Tax Collectors and C-PACE
Tax collectors are busy professionals, and their work plays a significant role in maintaining the economic well-being of the communities they serve. When they support C-PACE in their municipality, they make an even bigger impact. Municipalities with C-PACE can stabilize their tax base, grow a healthier economy and community, and support local businesses. The Connecticut Green Bank is experienced in working with tax collectors across the state, provides ongoing support for these public officials, and even assists with additional costs resulting from the implementation of the program. The success of the CPACE program is not possible without the support of Connecticut’s tax collectors.
What tax collectors can expect
Filing C-PACE Benefit Assessments
When a property owner closes on C-PACE financing, the Connecticut Green Bank will email or mail the following documents to the Tax Collector’s office, to be filed on the municipal land records (along with filing instructions):
- Certificate of Levy and Lien of Benefit Assessment
- Assignment of Benefit Assessment Lien (Municipality to Green Bank)
- If applicable, Assignment of Benefit Assessment Lien (Green Bank to Capital Provider)
Documents 1 and 2 above will always need to be signed by the municipality’s tax collector before filing, and specific instructions are included with each lien filing request.
Document 1 above, the “Certificate of Levy and Lien of Benefit Assessment”, may or may not include a payment schedule at the time of initial filing.
However, before the first payment is due for any C-PACE benefit assessment lien, the Green Bank will confirm the payment schedule with the tax collector and, if necessary, file an updated payment schedule on the land records. The Connecticut Green Bank will always strive to file the final payment schedule at least six weeks in advance of the first billing date for any given property.
Billing & Collection
Property owners must pay the municipality directly and are given instructions to do so per the C-PACE agreement with the municipality. C-PACE funds should be segregated from all other funds of the municipality.
Tax Collectors are not responsible for collection of delinquent benefit assessments.
Per the municipal agreement, in June, the Green Bank will provide an annual summary of all transactions recorded on your land records.
Approximately 10 days prior to the start of a collection cycle, our loan servicer, Cortland Capital Market Services LLC, will reach out for copies of bills you have issued for the C-PACE properties in your town. On the 10th business day into the month following that in which taxes were due, the municipality should send the Green Bank a summary of all funds received for the recorded properties in repayment, highlighting any delinquencies. Towns using the QDS software have a built-in report. Towns with other systems can use a spreadsheet from the Green Bank, or equivalent.
For Municipalities using the QDS system, the Green Bank directly pays for initial software installation, training and annual maintenance. For municipalities not using the QDS system, please contact the Green Bank regarding software upgrades.
Municipalities with projects filed on the land records receive an annual fee of $500, as stipulated in the municipal agreement, at the start of the fiscal year. If the municipality incurs costs beyond $500, they should contact the Green Bank for reimbursement.
For questions and help, tax collectors can contact the Connecticut Green Bank.