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17 - Establishing City of Paris Texas PACE - Property Assessed Clean Energy ProgramItem No. 17 TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: RESOLUTION ESTABLISHING A PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM DATE: March 22, 2021 BACKGROUND: Chapter 399 of the Texas Local Government Code (LGC) codifies the Property Assessed Clean Energy (PACE) Act. PACE financing is an alternative to traditional financing for energy efficiency, water conservation and renewable energy projects for privately - owned commercial and industrial properties. C -PACE makes it possible for commercial, industrial, and certain residential property owners: ■ to obtain low-cost, long-term financing ➢ to improve energy efficiency, generate renewable energy, and achieve other vital public benefits ➢ to increase the value of their property through improvements to lighting, roofing, HVAC systems, boilers and chillers, insulation, glazed windows, hot water heating systems, renewable energy systems, and more ■ to finance these projects in a way that is cash-flow positive — payback terms of up to 30 years can result in yearly savings from energy improvements greater than annual PACE payments 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 I — 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. 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. STATUS OF ISSUE: The city has been approached by representatives of the developers of Paris Lakes about establishing a PACE program to help finance PACE eligible improvements to an addition they hope to construct to the now freestanding ER on their property. I made a presentation to City Council regarding PACE financing at the February 8, 2021 council meeting. At that time, I was instructed to bring back a PACE program for Council approval, and in particular to do what was necessary to expedite the Paris Lakes project (the "Pilot Project") while laying a groundwork for rapid expansion of the program city-wide. On February 22°d , Council accomplished steps one and 2 of Phase 1, receipt of the Report and passage of the resolution of intent. On April 22, Council will conduct the public hearing and consider and possibly pass the resolution to establish the program. Once Council has passed the resolution, the program will move forward administratively. RECOMMENDATION: Conduct public hearing and pass and adopt the resolution establishing a PACE Program for the City of Paris, Texas. RESOLUTION NO., A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS ESTABLISHING THE CITY OF PARIS PACE PROGRAM; MAKING OTHER FINDINGS RELATED TO THE SUBJECT; DECLARING AN EFFECTIVE DATE. WHEREAS, the 83rd Regular Session of the Texas Legislature enacted the Property Assessed Clean Energy Act, Texas Local Government Code Chapter 399, as amended (the "PACE Act'j, which allows the governing body of a local government, including a municipality, to designate an area of the territory of the local government as a region within which an authorized representative of the local government ("Authorized Representative") and the record owners of commercial, industrial, and large multifamily residential (5 or more dwelling units) real property may enter into written contracts to impose assessments on the property to repay the financing by the owners of permanent improvements fixed to the property intended to decrease energy or water consumption or demand; and WHEREAS, the installation or modification by property owners of qualified energy or water saving improvements to commercial, industrial, agricultural, and large multifamily residential real property in the City of Paris, Texas (the "City") will further the goals of energy and water conservation without cost to the public; and WHEREAS, the City Council finds that third -party financing of energy and water conserving projects through contractual assessments maintained by City ("PACE financing'j furthers essential government purposes, including but not limited to economic development, reducing energy consumption and costs, conserving water resources, and reducing greenhouse gas emissions; and WHEREAS, the City Council adopted a Resolution of Intent to establish the PACE program for City on February 22, 2021, including a reference to the report on the proposed program prepared as required by Section 399.009 of the PACE Act and made the report available to the public on the City website and for inspection in the City Clerk's office; and WHEREAS, the Program (as defined herein) will begin with a pilot project in connection with the development of the Paris Lakes Medical Center, which includes a new five -story, 114 -bed hospital containing approximately 198,000 square feet of space and will feature the latest, state-of-the-art medical technology and equipment ("Pilot Project"); and WHEREAS, thereafter, the City intends to expand the Program beyond the Pilot Project, which may include delegation of duties to a third -party administrator as described below; and WHEREAS, the public hearing required by Section 399.008(a) (2) at which the public could comment on the proposed program, including the report available for public inspection as mentioned above occurred March 22, 2021for City, and WHEREAS, the City Council will designate the City Manager as the initial authorized representative ("Authorized Representative") for the Program; and WHEREAS, the City Manager, in consultation with the City Attorney, may delegate the administration of the Program to a qualified, non-profit organization that can administer the program at no cost to the City; and WHEREAS, Transaction fees paid by the parties obtaining PACE loans and charitable grants are sufficient revenue streams to support the non-profit organization, and will enable the program to be administered without use of City resources, will assure the objectives of impartiality and confidentiality of owner information, and will be convenient and advantageous to City; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF CITY THAT: SECTION 1. Recitals. The findings set out in the preamble to this resolution are hereby in all things approved, and are incorporated into this resolution for all purposes. SECTION 2. Establishment of Program. The City of Paris hereby adopts this Resolution Establishing the City of Paris PACE Program and finds that financing qualified projects through contractual assessments pursuant to the PACE Act is a valid public purpose and is convenient and advantageous to City and its citizens. The program will be called "City of Paris, Texas Property Assessed Clean Energy, Program" and is herein called the "Program." SECTION 3. Contractual Assessments. The City of Paris will, at the property owner's request, impose contractual assessments on the property to repay PACE financing for qualified energy and water conserving projects available to owners of privately owned commercial, industrial, and large multifamily property. SECTION 4. Qualified Projects. The following types of projects are qualified projects for PACE financing that may be subject to such contractual assessments: Projects that (a) involve the installation or modification of a permanent improvement fixed to privately owned commercial, industrial, or agricultural real property or residential real property with five (5) or more dwelling units, and (b) are intended to decrease energy or water consumption or demand, including 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. An assessment may not be imposed to repay the financing of facilities for undeveloped lots or lots undergoing development at the time of the assessment or the purchase or installation of products or devices not permanently fixed to real property. SECTION 5. Region. The boundaries of the entire geographic area within City's jurisdiction are included in the boundaries of the region where PACE financing and assessments can occur. -2- SECTION 6. Third -Party. Financing for qualified projects under the Program will be provided by qualified third -party lenders chosen by the owners. Such lenders will execute written contracts with the Authorized Representative or the non-profit administrator to service the debt through assessments, as required by the PACE Act. The contracts will provide for the lenders to determine the financial ability of owners to fulfill the financial obligations to be repaid through assessments, advance the funds to owners on such terms as are agreed between the lenders and the owners for the installation or modification of qualified projects, and service the debt secured by the assessments, directly or through a servicer, by collecting payments from the owners pursuant to financing documents executed between the lenders and the owners. City will maintain and continue the assessments for the benefit of such lenders and will enforce the assessment lien for the benefit of a lender in the event of a default by an owner. City will not, at this time, provide financing of any sort for the PACE program. SECTION 7. Authorized Representative. Initially, the City Manager will be designated as the Authorized Representative with authority to enter into written contracts with the record owners of real property in City to impose assessments pursuant to the PACE Act to repay the financing of qualified projects on the owners' property and enter into written contracts with the parties that provide third -party financing for such projects to service the debts through assessments. The City Manager, in consultation with the City Attorney, may delegate authority to enter into such contracts and to administer the Program on behalf of the City to a qualified organization that can administer the Program at no cost to the City. Such administrative services may be supported by transaction fees paid by the parties obtaining PACE loans to enable the Program to be administered without or nearly without use of City resources, will assure the objectives of impartiality and confidentiality of owner information, and will be convenient and advantageous to City. Following any such delegation, the City Manager or his/her designee will be the liaison with the organization serving as the Authorized Representative. SECTION B. Enforcement. The City will enforce the collection of past due assessments and may contract with a qualified law firm to assist in collection efforts. SECTION 9. Report. The final report on the Program, prepared in accordance with Section 399 of the PACE Act is attached and incorporated into this resolution. The City will post the report on the City website. SECTION 10. Amendment of Program. The City Council may amend the Program by resolution; however, another public hearing is required before the Program may be amended to provide for City financing of qualified improvements through assessments. -3- PASSED AND ADOPTED this 22nd day of March, 2021. ATTEST: Janice Ellis, City Clerk APPROVED AT TO FORM: Stephanie H. Harris, City Attorney -4- Steven J. Clifford, M.D., Mayor REPORT REQUIRED BY TEXAS LOCAL GOVERNMENT CODE SECTION 399.009 FOR CITY OF PARIS PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM REPORT FOR PROPOSED PACE PROGRAM REPORT REQuIRED 8Y TEXAS LOCAL GOVERNMENT CODE SECTION 399.009 FOR PROPOSED THE CITY OF PARIS, TX PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM This Report is adopted by the City Council for the City of Paris, Texas ("City") Property Assessed Clean Energy (PACE) Program (the "PACE Program ") in accordance with the requirements of the Property Assessed Clean Energy Act (the "PACE Act") as set forth in Texas Local Government Code Chapter 399. City and its constituents benefit when existing buildings are modified and new buildings on developed lots are built with new technology and equipment that increases energy efficiency and reduces water consumption. As described in this Report, City is establishing the commercial PACE Program to encourage private sector investment in energy efficiency and water conservation. The PACE Program will be offered to property owners on a strictly voluntary basis and will minimize the use of any public funds or resources. Authorized under the PACE Act enacted in 2013, the PACE Program is an innovative financing program that enables private sector owners of privately owned commercial, industrial, and multifamily residential properties with five or more dwelling units to obtain low-cost, long-term loans to pay for water conservation, energy -efficiency improvements, and renewable energy retrofits. PACE loans provide up to 100% financing of all project costs, with little or no up -front out-of-pocket cost to the owner. The 2015 legislative session streamlined the process. Loans made under the PACE Program will be secured by assessments on the property that are voluntarily imposed by the owner. Assessments may be amortized over the projected life of the improvements. The annual utility cost savings derived from improvements financed with PACE loans are intended to exceed the amount of the annual assessment payments. When successful, these improvements are able to generate positive cash flow upon installation because the debt service will be less than the savings. PACE assessments are tied to the property and follow title from one owner to the next. Each owner is responsible only for payment of the assessments accruing during its period of ownership. When the property is sold, the payment obligation for the remaining balance of the assessment is transferred automatically to the next owner. As a result, the program will help property owners overcome market barriers which often discourage investment in energy efficiency and water conservation improvements. City intends to begin its PACE Program with a pilot project in connection with the development of the Paris Lakes Medical Center (the "Pilot Project"). The Pilot Project is expected to include a new five -story, 114 -bed hospital containing approximately 198,000 square feet of space featuring (a) a surgical suite with six operating rooms supported by an 18 -bed prep and post - anesthesia care unit, (b) 80 medical/surgical patient beds, (c) a cardiac catheterization lab suite with two catheterization labs supported by 18 preparation and recovery rooms, and 14 critical cardiac, coronary, or cardiovascular unit beds, (d) an eight -bed critical care unit, and (e) an imaging suite with radio fluoroscopy, CT, MRI, ultrasound, EKG, PFT, and nuclear medicine. The hospital will feature the latest, state-of-the-art medical technology and equipment, all private suites with upscale room accommodations including custom flooring and trim, flat screen televisions, private baths, wireless internet and room service dining. The overall design concept will emphasize an atmosphere of hospitality, nurturing and safety throughout the hospital. Patient room design will provide distinct areas to accommodate patients' families and staff with an overall emphasis on safety. Staff areas are designed to allow for quick and easy access to patients throughout the hospital. The hospital is to be built on a developed lot in accordance with the requirements of the PACE Act. Additionally, City intends to establish infrastructure to broaden the PACE Program to other property owners within its boundaries, which may include delegation of authority and responsibility for administering the PACE Program to a qualified, third party administrator, which will further the goal of implementation the PACE Program on terms in a manner that minimizes the use of public funds or resources. SECTION 1. ELIGIBLE PROPERTIES. "Eligible Properties" include commercial, industrial, and multifamily residential properties with five or more dwelling units. Government, residential properties encompassing less than five units, and undeveloped property and property undergoing development at the time of the assessment are not Eligible Properties. The City PACE Program is a strictly voluntary program. While initially focused on the Pilot Project, City intends for financing under the PACE Program to eventually be available to all private -sector owners of Eligible Properties located within the City PACE Program, SECTION 2. QUALIFIED IMPROVEMENTS. PACE financing may be used to pay for permanent improvements intended to decrease water or energy consumption or demand, including a product, device, or interacting group of products or devices on the customer's side of the meter that use energy technology to generate electricity, provide thermal energy, or regulate temperature ("Qualified Improvements") to Eligible Properties. Under the PACE Act, products or devices that are not permanently fixed to real property are not considered to be Qualified Improvements. Typical examples of qualified improvements include: • HVAC upgrades; • High efficiency chillers, boilers, and furnaces; • High efficiency water heating systems; • Energy management systems and controls; • Renewable energy systems; Mechanical system modernization; • High efficiency lighting upgrades; • Building enclosure/envelope improvements; • Water conservation systems; • Combustion and burner upgrades; -2- • Fuel switching; • Heat recovery and steam traps; • Wastewater recovery and reuse systems; • Systems to capture and use alternate, on-site sources of water (A/C condensate, rainwater, • reverse osmosis reject water, foundation drain water, etc.); • On-site improvements to accommodate the use of municipally reclaimed water; • Water management systems and controls (indoor and outdoor); • Switching from water cooled systems to air or geothermal cooled systems; and • High efficiency irrigation equipment SECTION 3. BENEFITS OF PACE TO PROPERTY OWNERS. The PACE Program will enable owners of Eligible Properties to overcome traditional barriers to capital investments in energy efficiency and water conservation improvements, such as unattractive returns on investment, split incentives between landlords and tenants, and uncertainty of recouping the investment upon sale of the property. By financing Qualified Improvements through the program, property owners may achieve utility cost savings that exceed the amount of the assessment and reduce their exposure to utility price volatility. As a result, the value of the property will be enhanced, and the owner will only be obligated to pay the assessment installments that accrue during its period of ownership of the property. Additionally, by investing in energy efficiency and water conservation with PACE financing, property owners may also qualify for various rebate, tax credit, and incentive programs offered by utility providers and state or federal governmental authorities to encourage these types of investments. SECTION 4. BENEFITS OF PACE TO THE CITY. The City has a large contingent of aging building stock, some of which is 100 years old or older, most of which would benefit greatly from eligible improvements and the benefits that PACE has to offer. Moreover, to the extent that new buildings meeting the eligibility requirements of the PACE Act can be made more energy and water efficient, the City benefits in the ways highlighted below. Among other things, projects financed through PACE will: • Enable property owners and occupants to save substantial amounts in utility costs • Reduce demand on the electricity grid • Mitigate greenhouse gas emissions associated with energy generation • Enhance the value and efficiency of existing buildings • Boost the local economy by creating new job opportunities for laborers and new business opportunities for contractors, engineers, commercial lenders, professionals, and equipment vendors and manufactures • Increase business retention and expansion in the PACE region by enabling cost effective energy and water saving updates to existing property • Improve productivity through optimized energy usage • Support the State's water conservation plan • Better enable City to meet its water conservation goals By creating new investment opportunities, PACE will stimulate employment growth and economic development in City. Improvements financed through PACE will reduce energy and water consumption, thereby helping the local water utility, local energy, and other utility providers and their customers achieve critical energy and water conservation goals. For communities facing potential nonattainment levels under the Clean Air Act, PACE provides a very real opportunity to dramatically reduce building energy consumption and the emissions associated with energy generation. PACE Programs will also improve the quality of the County's commercial and industrial building stock. The benefits of PACE for City are magnified by the fact that PACE Programs can be established with minimal support from the local government and, once established, can be self-sustaining. City intends for the PACE Program to be self-sustaining because it will be primarily funded by fees paid by the lenders and/or property owners in connection with the projects. Furthermore, because the PACE Program is tax neutral, it achieves all of the benefits listed in this Report without imposing a burden on City's general fund. The 84th Texas Legislature added a provision that explicitly shields City and its employees from liability resulting from administering a PACE Program.1 SECTION S. THE BENEFITS OF PACE TO LENDERS. PACE loans are attractive to lenders because they are very secure investments. Like a property tax lien, the assessment lien securing the PACE loan has priority over other liens on the property. Therefore, the risk of loss from non-payment of a PACE loan is low compared to most other types of loans. PACE assessments provide lenders with an attractive new product to assist existing and new customers in addressing an almost universal pent-up demand for needed commercial and industrial property equipment modernization. In order to protect the interests of holders of existing mortgage loans on the property, the PACE Act requires their written consent to the PACE assessment as a condition to obtaining a PACE loan. 1TX. Local Gov't Code §399.019. SECTION 6. THE BENEFITS OF PACE TO CONTRACTORS, ENGINEERS, AND MANUFACTURERS. PACE loans provide attractive sources of financing for water and energy saving retrofits and upgrades, thereby encouraging property owners to make substantial investments in existing commercial and industrial buildings. As a result, PACE will unlock business opportunities for contractors, engineers, and manufacturers throughout the commercial and industrial sectors. SECTION 7. ADMINISTRATION OF THE PACE PROGRAM. Under the PACE Act, the establishment and operation of the program are considered to be governmental functions. The PACE Act further authorizes City to enter into a contract with a third party to provide administrative services for the PACE Program (the "Program Administrator"). For the Pilot Project, Grayson Path, City Manager (or his successor or designee), is designated as the initial "Authorized Representative" of the City for the PACE Program, and will have the authority to enter into written contracts on behalf of City with property owners and lenders in connection with the PACE Program. City will require the lender for the Pilot Project to agree to handle all ongoing administrative requirements of City with respect to the Pilot Project. Going forward, City may delegate administration of the PACE Program to a qualified organization that can administer the program at no cost to City ("Program Administrator"). The Program Administrator will be funded by transaction fees paid by the parties, charitable grants or other sources of revenue. The Program Administrator will not receive compensation or reimbursement from City. City may contract with the Program Administrator to provide administrative services. City may designate the Program Administrator as the Authorized Representative of City with the authority to enter into written contracts on behalf of City with property owners and lenders in connection with the PACE Program, which will further reduce administrative burdens on City staff. SECTION 8. ELIGIBLE LENDERS. The PACE Act does not set criteria for financial institutions or investors to be PACE lenders. City will follow best practices of other PACE Programs by recommending that lenders be: • Any federally insured depository institution such as a bank, savings bank, savings and loan association and federal or state credit union; • Any insurance company authorized to conduct business in one or more states; • Any registered investment company, registered business development company, or a Small Business; • Small business investment company; 9 Any publicly traded entity; or • Any private entity that: o Has a minimum net worth of $5 million; and 0 Has at least three years' experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years' experience in business or industrial lending or commercial real estate lending; and D Can provide independent certification as to availability of funds; and • All lenders must have the ability to carry out, either directly or through a servicer, the bookkeeping and customer service work necessary to manage the assessment accounts. Any lender can participate in the PACE Program as long as it is a financially stable entity with the ability to carry out, either directly or through a servicer, the bookkeeping and customer service work necessary to manage the assessment accounts. The property owner, not City, Authorized Representative, or the Program Administrator, selects the lender. The Authorized Representative, or the Program Administrator, as applicable, will not guarantee or imply that funding will automatically be provided from a third -party lender, imply or create any approval, endorsement or certification of, or responsibility for, any lender; or create any type of express or implied favoritism for any eligible lender. SECTION 9. REQUIRED COMPONENTS OF THE PACE PROGRAM. As required under Section 399.009 of the PACE Act, the following describes all aspects of the PACE Program: (a) Map of Region. A map of the boundaries of the region included in the program is attached to this Report as Exhibit 1. The region encompasses the City limits.. (b) Form Contract with Owner. A form contract between City and the record owner of the Eligible Property is attached as Exhibit 2. It specifies the terms of the assessment under the PACE Program and the financing to be provided by an eligible lender of the property owner's choosing. (c) Form Contract with Lender. A form contract between City and the eligible lender chosen by a property owner is attached to this Report as Exhibit 3. It specifies the financing and servicing of the debt through assessments. (d) Qualified Improvement.. The following types of projects are qualified improvements that may be subject to contractual assessments under the PACE Program: Projects that (1) involve the installation or modification of a permanent improvement fixed to privately owned commercial, industrial or residential real 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 TX. Local Gov't Code §399.002(5). TX. Local Gov't Code §399.002(3). 4 TX. Local Gov't Code §399.004. H13 3187 was signed into law on June 16, 2015. It authorizes City to delegate administration of the Pace program to a third -party "representative". Authorized Representative in making a determination that the period of the requested assessment does not exceed the useful life of the Qualified Improvement. (i) Application Process. (1) Pilot Project. For the Pilot Project, the initial Authorized Representative will work together with the lender and property owner for the Pilot Project to establish that the Pilot Project is eligible for PACE Financing under Texas law. City will use the Pilot Project to gain better understanding of such eligibility requirements and to set expectations and requirements for the future expansion of the PACE Program contemplated in this report. (2) Expansion Projects. Once access to the PACE Program has been expanded as contemplated in this report, the City anticipates instituting an application process substantially as described below. The Authorized Representative and/or Program Administrator will accept applications from property owners seeking to finance Qualified Improvements under the program. Each application must be accompanied by any required application fees and must include: (A) A description of the specific Qualified Improvements to be installed or modified on the property, (B) A description of the specific real property to which the qualified improvements will be permanently fixed, and (C) The total amount of financing, including any transaction costs, to be repaid through assessments. Based on this information, the Authorized Representative may issue a preliminary letter indicating that, subject to verification of all requirements at closing, the proposed project appears to meet program requirements. Based on this preliminary letter, the property owner may initiate an independent third -party review of the project and submit the project to eligible lenders for approval of financing. Once the above processes are completed, the property owner will submit the application to the Authorized Representative to obtain preliminary approval. The property owner is expected to produce the following documentation prior to closing on the PACE loan: (A) A Report conducted by a qualified, independent third party, showing water or energy baseline conditions and the projected water or energy savings, or the amount of renewable energy generated attributable to the project; (B) Such financial information about the owner and the property as the lender chosen by the owner deems necessary to determine that the owner has demonstrated the financial ability to fulfill the financial obligations to be paid through assessments; and (C) All other information required by the Authorized Representative. 0) Financial Eligibility Requirements. The Authorized Representative will determine whether the owner, the property and the improvements are eligible for financing under the program. The eligible lender chosen by the owner will determine whether the owner has demonstrated the financial ability to repay the financial obligations to be collected through contractual assessments. The statutory methods for ensuring such a demonstration of financial ability must be based on appropriate underwriting factors, including the following: (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. (k) Mortgage Holder Notice and Consent. As a 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.? (1) 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 consumption or 6 TX. Local Gov't Code §399.009(b). 7 TX. Local Gov't Code §399.010. S demand, and that the period of the requested assessment does not exceed the Useful life of the Qualified Improvements; and (3) The eligible lender notifies the Authorized Representative that the owner has demonstrated the financial ability to fulfill the financial obligations to be repaid through contractual assessments. The contract will impose a contractual assessment on the owner's Eligible Property to repay the lender's financing of the Qualified Improvements. The eligible lender will file "A Notice of Contractual Assessment Lien," in substantially the form in Exhibit 4 attached hereto in the Official Public Records of Lamar County, depending on where the Eligible Property is located, as notice to the public of the assessment, from the date of filing. The contract and the notice must contain the amount of the assessment, the legal description of the property, the name of the property owner, and a reference to the statutory assessment lien provided under the PACE Act. (1n) Collection of Assessments. The execution of the written contract between the Authorized Representative and the property owner and recording of the Notice of Contractual Assessment Lien incorporate the terms of the financing documents executed between the property owner and with the lender to repay the financing secured by the assessment. The third -party lender will advance financing to the owner, and the terms for repayment will be such terms as are agreed between the lender and the owner. Under the form lender contract attached as Exhibit 3, the lender or a designated servicer will agree to service the debt secured by the assessment. With funds from the lender, the property owner can purchase directly the equipment and materials for the Qualified Improvement and contract directly, including through lease, power purchase agreement, or other service contract, for the installation or modification of the Qualified Improvements. Alternatively, the lender may make progress payments to the property owner as the Qualified Improvement is installed. The lender will receive the owner's assessment payments to repay the debt and remit to the Authorized Representative any administrative fees. The lender will have the right to assign or transfer the right to receive the installments of the debt secured by the assessment, provided all of the following conditions are met: (1) The assignment or transfer is made to an eligible lender, as defined above; and (2) The property owner and the Authorized Representative are notified in writing of the assignment or transfer and the address to which payment of the future installments should be mailed at least 30 days before the next installment is due according to the schedule for repayment of the debt; and -10- (3) The assignee or transferee of the right to receive the payments executes an explicit written assumption of all of lender's obligations under the lender contract. (n) Verification Review. After a Qualified Improvement is completed, the Authorized Representative will require the property owner to provide verification by a qualified independent third -party reviewer that the Qualified Improvement was properly completed and is operating as intended.$ The verification report conclusively establishes that the improvement is a Qualified Improvement and the project is qualified under the PACE Program. (o) Marketing and Education Services. City may subsequently enter into agreements with one or more other local governments or non-profit organizations that promote energy and water conservation and/or economic development to provide marketing and education services for the PACE Program. (p) Quality Assurance and Antifraud Measures. The Authorized Representative will institute quality assurance and antifraud measures for the Program. The Authorized Representative will review each PACE application for completeness and supporting documents through independent review and verification procedures. The application and required attachments will identify and supply the information necessary to ensure that the property owner, the property itself, and the proposed project all satisfy PACE Program underwriting and technical standard requirements. Measures will be put in place to provide safeguards, including a review of the energy and water savings baseline and certification of compliance with the technical standards manual from an independent third -party reviewer (ITPR), who must be a registered professional engineer, before the project can proceed. This review will include a site visit, report, and a letter from the ITPR certifying that he or she has no financial interest in the project and is an independent reviewer. After the construction of the project is complete, an ITPR will conduct a final site inspection and determine whether the project was completed and is operating properly. The reviewer's certification will also include a statement that the reviewer is qualified and has no financial interest in the project. (q) Delinquency. Under the terms of the form lender contract attached as Exhibit 3, if a property owner fails to pay an agreed installment when due on the PACE assessment, the lender will agree to take at least the following steps to collect the delinquent installment: (1) Mail to the owner a written notice of delinquency and demand for payment by both certified mail (return receipt requested) and first-class mail, and TX. Local Gov't Code §399.011. -11- (2) Mail to the owner a second notice of delinquency and demand for payment by both certified mail (return receipt requested) and first class mail, at least 30 days after the date of the first notice if the delinquency is continuing. If the owner fails to cure the delinquency within 30 days after mailing the second notice of delinquency, the lender may notify the Authorized Representative of the owner's default. Pursuant to Texas Local Government Code Section 399.014(c), the Authorized Representative will initiate steps for City to enforce the assessment lien in the same manner as a property tax lien against real property may be enforced, to the extent the enforcement is consistent with Section 50, Article XVI, of the Texas Constitution. Delinquent installments will incur penalties and interest in the same manner and at the same rate as delinquent property taxes, according to Texas Local Government Code Section 399.014(d), and such statutory penalties and interest will be due to City to offset the cost of collection. In no event will the total amount of interest on the Assessment, including statutory interest payable to City and contractual interest payable to the lender under the financing documents, exceed the maximum amount or rate of nonusurious interest that may be contracted for, charged, or collected under Texas law (the "usury limit"). If the total amount of interest payable to City and the lender exceeds the usury limit, the interest payable to City will be reduced, and any interest in excess of the usury limit will be credited to the amount payable to City or refunded. If City files suit to enforce collection, City may also recover costs and expenses, including attorney's fees, in a suit to collect a delinquent installment of an assessment in the same manner and at the same rate as in suit to collect a delinquent property tax. If a delinquent installment of an assessment is collected after the filing of a suit, City will remit to the lender the net amount of the delinquent installments and contractual interest collected and remit to the Authorized Representative the amount of any administrative fees collected but will retain any statutory penalties, interest, and attorney's fees collected. I MAP OF CITY/COUNTY PACE REGION g� I q v A N IdW .50.1 ....... . . ...... . j7pl o i fy PACS Rea i P#4 sm"a V!Rllfty EXHIBIT 2 PACE OWNER CONTRACT THIS PROPERTY ASSESSED CLEAN ENERGY ("PACE") OWNER CONTRACT ("Owner Contract") is made as of the , day of _ , _ , by and between the City of Paris, Texas ( "Local Government" ), and .. ........................... ( "Property Owner"). RECITALS A. The Property Assessed Clean Energy Act ( "PACE Act "), Texas Local Government Code Chapter 399, authorizes the governing body of a local government to establish a program and designate a region within the local government's jurisdiction within which an authorized representative of the local government may enter into written contracts with the record owners of commercial, industrial, agricultural, and large multifamily residential (5 or more dwelling units) real property to impose assessments on the property to finance the cost of permanent improvements fixed to the property intended to decrease water or energy consumption or demand. B. Local Government has established a program under the PACE Act pursuant to a dated _ , adopted by the _ w _ _ (the .............._ "PACE Program "), and has designated ®...._ ( "Authorized Representative ") as the representative authorized to enter into the Assessment, Owner Contract and Lender Contract described herein, and has designated the entire territory within the of _ jurisdiction as a region ( "Region ") within which the Authorized Representative and the record owners of such real property may enter into written contracts to impose assessments to repay the financing by owners of qualified improvements on the owner's property pursuant to the PACE Program. C. Property Owner is the legal and record owner of the qualified "real property," as defined in Section 399.002 of the PACE Act, within the Region located at Texas (the "Property") - D. Pursuant to Application number Property Owner has applied to Local Government to participate in the PACE Program by installing or modifying on the Property certain permanent improvements which are intended to decrease water or energy consumption or demand, and which are or will be fixed to the Property as "qualified improvements," as defined in Section 399.002 of the PACE Act (the "Qualified Improvements"). The installation or modification of such Qualified Improvements on the Property will be a "qualified project" as defined in Section 399.002 of the PACE Act (the "Project"). Property Owner has requested that Local Government enter into this Owner Contract pursuant to the PACE Act and the PACE Program and has requested Local Government to impose an assessment (the "Assessment") on the Property as set forth in the Notice Of Contractual Assessment Lien Pursuant To Property Assessed Clean Energy Act to be filed in the in the Official Public Records of [Larimer County], Texas (the "Notice of Contractual Assessment Lien "), a copy of which is attached hereto as Exhibit A and made a part hereof, to repay the financing of such Qualified Improvements. The Property, Reportlx.2.Model Owner Contract (City of Paris TX) 4843-1515-0812 v2.docx 3614567 Qualified Improvements and Assessment are more fully described in the Notice of Contractual Assessment Lien. E. The financing of such Qualified Improvements will be provided to Property Owner by ... .. _ ( `Lender "), a qualified lender selected by Property Owner, pursuant to a written contract executed by Lender and Local Government as required by Section 399.005(c) of the PACE Act and by the PACE Program (the "Lender Contract"). The financing will include only those costs and fees for which an assessment may be imposed under the PACE Act. Local Government has agreed to maintain and continue the Assessment for the benefit of Lender until such financing is repaid in full and to release the Assessment upon notice from Lender of such payment, or foreclose the lien securing the Assessment for the benefit of Lender upon notice from Lender of a default by Property Owner. F. As required by Section 399.010 of the PACE Act, Property Owner notified the holder(s) of any mortgage liens on the Property at least thirty (30) days prior to the date of this Owner Contract of Property Owner's intention to participate in the PACE Program. The written consent of each mortgage holder to the Assessment was obtained prior to the date of this Owner Contract and is attached hereto as Exhibit B and made a part hereof. AGREEMENT The parties agree as follows: Section 1. Imposition of Assessment. In consideration for the financing advanced or to be advanced to Property Owner by Lender for the Project under the PACE Program pursuant to the Lender Contract, Property Owner hereby requests and agrees to the imposition by Local Government of the Assessment in the amount of $ , as set forth in the Notice of Contractual Assessment Lien, including all interest, fees, penalties, costs, and other sums due under and/or authorized by the PACE Act, PACE Program and the financing documents between Property Owner and Lender (the "Financing Documents ") which are described or listed on Exhibit C attached hereto and made a part hereof by reference. Property Owner promises and agrees to pay such amount and interest to Local Government, in care of or as directed by Lender, in satisfaction of the Assessment imposed pursuant to the Owner Contract and the PACE Act. Accordingly, Local Government hereby imposes the Assessment on the Property to secure the payment of such amount, in accordance with the requirements of the PACE Program and the provisions of the PACE Act. Section 2. Maintenance and Enforcement of Assessment. In consideration for Lender's agreement to advance financing to Property Owner for the Project pursuant to the Financing Documents, Local Government agrees to maintain and continue the Assessment on the Property for the benefit of Lender until the Assessment, including all interest, fees, penalties, costs, and other sums due under and/or authorized by the PACE Act, PACE Program and the Financing Documents are paid in full, and to release the Assessment upon notice from Lender of such payment. Local Government agrees to undertake reasonable efforts to enforce the Assessment against the Property for the benefit of Lender in the event of a default by Property Owner. -2- Section 3. Installments. The Assessment, including the amount financed and contractual interest, is due and payable in installments as set forth in the Notice of Contractual Assessment Lien and the Financing Documents. The Assessment shall include: (a) an application fee paid by Property Owner to Authorized Representative at loan closing, and (b) a recurring administration fee paid by Property Owner to the Authorized Representative. The recurring administration fee amount shall be collected by Lender and paid to the Authorized Representative within thirty (30) days of receipt by Lender. The amounts due to the Authorized Representative are identified in Exhibit C hereto. As required by Section 399.009(a)(8) of the PACE Act, the period during which such installments are payable does not exceed the useful life of the Project. When the Assessment together with any prepayment premium, and/or default penalties and interest, if any, has been paid in full, Local Government's rights under this Owner Contract will cease and terminate Upon notice from Lender that all amounts owing have been paid in full, Local Government will execute a release of the Assessment and this Owner Contract. Thereafter, the Authorized Representative will record the release. Section 4. Assignment of Right to Receive Installments. Lender will have the right to assign or transfer the right to receive the installments of the financing secured by the Assessment, provided all of the following conditions are met: (a) The assignment or transfer is made to a qualified lender as defined in the Lender Contract; (b) Property Owner and Authorized Representative are notified in writing of the assignment or transfer and the address to which payment of the future installments should be mailed at least 30 days before the next installment is due according to the payment schedule included in the Notice of Contractual Assessment Lien and the Financing Documents; and (c) The assignee or transferee of the right to receive the payments executes an explicit written assumption of all of Lender's rights and obligations under the Lender Contract related to the receipt of the Installments or the enforcement of the assessment lien and provides a copy of such assumption to Property Owner and Authorized Representative. Lender may assign or transfer the right to receive the Installments or the right to require enforcement of the assessment lien separately. Upon written notice to Property Owner and Authorized Representative of an assignment or transfer of the right to receive the installments that meets all of these conditions, the assignor shall be released of all of the obligations of the Lender under such Lender Contract accruing after the date of the assignment assumed by and transferred to such assignee or transferee and all of such obligations shall be assumed by and transferred to the assignee. Any attempt to assign or transfer the right to receive the installments that does not meet all of these conditions is void. Section S. Lien Priority and Enforcement. Pursuant to Section 399.014 of the PACE Act, (a) Delinquent installments of the Assessment will incur interest and penalties in the same manner and in the same amount as delinquent property taxes, viz., a delinquent installment incurs a penalty of 6% of the amount of the installment for the first calendar month it is delinquent plus 1 % for each additional month or portion of a month the installment remains unpaid prior to July 1 of the year in which it becomes delinquent. However, an installment delinquent on July 1 incurs a total penalty of 12% of the amount of the delinquent installment without regard to the number of months it has been delinquent. A delinquent installment will also accrue interest at the rate of 1% for each month or portion of a month that the installment remains unpaid. Statutory penalties and statutory interest payable under this paragraph will be retained by Local Government to compensate it for the cost of enforcing the Assessment. Additional interest at any default rate imposed by Lender pursuant to the Financing Documents, along with any other fees and charges that become due pursuant to the Financing Documents may be assessed by Lender and retained by Lender. (b) The Assessment, together with any penalties and interest thereon, (i) is a first and prior lien against the Property from the date on which the Notice of Contractual Assessment Lien is filed in the Official Public Records of Lamar County, Texas as provided by Section 399.014 of the PACE Act, until the financing secured by the Assessment and any penalties and interest are paid; and (ii) such lien has the same priority status as a lien for any other ad valorem tax, pursuant to Section 399.014(a)(2) of the PACE Act. (c) The lien created by the Assessment runs with the land, and according to Section 399.014(b) of the PACE Act, any portion of the Assessment that has not yet become due is not eliminated by foreclosure of. (i) a property tax lien, or (ii) the lien for any past due portion of the Assessment. In the event of a sale or transfer of the Property by Property Owner, the obligation for the Assessment and the Property Owner's obligations under the Financing Documents will be transferred to the succeeding owner without recourse on Local Government and with recourse on Property Owner only for any unpaid installments of the Assessment that became due during Property Owner's period of ownership. (d) In the event of a default by Property Owner in payment of the installments called for by the Financing Documents, the lien created by the Assessment will be enforced by Local Government in the same manner according to Texas Tax Code Secs. 33.41 to 34.23 that a property tax lien against real property may be enforced by a local government, to the extent the enforcement is consistent with Section 50, Article XVI, Texas Constitution. (e) In a suit to collect a delinquent installment of the Assessment, Local Government will be entitled to recover costs and expenses, including attorney's fees in the amount of 15% of the total amount of the delinquent installment, penalties, and interest due, in the same manner according to Texas Tax Code Sec. 33.48 as in a suit to collect a delinquent property tax. Lender shall be entitled to any additional sums due to it under the Financing Documents in connection with a suit to collect a delinquent installment of the Assessment. -4- (f) After written notice of the Assessment is recorded in the real property records of the county in which the Property is located as provided under Section 399.013 of the PACE Act, the lien created by the Assessment may not be contested on the basis that the improvement is not a "qualified improvement°' or the project is not a "qualified project," as such terms are defined in Section 399.002 of the PACE Act. Section 6. Written Contract Required by PACE Act. This Owner Contract constitutes a written contract for the Assessment between the Property Owner and Local Government as required by Section 399.005 of the PACE Act. The Notice of Contractual Assessment Lien will be recorded in the Official Public Records of Lamar County, Texas as notice of the contractual Assessment, in accordance with the requirements of Section 399.013 of the PACE Act. Section 7. Qualified Improvements. Property Owner agrees that all improvements purchased, constructed and/or installed through- financing obtained pursuant to this Owner Contract shall be permanently affixed to the Property and will transfer with the Property to the transferee in the event of and sale or assignment of the Property. Section 8. Water or Energy Savings. For so long as the Assessment encumbers the Property, Property Owner agrees on or before January 31 st of each year, to report to Authorized Representative the water or energy savings realized through the Project in accordance with the reporting requirements established by the Local Government. Section 9. Construction and Definitions. This Owner Contract is to be construed in accordance with and with reference to the PACE Program and PACE Act. Terms used herein, and not otherwise defined herein, shall have the meanings ascribed to them in; (a) the PACE Program, and/or (b) the PACE Act. Section 10. Binding Effect. This Owner Contract inures to the benefit of Local Government and is binding upon Property Owner, its heirs, successors, and assigns. Section 11. Notices. All notices and other communications required or permitted by this Owner Contract shall be in writing and mailedby certified mail, return receipt requested, addressed to the other party at its address shown below the signature of such party or at such other address as such party may from time to time designate in writing to the other party, and shall be effective from the date of receipt. Section 12. Governing Law. This Owner Contract shall in all respects be governed by and construed in accordance with the laws of the State of Texas. Section 13. Entire Agreement. This Owner Contract constitutes the entire agreement between Local Government and Property Owner with respect to the subject matter hereof and may not be amended or altered in any manner except by a document in writing executed by both parties. Section 14. Further Assurances. Property Owner further covenants and agrees to do, execute and deliver, or cause to be done, executed, and delivered all such further acts for implementing the intention of this Owner Contract as may be reasonably necessary or required. Section 15. Captions. Paragraph and section titles are for convenience of reference only and shall not be of any legal effect. Section 16. Interest. Interest and penalties in the event of default, as provided above, are explicitly authorized by Section 399.014(d) of the PACE Act. However, in no event will the total amount of interest on the Assessment, including statutory interest payable to Local Government and contractual interest payable to Lender under the Financing Documents, exceed the maximum amount or rate of nonusurious interest that may be contracted for, charged, or collected under Texas law (the "usury limit"). If the total amount of interest payable to Local Government and Lender exceeds the usury limit, the interest payable to Local Government will be reduced and any interest in excess of the usury limit will be credited to the amount payable to Local Government or refunded. This provision overrides any conflicting provisions in this Owner Contract. Section 17. Counterparts. This Owner Contract may be executed in any number of counterparts, each counterpart may be delivered originally or by electronic transmission, all of which when taken together shall constitute one agreement binding on the parties, notwithstanding that all parties are not signatories to the same counterpart. Section 18. Costs. No provisions of this Owner Contract will require Local Government to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. Section 19. Construction Terms. If the Lender Contract includes requirements related to construction of the Project and disbursement of Financing, such requirements are set forth in Exhibit D attached hereto and incorporated herein by reference. Such requirements may include, among other things, (a) the disbursement schedule and (b) any holdback amount to be funded following verification of final project completion. Bv________ Nuzne:_________ F.,rqr0= EXECUTED effective as of 21F CITY OF IS, TEXAS: By: AUTHORIZED REPRESENTATIVE Pursuant to Tex, Local Gov't Code §399.006(b) By: Name: Tide: Address: Signature Page to PACE Owner Contract ExHmff A NOTICE OF CONTRACTUAL ASSESSMENT LIEN PURSUANT TO PROPERTY ASSESSED CLEAN ENERGY ACT VTATE OF TEXAS COUNTYOF RECITALS I. The Property Assessed Clean Energy Act ("PACE Act"), Texas Local Government Code Chapter 399, authorizes the governing body of a local government to establish a program and designate a region within the local government's jurisdiction within which an authorized representative of the local government may enter into written contracts with the record owners of commercial, industrial, agricultural, and large multifamily residential (5 or more dwelling units) real property to impose assessments on the property to finance the cost of permanent improvements fixed to the property intended to decrease water or energy consumption or demand. Unless otherwise expressly provided herein, all terms used herein have the same meanings ascribed to them in the PACE Act. II ....... a mm ("Local Government') has established a program under the PACE Act pursuant to a CE Prot ram' and has designated adopted by the ("Authorized resentative" as the g '), 000 ( Representative) representative authorized to enter into and enforce the Assessment, Owner Contract and Lender Contract described herein, and has designated the entire territory within the Of" jurisdiction as a region ("Region') within which the Authorized Representative and the record owners of such real property may enter into written contracts to impose assessments to repay the financing by owners of qualified improvements on the owner's property pursuant to the 11 III. PACE Program. .....,., ("Property Owner") is the legal and record owner of the qualified "real property," as defined in Section 399.002 of the PACE Act, within the Region located at hereto and made ' Texas, and g more fully described in Exlnbrt A attached he a part hereof (the "Property"). IV Property Owner has applied to Local Government to participate in the PACE Program by installing or modifying on the Property certain permanent improvements described in Exhibit B attached hereto and made a part hereof, which are intended to decrease water or energy consumption or demand, and which are or will be fixed to the Property as "qualified improvements", as defined in Section 399.002 of the PACE Act (the "Qualified Improvements"). The installation or modification of such Qualified Improvements on the Property will be a "qualified project" as defined in Section 399.002 of the PACE Act. Property Owner has entered into a written contract (the "Owner Contract") with Local Government pursuant to the PACE Act and the PACE Program and has requested Local Government to impose an assessment on the Property to repay the financing of such Qualified Improvements. V The financing of such Qualified Improvements will be provided to Property Owner by„ , ("Lender"), a qualified lender selected by Property Owner, pursuant to a written contract executed by Lender and Local Government as required by Section 399.006(c) of the PACE Act and by the PACE Program (the "Lender Contract"). Lender will be responsible for all servicing duties other than those specifically undertaken by Local Government in the Lender Contract. THEREFORE, Local Government hereby gives notice to the public pursuant to Section 399.013 of the PACE Act that it has imposed an assessment on the Property in the amount Of S ..I, as set forth on Exhibit C attached hereto, which together with all interest,fees . w. ..... ����� ,penalties, costs and other sums due under and/or authorized by the PACE Act, PACE Program and the financing documents between Property Owner and Lender (the "Financing Documents") is herein referred to as the "Assessment". Pursuant to Section 399.014 of the PACE Act, The Assessment, including interest and any penalties, costs, or fees accrued thereon, (i) is a first and prior lien on the Property from the date that this Notice of Contractual Assessment Lien is recorded in the Oficial Public Records of ........... wwwww„w ,. . Texas, until such Assessment, interest, penalties, costs, and fees are paid in full; and (ii) such lien has the same priority status as a lien for any other ad valorem tag, pursuant to Section 399.014(x)(2) of the PACE Act. The lien created by the Assessment runs with the land, and according to Section 399.014(b) of the PACE Act, any portion of the Assessment that has not yet become due is not eliminated by foreclosure of: (i) a property tax lien, or (ii) the lien for any past due portion of the Assessment. In the event of a sale or transfer of the Property by Property Owner (including, without limitation, a foreclosure sale for a past due portion of the Assessment), the obligations under the Financing Documents (including, without limitation, the portion of the Assessment that has not yet become due) will be transferred to the succeeding owner without recourse on Local Government or the Program Representative and with recourse on Property Owner only for any unpaid installments of the Assessment that became due during Property Owner's period of ownership. After this Notice of Contractual Assessment Lien is recorded in the real property records of the county in which the Property is located as provided under Section 399.013 of the PACE Act, the lien created by the Assessment may not be contested on the basis that the improvement is not a "qualified improvement” or the project is not a "qualified project”, as such terms are defined in Section 399.002 of the PACE Act. EXECUTED on LOCAL GOVERNMENT: 1Z- �11 - Title: Pursuant to Tex. Local Gov't Code §399.006(b) COUNTY OF § Ljoai jv_nvw_&m��_rty Assessed Clean Eneriix4 on behalf of . Texas. (print name) W50JAUMAIR 0 www.KeepingPACEInTexas.org 10 SIM' alulall www.KeepingPACEinTexas.org 11 . l.11. 1_ Assessment Payment Schedule Assessment Total: Payment Schedule: Project Completion Date: www.KeepingPACEinTexas.org12 MORTGAGE HOLDER(S) CONSENT )C+ xHIHIT C FINANCING DocUMENTS ASSESSMENT PAYMENT SCHEDULE Assessment Total: Payment Schedule: Project Completion Date: ADMINISTRATI PAYMENT TOTAL PRINCIPAL INTEREST ON REMAINING DATE PAYMENT PAID PAID FEE BALANCE EXHIBIT D CONSTRUCTION TERMS [IF APPLICABLE] DATE DRAW DOWN.ANIOUNT PURPOSE FORM LENDER CONTRACT PACE LENDER CONTRACT THIS PROPERTY ASSESSED CLEAN ENERGY ( "PACE ") LENDER CONTRACT (the "Lender Contract') is made as of the day of _ , by and between the City of Paris, Texas ( "Local Government") and . _ ( "Lender "). RECITALS A. The Property Assessed Clean Energy Act ( "PACE Act"), Texas Local Government Code Chapter 399, authorizes the .governing body of a local government to establish a program and designate a region within the local government's jurisdiction within which an authorized representative of the local government may enter into written contracts with the record owners of commercial, industrial, agricultural, and large multifamily residential (5 or more dwelling units) real property to impose assessments on the property to finance the cost of permanent improvements fixed to the property intended to decrease water or energy consumption or demand. B. Local Government has established a program under the PACE Act pursuant to a dated , adopted by the (the "PACE Program"), and has designated ( "Authorized Representative") as the representative authorized to enter into the Assessment, Owner Contract and Lender Contract described herein, and has designated the entire territory within e_ of jurisdiction as a region ( "Region ") within which the Authorized Representative and the record owners of such real property may enter into written contracts to impose assessments to repay the financing by owners of qualified improvements on the owner's property pursuant to the PACE Program. C. ( "Property Owner ") desires to participate in the PACE Program with respect to certain real property located at Texas (the "Property ") in connection with installing or modifying on the Property certain permanent improvements which are intended to decrease water or energy consumption or demand, and which are or will be fixed to the Property as "qualified improvements," as defined in Section 399.002 of the PACE Act (the "Qualified Improvements"). The installation or modification of such Qualified Improvements on the Property will be a "qualified project" as defined in Section 399.002 of the PACE Act (the "Project"). D. Property Owner and Local Government have entered into a written contract as required by Section 399.005 of the PACE Act, a copy of which is attached hereto as Exhibit A and made a part hereof (the "Owner Contract"), in which Property Owner has requested that Local Government impose an assessment (the "Assessment") on the Property as set forth in the Notice Of Contractual Assessment Lien Pursuant To Property Assessed Clean Energy Act to be filed in the in the Official Public Records of , Texas (the "Notice of Contractual Assessment Lien"), a copy of which is attached to the Owner Contract as Exhibit A, to repay the financing of such Qualified Improvements. The Property, Qualified Improvements and Assessment are more fully described in the Notice of Contractual Assessment Lien. Report.Ex.3.Mode1 Lender Contract.docx 3614567 E. Financing for the Project (the "Financing") will be provided to Property Owner by Lender in accordance with financing documents described in, or copies of which are included as, Exhibit B attached hereto and made a part hereof (the "Financing Documents "). Such Financing includes only those costs and fees for which an assessment may be imposed under the PACE Act. This Lender Contract is entered into between Local Government and Lender as required by Section 399.006(c) of the PACE Act to provide for repayment of the Financing secured by the Assessment. F. As required by Section 399.010 of the PACE Act, Property Owner notified the holder(s) of any mortgage liens on the Property at least thirty (30) days prior to the date of the Owner Contract of Property Owner's intention to participate in the PACE Program. The written consent of each mortgage lien holder to the Assessment was obtained prior to the date of the Owner Contract, as shown by the copy of such consent(s) attached as Exhibit B to the Owner Contract. AGREEMENT The parties agree as follows: Section 1. Maintenance and Enforcement of Assessment. Lender agrees to provide the Financing for the Project in the total amount of $ , according to the terms set out in the Financing Documents attached hereto as Exhibit B. In consideration for the Financing provided or to be provided by Lender for the Project, and subject to the terms and conditions of this Lender Contract, Local Government agrees to maintain and continue the Assessment for the benefit of Lender until the Financing, all contractual interest, any prepayment premium, additional penalties and interest imposed by the Lender under the Financing Documents according to the Financing Documents, and any statutory penalties, interest, attorney's fees, or costs accrued in the event of default are paid in full. Local Government will not release the Assessment until which time Lender notifies Local Government that all amounts owing have been paid in full. Local Government shall not sell, assign or transfer the Assessment or the assessment lien against the Property to any third party without the prior written consent of the Lender. Promptly following written notice to Local Government from Lender, Local Government agrees to enforce the assessment lien against the Property for the benefit of Lender in the event of a default by Property Owner. Local Government shall have no obligation to repurchase the assessment and no liability to Lender should there be a default or an event of default in the payment thereof or should there be any other loss or expense suffered by Lender or under any other circumstances. Lender and Local Government acknowledge and agree that amounts collected as proceeds of the Assessment are intended to be "special revenues" as defined in Section 902(2) of the United States Bankruptcy Code. The foregoing is a statement of intent and not a guaranty or assurance that such proceeds will be treated as "special revenues." Section 2. Installments. The Assessment, including the amount financed and contractual interest, is due and payable to Lender in installments as set forth in the Notice of Contractual Assessment Lien and Financing Documents. The Assessment shall include: (1) an application fee paid by Property Owner to Authorized Representative at loan closing, and (2) a recurring administration fee paid by Property Owner to the Authorized Representative. The recurring administration fee amount shall be collected by Lender and paid to the Authorized M Representative within thirty (30) days of receipt by Lender. The amounts due to the Authorized Representative are identified in Exhibit B hereto. As required by Section 399.009(x)(8) of the PACE Act, the period during which such installments are payable does not exceed the useful life of the Project. When the Assessment together with any prepayment premium, and/or default penalties and interest, if any, has been paid in full, Local Government's rights under this Owner Contract will cease and terminate. Upon notice from Lender that all amounts owing have been paid in full, Local Government will execute a release of the Assessment and this Owner Contract. Thereafter, the Lender will record the release. Section 3. Assignment of Right to Receive Installments. Lender will have the right to assign or transfer the right to receive the installments of the Assessment, provided all of the following conditions are met: (a) The assignment or transfer is made to a qualified lender, which may be one of the following: (i) Any federally insured depository institution such as a bank, savings bank, savings and loan association and federal or state credit union; (ii) Any insurance company authorized to conduct business in one or more states; (iii) Any registered investment company, registered business development company, or a Small Business Administration small business investment company; (iv) Any publicly traded entity; or (v) Any private entity that: (A) Has a minimum net worth of $5 million; (B) Has at least three years' experience in business or industrial lending or commercial real estate lending (including multifamily lending), or has a lending officer that has at least three years' experience in business or industrial lending or commercial real estate lending; (C) Can provide independent certification as to availability of funds; and (D) Has the ability to carry out, either directly or through a servicer, the bookkeeping and customer service work necessary to manage the assessment accounts. (b) Property Owner and Authorized Representative are notified in writing of the assignment or transfer and the address to which payment of the future installments should be mailed at least 30 days before the next installment is due according to the payment schedule included in the Financing Documents; and (c) The assignee or transferee of the right to receive the installments executes an explicit written assumption of all of Lender's obligations under this Lender Contract. Upon written notice to Property Owner and Authorized Representative of an assignment or transfer of the right to receive the installments that meets all of these conditions, the assignor shall be released of all of the obligations of the Lender under this Lender Contract accruing after the date of the assignment and all of such obligations shall be assumed by and transferred to the assignee. Any attempt to assign or transfer the right to receive the installments of the Assessment that does not meet all of these conditions is void. Section 4. Financing Responsibility. Lender assumes full responsibility for determining the financial ability of the Property Owner to repay the Financing and for advancing the funds as set forth in the Financing Documents and performing Lender's obligations and responsibilities thereunder. In the event the assessment lien on the Property is enforced by foreclosure as provided below, Lender will have no further obligations to Property Owner with respect to the Installments that were the subject of the foreclosure, but Lender will retain the rights to enforcement of the lien for any Installments that are not eliminated by the foreclosure, and the succeeding owner of the Property will be subject to such lien. Section 5, Lien Priority and Enforcement. As provided in the Owner Contract and Section 399.014 of the PACE Act: (a) Delinquent installments of the Assessment incur interest and penalties in the same manner and in the same amount as delinquent property taxes, viz., a delinquent installment incurs a penalty of {% of the amount of the installment for the first calendar month it is delinquent plus 1% for each additional month or portion of a month the installment remains unpaid prior to July 1 of the year in which it becomes delinquent. However, an installment delinquent on July 1 incurs a total penalty of 12% of the amount of the delinquent installment without regard to the number of months it has been delinquent. A delinquent installment also accrues interest at the rate of 1% for each month or portion of a month the installment remains unpaid. Statutory penalties and statutory interest payable under this paragraph will be retained by Local Government to compensate it for the cost of enforcing the Assessment. Additional interest at any default rate imposed by Lender pursuant to the Financing Documents, along with any other fees and charges that become due pursuant to the Financing Documents may be assessed by Lender and retained by Lender. (b) The Assessment, together with any penalties and interest thereon, (i) is a first and prior lien against the Property from the date on which the Notice of Contractual Assessment Lien is filed in the Official Public Records of Lamar County, Texas, as provided by Section 399.014 of the PACE Act, until the Assessment and any penalties and interest are paid; and (ii) such lien has the same priority status as a lien for any other ad iwlorem tax, pursuant to Section 399.014(a)(2) of the PACE Act. -4- (c) The lien created by the Assessment runs with the land, and any portion of the Assessment that has not yet become due is not eliminated by foreclosure of a property tax lien, according to Section 399.014(b) of the PACE Act. In the event of a sale or transfer of the Property by Property Owner, the obligation for the Assessment and the Property Owner's obligations under the Financing Documents will be transferred to the succeeding owner without recourse on Local Government or the Authorized Representative and with recourse on Property Owner only for any unpaid installments of the Assessment that became due during Property Owner's period of ownership. (d) In the event of a default by Property Owner in payment of the installments called for by the Financing Documents, the lien created by the Assessment will be enforced by Local Government in the same manner according to Texas Tax Code Secs. 33.41 to 34.23 that a property tax lien against real property may be enforced by a local government, to the extent the enforcement is consistent with Section 50, Article XVI, Texas Constitution. (e) In a suit to collect a delinquent installment of the Assessment, Local Government will be entitled to recover costs and expenses, including attorney's fees in the amount of 15% of the total amount of the delinquent installment, penalties, and interest due, in the same manner according to Texas Tax Code Sec. 33.48 as in a suit to collect a delinquent property tax. Lender shall be entitled to any additional sums due to it under the Financing Documents in connection with a suit to collect a delinquent installment of the Assessment. (f) After written notice of the Assessment is recorded in the real property records of the county in which the Property is located as provided under Section 399.013 of the PACE Act, the lien created by the Assessment may not be contested on the basis that the improvement is not a "qualified improvement" or the project is not a "qualified project," as such terms are defined in Section 399.002 of the PACE Act. Section &. Servicing and Enforcement of Assessment. (a) Servicing. The Assessment payments will be billed, collected, received, and disbursed in accordance with the procedures set out in the Financing Documents. Lender will be responsible for all servicing duties other than those specifically undertaken by Local Government in this Lender Contract. (b) Remittances. Each of the parties covenants and agrees to promptly remit to the other party any payments incorrectly received by such party with respect to the Assessment after the execution of this Lender Contract. (c) Default and Enforcement. In the event of a default in payment of any installment of the Assessment as specified in the Financing Documents, Lender agrees to take at least the following steps to collect the delinquent. installment: (i) Mail a written notice of delinquency and demand for payment to the Property Owner by both certified mail, return receipt requested, and first class mail; and 5- (ii) Mail a second notice of delinquency to the Property Owner by both certified mail, return receipt requested, and first class mail at least 30 days after the date of the first notice if the delinquency is continuing. If the Property Owner fails to cure the delinquency within 30 days after the mailing of the second notice of delinquency, the Lender or its designated servicer may notify the Authorized Representative who will certify to the Local Government in writing of a default by the Property Owner, and upon receipt of such certification and after doing its own due diligence, Authorized Representative will enforce the assessment lien for the benefit of Lender pursuant to Tex. Local Gov't Code Sec. 399.414(c), in the same manner as a property tax lien against real property may be enforced, to the extent the enforcement is consistent with Section 50, Article XVI, Texas Constitution. (d)priority. If the assessment lien is enforced by foreclosure or collected through a bankruptcy or similar proceeding, the assessment balance and any interest or penalties on the assessment will have the same priority status as a lien for any other ad valorem tax, pursuant to Sec. 399.014(a)(2) of the PACE Act. (e) Final Pa%. ment_and Release. When the Assessment has been satisfied and paid in full, together with all interest and prepayment premiums, if any, provided under the Financing Documents and all costs, fees, penalties, and interest applicable under the PACE Act and payable to Lender or Local Government, Local Government's rights under the Owner Contract will cease and terminate. Upon notice from Lender that all amounts owing have been paid in full, Local Government will execute a release of the Assessment and the Owner Contract. Thereafter, the [Authorized Representative] 1 will record the Release. (f) Limitations on Local Government's Actions. Without the prior written consent of W Lender, Local Government will not enter into any amendment or modification of or deviation from the Owner Contract. Local Government will not institute any legal action with respect to the Owner Contract, the Assessment, or the assessment lien without the prior written request of Lender. (g) Limitation's ofwLocal Government's Obli, pations. Local Government undertakes to perform only such duties as are specifically set forth in this Lender Contract, and no implied duties on the part of Local Government are to be read into this Lender Contract. Local Government will not be deemed to have a fiduciary or other similar relationship with Lender. Local Government may request written instructions for action from Lender and refrain from taking action until it receives satisfactory written instructions. Local Government will have no liability to any person for following such instructions, regardless of whether they are to act or refrain from acting. (h) . Costs. No provisions of this Lender Contract will require Local Government to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. 1 NTD: City to confirm if it wants to record the Releases. 942- Section 7. Lender's Warranties and Representations. With respect to this Lender Contract, Lender hereby warrants and represents that on the date on which Lender executes this Lender Contract: (a) Lender is a qualified lender under the PACE Program, as defined in paragraph 3(a) above, and is fully qualified under the PACE Program to enter into this Lender Contract and the Financing Documents; (b) Lender has independently and without reliance upon Local Government conducted its own credit evaluation, reviewed such information as it has deemed adequate and appropriate, and made its own analysis of the Owner Contract, the Project, and Property Owner's financial ability to perform the financial obligations set out in the Financing Documents; and (c) Lender has not relied upon any investigation or analysis conducted by, advice or communication from, or any warranty or representation by Local Government or any agent or employee of Local Government, express or implied, concerning the financial condition of the Property Owner or the tax or economic benefits of an investment in the Assessment. Section 8. Written Contract Required by the PACE Act. This Lender Contract constitutes a written contract between Local Government and Lender, as required under Section 399.006(c) of the PACE Act. Section 9. Construction and Definitions. This Lender Contract is to be construed in accordance with and with reference to the PACE Program and PACE Act. Terms used herein, and not otherwise defined herein, shall have the meanings ascribed to them in: (1) the Notice of Contractual Assessment Lien, (2) the Owner Contract, (3) the PACE Program, and/or (4) the PACE Act. Section 10. Binding Effect. This Lender Contract is binding upon and shall inure to the benefit of the parties hereto and their respective heirs, representatives, successors, and assigns. Section 11. Notices. All notices and other communications required or permitted hereunder shall be in writing and mailed by certified mail, return receipt requested, addressed to the other party at the address stated below the signature of such party or at such other address as such party may from time to time designate in writing to the other party, and shall be effective from the date of receipt. Section 12. Governing Law. This Owner Contract shall in all respects be governed by and construed in accordance with the laws of the State of Texas. Section 13. Entire Agreement. This Lender Contract constitutes the entire agreement between the parties with respect to the subject matter hereof and shall not be amended or altered in any manner except by a document in writing executed by both parties. Section 14. Captions. Paragraph and section titles are for convenience of reference only and shall not be of any legal effect. M Section 15. Counterparts. This Lender Contract may be executed in any number of counterparts, each counterpart may be delivered originally or by electronic transmission, all of which when taken together shall constitute one agreement binding on the parties, notwithstanding that all parties are not signatories to the same counterpart. Section 16. Interest. Interest and penalties in the event of default, as provided above, are explicitly authorized by Section 399.014(d) of the PACE Act. However, in no event will the total amount of interest on the Assessment, including statutory interest payable to Local Government and Contractual Interest payable to Lender under the Financing Documents, exceed the maximum amount or rate of nonusurious interest that may be contracted for, charged, or collected under Texas law (the "usury limit,'). If the total amount of interest payable to Local Government and Contractual Interest payable to Lender exceeds the usury limit, interest payable to Local Government will be reduced and any interest in excess of the usury limit will be credited to the amount payable to Local Government or refunded. This provision overrides any conflicting provisions in this Lender Contract. Section 17. Certification, Local Government certifies that the PACE Program has been duly adopted and is in full force and effect on the date of this Lender Contract. Property Owner has represented to Lender and Local Government that the Project is a "qualified project" as defined in the PACE Program and Section 399.002 of the PACE Act. The Assessment has been imposed on the Property as a lien in accordance with the PACE Owner Contract and the PACE Act. Local Government has not assigned or transferred any interest in the Assessment or the PACE Owner Contract. Section 18. Construction Terms. If this Lender Contract includes requirements related to construction of the Project and disbursement of Financing, such requirements are set forth in Exhibit C attached hereto and incorporated herein by reference. Such requirements may include, among other things, (1) the disbursement schedule and (2) any holdback amount to be funded following verification of final project completion. R-XECUTED cffective as of 20 By: Name: Title: Address: ME= EXECUTED effective as of I : ILI" CITY OF PARIS, TEXAS By: AUTHORIZED REPRESENTATIVE Pursuant to Tex. Local Gov't Code §399.006(b) By: . .. ......... Name: Title: Address: I IF I - I'..I I - 1 EXHIBIT B FINANCING DOCUMENTS ASSESSMENT PAYMENT SCHEDULE Assessment Total: ........ . ...... Payment Schedule: Project Completion Date: PAYMENT TOTAL PRINCIPAL INTEREST ADMINISTRATION REMAINING DATE PAYMENT PAID PAID FEE BALANCE . . . ....... ............. . ... . ......... ExHiBiT C CONSTRUCTION TERMS [IF APPLICABLE] DATE DRAW DOWN AMOUNT PURPOSE EXHIBIT 4 FORM NOTICE OF CONTRACTUAL ASSESSMENT LIEN PURSUANT TO PROPERTY ASSESSED CLEAN ENERGY ACT STATE OF TEXAS § COUNTY OF , § RECITALS I, The Property Assessed Clean Energy Act ("PACE Act"), Texas Local Government Code Chapter 399, authorizes the governing body of a local government to establish a program and designate a region within the local government's jurisdiction within which an authorized representative of the local government may enter into written contracts with the record owners of commercial, industrial, agricultural, and large multifamily residential (S or more dwelling units) real property to impose assessments on the property to finance the cost of permanent improvements fixed to the property intended to decrease water or energy consumption or demand. Unless otherwise expressly provided herein, all terms used herein have the same meanings ascribed to them II. in the PACE Act. w..w. ("Local Government") has established a program under th _ PACE Act pursuant to a the "PACE Prateand has µdesi g adopted e Authorized Representative) as the gram"), ated bythe ........� ... - = «��,�. (� representative .....� p '} authorized to enter into and enforce the Assessment, Owner Contract and Lender Contract described herein, and has designated the entire territory within the of jurisdiction as a region ("Region") within which the Authorized Representative and the record owners of such real property may enter into written contracts to impose assessments to repay the financing by owners of qualified improvements on the owner's property pursuant to the PACE Program. III. ("Property Owner") is the legal and record owner of ualifiedrea the q 1 property," as defined in Section 399.002 of the PACE Act, within the Region located at �.,.od�n> . , Texas, and more full described in Exhibit A attached hereto and made a part hereof (the "Property"). IN. Property Owner has applied to Local Government to participate in the PACE Program by installing or modifying on the Property certain permanent improvements described in Exhibit B attached hereto and made a part hereof, which are intended to decrease water or energy consumption or demand, and which are or will be fixed to the Property as "qualified improvements", as defined in Section 399.002 of the PACE Act (the "Qualified Improvements"). The installation or modification of such Qualified Improvements on the Property will be a "qualified project" as defined in Section 399.002 of the PACE Act, Property Owner has entered into a written contract (the "Owner Contract") with Local Government pursuant to the PACE Act and the PACE Program and has requested Local Government to impose an assessment on the Property to repay the financing of such Qualified Improvements. V, The financing of such Qualified Improvements will be provided to Property Owner by (°Under"), a qualified lender selected by Property Owner, pursuant to a written contract executed by Lender and Local Government as required by Section 399.006(c) of the PACE Act and by the PACE Program (the "Lender Contract'). Lender will be responsible for all servicing duties other than those specifically undertaken by Local Government in the Lender Contract. THEREFORE, Local Government hereby gives notice to the public pursuant to Section 399.013 of the PACE Act that it has imposed an assessment on the Property in the amount of $ wwo.as set forth on Exhibit C attached hereto, which together with all interest, fees, penalties, costs and other sums due under and/or authorized by the PACE Act, PACE Program and the financing documents between Property Owner and Lender (the "Financing Documents") is herein referred to as the "Assessment". Pursuant to Section 399.014 of the PACE Act, The Assessment, including interest and any penalties, costs, or fees accrued thereon, (I) is a first and prior lien on the Property from the date that this Notice of Contractual Assessment Lien is recorded in the Official Public Records of w µ Texas, until such Assessment, interest, penalties, costs, and fees are paid in full; and (ii) such Hen has the same priority status as a lien for any other ad valorem tax, pursuant to Section 399.014(a)(2) of the PACE Act. The lien created by the Assessment runs with the land, and according to Section 399.014(b) of the PACE Act, any portion of the Assessment that has not yet become due is not eliminated by foreclosure of (I) a property tax lien, or (ii) the lien for any past due portion of the Assessment In the event of a sale or transfer of the Property by Property Owner (including, without limitation, a foreclosure sale for a past due portion of the Assessment), the obligations under the Financing Documents (including, without limitation, the portion of the Assessment that has not yet become due) wM be transferred to the succeeding owner without recourse on Local Government or the Program Representative and with recourse on Property Owner only for any unpaid installments of the Assessment that became due during Property Owner's period of ownership. After this Notice of Contractual Assessment Lien is recorded in the real property records of the county in which the Property is located as provided under Section 399.013 of the PACE Act, the lien created by the Assessment may not be contested on the basis that the improvement Is not a "qualified improvement" or the project is not a "qualified project", as such terms are defined In Section 3".002 of the PACE Act. EXECUTEDon LOCAL GOVERNMENT: By: EM AUTHORIZED REPRESENTATIVE Pursuant to Tex. Local Gov't Code §399.006(b) IT COUNTYOF § -f IMM, Act was acknowledged before me on . . .. ... ... . by on behalf of Texas. Elm= 1 `!.I 1. - A Ij Dlzig;j I, I www.KeepingPACEinTexas.org 14 www,KeepingPACEinTexas.org 11 : 1. UMMMIN Assessment Payment Schedule Assessment Total: Payment Schedule: Project Completion Date; www.KeepingPACEinTexas.org 12