Section 648-5-6 - UNDERWRITING STANDARDS1. Except as provided for a new construction project or a major renovation, the C-PACE Loan may cover up to 100% of an Energy Savings Improvement's costs, including the costs of any audits, development and application fees directly associated with the improvement, less any rebate or other financial incentive provided by the Trust to the Property Owner.2. For a new construction project or a major renovation, the costs that may be borrowed through a C-PACE Loan are limited to: a. If the building's primary space heating system will employ high-efficiency heat pumps, either the itemized costs of the heat pump system or a default cost assumption that is proportionate to the heating system's share of the full cost of the building's construction which shall be provided in the Program Guidelines;b. In the case of improvements to the building envelope, the incremental costs of the envelope improvements compared to what it would have cost to meet the minimum energy requirements of the Maine Uniform Building and Energy Code for the building envelope; and,c. For all other Energy Savings Improvements that are incremental to the minimum energy requirements of the Maine Uniform Building and Energy Code, 100% of costs of Energy Savings Improvements that are itemized and documented sufficiently to distinguish them from other costs of the construction project.3. The term of the C-PACE Agreement shall not exceed the Estimated Useful Life, of the financed Energy Savings Improvements, the duration of which shall be acceptable to and disclosed by the Technical Reviewer.4. The estimated cost savings from the Energy Savings Improvements over the useful life of such improvements shall achieve for the Property Owner a savings-to-investment ratio ("SIR") of not less than 1.0.5. The Qualifying Property shall have a debt service coverage ratio of not less than 1.0 at the time the C-PACE agreement is entered into.6. The Qualifying Property shall have a loan-to-value ratio of not more than 1.0 at the time the C-PACE agreement is entered into, calculated by dividing the total amount of debt secured by the Property by the Property value.7. The Qualifying Property's C-PACE Assessment-to-value ratio shall be no greater than 0.35.8. The Qualifying Property securing a C-PACE Loan must be owned by the Property Owner.9. The Qualifying Property shall: a. Be current on real estate taxes, personal property taxes and municipal sewer, sanitary and water district charges;b. Have no outstanding and unsatisfied tax or municipal sewer, sanitary or water district liens; and c. Not be subject to a mortgage or other lien on which there is a recorded notice of default, foreclosure or delinquency that has not been cured.10. The owner or owners of the Qualifying Property must certify that there are no overdue payments on mortgages secured by the Property.11. A Registered Capital Provider may require escrows for C-PACE Assessment payments when appropriate.12. A Registered Capital Provider may apply such other additional underwriting standards as it requires for approval of a C-PACE Loan that will be financed by the Registered Capital Provider, consistent with all applicable laws.