Clackamas County directs staff to develop CPACE program for future consideration

Dan Johnson, director of Transportation and Development, introduced CPACE as a statutorily authorized tool counties may use to help commercial property owners finance energy, water, seismic and other qualifying improvements by placing a county-managed lien on the property to secure repayment.

Staff outlined examples from other Oregon jurisdictions and described possible program design elements: eligibility thresholds, lien type (assessment vs. local improvement district/LID), an example fee structure (Portland’s 1% origination fee and 0.25% annual administration fee), a suggested $5,000 foreclosure retainer and an estimated $30,000 county start-up cost for program development. Staff emphasized the county would not issue debt nor assume liability for private loans; the county’s role is limited to recording liens and program administration.

Commissioners questioned lien priority, whether taxes remain first in line and how primary lenders would be handled; staff clarified taxes remain first and CPACE could take priority ahead of a primary lender only with the lender’s written subordination. Commissioners asked staff to return with options that include qualifying thresholds tied to assessed-value increases and fee ranges. Commissioner Helm moved to direct staff to develop a CPACE program for return to a future policy session; the motion passed 4–0.