November 10, 2026

C-PACE and Senior Living Developers

Senior Living Deals
Senior Living Deals

Master Keys

    • America’s seniors are living longer than ever and looking for flexible housing options that combine care and amenities. This combination is driving demand for the foreseeable future.
    • The unique needs of senior living communities are pushing the lending community to look for the best financing structures to support development costs.
    • C-PACE is becoming a more frequent lending option, providing long-term, fixed-rate financing, which gives senior living developers financing that covers structural components that also create operating efficiencies.

When the first baby boomers were born in 1946, life expectancy in the United States was about 67. Today, it’s nearly 80. Roughly 10,000 Americans turn 65 every day, and this group -- now close to 20% of the population -- is a major driver of demand for new types of housing that support reduced mobility, provide wellness amenities, and offer strong communities to reduce loneliness.

Increasingly, developers are using C-PACE (Commercial Property Assessed Clean Energy) financing to meet that demand, specifically for senior housing properties that offer different levels of care as people age.  

C-PACE Solves Senior Living’s Unique Challenges 

With amenities like pickleball courts, beautiful dining rooms, and large group gathering spaces, today’s senior living communities can look much more like college campuses than care facilities. But unlike the average freshman, residents require more from their home than a futon mattress on the floor and a rented minifridge.  

High-efficiency HVAC systems keep indoor spaces comfortable year-round, allowing each resident to be at ease in their own space without throwing the building’s climate systems into overdrive. Pairing these systems with building envelope upgrades like ENERGY STAR windows makes the whole system work more efficiently and effectively, and all of these upgrades are C-PACE eligible. 

Advanced air filtration systems are another improvement that helps keep residents healthier by filtering out outside pollutants as well as preventing airborne illnesses from spreading easily between residents. Indoor air quality is important for all senior care facilities, but especially skilled nursing and memory care units, which fall under stricter ASHRAE guidelines.  

Additional power capacity in different areas allows healthcare to be offered along with traditional multifamily-type apartments. Those electrical needs add expense but are also a C-PACE-eligible expense.  

Senior Housing Looks Like Traditional Multifamily but It’s Not 

Senior living communities are a lot like traditional multifamily assets, but with a defined demographic and likely increased healthcare needs for residents over time. Unlike traditional multifamily, however, senior living facilities have functions that operate 24/7.  

For all but the most independent of independent living communities, the constant hum of activity doesn’t end with food preparation and laundry: On-site monitoring is typically available in case of medical emergency.  Even if daily medical care isn’t provided at the facility itself, the need for constant observation and availability means always-on systems, which makes efficiency improvements an important way to cut costs.  

As the level of care increases, so does the need for C-PACE-eligible improvements: Facilities that provide on-site care have even more to gain from highly efficient systems that support their residents’ needs as they age. These important differences may limit which lenders are interested; by coupling a portion of the loan from a bank and a portion from PACE Loan Group.  

C-PACE gives Senior Living Developers Unrivaled Flexibility 

Senior living data clearinghouse NIC MAP estimates that some 13 million more people will need senior housing in 2040 than need it today. Given current inventory and construction trends, that means developers will need to think creatively about how to take existing structures and adapt them to the needs of this unique, growing population. 

C-PACE’s adaptability allows that kind of creativity to flourish. Of course, it can be used for ground-up construction, but it can also be used to transform vacant office space, convert condos, or reposition multifamily buildings into the kind of communities that help seniors stay healthy and vibrant. 

Just like C-PACE is a good match for senior living’s unique demands, PACE Loan Group is the right partner for developers looking to fill out their capital stack. We’ve financed more than 50 senior living projects across the United States and across the continuum of care.  

We’re experts in understanding the unique needs of a community and helping developers build the right facility to help meet those needs for today’s seniors and those still to come.