COVID-19 Information for C-PACE Capital Providers
Connecticut Green Bank will post COVID-19 information pertinent to third-party C-PACE capital providers on this page (updated 12/22/2020).
If you have any questions, please don’t hesitate to contact us.
Executive Order 9R & C-PACE Repayment Modifications
Governor Lamont recently issued Executive Order 9R which required suspension and modification of property tax and tax assessment deadlines and collection efforts for tax bills that become due January 1, 2021. This is similar to what was issued in Executive Order 7s earlier this year affecting tax bills due April 1, 2020 through July 1, 2020. This order states that this directive applies to C-PACE benefit assessment liens: “The provisions regarding tax deferral and interest-rate reduction programs to offer relief to eligible taxpayers, businesses, nonprofits and residents who have been economically affected by the COVID-19 pandemic shall also apply to benefit assessments under Connecticut General Statute Section 16a-40g.”
Executive Order 9R requires the following:
Connecticut towns must participate in at least 1 of 2 relief options:
– Deferment Program: defers payment of any property taxes due on January 1, 2021 for 90 days (through and including April 1, 2021) for eligible businesses and non-profits who attest to or document significant economic impact by COVID-19 or are providing relief to those significantly affected by COVID-19. OPM will be issuing updated guidance by December 21 on which businesses or nonprofits shall be considered eligible; and/or
– Low Interest Rate Program: charges 3% per annum interest rate for 90 days (through and including March 31, 2021) for any late payments on property taxes due January 1, 2021. On April 1, 2021, the interest rate penalty returns to normal at 18%.
As we learn what relief program municipalities are offering, we will post that information here. We expect billing to proceed normally and will work with the municipalities to adapt due dates and penalty fees as necessary.
Payment Relief and Modifications to Financing Terms or Payment Schedule
If you plan on offering your borrowers additional payment relief that includes modifications to the financing terms or payment schedule, an approval will be required by the Green Bank. In order for the Green Bank to review and approve the offer you are making to your borrower, you would need to provide the Green Bank with the following information:
- Recent title search (pulled within last 60 days)
- New SIR calculator or revised payment schedule
- New lender consent received from existing and/or new mortgage lender(s)
Upon receiving these three documents, the Green Bank will review and approve the modification. Once approved, the Green Bank will issue you an approval letter by e-mail, which will permit you to execute an amended financing agreement and filing a revised payment schedule on the property. We encourage you to submit your requests for approval as soon as possible.