Local Government
Stimulate local economies while saving energy
Montana communities are invited to join Last Best PACE, a statewide program that empowers building owners to save energy and money, communities to create new jobs, and local economies to flourish—all without any taxpayer assistance.
Communities across the United States are taking advantage of the economic development potential offered by Commercial Property Assessed Clean Energy (in Montana Commercial Property Assessed Capital Enhancements (C-PACE)). Now, Montana MCA 90-4-1306 authorizes Montana counties and municipalities to make C-PACE financing available in local communities. C-PACE financing stimulates local economies by providing property owners low-cost, long-term loans for energy efficiency, renewable energy, and water conservation improvements.
- C-PACE-funded projects stimulate job creation, investment in goods and services, and savings on building operating expenses—improving the market for investment in your community.
- C-PACE lowers the cost of doing business in your community. Low-interest C-PACE financing reduces building owners’ overall cost of capital to fund necessary building improvements that result in lower operating costs.
- Buildings can be revitalized through the installation of efficient windows, lighting, heating, ventilation and air conditioning (HVAC) equipment, and more—improving the local building stock and, in turn, helping raise the value of property and the potential tax base.
Last Best PACE provides a uniform, statewide approach to implementation—managing program guidelines, project qualification, and general program oversight. Offering Last Best PACE in your community is simple, due to:
- No cost to local governments--Neither credit exposure, dedication of general funds, or allocation from constricted budgets is required for local governments to implement Last Best PACE. To help promote no-cost, efficient implementation, Last Best PACE is administered by the Montana Facility Finance Authority (MFFA) which recovers its costs through fees assessed on completed projects.
- Statewide approach--Last Best PACE establishes uniform standards, documents, and best practices applied consistently across the state. A single statewide C-PACE program promotes scalability by simplifying participation for stakeholders (financial lenders, contractors, project developers, and building owners).
- Centralized program administration--Last Best PACE serves as a single point of access for stakeholders to access C-PACE financing. Serving as an agent of Last Best PACE, the MFFA maintains and enforces comprehensive program guidelines to ensure each C-PACE project meets the requirements of the C-PACE statute and program goals, and certifies that repayments occur according to contract.
- Open market--Last Best PACE is an "open market," meaning any qualified lender can participate—providing property owners with access to competitive rates and financing terms. Furthermore, any qualified contractor or project developer can work on a C-PACE project, fostering local business development.
- Voluntary participation--Building owner participation in Last Best PACE is 100% voluntary. No property owner is obligated to take any action; only those who choose to use C-PACE to improve their property pay the tax assessment.
- Lender consent--Last Best PACE requires mortgage lenders to consent to C-PACE financings made on properties on which they hold a lien, ensuring C-PACE projects receive buy-in from necessary stakeholders while helping promote the economic viability of C-PACE funded projects.
Last Best PACE is available to commercial property owners located in all communities within the State of Montana, subject to the applicable local government’s initial, one time election to participate in the program. A local government, following the appropriate municipal process, must authorize its participation in Last Best PACE, as outlined in MCA 90-4-1306, by:
- The adoption of a C-PACE Resolution of Intent;
- Holding a public hearing at which the public may comment on the proposed program and the program plan, and
- The adoption of a Resolution Establishing a C-PACE Program and setting the terms and conditions of the program.
Local governments are not responsible for and do not authorize participation in C-PACE for each individual project. The Montana Facility Finance Authority (MFFA) will coordinate and support the efforts to assist each local government that wishes to opt-in to Last Best PACE. Local governments interested in C-PACE should contact the MFFA directly to discuss the Last Best PACE program.
For more information, contact the MFFA.
Frequently Asked Questions
C-PACE financings are authorized in the State of Montana pursuant to MCA 90-4-13, (the “C-PACE Statute”). The C-PACE Statute enables cities and counties to impose an assessment on real property to secure loans made for energy efficiency, water conservation and renewable energy improvements.
Under MCA 90-4-1306, to create a C-PACE District, a local government must:
- Adopt a Resolution of Intent:
- Hold a public hearing at which the public may comment on the proposed program and the program plan; and
- Adopt a Resolution Establishing a C-PACE Program and setting the terms and conditions of the program.
Local governments adopt the Authorizing Resolution as noted above to authorize C-PACE projects in their area. The Resolution authorizes the County to impose a C-PACE tax assessment, collect payments for the tax assessment in installments, place those installments on the tax roll, and delegate that authority to the MFFA.
Property owner participation in Last Best PACE is 100% voluntary. No property owner is obligated to take any action. Only those property owners who choose to use C-PACE to improve their property pay the tax assessment.
Last Best PACE requires no credit exposure, nor dedication of general funds, or allocation from constricted budgets for local governments to implement C-PACE. To help promote no-cost, efficient implementation, local governments can choose to charge fees as part of a financing.
C-PACE loans are provided by third-party private lenders such as banks, savings banks, savings and loan associations, and credit unions. C-PACE financings do not use funds from local governments to finance projects.
No. C-PACE lenders recognize that neither the Last Best PACE program nor local governments have an obligation to settle or reimburse C-PACE tax assessments to C-PACE lenders.