As if the turmoil created by sharply higher interest rates and economic uncertainty wasn’t enough, another daunting challenge facing New York City building owners looms on the horizon. Local Law 97, which officially becomes active on Jan. 1, 2024, requires most buildings 25,000 square feet or larger to significantly curb their carbon emissions to meet established targets or else face steep fines. Regardless of how much owners currently have on their plates, now is the time to begin the process of identifying, planning, and implementing steps to reduce the environmental footprint of their buildings.
A good place to start for many building owners is exploring the CPACE financing opportunities that could significantly reduce their cost of capital on the required building wide renovations. Additionally, CPACE has several successful use cases for being “rescue financing” for undercapitalized projects either mid-way or near the end of a business plan. In this instance, a CPACE loan can either reimburse or future fund all already paid for CPACE eligible items allowing a developer to retroactively cash out of a project that’s already been fully vested.
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