Local Option - Commercial Property Assessed Capital Expenditure (C-PACE)

S.B. 802 of 2024 authorized the establishment of a statewide Commercial Property Assessed Capital Expenditure (C-PACE) program that local governments may voluntarily join. Eligible properties include commercial, industrial, agricultural, nonprofit, and multifamily residential properties with five or more dwelling units. The bill establishes the Economic Development Partnership of North Carolina as the statewide administrator for the program and assigns a variety of tasks to it: Prepare a C-PACE toolkit, as described in S.B. 802, in consultation with stakeholders and local governmentsImpose fees to offset the actual and reasonable costs of administering the C-PACE Program, including an application fee not to exceed $750, and a processing fee equal to 1% of the financed amount not to exceed $25,000Establish the process for reviewing and evaluating applicationsAccept and approve project applications for C-PACE financingA local government seeking to participate in the C-PACE program must first adopt a resolution meeting the criteria detailed in S.B. 802. C-PACE liens must be inferior to all prior and subsequent State, local, and federal taxes or liens and superior to all other liens on the property from the date on which the notice of the C-PACE assessment is recorded. The term of the C-PACE financing may not exceed the weighted average useful life of qualifying improvements, and the total amount of financing cannot exceed 35% of the value of the property. The exact financing agreement between the capital provider and the property owner will be negotiated by the parties, including all terms and conditions of repayment, interest, penalties, and prepayment conditions. Prior to entering into an assessment agreement, the property owner must submit to the statewide administrator a written statement, executed by each holder of a mortgage, deed of trust, or other lien on the property securing indebtedness, indicating their consent to the C-PACE assessment