Make Building Upgrades Affordable and Convenient
Financing options can help building owners and property managers cover the cost of building upgrades. Explore different types of financing options based on your building type.
Next, contact NYC Accelerator to connect with one of our financing specialists. We can help you understand available financing products, assess your options, and connect with pre-qualified financing providers.
Financing Options
Multifamily Rental
- NYC Accelerator PACE Financing
For projects exceeding $500,000, NYC Accelerator Property Assessed Clean Energy (PACE) Financing can be an option for multi-family buildings. It offers long-term, fixed-rate financing, covering up to 100% of project costs with no cash up-front from the owner. PACE Financing is unique in that it provides long-term financing and is repaid on the tax bill, making it easily transferable upon sale of the building. Plus, projects can be retroactively financed for up to three years after improvements are completed.
- Mortgage Loans
Mortgage Loans (or line of credit) offer attractive, low rates and long-term options and can include funds to cover energy improvements. Mortgage loans are most beneficial for building owners who are already planning to refinance.
Green Mortgage Loans are a type of mortgage loan designed to target and incentivize financing for energy improvements and upgrades. Green mortgages are mortgages that provide increased loan amounts based on projections of energy savings that result from the upgrades. Green mortgage loans can also provide lower rates than conventional mortgage loans. This option is best for building owners that are ready to refinance their mortgages, as timing can pose an issue.
- Equipment Loans and Leases
Equipment loans are offered by lenders, vendors, and contractors to purchase equipment. For emergency repairs or when mortgage refinancing is not an option, equipment loans offer a simple and quick process. Equipment loans typically have short terms with limited upfront fees, but rates can be high depending on the borrower’s credit history or outstanding debt. These lenders can also offer equipment leases allowing building owners to use energy-related equipment without purchasing it. Upfront expenses or maintenance fees are not required, and an option to purchase the equipment at the end of the lease term is offered.
- Predevelopment Loans
Predevelopment loans provide short-term financing for energy studies, architectural and engineering services, and other soft costs incurred while planning and developing a green project. These loans enable projects to start and reduce out-of-pocket expenses prior to long-term financing approval but pose a potential risk to borrowers if a project doesn’t proceed.
- Non-Debt Solutions
Non-debt solutions offer a consolidated, simplified “turnkey” option that requires no upfront cost to the owner. The service contract which is often paid using energy savings and sometimes includes guarantees on savings from the provider. Energy Service Agreements or “As-a-Service” Agreements are forms of non-debt financing solutions where providers finance, install, construct, maintain and manage energy retrofits and get paid over a long-term service contract. The service provider funds the project costs so the owner does not need financing. This is best suited for owners with projects larger than $500,000 or multiple buildings.
Power Purchase Agreements are another non-debt used for on-site power generation project such as rooftop solar and useful for building owners who can’t take advantage of tax benefits. Instead of a service contract, building owners must purchase the solar energy produced usually at an attractive rate.
Financing Options
Condos
- Home Owner Association Loans
Based on the ownership structure of condominiums, the condo building cannot get a mortgage loan. Instead, condo homeowner associations (HOA) can get loans secured by the condo association fees. These loans or lines of credit can have similar terms as mortgage loans and can be accessed to pay for building energy retrofit projects.
- Equipment Loans and Leases
Equipment loans are offered by lenders, vendors, and contractors to purchase equipment. For emergency repairs or when mortgage refinancing is not an option, equipment loans offer a simple and quick process. Equipment loans typically have short terms with limited upfront fees, but rates can be high depending on the borrower’s credit history or outstanding debt. These lenders can also offer equipment leases allowing building owners to use energy-related equipment without purchasing it. Upfront expenses or maintenance fees are not required, and an option to purchase the equipment at the end of the lease term is offered.
- Predevelopment Loans
Predevelopment loans provide short-term financing for energy studies, architectural and engineering services, and other soft costs incurred while planning and developing a green project. These loans enable projects to start and reduce out-of-pocket expenses prior to long-term financing approval but pose a potential risk to borrowers if a project doesn’t proceed.
- Non-Debt Solutions
Non-debt solutions offer a consolidated, simplified "turnkey" option that requires no upfront cost to the owner. The service contract which is often paid using energy savings and sometimes includes guarantees on savings from the provider. Energy Service Agreements or "As-a-Service" Agreements are forms of non-debt financing solutions where providers finance, install, construct, maintain and manage energy retrofits and get paid over a long-term service contract. The service provider funds the project costs so the owner does not need financing. This is best suited for owners with projects larger than $500,000 or multiple buildings.
Power Purchase Agreements are another non-debt used for on-site power generation project such as rooftop solar and useful for building owners who can’t take advantage of tax benefits. Instead of a service contract, building owners must purchase the solar energy produced usually at an attractive rate.
Financing Options
Co-ops
- NYC Accelerator PACE Financing
For projects exceeding $500,000, NYC Accelerator Property Assessed Clean Energy (PACE) Financing can be an option for co-ops. It offers long-term, fixed-rate financing, covering up to 100% of project costs with no cash up-front from the owner. PACE Financing is unique in that it provides long-term financing and is repaid on the tax bill, making it easily transferable upon sale of the building. Plus, projects can be retroactively financed for up to three years after improvements are completed.
- Mortgage Loans
Mortgage Loans (or line of credit) offer attractive, low rates and long-term options and can include funds to cover energy improvements. Mortgage loans are most beneficial for building owners who are already planning to refinance.
Green Mortgage Loans are a type of mortgage loan designed to target and incentivize financing for energy improvements and upgrades. Green mortgages are mortgages that provide increased loan amounts based on projections of energy savings that result from the upgrades. Green mortgage loans can also provide lower rates than conventional mortgage loans. This option is best for building owners that are ready to refinance their mortgages, as timing can pose an issue.
- Equipment Loans and Leases
Equipment loans are offered by lenders, vendors, and contractors to purchase equipment. For emergency repairs or when mortgage refinancing is not an option, equipment loans offer a simple and quick process. Equipment loans typically have short terms with limited upfront fees, but rates can be high depending on the borrower’s credit history or outstanding debt. These lenders can also offer equipment leases allowing building owners to use energy-related equipment without purchasing it. Upfront expenses or maintenance fees are not required, and an option to purchase the equipment at the end of the lease term is offered.
- Predevelopment Loans
Predevelopment loans provide short-term financing for energy studies, architectural and engineering services, and other soft costs incurred while planning and developing a green project. These loans enable projects to start and reduce out-of-pocket expenses prior to long-term financing approval but pose a potential risk to borrowers if a project doesn’t proceed.
- Non-Debt Solutions
Non-debt solutions offer a consolidated, simplified “turnkey” option that requires no upfront cost to the owner. The service contract which is often paid using energy savings and sometimes includes guarantees on savings from the provider. Energy Service Agreements or “As-a-Service” Agreements are forms of non-debt financing solutions where providers finance, install, construct, maintain and manage energy retrofits and get paid over a long-term service contract. The service provider funds the project costs so the owner does not need financing. This is best suited for owners with projects larger than $500,000 or multiple buildings.
Power Purchase Agreements are another non-debt used for on-site power generation project such as rooftop solar and useful for building owners who can’t take advantage of tax benefits. Instead of a service contract, building owners must purchase the solar energy produced usually at an attractive rate.
Financing Options
Industrial, Commercial, and Non-Profit Institutions
- NYC Accelerator PACE Financing
For projects exceeding $500,000, NYC Accelerator Property Assessed Clean Energy (PACE) Financing can be an option for industrial, commercial, and non-profit institutions. It offers long-term, fixed-rate financing, covering up to 100% of project costs with no cash up-front from the owner. PACE Financing is unique in that it provides long-term financing and is repaid on the tax bill, making it easily transferable upon sale of the building. Plus, projects can be retroactively financed for up to three years after improvements are completed.
- Mortgage Loans
Mortgage loans (or lines of credit) offer attractive, low rates and long-term options and can include funds to cover energy efficiency improvements. Mortgage loans are most beneficial for building owners who are already planning to refinance. 501(c)(3) institutions may also be able to access tax-exempt bond financing.
Green Mortgage Loans are a type of mortgage loan designed to target and incentivize financing for energy improvements and upgrades. Green mortgages are mortgages that provide increased loan amounts based on projections of energy savings that result from the upgrades. Green mortgage loans can also provide lower rates than conventional mortgage loans. This option is best for building owners that are ready to refinance their mortgages, as timing can pose an issue.
- Equipment Loans and Leases
Equipment loans are offered by lenders, vendors, and contractors to purchase equipment. For emergency repairs or when mortgage refinancing is not an option, equipment loans offer a simple and quick process. Equipment loans typically have short terms with limited upfront fees, but rates can be high depending on the borrower’s credit history or outstanding debt. These lenders can also offer equipment leases allowing building owners to use energy-related equipment without purchasing it. Upfront expenses or maintenance fees are not required, and an option to purchase the equipment at the end of the lease term is offered.
- Predevelopment Loans
Predevelopment Loans provide short-term financing for energy studies, architectural and engineering services, and other soft costs incurred while planning and developing a green project. These loans enable projects to start and reduce out-of-pocket expenses prior to long-term financing approval but pose a potential risk to borrowers if a project doesn’t proceed.
- Non-Debt Solutions
Non-debt solutions offer a consolidated, simplified “turnkey” option that requires no upfront cost to the owner. The service contract which is often paid using energy savings and sometimes includes guarantees on savings from the provider. Energy Service Agreements or “As-a-Service” Agreements are forms of non-debt financing solutions where providers finance, install, construct, maintain and manage energy retrofits and get paid over a long-term service contract. The service provider funds the project costs so the owner does not need financing. This is best suited for owners with projects larger than $500,000 or multiple buildings.
Power Purchase Agreements are another non-debt used for on-site power generation project such as rooftop solar and useful for building owners who can’t take advantage of tax benefits. Instead of a service contract, building owners must purchase the solar energy produced usually at an attractive rate.