20 - Intent to Establish the City of Paris Texas Property Assessed Clean Energy (PACE) Program

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property with five (5) or more dwelling units;2 and (2) are intended to decrease energy or water consumption or demand by installing a product, device, or interacting group of products or devices on the customer's side of the meter that uses energy technology to generate electricity, provide thermal energy, or regulate temperature.3 A sample list of potential Qualified Improvements appears in Section 2 above. The PACE Program may not be used to finance improvements to undeveloped lots or lots undergoing development at the time of the assessment, or for the purchase or installation of products or devices not permanently fixed to real property.4 (e) Authorized Representative. For the Pilot Project, Grayson Path, City Manager (or his successor or designee), is designated as the "Authorized Representative" authorized to enter into written contracts on behalf of City with property owners and lenders. For future PACE projects, City may designate a Program Administrator as the "Authorized Representative," and may delegate all or some official administrative responsibilities, like the execution of individual contracts with property owner and lenders, to the Program Administrator.5 This relationship will be monitored and maintained by the City Manager, or his/her designee. (f) Plans for Insuring Sufficient Capital. Lenders will extend loans to finance Qualified Improvements. Financing documents executed between owners and lenders will impose a contractual assessment on Eligible Property to repay the owner's financing of the Qualified Improvements. The lenders will ensure that property owners demonstrate the financial ability to fulfill the financial obligations to be repaid through contractual assessments. (g) No Use of Bonds or Public Funds. City does not intend to issue bonds or use any other public monies to fund PACE projects. Property owners will obtain all financing from the eligible lenders they choose. (h) Limit on Length of Loan. One of the statutory requirements for a PACE loan is that the assessment payment period cannot exceed the useful life of the Qualified Improvement that is the basis for the loan and assessment. As part of the application process, the property owners will submit a third -party review showing the water or energy baseline conditions and the projected water or energy savings. This review will aid the 2 TX. Local Gov't Code §399.002(5). 3 TX. Local Gov't Code §399.002(3). 4 TX. Local Gov't Code §399.004. 5 HB 3187 was signed into law on June 16, 2015. It authorizes City to delegate administration of the Pace program to a third -party "representative". -7-