New Hampshire’s inaugural commercial PACE financing has been secured to support a 474‑unit residential development in Lebanon, representing a meaningful market milestone. The capital stack combines roughly $23.2 million of C‑PACE assessment financing with about $31.5 million in senior construction debt, embedding long‑term, assessment‑based capital alongside traditional construction credit. Sponsors intend to allocate the C‑PACE proceeds toward building energy efficiency and resiliency measures as part of the construction budget, allowing the developer to preserve senior loan capacity while advancing performance upgrades. The structure mirrors a growing industry trend of layering PACE assessment capital into construction financing to deliver sustainability outcomes without displacing core lender liquidity.

The transaction also serves as a practical template for resolving lender and municipal priorities where PACE liens intersect with conventional security interests. It signals increasing lender comfort with integrating assessment finance when clear intercreditor terms and underwriting protocols are established, and it may catalyze broader adoption across comparable regional markets. Stakeholders will need to refine municipal processes for assessment collection, permit coordination and consumer protections, while lenders and investors will emphasize strict underwriting and lien‑priority arrangements to mitigate repayment risk. Overall, the deal highlights both opportunity and the governance work required to scale C‑PACE in new jurisdictions.

– First C‑PACE in the state — Marks the inaugural commercial PACE transaction in New Hampshire, establishing a local precedent.
– Project scale — A 474‑unit residential development in Lebanon, indicating significant multifamily capacity and scope.
– Financing structure — Combines approximately $23.2M of C‑PACE with about $31.5M of senior construction debt to form the capital stack.
– Use of proceeds — C‑PACE funds targeted for energy efficiency and resiliency upgrades integrated into the construction budget.
– Market impact — Expected to increase lender acceptance of PACE layering and help unlock private capital for sustainable building projects.
– Implementation considerations — Necessitates clear intercreditor agreements, municipal assessment processes, and disciplined underwriting to manage lien and repayment risks.

You can read this full article at: https://wrenews.com/new-hampshire-first-c-pace-brickyard-474-home-development/

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