23 - Amended Report on the PACE Act and Resolution of Intent to Expand the Program

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industrial or residential real property witb five (5) or more dwelling units;' and (b) 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 tbermal energy, or regulate temperature. 6 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.' e. Authorized, Re�esentative. HB 3187 was signed into law on June 16, 2015. It authorizes the Local Government to delegate administration of the PACE program to a third -party "Authorized Representative." The Local Government may delegate all official administrative responsibilities, such as the execution of individual contracts with property owners and lenders, to an Authorized Representative. This relationship will be monitored and maintained by the City Manager or his/her designee. f. Prosect Review. Track and provide a public overview with savings metrics for all PACE projects g. Plans„ for _Insurin,, Sufficient Capitalg,, 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. h. No Use of Bonds or Public Funds,. The Local Government 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. t. Limit on Lens th of Loan. One of the statutory criteria of 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 an independent third -party review prepared by a licensed engineer showing the water or energy baseline 5 TX. Local Gov't Code §399.002(5). 6 TX. Local Gov't Code §399.002(3). TX. Local Gov't Code §399.004. 8 The Texas PACE Authority's website(www.texas� aceauthori� , .ori,) offers a non -exhaustive list of interested and qualified lenders to assist property owners in funding PACE projects in Texas.