Property owners can apply C-PACE financing retroactively after a construction project or renovation has been completed, returning capital back to property owners.  Most states have retroactive or “lookback” C-PACE provisions allowing C-PACE to be used from one (1) to three (3) years after project completion.  This flexibility in the government statutes creates different applications for the use of C-PACE.  As a recapitalization tool, the proceeds from the C-PACE may be redeployed to pay down or pay off more expensive debt existing on the property.  The capital may also be used for other project cost overruns or fund working capital.

During the more recent health crisis, retroactive C-PACE proceeds have also been used as a liquidity bridge to fund interest reserves and reduce senior loan principal for properties that have been adversely impacted by shutdowns and income losses that are not covered by insurance.  This provides a lifeline for property owners to continue operations, mitigate lender defaults and ward off potential foreclosure until the negative impact of the health crisis have passed.