Applications open September 9, 2026

The Salem Commercial Property Assessed Clean Energy (CPACE) Program provides a voluntary financing mechanism that allows owners of eligible commercial, industrial, agricultural, nonprofit and multifamily (with five or more dwelling units) properties located within the City of Salem to obtain long-term private financing for qualified energy efficiency, renewable energy, water conservation, seismic resiliency and other eligible improvements.

Background

CPACE was authorized by the Oregon State Legislature under ORS 223.680 and ORS 223.685. The City of Salem passed Ordinance 10-26 on August 10, 2026, enabling the creation of the Salem CPACE program. The City’s Urban Development Office administers the program.

Benefits

CPACE offers benefits to eligible privately-owned commercial, industrial, agricultural, or multi-family (with five or more dwelling units) properties located within the boundaries of the City of Salem.

For Building Owners and Developers

One of the biggest barriers to converting potential projects to completed projects for efficiency and seismic upgrades are the up-front cost of the types of measures identified in the statute as qualifying improvements. CPACE financing typically requires little up-front investment and qualifying improvements improve property value. Energy efficiency measures also lower operating costs. In addition, CPACE financing has the following benefits:

• Up to 100%, long-term financing. Many owners lack the capital to complete efficiency and seismic improvements. All direct and indirect costs incidental to the qualified improvements can be wrapped into CPACE financing.

• Transferable upon sale. Some owners may want to sell the building before the financing is repaid. The CPACE lien and assessment are attached to the property and transfers to the new owner.

• Cash flow benefits. CPACE financing may be repaid over the useful life of the improvements which, because of the long-term financing options, can have positive effects on cash flow.

• Triple-net and Full-net leases may allow pass-through of assessment installments to tenants. Under triple/full net leases, CPACE payments can be passed along to tenants, who also typically derive benefit from any energy savings through reduced operating costs.

For Energy Auditors, Architects, Building Engineers and Contractors

By allowing a property owner to access 100% up-front financing for longer terms than are typically available for conventional financing, more substantial efficiency and seismic improvements are now more affordable with CPACE. Energy auditors, architects, engineers and contractors can suggest CPACE financing as a way for their clients to implement needed energy or seismic upgrades that might otherwise be unaffordable. Since the demand for building efficiency and seismic improvements will grow in a CPACE-enabled jurisdiction, CPACE is a powerful business growth catalyst for building professionals like energy auditors and contractors.

For Existing Lien Holders

CPACE improvements can enhance property value and typically improve a building’s longevity, thereby reducing the risk of property value decline over time. In addition, CPACE financing is non-accelerating, meaning only current or past due annual payments can be collected each year while future payments stay with the property. As such, existing mortgage holders see their collateral improved without substantial increase in credit risk and with only a modest impact on lien priority. CPACE financing is not permitted without the consent of all existing lien holders and, under certain circumstances, the holders of certain other obligations encumbering commercial residential property.