Create an EPAD EZone with Harshaw Trane
What is EPAD?
The Energy Project Assessment District Act of 2015 (the “EPAD Act”) provides a new, innovative, proven way for commercial property owners to pay for:
Energy Efficiency Upgrades
On-site Renewable Energy Projects
Water Conservation Measures
EPAD funding is arranged for 100% of a project’s costs, and is repaid by participating property owners with a voluntary assessment on the property tax bill over a term of up to 20 years. This type of program – known elsewhere as Property Assessed Clean Energy (“PACE”) is available in 21 states.
There are many benefits to property owners through the use of EPAD versus traditional loan products. EPAD assessments offer lower, fixed interest rates, longer repayment terms and the ability to effectively improve overall property value and marketability.
The EPAD Act allows municipalities to pass ordinances that create EPAD districts (often times encompassing the entire municipality) that enable additional voluntary assessments to a property owner’s tax bill, which helps facilitate the implementation of energy efficiency and renewable energy upgrades to properties within the district.
EPAD can be a real estate finance tool, as well as an economic development driver. The assets being financed are tangible assets which lend value to the property or properties within the financing district. This implies that investors in EPAD bonds look solely to the value of the property as their source of repayment.
Why is EPAD Good for the Economy & Cities?
Many U.S. cities have implemented community-wide sustainability initiatives, encouraging property owners of all types to reduce energy consumption and carbon footprint.
EPAD is a single solution that creates jobs, enhances property values, enables and encourages building owners to upgrade their infrastructure now to become more sustainable.