Eligibility Requirements
Eligible Property means any privately-owned commercial, agricultural, industrial, or multi-family real property of five (5) or more dwelling units located within the boundaries of the Region (including properties owned by a not-for-profit organization).
Ground leases on Eligible Property are permitted, so long as all requirements of the Improvement Special Assessment Ordinance are met, including requiring the Property Owner to enter into an Assessment Agreement. On ground-leased property, therefore, the special assessment and Special Assessment Lien encumber the fee interest in the property, not the ground leasehold.
Property Owner means an owner of eligible property, which is the record owner of title to the Eligible Property. The Property Owner may be any type of business, corporation, individual, or non-profit organization.
Eligible Improvements means a permanent improvement affixed to the real property that must meet at least one of these criteria:
Decrease energy consumption or demand through the use of efficiency technologies, products, or activities that reduce or support the reduction of energy consumption or allow for the reduction in demand or reduce greenhouse gas emissions (“Energy Efficiency Improvement”);
Support the production of clean, renewable energy, including but not limited to a product, device, or interacting group of products or devices on the customer’s side of the meter that generates electricity, provides thermal energy, or regulates temperature (“Renewable Energy Improvement”);
Decrease water consumption or demand and address safe drinking water through the use of efficiency technologies, products, or activities that reduce or support the reduction of water consumption, allow for the reduction in demand, or reduce or eliminate lead from water which may be used for drinking or cooking (“Water Conservation Improvement”); or
Increase resilience, including but not limited to flood mitigation, stormwater management, wildfire and wind resistance, energy storage, and microgrids (“Resiliency Improvement”).
Eligible Improvements include the following:
The acquisition, construction (including new construction), lease, installation, or modification of a Qualified Improvement permanently affixed to an Eligible Property.
For Renewable Energy Improvements, “permanently affixed” includes Eligible Improvements that are subject to a power purchase agreement or lease between the Property Owner/applicant and the owner of the subject renewable energy system, if the power purchase agreement or lease contains all of the following provisions:
The Renewable Energy Improvement relates to a Renewable Resource, defined as follows: (a) water; (b) wind; (c) solar energy; (d) geothermal energy; (e) renewable natural gas; (f) renewable hydrogen; (g) wave, ocean, or tidal power; (h) biodiesel fuel that is not derived from crops raised on land cleared from old growth or first-growth forests; or (i) biomass energy.
The term of the power purchase agreement or lease is at least as long as the term of the related Assessment Agreement.
The owner of the Renewable Energy Improvement agrees to install, maintain, and monitor the system for the entire term of the Assessment Agreement.
Neither the owner of the Renewable Energy Improvement, nor the Property Owner, nor any successors in interest are permitted to remove the system prior to completion of the full repayment of the Special Assessment and Special Assessment Lien.
After installation, the power purchase agreement or lease is paid, either partially or in full, using the funds from the Special Assessment financing.
The power purchase agreement or lease specifies the holder of the Special Assessment Lien is a third-party beneficiary of the power purchase agreement or lease until the Special Assessment Lien has been fully repaid.
Eligible Improvements include the refinancing of existing properties that have had Eligible Improvements installed and completed for no more than three (3) years or thirty-six (36) months prior to the date of Project Application.
Examples of Eligible Improvements include, but are not limited to:
A like-for-like roof associated with installing a roof-mounted solar photovoltaic array;
Asbestos abatement associated with a boiler retrofit;
New pads to support new plant equipment, such as a new chiller;
Replacement of ductwork and terminal boxes related to a packaged rooftop unit replacement;
Relocation of equipment associated with the installation of energy-saving measures, such as relocating a packaged rooftop unit to serve redistributed loads within a building better;
Rerouting of a fire sprinkler system to accommodate a new HVAC system upgrade;
Electrical upgrades associated with a new solar photovoltaic system, energy efficiency, or suitable measures, and electric vehicle charging;
Any utility infrastructure cost associated with electrical upgrades;
Existing carport structures that support a solar photovoltaic array;
Demolition of an existing parking lot and installation of a new parking lot to allow for the installation of a bore field associated with a new ground source heat pump system;
Resurface or repaving of parking lots if solar photovoltaic carports are specified for new builds or installed on retrofits;
General construction costs required for the suitable measure;
Renewable energy improvements that are part of a community solar garden;
High efficiency electric appliances such as heat pumps and heat pump water heaters.
Capital Provider may be any of the following:
a corporation, partnership, or other legal entity that provides proof that it is currently registered as a Improvement Special Assessment Capital Provider in two different states with C-PACE programs;
a federal or state-chartered bank or credit union; or
a private entity, whose principal place of business is located in New Mexico, provided it is licensed or permitted to do business within the state and can produce its most recent audited financial statement or regulatory business filing.
Qualifying costs that can be Improvement Special Assessment financed include:
Materials and labor necessary for installation or modification of a Qualified Improvement;
Permit fees;
Inspection fees;
Financing or origination fees;
Program application and administrative fees;
Project development, architectural and engineering fees;
Third-party review fees, including verification review fees;
Capitalized interest;
Interest reserves;
Escrow for prepaid property taxes and insurance;
Any other fees or costs that may be incurred by the Property Owner incident to the installation, modification, or improvement on a specific or pro rata basis.