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

Home Browse Search

— This is the primary Program agreement; this agreement creates the property assessment and senior lien, and specifies terms of financing to be provided by an eligible lender. 2. Consent of existing mortgage lender (Required by Section 399.010) — Prior to signing Owner Contract, each existing mortgage lien holder must be given 30 days written notice, and give written consent. 3. Notice of assessment lien (Required by Section 399.013) — Filed in the real property records of county where property is located. — A local government that authorizes financing through contractual assessments under this chapter shall file written notice of each contractual assessment in the real property records of the county in which the property is located. The notice must contain: (1) the amount of the assessment; (2) the legal description of the property; (3) the name of each property owner; and (4) a reference to the statutory assessment lien provided under this chapter 4. Lender Contract between Property Owner and Capital Provider (Required by Section 399.006(d)) — Provides financing by third -party lender and servicing of the debt through assessments. — Servicing Agreement: Includes billing, collecting and remitting payments to the third -party lender. Servicer also maintains payment records, account balances, etc. (See Section 399.015, Local government may contract with another entity for collection of assessments imposed by the local government.) 5. Review of Proposed Project and Completed Project (Required by Section 399.011(a) and (b)) — Owner must obtain a review which must be conducted by an independent third party with no financial interest. — A program established under this chapter must require for each proposed qualified project a review of water or energy baseline conditions and the projected water or energy savings to establish the projected water or energy savings. — After a qualified project is completed, the local government shall obtain verification that the qualified project was properly completed and is operating as intended. STATUS OF ISSUE: The city has been approached by HWH requesting that the program be expanded beyond the initial pilot project. BUDGET: The costs of a PACE program are supposed to be borne by the owner, who is participating in the program voluntarily. The city will have to determine how best to pass on any staffing or other costs, but the program should be budget neutral.