NORTHCROSS, HILL & ACH, INC. LEADS THE WAY FOR PACE FINANCING

Northcross, Hill & Ach, Inc. (“NHA”) developed the first property-tax based financing structure for the City of Berkeley (CA) in 2007.  As part of NHA’s continued financial advisory relationship with the City of Berkeley, NHA principals Craig Hill and Mark Northcross worked to develop a financing mechanism that provided the foundation for the City’s intention to help meet its local green gas emissions reduction ordinance.

Through 25 years of special tax and assessment financing experience, NHA was able to create and validate, with the City’s legal counsel, the concept of using special tax assessments as the financial means to making photovoltaic systems a reality for residents of the City of Berkeley.  This financing structure is now commonly known as PACE (property assessed clean energy) and is being legislatively approved throughout the United States.  These programs are intended to finance both residential and commercial improvements such as energy efficiency, solar thermal and photovoltaic as well as water efficiency.

How Does It Work? – Any property owner who voluntarily elects to make improvements and finance them through a special tax assessment can request that the sponsoring public agency place a lien on the improved property.  Through this annual tax collection, a bond can be issued which is repaid from the revenue (giving the bond holder the highest form of security possible).

Who has created Programs? – NHA has worked with the City of Berkeley as well as the City and County of San Francisco to develop residential and commercial PACE programs.  NHA is also currently working with the City and Redevelopment Agency of Los Angeles to develop their commercial PACE program.  In addition to these developed programs, NHA continues to work weekly with many other public agencies across the United States on the conceptual framework and legislative steps to develop their own programs.

Who is NHA working with? – NHA continues to advise and provide expertise to most of the leading pioneers in the PACE industry.  Although PACE has only been in existence since 2008, many firms have come into the industry to help create both the financing and administrative components that are key to the success of any PACE program.  NHA has worked extensively with the following firms to assist in the expansion and development of the PACE industry.