bizjournals.com/cincinnati/news/2018/03/26/green-financing-option-expands-to-an-entire-county.html
Courtesy PDT Architects LLC River Haus, located at the southwest corner of Fifth and Main streets in Covington, will have 187 apartments. It is the first new development in Kentucky to use PACE financing.
From the Cincinnati Business Courier: https://www.bizjournals.com/cincinnati/news/2018/03/26/green-financing-option-expands-toan-entire-county.html
Green financing option expands to an entire county in Greater Cincinnati Mar 26, 2018, 12:45pm EDT Updated: Mar 26, 2018, 12:50pm EDT New legislation approved by Campbell County will allow a type of financing to be used on energy-efficiency improvements for commercial properties across the county. Campbell County Fiscal Court approved legislation last week creating a county-wide Energy Project Assessment District that will allow property owners to obtain special financing for energy-efficiency upgrades to commercial, industrial, nonprofit, agricultural and multifamily properties throughout the county. The district allows Property Assessed Clean Energy, or PACE, financing to pay for improvements. Chris Jones, director of PACE financing for Energize Kentucky, a nonprofit organization that administers the program in Kentucky, said having access to this financing countywide increases the capital for projects, removes the financial burden new technology sometimes brings to development projects and makes the goal of an energy-efficient project more attainable. “PACE is a flexible financing tool that gives developers a new source of revenue for both new construction projects and building renovations,� Jones said in a news release.
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The Kentucky General Assembly passed legislation in 2015 that allowed local governments to establish districts to finance energy efficiency improvements on commercial, industrial and multifamily properties. Covington was the first city in the state to create the special taxing district. The $50 million River Haus project in Covington’s MainStrasse Village is the first new development in Kentucky to use the unique type of financing. Once a local government creates a district, property owners are able to voluntarily sign up for financing and install energy projects. The PACE lender provides funds to the property owner to pay for the project and then the property owner repays the PACE loan through the property tax bill for up to 25 years. With PACE financing, there is no down payment, no personal guarantee and it stays with the property if it is sold before the term is up. PACE financing can be used to cover 100 percent of the costs of energy upgrades, including solar panels, LED lighting, energy-efficient air conditioning and heating systems, and water conservation projects. Campbell County is the first county in Northern Kentucky to approve a countywide EPAD ordinance. About a dozen local governments in Kentucky, including Newport, Bellevue and Frankfort, previously passed legislation creating districts. Once Energize Kentucky determines that a project qualifies for PACE financing, it will ask the fiscal court to pass separate legislation approving the use of this financing for the project. Energize Kentucky plans to speak with elected officials in Northern Kentucky’s other counties to see if they also are interested in passing countywide legislation similar to the ordinance Campbell County passed. Energize Kentucky is a nonprofit organization and program administrator that works with property owners to secure PACE financing for qualified energy-efficiency projects. It is an arm of the Greater Cincinnati Energy Alliance, a Cincinnati nonprofit that promotes energy efficiency improvements. Tom Demeropolis Senior Staff Reporter Cincinnati Business Courier
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