How CPACE Financing Empowers Housing Developers in Oregon
In the quest for more housing options, developers in Oregon, whether focusing on low-income or market-rate housing, face several challenges. Limited financial resources and the need for energy-efficient infrastructure are among the primary obstacles they encounter. However, an innovative financing tool known as CPACE (Commercial Property Assessed Clean Energy) has emerged, offering hope for these housing developers in the state. CPACE funding not only provides access to affordable capital but also encourages sustainable development practices. In this post, we will explore the significance of CPACE funding for low-income and market rate housing developers in Oregon.
1. Overcoming Financial Hurdles
Housing Developers often struggle with mounting construction and permitting costs, making it difficult to embark on projects that address the Oregon housing crisis. CPACE funding presents a viable alternative by providing long-term, fixed-rate loans. These loans are repaid through an assessment on the property's tax bill, thus ensuring repayment security and reducing the burden on developers' cash flow. CPACE financing empowers developers to undertake crucial rehabilitation projects, construct new affordable sustainable units, or implement energy-saving retrofits without straining the construction budget.
2. Encouraging Energy Efficiency
One of the primary objectives of CPACE funding is to encourage energy-efficient and environmentally friendly development practices. By integrating energy-saving measures into their projects, Oregon housing developers can reduce operating costs for both themselves and their tenants. CPACE financing supports the installation of solar panels, energy-efficient appliances, insulation improvements, and other sustainable upgrades, making housing properties more affordable and environmentally responsible. These energy-efficient initiatives also contribute to Oregon's ambitious sustainability goals and help combat climate change.
3. Enhanced Property Values and Tenant Affordability
CPACE funding can significantly improve the market value of housing properties. By implementing energy-efficient measures and green building certifications, developers can increase the overall worth of their properties while simultaneously reducing utility expenses for their tenants. Lower energy costs translate into more affordable rental rates, easing the energy burden on individuals and families. As a result, CPACE-funded projects contribute to the overall stability and well-being of the community by providing comfortable and cost-effective housing options.
4. Stimulating Local Economic Growth and Job Creation
While the CPACE program is national, the funding is administered by local administrators. So far, Washington, Deschutes, & Multnomah Counties have adopted the CPACE program, and other counties are not far behind. CPACE injects much needed capital into local Oregon economies, benefiting not only low-income housing developers but also the wider community. The financing allows developers to engage local contractors, suppliers, and labor, creating jobs and stimulating economic growth. As more housing units are constructed or rehabilitated, local businesses and services experience increased demand, fostering a ripple effect that helps revitalize neighborhoods and improve overall quality of life.
5. Long-Term Sustainability and Social Impact:
The impact of CPACE-funded projects extends far beyond short-term benefits. By investing in energy-efficient upgrades and sustainable development, housing developers contribute to the long-term sustainability of their properties and the surrounding community. Reduced energy consumption not only lowers greenhouse gas emissions but also ensures the financial viability of the housing units over time. Additionally, by providing safe and affordable housing options, CPACE-funded projects support social equity and contribute to the fight against homelessness and housing insecurity.
CPACE funding has emerged as a critical tool for low-income housing developers in Oregon, offering financial support and promoting energy-efficient practices. By leveraging this innovative financing option, developers can overcome financial barriers, improve property values, enhance tenant affordability, stimulate economic growth, and create long-lasting social impact. As Oregon continues its pursuit of affordable housing solutions, CPACE financing stands out as a powerful tool that empowers developers and transforms communities for the better.
To learn more about CPACE and how it can benefit your housing projects in Oregon, reach out to Northwest Energy Collaborative. Our experienced team can guide you through the CPACE financing process and help you maximize its potential.
Phone: (503) 567-5551
Email: Info@NWEnergyCollaborative.com
Website: NWEnergyCollaborative.com
