Best Practices
Missouri and national C-PACE guidance highlight transparency, clear governance, and strong financial safeguards. These practices help programs protect public interest while keeping projects simple for owners, lenders, and contractors.
- Require that estimated economic benefits exceed total project costs (Savings-to-Investment Ratio > 1.0).
- Use third-party administrators or servicers to handle billing, recording, and enforcement where possible.
- Maintain a public website with program rules, forms, approved providers, and performance reporting.
- Provide standardized templates: applications, contractor forms, lender notification/consent letters, and closing packets.
- Publish clear underwriting guidance: eligible measures, cost estimates, savings calculations, and expected useful life.
- Use independent reviews for energy savings estimates on larger or more complex projects.
- Encourage open-market competition among capital providers to lower costs for property owners.
- Keep assessment installments equal across the full term, consistent with Missouri statute.
- Use a governing board with transparent meetings and accessible program decisions.
- Offer regular training and communication for contractors, lenders, and local governments.
Statutes
Missouri C-PACE is authorized by state law (RSMo 67.2817). The statute sets the structure for every district and program in the state, including term limits, savings requirements, and key protections for owners and lenders.
- Financing term cannot exceed the weighted average useful life of the improvements and may not be longer than 20 years.
- Annual assessment installments must be equal over the term of the financing.
- Total estimated economic benefit over the financing period must be greater than or equal to the total cost of the project.
- The mortgage holder must receive a copy of the assessment contract within three days of execution.
- Eligible improvements include permanent energy efficiency, water efficiency, renewable energy, and related upgrades.
- Programs must maintain a public-facing website with required program documents and information.
- Districts may delegate billing, recording, and enforcement functions to administrative or third-party entities.
Program Design
Show Me PACE uses an open-market commercial C-PACE model for Missouri. The program connects property owners with a network of capital providers under one statewide framework, coordinated by a nonprofit administrator.
- Open-market structure with many participating capital providers, giving owners choice and price competition.
- Serves commercial, industrial, agricultural, nonprofit, institutional, and multifamily properties.
- Offers up to 100% upfront financing for eligible permanent improvements.
- Allows terms up to 20 years, subject to useful-life limits and statutory requirements.
- Requires a Savings-to-Investment Ratio (SIR) greater than 1.0 for all financed projects.
- Program administrator reviews eligibility, savings calculations, and documentation before closing.
- Uses a third-party collector to handle assessment billing on behalf of participating communities.
- Operates across dozens of Missouri jurisdictions, using one common set of program rules.
- Allows projects to stack PACE with tax credits and utility incentives to improve economics.
- Maintains a library of forms, guidance, and best-practice resources for participants.
Mortgage Lenders
Mortgage lenders are critical partners in Missouri C-PACE. Programs are structured to keep lenders informed, protect their rights, and highlight how building improvements can reduce risk and support collateral value over time.
- PACE is repaid as a property assessment, not a traditional loan, with payments due annually.
- Senior lenders maintain full foreclosure rights; PACE financing does not restrict enforcement remedies.
- Only the current or delinquent PACE installment is enforceable; assessments cannot be accelerated for the full remaining amount.
- Missouri law requires that the mortgage holder receive a copy of the assessment contract within three days of signing.
- Programs commonly request or require mortgage lender consent before closing on PACE financing.
- Lenders may choose to escrow the annual PACE assessment along with taxes and insurance.
- Energy and efficiency upgrades typically reduce operating expenses, strengthening a borrower’s ability to service all debt.
- Permanent improvements can increase asset value and resilience, improving the lender’s long-term collateral position.
- Notification packets include project scope, projected savings, and the assessment schedule to support lender review.
- Lenders can also participate directly as capital providers in open-market C-PACE programs if desired.
