Wastewater/Drinking Water

Septic Systems
Aerobic treatment unit systems
Connection to sewer systems
Drinking water projects
Water conservation measures

Expenses eligible for financing

Energy / water audits, feasibility studies, etc.List item
Soft costs (e.g., engineering and design; legal; permit fees, etc.)
Hard costs (e.g., new ducting, wiring, roof upgrades, etc. if part of a system, i.e., cooling, heating, water, solar)
Commissioning costs
Beneficial electrification projects
Prepaid operations and maintenance (O&M) costs for up to 5 years (including measurement and verification costs)
Cost of extended warranties
Financing costs (e.g., QCP or project developer fees, interest reserves, Program fees, title fees, recording fees, etc.)
Ancillary costs that do not exceed 40% of the total project costs

For condominium associations and 5+ multi-family cooperatives only

All condominium or cooperative related improvements that are affixed to the property or building (e.g., re-piping, elevator upgrade, concrete spalling, replacing rusted rebar, swimming pool repairs, etc.) are Qualified Improvements.

Additional Qualifying Improvements may be approved by HGIA from time to time.

Next Steps

Interested eligible Property Owners to discuss project scope with your selected Contractor(s).
Property Owner to select a C-PACER lender (Qualified Capital Provider or QCP); OR at the request of the Property Owner, HGIA can solicit financing term sheets from participating QCPs.
Work with your Contractor(s) and QCP to finalize financing.
Obtain Lender Consent if a mortgage currently exists on your property.  For Condominium Associations, this applies for existing mortgages or loans secured by UCC-1 financing statements recorded in the Bureau of Conveyances.
QCP to submit financing package to HGIA for preliminary approval, subject to Lender Consent (if applicable).
Execute and record required documents and start upgrading your building.

How it Works

Qualifying Improvements are financed through a voluntary assessment, senior to mortgages, but junior to real property taxes.
Mitigating QCP risk opens new markets for long-term, fixed rate financing over the blended useful life of the retrofit(s) financed.

Resources

HI C-PACER Qualified Capital Provider List

Lenders interested in participating in the HI C-PACER program, please complete and submit this Capital Provider Registration form to [email protected]

Soliciting Proposals

For property owners interested in having HGIA solicit Financing Term Sheets from QCPs on your behalf, please complete this Project Solicitation Form and submit to [email protected]

Forms & Documents

Ready to apply? Complete the Project Application

For more information, email [email protected] or call 808-587-3868.