PACE, which stands for Property Assessed Clean Energy, is a simple and effective way to finance energy efficiency, renewable energy, and water conservation upgrades to buildings. PACE financing is available in many states across the country. While there are variations in program design and financing arrangements across the country, at minimum a PACE project should include: a unit of local government authorizing the program, a property owner, an energy services professional, and a PACE financing provider. PACE was named one of the top 20 “world changing” ideas by Scientific American magazine. The major benefit of PACE financing incudes but not limited to:

  • 100% up-front funding for all energy efficiency improvements, including soft and hard costs
  • Up to 20 year non-recourse, fixed financing term
  • No personal guarantee, PACE relies on the value of the property and not personal credit
  • Preserve equity and RIO by replacing the partner equity on the capital stack
  • PACE funding allowed the customer to deploy their internal capital in areas core to their business with a higher rate of return
  • The ability to retroactively fund a project
  • Interest portion of the assessment/payment is tax-deductible

For more information about pace:

Jordan Inc. DBA PACE Arkansas is a third party administrator for Pulaski Commercial PACE Program.  The company exists to market, administer and finance local PACE projects, and help PACE stakeholders benefit from the PACE financing.  For more information visit our website:
Pulaski PACE provides commercial property owners the opportunity to benefit from energy and cost savings through facilities improvements and receive up to 100 percent financing, repaid as a property tax assessment for up to 20 years.  Pulaski PACE is a valuable tool used to overcome the challenges of implementing energy efficiency and renewable energy projects in commercial, industrial and multifamily residential buildings and agricultural applications located in Pulaski County. The three primary objectives of the Pulaski PACE program are:

  1. Foster green jobs and boost local employment opportunities;
  2. Reduce energy cost and promote utility savings for property owners; and
  3. Encourage energy efficiency in buildings to reduce greenhouse gas emissions.

For more information contact the Pulaski County Attorney’s Office:

  • Buildings in need of major upgrades/energy-efficiency improvements
  • Buildings in need of redevelopments
  • New commercial building projects (energy efficiency calculation will be done using existing local building code against energy-efficient equipment and fixtures)
  • Portfolios of properties with a single owner, such as grocery stores
  • Industrial/manufacturing facilities
  • Properties needing to comply with legal requirements
  • Properties leased to government agencies
No.  Pulaski PACE is designed to finance only commercial properties.

For more information or enquiry, contact the administrator of the Pulaski PACE program here.

  • PACE allows owners of commercial properties to finance up to 100 percent of project costs, allowing projects to be amortized over a longer period of time so they can be “cash-flow positive” from day one.
  • PACE helps property owners reduce operating costs while increasing property value.
  • Capital investments in energy efficiency using PACE financing can help owners increase rent, decrease vacancy and attract high-quality tenants
  • Most commercial leases classify property taxes as operating expenses. Operating expenses, such as a PACE assessment, may be able to be passed through to the tenants, eliminating a split incentive issue.
  • Qualification for PACE financing doesn’t require a personal guarantee.
  • If the property is sold, the financing assessment stays with the property and transfers to the new property owner.

Yes, you can combine PACE with other tax incentives and utility rebates that can significantly buy down the cost of your energy and water efficiency projects. Combined incentives and rebates can fund much of the project cost. Rebates help provide quality assurance without costing the program and participants.

PACE assessments function in the same way as other contractual assessments and follow the same collection schedule—twice-yearly payments, with an interest-only payment due on March 2, and a principal plus interest payment due on October 15. This collection schedule is dictated by Arkansas law and is not flexible. However, there is a wide flexibility to structure the details, term and interest rate of the transaction.

  • Applicant must be the legal owner of the property, and all of the legal owners of the property must agree to participate
  • Mortgage holder(s) must explicitly consent to the PACE assessment in writing
  • Property owner must be current on any existing mortgage(s); property owner must not have defaulted on the deeds of trust
  • Property must not be subject to any involuntary liens or judgments
  • Property must not have been delinquent on property taxes for the past five years, or since the date of the most recent transfer if less than five years
  • Property will be subject to the appropriate jurisdiction’s permitting inspections and all other applicable federal, state, and local codes and regulations
  • Property owner must not be in bankruptcy and must not have declared bankruptcy within the last 10 years

Due to transaction costs, there is an effective minimum project dollar amount. But it depends on the project scope and complexity.  Contact us at (501) 372-2398 or email INFO@PACEAR to see if PACE is the right financing option for you.

  1. Complete your Initial Application.
  2. Have your property audited for energy use.
  3. Create your project scope and select your investor.
  4. Obtain mortgage lender consent.
  5. Complete your Final Application.
  6. Fund your project and start your upgrade.
In order to make the PACE process smooth and effective, PACE Arkansas partners with PACE Equity LLC – a national turnkey service provider for commercial PACE projects. With extensive experience developing commercial energy projects leveraging PACE financing and evangelizing PACE throughout the United States, PACE Equity is a leading PACE project developer and finance provider in PACE markets across the US. For more information about PACE Equity LLC:
Each financing mechanism is very different than each other. PACE financing is an alternative or a complementary financing mechanism for energy efficiency improvements rather than a direct substitute for traditional bank loans. Even though PACE financing may not be able to promise lower interest rate than a traditional bank loan it provides several advantages for property owners:

  • No down payment
  • Non-recourse, fixed interest rate for a longer financing term (10. 15, 20 years, depending on the useful life of the improvements)
  • Low-cost capital that can replace partner equity
  • Ability to pass the assessment/payment to tenants.
PACE assessments will appear as a separate lime item on your property tax bill and function in the same way as other contractual assessments and follow the same collection schedule—twice-yearly payments, with an interest-only payment due on March 2, and a principal plus interest payment due on October 15. This collection schedule is dictated by Arkansas law and is not flexible. However, there is a wide flexibility to structure the details, term and interest rate of the transaction.
Yes, you are right. Savings must exceed the initial investment. But, for empty building or a new development project we compare the local energy code (In Arkansas, 2007 Arkansas Energy Code) against the improvements for the project. Please, see the case study below:

aldersgate example

Yes, Absolutely. The Preserve at the Aldersgate, a 48-unit  luxury apartment complex is the first project in the county to use a PACE financing option that pays 100 percent of the upfront costs of energy-saving upgrades — an option that lets the capital be repaid over 20 years term as an addition to property tax bills. Energy savings over the payoff period are calculated to cover the cost.

Pulaski commercial PACE provided financing of $653,000 for HVAC, LED Lighting. Window and Roof upgrade. Below is the project highlights:

Project Highlights

  • Total Project Scope: $6.6M
  • Total PACE Financing: $ 653,212 (approx. 10% of total project cost)
  • Financing Term: 20 years
  • Annual PACE Assessment: $61,747
  • Energy Savings: $71,124 per year (=846,714 kWh )

For the full case study or any other case study or document, please contact us!