11 - Expansion of Property Assessed Clean Energy Program

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(1) verification that the person requesting to participate in the program is the legal record owner of the benefitted property, (2) the applicant is current on mortgage and property tax payments, (3) the applicant is not insolvent or in bankruptcy proceedings, (4) the title of the benefitted property is not in dispute; and (5) there is an appropriate ratio of the amount of the assessment to the assessed value of the property. The Local Government determines that it will follow the Texas PACE in a Box model program recommendation for determining the appropriate loan to assessed value of the property. The Local Government determines to be eligible for PACE financing, the projected savings derived from the Qualified Improvement must be greater than the cost of the PACE assessment and lien over the life of the assessment (i.e., the Savings to Investment Ratio (SIR) should be greater than one, SIR>1). A third -party lender and a for profit -property owner may request a waiver in writing for a project with an SIR < 1 and address the interests of tenants and future property owners. The Authorized Representative may consider factors in a variance request including: (a). Are there other environmental benefits such as air or water quality or resiliency that are not captured in the SIR analysis; (b) Will the proposed qualifying improvements generate environmental marketable credits that can be monetized? (c). What is the SIR calculation for the project (how far below 1?); (d). If the SIR is < 1 over the term of the assessment, is the SIR > 1 over the useful life of the equipment? (e). What is the impact of a variance request on affected third parties? and (f) Other information the owner and lender wish to submit regarding the impact of the qualified improvements on the company and the community. 1. Mort,n,e Holder Notice and Consent. Asa condition to the execution of a written contract between the Authorized Representative and the property owner imposing an assessment under the program, the holder of any mortgage lien on the property must be given notice of the owner's intention to participate in the program on or before the 30th day before the date the contract is executed, and the owner must obtain the written consent of all mortgage holders." in. Imposition of Assessment. The Authorized Representative will enter into a written contract with the property owner, only after: (1) The property owner delivers to the Authorized Representative written consent of all mortgage lien holders; (2) The Authorized Representative's determination that the owner and the property are eligible to participate in the program, that the proposed improvements are reasonably likely to decrease energy or water 10 TX. Local Gov't Code §399.010.