Pace Loan Group

may 16, 2024

PLG’s CEO and COO advocate in MN legislature for pending C-PACE changes

Minneapolis, Minnesota (May 16, 2024) – PACE Loan Group’s CEO and Founder Rafi Golberstein and COO Bali Kumar, both leaders in the national C-PACE industry, have been instrumental in guiding changes to Minnesota’s legislation to broaden the requirements for C-PACE financing and make the tool available to more commercial property owners in the state.

C-PACE – Commercial Property Assessed Clean Energy – finances property improvements in energy, water, building resiliency, and efficiency through a property tax assessment. While the legislation has public oversight, with the St. Paul Port Authority managing Minnesota’s program, no public dollars are used in the financing. In current legislative sessions across the country, eight other states added C-PACE or expanded the program to impact more property financing or refinancing options.

Minnesota, which has been a national leader in C-PACE financing with more than 533 completed transactions since 2017, has experienced a slowdown in use of the tool because it only allowed the financing over 20 years and limited it to 20% of the property’s value.

Traditionally, C-PACE can be up to 30% of the property value and be financed over 30 years.

The changes approved by Minnesota’s legislature and included in the Omnibus bill slated to pass this weekend increase the financing term to 30 years and the loan-to-value cap to 30 percent. The bill also eliminates a savings to investment ratio requirement, which often disqualified projects due to high construction costs, and adds water conservation and resiliency improvements to the list of eligible improvements.

“As one of the first C-PACE direct lenders in the country and the only one headquartered in Minnesota, we saw many states become more active in C-PACE lending as they realized the benefit of the public-private partnership,” said Golberstein.

“This legislative change will truly benefit Minnesota commercial property owners who may have expensive short-term debt coming due, are trying to renovate existing properties, or who are trying to develop new properties in any asset class. C-PACE reduces the overall cost of capital while also improving the operating efficiency of the properties, which can often be passed along to tenants.”

PLG worked closely with Clean Energy Economy Minnesota (CEEM) and legislative staff to identify the most effective changes. Once the legislative passes, PLG expects the new rules to go into effect upon passage. Senator Lindsay Port (DFL-Savage/Burnsville) and Representative Ned Carroll (DFL – Plymouth) sponsored the legislation. These legislative changes amend the original legislation passed in 2010.

Media Contact:

Martha Nevanen


About PACE Loan Group

PACE Loan Group (PLG) is a national leader in the C-PACE marketplace, providing direct C-PACE financing to commercial property owners. PLG benefits from institutional support with capital from funds managed by AB CarVal, a subsidiary of Alliance Bernstein. The PLG team provides expertise up and down the capital stack, from origination and underwriting to loan servicing. To learn more about PLG, visit


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