BNY Mellon has been named trustee, registrar and paying agent for the first PACE financing authorized by the Commonwealth of Kentucky for a private property owner.
“We believe this private placement bond will be the first of many PACE (Property Assessed Clean Energy) financings in Kentucky,” said Antonio Portuondo, head of BNY Mellon Corporate Trust’s public and not-for-profit business. “By being named trustee on the initial project, we have the expertise to help other communities navigate through the process of obtaining this type of financing.”
PACE financing enables private commercial property owners to repay the funds for an eligible energy efficiency project by accepting a special assessment on their tax bills. Portuondo said that special assessment is an alternative to traditional loans or mortgages when funding such projects, as it eliminates expensive upfront costs for property owners.
“The financing is linked to the property, not the owner; so it reduces concerns regarding the ability to recover an investment when the property is sold,” Portuondo added.
For this project, BNY Mellon worked with the Greater Cincinnati Energy Alliance and the City of Covington, KY, to enhance the energy efficiency for the Ivy Knoll Senior Living Community in Covington, KY. The energy efficiency program, valued at $750,000, is to include the installation of solar panels, LED lighting, and efficiency enhancements for the elevators and heating and cooling systems at the seven-story building.
“This program will help Ivy Knoll improve the comfort of its senior residents, while resulting in lower carbon emissions,” said Portuondo. “That’s good for everyone and is consistent with our mission to help communities.”