10 - Expansion of Property Assessed Clean Energy (PACE) Program Presentation & Discussion

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Unlike more traditional means of financing, PACE financing is secured by an assessment on the property that is in turn secured by a senior priority lien on the property that runs with the property and cannot be extinguished by a foreclosure of a mortgage or a property tax lien. The PACE lien is enforced in the same manner in which a property tax lien is enforced, through foreclosure by the local governmental entity. PACE financing is designed to be risk- and cost-free for the local government. Phase 1— Establishing the framework for a local PACE Program Phase 1 includes four primary statutory requirements for a local county or municipality to establish the framework for a PACE program within its jurisdiction. The Texas statute code requires a report to be published for the public and posted on the municipality's website. This report outlines the primary facets of the local program, application process, financing guidelines, and other big -picture and administrative items pertinent to running a PACE program. Next, the statute requires two resolutions to be adopted by the local county or municipality, including a resolution of intent to create a PACE program, and a resolution to establish the PACE program. After the resolution of intent is adopted, the statute requires the governmental body to hold a public hearing on the proposed program and report. After the public hearing, the governmental body passes the second resolution, the resolution to establish the PACE Program. In this case, we will only be amending the existing program, but the following steps still apply. 1. Public PACE Report (Required by Section 399.009) — Report by local government describing the PACE program once structure has been decided. This report must be made available for public inspection on the local government's website and at the office of designated official. 2. Resolution of Intent to Create PACE Program (Required by Section 399.008(a)(1)) — Include finding that projects will serve a valid purpose, local government intends to make contractual assessments to repay financings, description of project and map boundaries, reference to the Public PACE Report, statement of the time and place for a public hearing. 3. Public Hearing (Required by Section 399.008(a)(2)) — Public may comment on proposed program and report. 4. Resolution to Establish Program (Required by Section 399.008(a)(3)) — This resolution should include each item in the Public PACE Report required by statute, or it may incorporate the Report by reference; this resolution should also include a description of each aspect of the program that may be amended only after another public hearing is held.