1 CALIFORNIA STATEWIDE COMMUNITY DEVELOPMENT ASSOCIATION (CSCDA) - - PowerPoint PPT Presentation

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CALIFORNIA STATEWIDE COMMUNITY DEVELOPMENT ASSOCIATION (CSCDA) OPEN PACE

CSCDA Open PACE Program Administrators

CSCDA OPEN PACE APPROVED CITIES & COUNTIES (as of 03/07/19)

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Cities

Adelanto Agoura Hills Alameda Albany Antioch Arcata Atherton Atwater Azusa Barstow Belmont Belvedere Benicia Berkeley Big Bear Lake Blythe Brisbane Buena Park Burlingame Campbell Carlsbad Cathedral City Ceres Chico Chino Chino Hills Citrus Heights Claremont Clovis Coachella Coalinga Colma Colton Concord Corcoran Cudahy Cupertino Danville Desert Hot Springs Dinuba Duarte Dublin El Cajon El Centro El Cerrito El Monte Elk Grove Emeryville Encinitas Escondido Eureka Fairfax Fairfield Farmersville Firebaugh Folsom Fontana Foster City Fowler Fremont Fresno Galt Gardena Gilroy Glendale Glendora Grand Terrace Gustine Hanford Hayward Hercules Hesperia Highland Hughson Imperial Imperial Beach Indio Inglewood Ione King City Kingsburg La Mesa La Verne Lafayette Laguna Beach Laguna Hills Lancaster Larkspur Lathrop Lemoore Lindsay Lodi Loma Linda Lompoc Long Beach Los Angeles Los Banos Madera Manteca Martinez Mill Valley Milpitas Montclair Monterey Park Moorpark Moraga Moreno Valley Morgan Hill Mt Shasta Napa National City Newark Newman Norwalk Novato Oakland Oceanside Ojai Ontario Orland Oroville Oxnard Pacifica Palm Desert Palm Springs Palmdale Paradise Parlier Piedmont Pinole Pismo Beach Pittsburg Placerville Pleasant Hill Pleasanton Porterville Portola Valley Poway Rancho Cordova Rancho Cucamonga Rancho Mirage Redlands Redondo Beach Redwood City Reedley Rialto Richmond Riverside Sacramento San Anselmo San Bernardino San Carlos San Diego San Francisco San Jacinto San Leandro San Mateo San Rafael San Ramon Sanger Santa Barbara Santa Clarita Santa Cruz Santa Monica Sausalito Selma Solana Beach South Lake Tahoe South San Francisco Stanton Stockton Sunnyvale Thousand Oaks Tiburon Torrance Tracy Truckee Tulare Tustin Twentynine Palms Ukiah Union City Upland Vallejo Victorville Walnut Walnut Creek Waterford West Covina West Hollywood Yreka Yuba City Yucaipa Yucca Valley

Counties

Alameda Butte El Dorado Fresno Glenn Humboldt Imperial Madera Marin Mariposa Mono Monterey Napa Riverside Sacramento San Bernardino San Diego San Mateo Santa Barbara Santa Cruz Tehama Yuba

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PACE JURISDICTIONS NATIOINALLY

C-PACE launched C-PACE legislated / in development C-PACE legislated / not yet enabled C-PACE not yet legislated More information - Program Administrator

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RESIDENTIAL-PACE STATISTICS

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COMMERCIAL-PACE STATISTICS

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• PACE is a Public / Private partnership
• Provides long term (up to 30 years), fixed-rate financing when there are few alternatives.
• Property owners can finance Qualifying Improvements through voluntary non ad valorem property

assessments placed on their property by a state special government or Joint Power Authority.

• Finances 100% of the energy efficiency, renewable energy, water conservation, seismic improvements and

the related costs without regard to credit.

• The financing is collected with regular local real estate taxes and payments are amortized over the useful life
• f the project.

WHAT IS PROPERTY ASSESSED CLEAN ENERGY (PACE)?

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PACE ELIGIBLE IMPROVEMENTS

RENEWABLE ENERGY IMPROVEMENTS Examples include: Charging stations, storage systems, alternative or solar energy improvements. COMMON AREA RETROFITS Examples include: HVAC, windows, roofing, lighting. GREEN ROOFS Examples include: Green roofs,, rooftop gardens, green walls. SEISMIC RETROFITS Examples include: Soft story, concrete non-ductile, accessory dwelling units WATER CONSERVATION Examples include: weather-based irrigation control, high efficiency sprinkler nozzle, artificial turf, faucets

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PACE ELIGIBLE IMPROVEMENTS (continued)

HVAC (Energy Efficiency) Examples include: Heat Pumps, Water Heaters, Chillers, Building automation, Central air conditioner, furnace, energy efficient thermostat LIGHTING (Energy Efficiency) Examples include: Indoor and outdoor lighting fixtures, lighting controls POOL (Energy Efficiency & Water Conservation) Examples include: Pool pumps, pool heaters, automatic pool covers BUILDING ENVELOPE (Energy Efficiency) Examples include: Insulation, radiant barriers, air sealing, cool wall coating DOORS AND WINDOWS (Energy Efficiency) Examples include: double and triple pane windows, applied window film ROOF (Energy Efficiency) Examples include: Solar reflective cool roof, Fluid Applied Silicon Coating System

* Wind Resistance Improvements only available in Florida

SOLAR

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100% Financing

• Engineering & Design
• Permits & Inspections
• Necessary Roof Improvements
• Prepaid Service Contracts
• Owner keeps rebates and incentives
• Utilize Solar Tax Benefits
• PPA may be financed in certain

jurisdictions

LIGHTING

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Significant Impact in Reducing Energy Use

LED Lighting

• Short term expense recapture
• Lighting controls add to overall energy

saving

• Customized and become a way to attract

guests through design and color

• Parking lot lighting

SEISMIC RETROFIT

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100% Financing

• Engineering & Design
• Permits & Inspections
• All related work
• Additional projects may be eligible
• Rent pass-through and local exemptions
• Includes ADU’s (additional dwelling units)

GREEN ROOFS

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100% Financing

• Plants and Medium
• Egress stairs/elevator
• Related Roofing Work
• Mechanicals and Solar improvements
• Engineering & Design
• Permits & Inspections
• Prepaid Maintenance Contracts

CASE STUDY

HYATT CENTRIC: C-PACE Financing as a Cost Effective Substitute to Equity

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The Challenge: Without a cost effective way to supplement equity, the proposed rehab and rebuild of a new upscale Hyatt Centric hotel in Sacramento, CA was at risk. Market conditions caused higher material costs to the project, increasing the equity requirement. The capital stack included a first mortgage construction loan, preferred equity, a subordinate city economic development loan and equity. The Solution: C-PACE financing was used as an alternative to raising $5.5 million of equity and an additional $5 million of higher cost floating rate debt in the capital stack. The Result: The property owner is saving an estimated $1.5 million of interest carry during the development and stabilization period of the project. The C-PACE is also reducing the amount of equity needed for the project, allowing the property owner to achieve its return hurdles without giving up an ownership stake in the property. It also removes both interest rate risk and term risk from the most critical stage of the redevelopment of the asset.

$1,551,065

INTEREST SAVINGS OVER 3 YEARS

$10,466,025

25yr FIXED RATE C-PACE FINANCING

$1,020,187

ENERGY SAVINGS

1,037

LIVES SAVED

CASE STUDY

The Hilton Los Angeles-Financing Retrofits to Improve Performance

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$335,000

INCREASE Year 1 NOI

$7,000,000

20yr FIXED RATE C-PACE FINANCING

$1,000,000

ENERGY and OPERATIONAL SAVINGS

The Challenge: 500 room hotel, built in 1984, required improvements to remain competitive.

The Solution: C-PACE financing of $7 million with a 20 year term

• Addresses deferred equipment maintenance
• Complies with the Hilton global design standards
• Improves NOI and property value

The Result:

• Upgraded elevators, LED lighting, HVAC and chillers, dynamic tinting glass, refrigerators,

and low flow plumbing fixtures

• Reached Green Seal and LEED certification standards
• Reduced operating and maintenance costs

CASE STUDY

Kings Inn: Increasing Energy Efficiency and Lowering Operating Costs

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The Challenge: Kings Inn Anaheim was looking for a way to reduce energy consumption, go green, modernize and improve property cash flow, without tying up funds from capital expense reserves. The Solution: C-PACE financing of $1 million with a 25 year term

• Covering 100% with no upfront costs

The Result:

• Upgraded cool roof and solar panels led to increased energy efficiency

and a “greener” more modern hotel.

• $2,723,155 projected energy savings over 25 year warranty
• Expected increase in property value

NEXT STEPS

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• Staff prepares PACE Program Report and multi provider Resolution
• Appropriate City Departments approve PACE
• City Manager’s Office
• City Attorney’s Office
• Department of Sustainability Office (if applicable)
• Department of Economic Development Office (if applicable)
• CSCDA Open PACE Resolution placed on City Council’s Regular Agenda
• City approves CSCDA Open PACE multi-provider (commercial only) Resolution at City Council meeting (sometimes even

approved on Consent Agenda)

• Approved CSCDA PACE Program Administrators can begin to market and provide PACE financing to property owners

immediately

• If the City so desires, publish PACE on the City’s web site, city mailings or e-news letters. (for example, see

https://www.ci.emeryville.ca.us/1260/PACE-Programs)

CSCDA OPEN PACE

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QUESTIONS?

For more information, please visit our website at http://cscda.org/Open-PACE

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https://www.counterpointesre.com/

• r contact

C.J. De Santis Head of Government Relations Counterpointe Sustainable Real Estate 561.409.0343 cj@counterpointees.com

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Disclaimer

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This presentation is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities by or on behalf of CounterPointe SRE, Hannon Armstrong, or any related or associated company. This document has been prepared to provide recipients with the opportunity to determine their preliminary interest regarding the investment opportunity described herein and may not be used or reproduced for any other purpose. Any such offer or solicitation will be made

• nly by means of a confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. None of the information or analyses

presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly, this presentation does not constitute investment advice or counsel or solicitation for investment in any security and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. Any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in this presentation, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom are expressly disclaimed. This presentation is confidential and is intended solely for the information of the person to whom it has been delivered. Neither this presentation nor any of its contents may be disclosed or used for any other purpose without the prior written consent of CounterPointe SRE or Hannon Armstrong. Some of the information contained herein are forward-looking statements and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," "target," or similar expressions, are intended to identify such forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward- looking statements. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or sources that we have referenced herein. No representations are hereby made as to the actual value, which may be paid or received in connection with a transaction nor the legal, tax, regulatory, or accounting effects of consummating a transaction. Any recipient of this presentation is encouraged to seek specific tax and legal advice as well as consult any regulatory body. This document has not been approved by the United States Securities and Exchange Commission or by any regulatory or supervisory authority of any state or other jurisdiction.