New Inter-Creditor Clean Energy Financing (NICCE)
If PACE is not available in your community,
NICCE may be right for you.
Commercial property owners can now upgrade their building’s energy systems and save money from the start, with no upfront cost, while playing a positive role in the community by reducing emissions, creating jobs and improving the local building stock. This is being done in some states and municipalities through Property Assessed Clean Energy (PACE*).
But since PACE isn’t available everywhere, we’ve worked with a major national social impact fund to develop NICCE (New Inter-Creditor Clean Energy) financing as an alternative.
*Brief information on PACE is here.
Now, Get NICCE Financing
We have a pool of at least $10 million from our first NICCE investor, and we are seeking additional financing.
- $1million+, cash-flow-positive energy efficiency and renewable energy retrofits or optimized new construction
- Located in any New Jersey location, or in select urban centers including: Bay area, LA, Austin, Phoenix, New Orleans, Miami, Atlanta, DC, Baltimore, Hartford, CT, Minneapolis, Detroit, Denver, St Louis, Boston, Chicago
- C & I properties (office, retail, industrial, agricultural, nonprofit, institutional, multi-family 5+ units)
- Priority will be given to shovel-ready projects
How NICCE Works
With NICCE, the improvement financing is provided to the owner as a special-priority mortgage that is transferable to future owners and survives foreclosure. Interest rates for NICCE loans are expected to be comparable to those currently available to PACE borrowers.
As in PACE, the existing senior mortgage lender on the property must consent; however, instead of consenting to a special assessment, as in PACE, there is an inter-creditor agreement between the improvement lender and the mortgage lender with “PACE-like” conditions: that the current (and any past due) payments take priority over the senior loan, but the lien is otherwise subordinate, cannot be accelerated, and does not affect the mortgage lender’s foreclosure rights.
At the improvement lender’s option, NICCE financing can be converted to a PACE assessment if and when PACE becomes available.
Here’s a comparison of NICCE and PACE, which is also available on our information sheet:
PROGRAM FEATURES NICCE C-PACE 100% Financing; no upfront costs; cash-flow positive Yes Yes Property types financed Commercial* Commercial* Spreads payments to 20+ years Yes Yes Is prepayment allowed?
Yes (with fee)
Depends on state and lender Used for new construction? Yes Yes State legislation required No Yes Municipal approval required No Yes Transferable to future owners Yes Yes Supports third party tax equity Maybe Maybe Can be treated as an off-balance sheet item to the owner No Yes Non-recourse loan Yes Yes Non-acceleratable Yes Yes Costs passed to tenants under triple-net leases Via CAM & other charges Via pro-rated tax bill Mortgage lender consent required
Yes (Inter-Creditor agreement)
Yes Currently available for use in U.S. jurisdictions Funder discretion State & local legislation * “Commercial property types” include industrial, agricultural, institutional, and multifamily properties (five or more units).
Download our information sheet NICCE-Pre-PACEInfoSheet8Mar2018
If you are a capital provider and want to offer NICCE financing, please contact us directly.
Jonathan Cloud, Executive Director
firstname.lastname@example.org • Direct: 908-581-8418
Gus Escher, Director of Finance
email@example.com • Direct: 609-683-1666
Victoria Zelin, Director of Development
firstname.lastname@example.org • Direct: 908-507-3150
Google Voice 908-396-6179 ~ Fax 908-842-0422