What's Happening?
The city of Aurora is evaluating the implementation of a lending program aimed at facilitating sustainability upgrades for commercial properties. This initiative, discussed by the Aurora City Council's
Rules, Administration and Procedure Committee, would allow the city to participate in the Illinois Finance Authority's Commercial Property Assessed Clean Energy (C-PACE) financing program. The program, available statewide since 2017, requires local government approval for use within their jurisdictions. The C-PACE program would provide loans covering up to 100% of project costs, with a cap at 25% of the property's total value. Eligible upgrades include energy efficiency improvements, renewable energy installations, water conservation systems, and electric vehicle charging stations. The loans, which are repaid through a special assessment lien on the property, offer fixed, low interest rates and terms ranging from 10 to 40 years. The program is designed to support economic development and sustainability, potentially increasing property values, reducing operating costs, and creating local jobs.
Why It's Important?
The proposed C-PACE program in Aurora represents a significant step towards enhancing sustainability and economic development within the city. By facilitating energy-efficient upgrades and renewable energy installations, the program could lead to reduced greenhouse gas emissions and lower energy costs for property owners. This initiative aligns with broader environmental goals and could serve as a model for other municipalities seeking to promote sustainable development. Additionally, the program's potential to increase property values and create jobs for local contractors and tradespeople underscores its economic benefits. The program's structure, which allows loan repayment through property assessments rather than personal guarantees, provides a more accessible financing option for property owners, encouraging the reuse and improvement of older buildings.
What's Next?
The C-PACE program proposal has been recommended for approval by the Aurora City Council's Rules, Administration and Procedure Committee and is set to be reviewed by the Committee of the Whole before a final decision by the Aurora City Council. If approved, the program could be implemented, providing a new financing tool for property owners in Aurora. The city plans to receive regular updates from the Illinois Finance Authority, which will manage the program in collaboration with private lenders. Aurora's staff is also exploring similar programs for residential properties and small businesses, indicating a broader commitment to sustainable development and economic growth.
