NYC PACE Advances: Start date indicated | New Construction Approved

nyc pace advances with start date indicated

Big Day for NYC PACE as program nears launch

During an Urban Green Council webinar moderated by Counterpointe Sustainable Real Estate's Michele Pitale on March 18th, the program administrator NYCEEC, represented by Co-CEO Fred Lee indicated an anticipated program start date of April 22nd or Earth Day.
On the same day, March 18th, the New York City Council passed Int 2170-2020-A, which amended the previously passed bill to include new construction as a part of the emerging PACE program, a.k.a Local Law 96. Queens (District 22) Council member, Costa Constantinides, who introduced the amendment and has led on LL97 and LL96, noted the importance of amendment on Twitter, thanking NYC Council Speaker Corey Johnson and Justin Brannan for their support.

Timing to market

The Climate Mobilization Act, which was signed into law by Mayor Bill de Blasio on Earth Day of 2019 set fourth the creation of New York City's PACE program.
Final program rules and guidelines, which were subject to subject to public comment in Dec. 2020 are expected to be published next week (week of March 22, 2021) , while the program administrator NYCEEC finalizes legal documentation.
The opening of the New York City PACE program is targeted for April 22, 2021, or Earth Day, which would mark the 2-year anniversary of the CMA's signing into law.

New construction approval expands C-PACE program reach

Amendment 2170 brings the emerging New York City program into line with most other PACE districts nationally, including the State of New York, which amended its program to include new construction last year.
The amendment was primarily reviewed by the City Council's Committee on Environmental Protection in a hearing on February 16, 2021. During the hearing, Council Member Constantinides introduced the new construction amendment by reminding the committee of the program's over-arching intent stating, "without energy efficiency and renewable energy, we have no path to a sustainable future."
Kate Gouin, acting director of the Mayor’s Office of Sustainability added support for the amendment by positioning PACE not simply as a sustainability tool, but as an economic development tool. She testified, "As our city faces compounding crises, the Covid 19 pandemic and its accompanying economic crisis, the climate crisis, and systemic crises of housing quality and affordability, especially for our most vulnerable populations, we must address them using all of the tools that are disposal. as not simply a sustainability tool but as an economic development tool."

Beyond retrofits and the CMA

As the final policy rules emerge and the program opens it is important to note that the opportunity for PACE financing to drive sustainable practices and contribute to economic recovery extends beyond its origins in the Climate Mobilization Act, which only covers a portion of the city's commercial properties. PACE financing in New York City will be eligible for most non-public multifamily and commercial properties regardless of the 25,000 square foot minimum for inclusion in the CMAs carbon reduction guideline.

"The program is certainly a key to assist those owners subject to Local Law 97, but the availability of funding for retrofits and new construction across all building classes and sizes is significant," stated Michele Pitale, Managing Director of CounterpointeSRE. "Add to that the ability to retroactively finance completed projects, to support COVID related measures as well as sustainability projects that are mid-construction and you have a very powerful source of private capital to help NYC rebound from the economic effects from the pandemic ."