CPC Climate Capital FAQs

Current as of: 01/24/2025


Thank you for your interest in CPC Climate Capital. We’re eager and excited to invest in local communities by financing high-performing multifamily housing projects nationwide.

Below are answers to some of the most commonly asked questions about our work and links to useful information, such as our term sheets. If you don’t find the answer you’re looking for or have any suggestions for us, please get in touch with our team for further assistance: [email protected].

Please feel free to bookmark this page for easy access. We’ll continue to update this page as we receive new questions.


Important Links

  1. Is there information available on project financing terms, including interest rates, repayment style, and minimum/maximum financing amounts?

    a. Yes, term sheets are available here: CPC Climate Capital’s website.

  2. Is there a minimum unit size for a building to qualify for loans?

    a. CPC Climate Capital funds are available to multifamily properties of 5 or more units. CPC Climate Capital’s Climate United partner, Self Help, serves one-to-four-unit properties.

  3. Will new construction projects that cannot offset all energy with on-site renewables be eligible for funding? Can projects procure off-site clean energy, such as community solar or RECs, to make up for this gap?

    a. CPC Climate Capital defers to the DOE National Definition of a Zero Emissions Building off-site power generation requirements beginning at the bottom of page 3 in the linked webpage. Projects that cannot offset all energy usage on-site will still be eligible so long as they maximize on-site clean energy and meet the minimum off-site procurement requirements as described in the DOE’s definition.

  4. Are CPC Climate Capital’s products subordinate to other sources of financing?

    a. CPC Climate Capital’s products will be subordinate to the senior loan or the first mortgage.
     
  5. Can subordinate debt be provided mid-cycle? 

    a. Yes, though first mortgage lender consent will be required. 

  6. Can CPC Climate Capital GGRF funds be combined with other sustainability subsidies or loans?

    a. You can combine some subsidies with CPC Climate Capital GGRF funds; However, you cannot use two funding sources to pay for the same energy efficiency or decarbonization measure. Other sustainability incentives are allowable and encouraged if the two funding sources pay for different energy efficiency or decarbonization measures. Generally, you should maximize non-repayable sources and incentives before obtaining debt financing. 
     
  7. Will projects that use CPC Climate Capital GGRF funds be subject to affordability restrictions?

    a. No. There are no affordability restrictions tied to using CPC Climate Capital products. However, CPC Climate Capital is committed to supporting projects that benefit low-income/disadvantaged communities (LIDAC) and will ensure that at least 60% of funds go to projects in LIDAC communities.

  8. Can I use CPC Climate Capital financing to finance multifamily solar PV (photovoltaic) as a stand-alone project?

    a. CPC Climate Capital can provide financing if solar PV is part of a larger scope of work for decarbonization that meets our applicable performance standards. Funding for stand-alone solar projects is available through CPC Climate Capital’s Climate United coalition partner, Calvert Impact. To connect with Calvert Impact’s team, follow this link .  

  9. How is the interest rate determined?

    a. Interest rates will be subject to the characteristics of the transaction. Please refer to CPC Climate Capital’s term sheets. 

  10. Can CPC Climate Capital waive the loan cap as a percentage of total project cost for certain types of deals?

    a. CPC Climate Capital will consider waivers to the loan cap case-by-case.

  11. Is CPC Climate Capital coordinating with other lenders to ensure loan terms and other requirements are compatible?

    a. Yes. CPC Climate Capital is working with first mortgage lenders to understand how our subordinate debt products will work best with various first mortgage lender terms.

  12. Will CPC Climate Capital work with all sources of first mortgage capital?
    a. CPC Climate Capital intends to work with all sources of first mortgage capital.

  13. What criteria will you use to determine the size of subordinate loans? 

    a. We will determine loan size by the difference between a benchmark level of emissions and a future post-construction level of emissions, modeled by an approved technical assistance provider. For rehabilitation projects, we will base the benchmark on previous energy use/emissions data for the building(s). For new construction projects, we will base the benchmark on the maximum allowed by local energy codes.

    b. We measure emissions in metric tons of CO2. Building energy use can be multiplied by the local emissions factor to determine the volume of emissions.

    c. The delta between the benchmark and the future emissions values, representing total emissions reduced or avoided, is then multiplied by a factor of $8,000 per ton of CO2 to size the CPC Climate Capital loan.

    d. See term sheets for more details.

  14. Are envelope improvements and associated hard and soft costs eligible?

    a. Envelope improvement and associated hard/soft costs are currently eligible.

  15. Will building materials with lower embodied carbon be eligible for funding? 

    a. There is currently no industry-accepted methodology for measuring the carbon emission savings from using materials with lower embodied carbon. We are exploring pathways to incorporate embodied carbon emissions accounting into our financing and will share more details as soon as possible.

  16. Will the required energy reduction be based on site or source energy use?

    a. We base the energy reduction needed on site, not source, energy use.

  17. Will specific green building certifications be required to access CPC Climate capital funds?

    a. No. We only require projects to meet Climate United’s Multifamily Performance Standards

  18. Will ongoing emissions and energy performance be tracked beyond the initial commissioning?

    a. Yes, annual benchmarking is required. 

  19. When does Davis-Bacon & Related Acts (DBRA) apply to CPC Climate Capital-financed projects?

    a. DBRA requirements apply to projects involving the construction, alteration, or repair of a building in excess of $2,000. If CPC Climate Capital financing enters a multifamily project during the construction phase, DBRA will apply. If financing enters a project pre- or post-construction, DBRA will not apply.

  20. Do you anticipate issuing firm commitments on terms so developer owners can assemble the rest of their capital stacks?

    a. We understand the need for borrowers to fill out their capital stack and anticipate being able to provide statements of qualification for developers participating in competitive award processes in the coming months.

  21. How will the projects be selected for funding if they fall under both qualified and priority categories? 

    a. All projects must meet the qualified project criteria; however not all qualified projects will be priority projects. We are finalizing our portfolio limitations, which will drive project prioritization.  

  22. When does Build America, Buy America (BABA) apply to CPC Climate Capital-financed projects?

    a. BABA requirements apply for projects that build, renovate, or permanently affix materials to infrastructure that meets a “public function test.” Projects in privately owned, unsubsidized, and non-mixed-use multifamily housing do not meet this infrastructure public function test and will not be subject to BABA.

    b. Current EPA guidance states that, in general, public subsidies that do not confer equity or ownership stakes for the public funding source would not trigger BABA applicability in and of themselves. Mixed-use projects will not trigger BABA if the principal purpose is to benefit the portions of a mixed-use property that do not meet the public function test (e.g., private residential areas). However, the ultimate determination for a particular project will be fact-specific. Given the diversity of multifamily housing projects, the CPC Climate Capital will work with applicants to arrive at BABA applicability determinations based on the project’s details.