Item O4CO�ty MOIlY'Oe O BOARD OF COUNTY COMMISSIONERS
Mayor David Rice; District .+
Th e 011d1 Keys' Mayo Pro Tem Sylvia J.: Mu District
Mayor 1 rphy, D' tri 5'
s Danny L. Kolha e, District l
g —.:.
George.Neugent, District 2
Heather Carruthers Hea hers District 3
Coun Commission MeeftM
:. 17,:2018... . ... .
Agenda Item Number:, 04
Agenda Item Summary #3121
REVISED BACKUP -DAY OF MEETING:..... .
:Added: Proof of Publication; KW Citizen. .
: BULK ITEM: No DEPARTMENT:: Sustainability
sq
TIME APPROXIMATE: STAFF CONTACT: Rhonda Haag (305) 453-8774'' ::.
3:00 P.M. PUBLIC HEARING
AGENDA ITEM WORDING:.A hearing.to consider adoption of a.proposed ordinance for
the Property sessed Clean Energy PACE pro ram;
?�1' gY ( and providing for: an effective date.:
.. . ) p g
ITEM BACKGROUND: The item seeks approval to consider adoption of a proposed ordinance
establishing a. Prop erty Assessed Clean Energy (PACE): program.
p rtY gY ( ). p gram.
At the October 18, 2017 :Monroe County Board of County Commission (BOCC) meeting, staff was.
directed by the BOCC to move forward in developing a Property Assessed Clean Energy (PACE)
ordinance. to implement a Countywide PACE program; provide for both residential and commercial
availability of the program,; and provide for participation in multiple established PACE programs:
:PACE..programs provide financing for qualified energy efficiency, renewable energy, and wind:
resistant improvements. PACE financing is repaid as a non -ad valorem assessment on a property's
regular tax :bill..This Ordinance. reflects those directions: establishing .requirements for the PACE
_.... ..
programs, including _strong consumer . protection requirements,::'and incorporates; : best practice ...
standards to ensure high uali PACE providers and programs countywide..
g q tY o p p .. g. tyde. w�
The- - establishment of a PACE' program for.Monroe. County , aligns with the Coun y!s.-GreenKeys
c,iniat6 resilience an susta plan:(Item : 2 -16) and the Southeast Florida :Regional Climate
Compact goals included in the Regional Climate: Action. Plan. Providing PACE as an alternative. to
other forms of, financing, is a benef cial strategy to - increase energy efficiency in residential -and
commercial buildings and. thereby reducing: community greenhouse gas (GHG) emissions. GHG
:emissions contribute tote warming o the ea an ,.t _ e resulting rise m, sea. levels.' As PACE.. as=
developed nationally, it has become :a viable option for property owners enabling a broader range of
property owners to implement energy .. efficiency, renewable . energy; - and wind resiliency .
improvements that increase the value,:-functionality, and : sustaimability of their: buildings. These
iirl rovements reduce building operational costs ener
p g p gy:use, and GHG emissions.
PACE, Programs expand . the financial' options for property owner to access these: improvements
while providing advice; tools and resources that enable property: owners to make: informed choices .
T .'
through specific disclosures regarding energy savings and any risk. Based on Board direction to
ensure consumer protection to the greatest extent feasible, and as other municipalities have done,
staff incorporated a number of residential consumer protection policies from PACENation, an
association of individuals and organizations joined in support for PACE financing. These policies
are rooted in the premise that consumer protections to serve property owners must be a core value of
PACE Programs and Partners, including the government authority or third party non - government
administrator which staff has captured in the attached ordinance.
Staff worked with PACE industry representatives to receive input into the Ordinance. The attached
Ordinance represents a joint effort to provide County property owners with access to voluntary non-
ad valorem assessments to implement energy efficiency, renewable energy, and wind resiliency
improvements on their properties, providing appropriate consumer protections, and reflecting best
practice standards ensuring high quality PACE Programs operate within our County.
PREVIOUS RELEVANT BOCC ACTION:
10/16/17 Direction and guidance on a potential County PACE program
12/13/17: Approval to advertise a public hearing, to consider adoption of a proposed ordinance for
the Property Assessed Clean Energy (PACE) program, to be held on January 17, 2018 in Marathon,
FL at 3:00 p.m. or as soon thereafter as may be heard.
CONTRACT /AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
PACE Ordinance Monroe County
Notice of Intent to Consider Adoption of PACE Ordinance
POP KW Citizen Notice of Intent to Consider Adoption of PACE Ordinance BOCC 1 17 18
FINANCIAL IMPACT:
Effective Date: N/A Expiration Date: N/A
Total Dollar Value of Contract: None
Total Cost to County: TBD Current Year Portion: N/A
Budgeted: N/A Source of Funds: N/A
CPI: N/A Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: Staff administration costs
Revenue Producing: No If yes, amount: N/A
Grant: No County Match: N/A
Insurance Required: N/A
Additional Details:
N/A
REVIEWED BY:
Rhonda Haag
Completed
12/21/2017 10:46 AM
Pedro Mercado
Completed
12/26/2017 10:02 AM
Budget and Finance
Completed
12/28/2017 9:14 AM
Maria Slavik
Completed
12/28/2017 9:29 AM
Kathy Peters
Completed
12/28/2017 9:43 AM
Board of County Commissioners
Pending
01/17/2018 9:00 AM
ORDINANCE NO. 20 -
AN ORDINANCE OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
ESTABLISHING THE PROPERTY ASSESSED CLEAN
ENERGY (PACE) PROGRAM ORDINANCE;
PROVIDING FOR A TITLE; PROVIDING FOR
AUTHORITY; PROVIDING FOR APPLICABILITY;
PROVIDING FOR DEFINITIONS; PROVIDING FOR
REPEAL OF LAWS IN CONFLICT; PROVIDING FOR
SEVERABILITY; PROVIDING FOR INCLUSION IN
THE CODE OF LAWS AND ORDINANCES;
PROVIDING FOR CAPTIONS; AND PROVIDING FOR
AN EFFECTIVE DATE.
1 WHEREAS, Property Assessed Clean Energy (PACE) programs have been
2 established across the country to provide mechanisms for funding energy efficiency,
3 renewable energy, and other types of improvements to residential and commercial properties;
4 and
5 WHEREAS, PACE programs are typically established by local governments and are
6 . administered by the local government or by for - profit or not - for - profit entities; and
7 WHEREAS, PACE financing is repaid as an assessment on the property's regular tax
8 bill; and
9 WHEREAS, Section 163.08, Florida Statutes, authorizes programs, typically referred
10 to as PACE programs, that levy non -ad valorem assessments allowing property owners to
11 apply to local governments for financing certain energy efficiency, renewable energy and
12 wind resistant improvements; and
13 WHEREAS, Section 163.08, Florida Statutes, provides that properties retrofitted
14 with energy - related qualifying improvements benefit from reduced energy consumption,
15 reduced potential for wind damage, and assist in the fulfillment of the state's energy and
16 hurricane mitigation policies; and
17 WHEREAS, the PACE assessment is collected pursuant to Florida's uniform
18 method for the levy, collection and enforcement of non -ad valorem assessments, Section
19 197.3632, Florida Statutes; and
20 WHEREAS, the Board of County Commissioners intends to establish qualifications
21 and consumer protection disclosure requirements for PACE programs that provide financing
22 for qualifying improvements in accordance with Section 163.08, Florida Statutes, and
23 provisions of this ordinance; and
1
1 WHEREAS, it is the intent of the County to enter into interlocal agreements with
2 multiple PACE agencies /authorities /districts to encourage competition and provide more
3 choices for property owners; and
4 WHEREAS, the Board of County Commissioners acknowledges the Florida
5 Legislature's finding that there is a compelling state interest in enabling property owners who
6 wish to undertake such improvements and to enable property owners to voluntarily finance
7 such improvements with local government assistance and finds that creation of a PACE
8 program will serve the public health and welfare of the citizens of Monroe County; and
9 WHEREAS, the Board of County Commissioners has conducted a duly noticed
10 public hearing to consider this Ordinance in accordance with Section 125.66, Florida
11 Statutes; and
12 WHEREAS, the Board of County Commissioners of Monroe County, pursuant to its
13 authority under the Florida Constitution, Article VIII, Section 1(f) and Section 125.01,
14 Florida Statutes- hereby adopts the Monroe County Property Assessed Clean Energy (PACE)
15 Ordinance.
To
17 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
18 COMMISSIONERS OF MONROE COUNTY, FLORIDA, that:
19 Section 1. TITLE:
20 This Ordinance shall be titled the "Monroe County Property Assessed Clean Energy
21 (PACE) Ordinance."
22 Section 2. AUTHORITY:
23 This article is adopted pursuant to the authority granted to non - charter counties under
24 Article VIII, Section 1(f) of the Florida Constitution and Chapter 125, Florida Statutes.
25 Section 3. APPLICABILITY:
26 This Ordinance shall be applicable within the unincorporated areas of Monroe County,
27 and in all municipalities that have not adopted an ordinance governing any or all of the subject
28 matter of this Ordinance, regardless of the time of passage of the municipal ordinance.
29 Section 4. DEFINITIONS:
30 For purposes of this Ordinance, the following words and phrases shall have the
31 following meanings:
32 (1) Board or County is the Monroe County Board of County Commissioners.
0)
1 (2) Financing Agreement shall mean the financing agreement or the summary memorandum
2 of such agreement the property owner signs establishing terms and conditions for the
3 financing of qualified improvements which is required to be recorded in the public
4 records pursuant to the PACE Statute.
5 (3) Qualifying Improvements includes energy conservation and efficiency, renewable
6 energy, and wind resistance improvements as defined by Section 163.08, Florida
7 Statutes, as may be amended by law.
8 (4) PACE assessment shall mean the non -ad valorem assessment placed on a property
9 owner's tax bill as a result of financing obtained pursuant to this Ordinance.
10 (5) PACE agencies /authorities /districts shall mean one or more local governments defined
11 in Section 163.08(2)(a), Florida Statutes, authorized by Monroe County to offer PACE
12 financing for qualifying improvements.
13 (6) PACE Program shall mean the County's provision through interlocal agreements with
14 PACE agencies /authorities /districts offering financing for qualifying improvements as
15 approved by the State of Florida pursuant to Section 163.08, Florida Statutes, further
16 refined in this ordinance, as may be amended by law.
17 (7) PACE Statute shall mean Section 163.08, Florida Statutes and all future amendments
18 thereto.
19 (8) Residential Property shall mean a residential property consisting of four (4) or less
20 residential units.
21 (9) Non - Residential Property shall mean commercial, industrial, agricultural and residential
22 properties consisting of five (5) or more residential dwelling units.
23 Section 5. PACE PROGRAM AUTHORIZATION:
24 (1) PACE agencies /authorities /districts offering financing for Qualifying Improvements
25 pursuant to this ordinance shall be approved by the County and authorized through
26 interlocal agreements to provide financing subject to the requirements of this ordinance
27, and the PACE Statute. The interlocal agreements shall include specific terms and
28 conditions for PACE agencies /authorities /districts to operate within Monroe County.
29 (2) PACE agencies /authorities /districts desiring to provide financing pursuant to this
30 ordinance shall provide sufficient documentation as requested by the County to provide
31 reasonable assurance that the requirements of this ordinance and the PACE Statute can be
32 met by the PACE agency /authority /district.
3
1 Section 6. DISCLOSURE REOUIREMENTS:
2 (1) In addition to any disclosure requirements in the PACE Statute, PACE
3 agencies /authorities /districts that extend financing pursuant to the PACE Statute and levy
4 non -ad valorem assessments to fund the qualifying improvements shall present to the
5 property owner a separate, written notice disclosing the following ( "Notice "):
6 (a) The estimated total amount of the debt, including amount financed, fees, fixed
7 interest rate, capitalized interest and the effective rate of the interest charged
8 ( "Annual Percentage Rate" or "APR ");
9 (b) That PACE agencies /authorities /districts may only offer fixed simple interest rates
10 and payments that fully amortize the obligation. Variable or negative amortization
11 financing terms are not permitted. Capitalized interest included in the original balance
12 of a PACE financing does not constitute negative amortization.
13 (c) The repayment process and terms, amounts and a schedule that fully amortizes the
14 amount financed including the estimated annual PACE assessment;
15 (d) That the PACE assessment will appear on the property owner's tax bill;
16 (e) That there is no discount for paying the PACE assessment early;
17 (f) The nature of the lien recorded and that the PACE assessment will be collected in the
18 same manner as real estate taxes. That failure to pay the PACE assessment may cause
19 a tax certificate to be issued against the property, and that failure of payment thereof
20 may result in the loss of property subject to the PACE assessment, including
21 homestead property, in the same manner as failure to pay property taxes;
22 (g) The specific improvements to be financed and installed and that such improvements
23 and PACE assessment may or may not affect the overall value of the property,
24 (h) A PACE assessment payment term that does not exceed the useful life of the
25 improvements;
26 (i) The right of pre - payment without penalty;
27 (j) Notice that the property owner may be required to pay any PACE assessment in full
28 at the time of refinance or sale of the property; and
29 (k) The 3 -day right to cancel the financing.
30 (2) The Notice must be delivered to the property owner by the PACE
31 agency /authority /district and must be signed and dated by the property owner prior to or
32 contemporaneously with the property owner's signing of any legally enforceable
4
1 documents under the PACE program. The property owner and the PACE
2 agency /authority /district must keep the signed Notice with the property owner's executed
3 financing agreement.
4 (3) The PACE agency /authority /district shall record, or cause to be recorded, the financing
5 agreement or a summary memorandum of the financing agreement, in accordance with
6 Section 163.08(8), Florida Statutes.
7 Section 7. ELIGIBLE PROPERTIES/PROGRAM REQUIREMENTS:
8 (1) As defined in the PACE Statute, PACE agencies /authorities /districts that extend
9 financing pursuant to the PACE Statute and levy non -ad valorem assessments to fund the
10 qualifying improvements shall comply with the following:
11 (2) Residential Property. PACE agencies /authorities /districts may finance qualifying
12 improvements on Residential Properties provided they comply with the following criteria
13 inclusive of all eligibility criteria listed in the PACE Statute and all future amendments
14 thereto, along with additional consumer protections.
15 (a) Without the consent of the holders or loan servicers of any mortgage encumbering or
16 otherwise secured by the property, the total amount of any non -ad valorem
17 assessment for a property under the PACE Statute may not exceed twenty percent
18 (20 %) of the just value of the property as determined by the county property
19 appraiser, excepted as otherwise provided by statute; and
20 (b) All property taxes and other assessments levied on the property tax bill have been
21 paid and have not been delinquent for the preceding three years, or the property
22 owner's period of ownership, whichever is less; and
23 (c) There are no involuntary liens, including but not limited to construction liens on the
24 property; and
25 (d) No notices of default or other evidence of property-based debt delinquency have been
26 recorded during the preceding three years, or the property owner's period of
27 ownership, whichever is less; and, additionally
28 (e) All mortgage debt on the property is current and not delinquent; and
29 (f) All mortgage - related debt on the underlying property may not exceed 90% of the
30 property's fair market value ( "FMV "); and
31 (g) The total mortgage - related debt on the underlying property plus the PACE program
32 financing may not exceed the FMV of the property.
5
1 (3) Non- Residential Properties. PACE agencies /authorities /districts may finance Qualifying
2 Improvements on Non - Residential Properties provided they comply with the
3 requirements set forth in the PACE Statute and all future amendments thereto and
4 inclusive of those listed under Section 7(2)(a -d) of this Ordinance.
5 (4) Qualifying Improvements. The PACE agency /authority /district will finance energy
6 efficiency, renewable energy and wind resistant improvements that are permanently
7 affixed to the property as more specifically described in the PACE Statute. All
8 improvements and products should identify efficiency standards established by the U.S.
9 Department of Energy, the U.S. Environmental Protection Agency, or Florida state
10 agencies as applicable. All qualifying improvements must comply with the PACE
11 Statute for energy efficiency, renewable energy and wind resistance or other
12 improvements as permissible by law. PACE agencies /authorities /districts shall establish
13 procedures confirming that the property owner applying for financing through the PACE
14 agency /authority /district intends to install eligible products, and that at the time of
15 funding such improvements have been installed.
16 (5) Inquiries and Complaints.
17 (a) The PACE agency /authority /district shall be required to receive, manage, track,
18 timely resolve and report on complaints from property owners regarding the funded
19 work performed by the contractors. The PACE agency /authority /district shall
20 investigate and mediate disputes between property owners and contractors in a timely
21 manner.
22 (b) Payment inquiries. The PACE agency /authority /district shall be required to respond
23 to inquiries and resolve any issues in a timely manner, related to payments, including
24 but not limited to prepayments and payment reconciliation.
25 (c) Review. In the event that ten percent or more of a PACE
26 agency's /authority's /district's projects result in complaints or disputes, or such
27 complaints or disputes remain unresolved six months after completion of a project,
28 the County may review the PACE agency's /authority's /district's handling of
29 complaints and may request corrective actions or initiate suspension proceedings
30 pursuant to Section 7(13).
31 (6) Data Security. The PACE agency /authority /district is responsible for taking security
32 measures that protect the security and confidentiality of consumer records and
0
1 information in proportion to the sensitivity of the information, and as required by state
2 and federal law.
3 (7) Consumer Privacy. The PACE agency /authority /district must develop and maintain a
4 privacy policy that complies with state and federal law and, in particular, shall provide a
5 property owner the ability to opt -out of having the property owner's information shared
6 with third parties, except where expressly permitted by state and federal law.
7 (8) Marketing and Communications. Marketing practices for a PACE
8 agency /authority /district that are or could appear to be unfair, deceptive, abusive, or
9 misleading, or that violate applicable laws or regulations, that are inappropriate,
10 incomplete or are inconsistent with the PACE agency's /authority's /district's purpose are
11 prohibited.
12 (9) Protected Classes. The PACE agency /authority /district shall not discriminate against
13 individuals on the basis of race, color, ancestry, disability, national origin, religion, age,
14 familial status, marital status, sex, gender, sexual orientation, gender identity and
15 expression, or genetic information.
16 (10) Contractor Management.
17 (a) Any work under a PACE agency /authority /district requiring a license under any
18 applicable law to make a qualifying improvement shall be performed by a contractor
19 properly licensed, certified or registered pursuant to state law.
20 (b) Contractors performing work under a PACE agency /authority /district shall comply
21 with each of the following conditions: (i) Be licensed and insured pursuant to the
22 applicable statutory requirements; (ii) Agree to comply with all program requirements
23 and marketing guidelines; (iii) Act in good faith to timely resolve property owner
24 complaints.
25 (c) PACE programs shall have and shall strictly enforce anti - kickback policies and
26 procedures that prohibit direct financial or other monetary incentives to contractors in
27 exchange for or related to such contractor being awarded work under a PACE
28 program, excepting payment for the contractor's installation of eligible improvements.
29 (11) Financing. The PACE agency /authority /district will establish pricing rules and
30 enforcement mechanisms to ensure property owners are protected from excessive or
31 unjustified prices and charges. In addition, the PACE agency /authority /district shall
32 require compliance with each of the following conditions prior to the issuance of any
7
1 funding to the contractor:
2 (a) Contractors have certified that any necessary permits have been obtained;
3 (b) Verification that the qualifying improvements have been installed;
4 (c) The property owner and the contractor have signed a final inspection and/or
5 certificate of completion that all improvements have been installed to the property
6 owner's satisfaction.
7 (12) Reporting. Each PACE agency /authority /district shall provide a report to the County
8 on a quarterly calendar basis, which shall include, at a minimum, the following
9 information:
10 (a) Dates of the reporting period;
11 (b) List of PACE projects (including addresses including municipal jurisdiction, financed
12 amount, interest rate, assessment duration, and project description) started during the
13 reporting period, separated by building type (e.g., single family, multifamily, retail,
14 office, industrial, etc.);
15 (c) List of PACE projects (including addresses including municipal jurisdiction)
16 completed during the reporting period, separated by building type project (e.g., single
17 family, multifamily, retail, office, industrial, etc.), specify; (1) the qualifying
18 improvements made; (2) project start date and completion date; (3) the projected
19 energy savings and /or amount of potential renewable energy to be generated; (4)
20 financial information such as cost per kilowatt hour saved/generated; (5) other
21 resource savings if data is available; and (6) audits performed detailing the audit
22 results, if applicable to the project;
23 (d) Number of actual or estimated jobs created during the reporting period, including
24 local versus non -local jobs and permanent versus temporary jobs;
25 (e) Number of applications declined during the reporting period;
26 (f) Unresolved complaints and/or contractor issues and status; and
27 (g) Description of the standardized third -party methodologies and supporting
28 assumptions used to verify data, and any changes in the methodologies and
29 assumptions from the previous reporting period.
30 (13) Suspension or Termination ofR4CE agency/authority/district. In the event any PACE
31 agency /authority /district fails to incorporate and continually provide for all of the
32 foregoing service components or to otherwise abide by the provisions of this Ordinance
N.
1 and /or the interlocal agreement the County, in its sole discretion, may suspend or
2 terminate the interlocal agreement and support of the County at any time upon written
3 notice to that PACE agency /authority /district. Any project that has been initiated as of the
4 time of suspension or termination shall be permitted to be completed.
5 Section 8. REPEAL OF LAWS IN CONFLICT:
6 All local laws and ordinances in conflict with any provisions of this Ordinance are
7 hereby repealed to the extent of such conflict.
8 Section 9. SEVERABILITY:
9 If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for
10 any reason held by a Court of competent jurisdiction to be unconstitutional, inoperative, or
11 void, such holding shall not affect the remainder of this Ordinance.
12 Section 10. INCLUSION IN THE CODE OF LAWS AND ORDINANCES:
13 The provisions of this Ordinance shall become and be made a part of the Monroe
14 County Code. The sections of this Ordinance may be renumbered or relettered to accomplish
15. such, and the word Ordinance may be changed to section, article, or other appropriate word.
16 Section 11. CAPTIONS:
17 The captions, section headings and section designations used in this Ordinance are for
18 convenience only and shall have no effect on the interpretation of the provisions of this
19 Ordinance.
20 Section 12. TRANSMITTAL AND EFFECTIVE DATE:
21 This Ordinance shall be filed with the Department of State and shall be effective as
22 provided in section 125.66(2), Florida Statutes.
23
24 APPROVED and ADOPTED by the Board of County Commissioners of Monroe
25 County, Florida, on this the day of , 20
26
27 KEVIN MADOK, CLERK
28
29
30 By:
31 Deputy Clerk
32
33
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
David Rice, Mayor
D
NOTICE OF INTENTION TO CONSIDER
ADOPTION OF COUNTY ORDINANCE
NOTICE IS HEREBY GIVEN TO WHOM IT MAY CONCERN that on January 17, 2018, at
3:00 P.M., or as soon thereafter as may be heard, in the Marathon Government Center, 2798
Overseas Highway, Marathon, Monroe County, Florida, the Board of County Commissioners of
Monroe County, Florida, intends to consider the adoption of the following County ordinance: -
AN ORDINANCE OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
ESTABLISHING THE PROPERTY ASSESSED CLEAN
ENERGY (PACE) PROGRAM ORDINANCE; PROVIDING
FOR A TITLE; PROVIDING FOR AUTHORITY;
PROVIDING FOR APPLICABILITY; PROVIDING FOR
DEFINITIONS; PROVIDING FOR REPEAL OF LAWS IN
CONFLICT; PROVIDING FOR SEVERABILITY;
PROVIDING FOR INCLUSION IN THE CODE OF LAWS
AND ORDINANCES; PROVIDING FOR CAPTIONS; AND
PROVIDING FOR AN EFFECTIVE DATE.
Pursuant to Section 286.0105, Florida Statutes, notice is given that if a person decides to appeal any
decision made by the Board with respect to any matter considered at such hearings or meetings, he will
need a record of the proceedings, and that, for such purpose, he may need to ensure that a verbatim
record of the proceedings is made, which record includes the testimony and evidence upon which the
appeal is to be based.
ADA ASSISTANCE. If you are a person with a disability who needs special accommodations in order to
participate in this proceeding, please contact the County Administrator's Office, by phoning (305) 292 -4441,
between the hours of 8:30 a.m. - 5.00 p.m., no later than five (5) calendar days prior to the scheduled
meeting; if you are hearing or voice impaired, call "711':
Dated at Key West, Florida, this 29th day of December, 2017.
(SEAL)
KEVIN MADOK, Clerk of the Circuit Court
and ex officio Clerk of the Board of County
Commissioners of Monroe County, Florida
Publication dates:
Citizen Wed., 01/03/18
Keynoter Wed., 01/03/18
Reporter Fri., 01/05/18
kECERfED
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Key West . Ff 3 oath says that he is Publisher of the .Key West Citizen, a, daily newspaper
Office ..305 292 -7777 aq
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Pursuant to Section 286 0105
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matte cons deed at such ny
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hpanngs.ormeefings; he;will
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ensurett at a verbitim of .•
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record includes'the testimony
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appeal is to be; based.
ADA ASSISTANCE If you are a
person with a ' J1 'ability who -
needs special accommodations .1
in order' to partidpate'in,ttiis
. , proceeding;, please contact -the . .
o :' i
C Iinty;Admmisirator'a Office,
... .. } by ing(305).292- 44,4,1,
be "n the tiours,of 8,30 a.m.
6 p.m - no later ttian.flve (5)
calendar`.• days "prior to _
scheduled meeting;. if you ere
heanng:or voice impaired, call IF
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Dated at Key West Florida this
29th day: of December 2017
KEVIN MAD0K Cleric of the
Cirdt' court and ez officio
Clerk of the , Board of.Gounty
i January 3 2018..-
Key West citiieri
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C ounty of f Monroe
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BOARD OF COUNTY COMMISSIONERS
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Mayor David Rice, District 4
Th e Florida Keys
Mayor Pro Tem Sylvia J. Murphy, District 5
Danny L. Kolhage, District 1
George Neugent, District 2
Heather Carruthers, District 3
County Commission Meeting
January 17, 2018
Agenda Item Number: 0.4
Agenda Item Summary #3121
BULK ITEM: No DEPARTMENT: Sustainability
TIME APPROXIMATE: STAFF CONTACT: Rhonda Haag (305) 453 -8774
3:00 P.M. PUBLIC HEARING
AGENDA ITEM WORDING: A public hearing to consider adoption of a proposed ordinance for
the Property Assessed Clean Energy (PACE) program; and providing for an effective date.
ITEM BACKGROUND: The item seeks approval to consider adoption of a proposed ordinance
establishing a Property Assessed Clean Energy (PACE) program.
At the October 18, 2017 Monroe County Board of County Commission (BOCC) meeting, staff was
directed by the BOCC to move forward in developing a Property Assessed Clean Energy (PACE)
ordinance to implement a Countywide PACE program, provide for both residential and commercial
availability of the program, and provide for participation in multiple established PACE programs.
PACE programs provide financing for qualified energy efficiency, renewable energy, and wind
resistant improvements. PACE financing is repaid as a non -ad valorem assessment on a property's
regular tax bill. This Ordinance reflects those directions establishing requirements for the PACE
programs, including strong consumer protection requirements, and incorporates best practice
standards to ensure high quality PACE providers and programs countywide.
The establishment of a PACE program for Monroe County aligns with the County's GreenKeys
climate resilience and sustainability plan (Item 2 -16) and the Southeast Florida Regional Climate
Compact goals included in the Regional Climate Action Plan. Providing PACE as an alternative to
other forms of financing, is a beneficial strategy to increase energy efficiency in residential and
commercial buildings and thereby reducing community greenhouse gas (GHG) emissions. GHG
emissions contribute to the warming of the earth and the resulting rise in sea levels. As PACE has
developed nationally, it has become a viable option for property owners enabling a broader range of
property owners to implement energy efficiency, renewable energy, and wind resiliency
improvements that increase the value, functionality, and sustainability of their buildings. These
improvements reduce building operational costs, energy use, and GHG emissions.
PACE Programs expand the financial options for property owner to access these improvements
while providing advice, tools and resources that enable property owners to make informed choices
through specific disclosures regarding energy savings and any risk. Based on Board direction to
ensure consumer protection to the greatest extent feasible, and as other municipalities have done,
staff incorporated a number of residential consumer protection policies from PACENation, an
association of individuals and organizations joined in support for PACE financing. These policies
are rooted in the premise that consumer protections to serve property owners must be a core value of
PACE Programs and Partners, including the government authority or third party non - government
administrator which staff has captured in the attached ordinance.
Staff worked with PACE industry representatives to receive input into the Ordinance. The attached
Ordinance represents a joint effort to provide County property owners with access to voluntary non -
ad valorem assessments to implement energy efficiency, renewable energy, and wind resiliency
improvements on their properties, providing appropriate consumer protections, and reflecting best
practice standards ensuring high quality PACE Programs operate within our County.
PREVIOUS RELEVANT BOCC ACTION:
10/16/17 Direction and guidance on a potential County PACE program
12/13/17: Approval to advertise a public hearing, to consider adoption of a proposed ordinance for
the Property Assessed Clean Energy (PACE) program, to be held on January 17, 2018 in Marathon,
FL at 3:00 p.m. or as soon thereafter as may be heard.
CONTRACT /AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
PACE Ordinance Monroe County
Notice of Intent to Consider Adoption of PACE Ordinance
FINANCIAL IMPACT:
Effective Date: N/A
Expiration Date: N/A
Total Dollar Value of Contract: None
Total Cost to County: TBD
Current Year Portion: N/A
Budgeted: N/A
Source of Funds: N/A
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included
in above dollar amounts: Staff administration costs
Revenue Producing: No
If yes, amount: N/A
Grant: No
County Match: N/A
Insurance Required: N/A
Additional Details:
N/A
REVIEWED BY:
Rhonda Haag
Completed
12/21/2017 10:46 AM
Pedro Mercado
Completed
12/26/2017 10:02 AM
Budget and Finance
Completed
12/28/2017 9:14 AM
Maria Slavik
Completed
12/28/2017 9:29 AM
Kathy Peters
Completed
12/28/2017 9:43 AM
Board of County Commissioners
Pending
01/17/2018 9:00 AM
Al\ V1W 11 \Al \li •' V1' 111 LVA1W V1' liV Vl\ 1 1
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
ESTABLISHING THE PROPERTY ASSESSED CLEAN
ENERGY (PACE) PROGRAM ORDINANCE;
PROVIDING FOR A TITLE; PROVIDING FOR
AUTHORITY; PROVIDING FOR APPLICABILITY;
PROVIDING FOR DEFINITIONS; PROVIDING FOR
REPEAL OF LAWS IN CONFLICT; PROVIDING FOR
SEVERABILITY; PROVIDING FOR INCLUSION IN
THE CODE OF LAWS AND ORDINANCES;
PROVIDING FOR CAPTIONS; AND PROVIDING FOR
AN EFFECTIVE DATE.
1 WHEREAS, Property Assessed Clean Energy (PACE) programs have been
2 established across the country to provide mechanisms for funding energy efficiency,
3 renewable energy, and other types of improvements to residential and commercial properties;
4 and
5 WHEREAS, PACE programs are typically established by local governments and are
6 administered by the local government or by for - profit or not - for - profit entities; and
7 WHEREAS, PACE financing is repaid as an assessment on the property's regular tax
8 bill; and
9 WHEREAS, Section 163.08, Florida Statutes, authorizes programs, typically referred
10 to as PACE programs, that levy non -ad valorem assessments allowing property owners to
11 apply to local governments for financing certain energy efficiency, renewable energy and
12 wind resistant improvements; and
13 WHEREAS, Section 163.08, Florida Statutes, provides that properties retrofitted
14 with energy - related qualifying improvements benefit from reduced energy consumption,
15 reduced potential for wind damage, and assist in the fulfillment of the state's energy and
16 hurricane mitigation policies; and
17 WHEREAS, the PACE assessment is collected pursuant to Florida's uniform
18 method for the levy, collection and enforcement of non -ad valorem assessments, Section
19 197.3632, Florida Statutes; and
20 WHEREAS, the Board of County Commissioners intends to establish qualifications
21 and consumer protection disclosure requirements for PACE programs that provide financing
22 for qualifying improvements in accordance with Section 163.08, Florida Statutes, and
3 choices for property owners; and
4 WHEREAS, the Board of County Commissioners acknowledges the Florida
5 Legislature's finding that there is a compelling state interest in enabling property owners who
6 wish to undertake such improvements and to enable property owners to voluntarily finance
7 such improvements with local government assistance and finds that creation of a PACE
8 program will serve the public health and welfare of the citizens of Monroe County; and
9 WHEREAS, the Board of County Commissioners has conducted a duly noticed
10 public hearing to consider this Ordinance in accordance with Section 125.66, Florida
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11 Statutes; and
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12 WHEREAS, the Board of County Commissioners of Monroe County, pursuant to its
8
13 authority under the Florida Constitution, Article VIII, Section 1(f) and Section 125.01,
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14 Florida Statutes-hereby adopts the Monroe Count Property Assessed Clean Energy PACE
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17 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY
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18 COMMISSIONERS OF MONROE COUNTY, FLORIDA, that:
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19 Section 1. TITLE:
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20 This Ordinance shall be titled the "Monroe County Property Assessed Clean Energy
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21 (PACE) Ordinance."
22 Section 2. AUTHORITY: a
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23 This article is adopted pursuant to the authority granted to non - charter counties under
25 Section 3. APPLICABILITY:
26 This Ordinance shall be applicable within the unincorporated areas of Monroe County,
27 and in all municipalities that have not adopted an ordinance governing any or all of the subject
28 matter of this Ordinance, regardless of the time of passage of the municipal ordinance.
29 Section 4. DEFINITIONS:
30 For purposes of this Ordinance, the following words and phrases shall have the
3 financing of qualified improvements which is required to be recorded in the public
4 records pursuant to the PACE Statute.
5 (3) Qualifying Improvements includes energy conservation and efficiency, renewable
6 energy, and wind resistance improvements as defined by Section 163.08, Florida
7 Statutes, as may be amended by law.
8 (4) PACE assessment shall mean the non -ad valorem assessment placed on a property
9 owner's tax bill as a result of financing obtained pursuant to this Ordinance.
10 (5) PACE agencies /authorities /districts shall mean one or more local governments defined
11 in Section 163.08(2)(a), Florida Statutes, authorized by Monroe County to offer PACE
12 financing for qualifying improvements.
13 (6) PACE Program shall mean the County's provision through interlocal agreements with
14 PACE agencies /authorities /districts offering financing for qualifying improvements as
15 approved by the State of Florida pursuant to Section 163.08, Florida Statutes, further
16 refined in this ordinance, as may be amended by law.
17 (7) PACE Statute shall mean Section 163.08, Florida Statutes and all future amendments
18 thereto.
19 (8) Residential Property shall mean a residential property consisting of four (4) or less
20 residential units.
21 (9) Non Residential Property shall mean commercial, industrial, agricultural and residential
22 properties consisting of five (5) or more residential dwelling units.
23 Section 5. PACE PROGRAM AUTHORIZATION:
24 (1) PACE agencies /authorities /districts offering financing for Qualifying Improvements
25 pursuant to this ordinance shall be approved by the County and authorized through
26 interlocal agreements to provide financing subject to the requirements of this ordinance
27 and the PACE Statute. The interlocal agreements shall include specific terms and
28 conditions for PACE agencies /authorities /districts to operate within Monroe County.
29 (2) PACE agencies /authorities /districts desiring to provide financing pursuant to this
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30 ordinance shall provide sufficient documentation as requested by the County to provide
3 agencies /authorities /districts that extend financing pursuant to the PACE Statute and levy
4 non -ad valorem assessments to fund the qualifying improvements shall present to the
5 property owner a separate, written notice disclosing the following ( "Notice "):
6 (a) The estimated total amount of the debt, including amount financed, fees, fixed
7 interest rate, capitalized interest and the effective rate of the interest charged
8 ( "Annual Percentage Rate" or "APR ");
9 (b) That PACE agencies /authorities /districts may only offer fixed simple interest rates
10 and payments that fully amortize the obligation. Variable or negative amortization
11 financing terms are not permitted. Capitalized interest included in the original balance
12 of a PACE financing does not constitute negative amortization.
13 (c) The repayment process and terms, amounts and a schedule that fully amortizes the
14 amount financed including the estimated annual PACE assessment;
15 (d) That the PACE assessment will appear on the property owner's tax bill;
16 (e) That there is no discount for paying the PACE assessment early;
17 (f) The nature of the lien recorded and that the PACE assessment will be collected in the
18 same manner as real estate taxes. That failure to pay the PACE assessment may cause
19 a tax certificate to be issued against the property, and that failure of payment thereof
20 may result in the loss of property subject to the PACE assessment, including
21 homestead property, in the same manner as failure to pay property taxes;
22 (g) The specific improvements to be financed and installed and that such improvements
23 and PACE assessment may or may not affect the overall value of the property;
24 (h) A PACE assessment payment term that does not exceed the useful life of the
25 improvements;
26 (i) The right of pre - payment without penalty;
27 0) Notice that the property owner may be required to pay any PACE assessment in full
28 at the time of refinance or sale of the property; and
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29 (k) The 3 -day right to cancel the financing.
30 (2) The Notice must be delivered to the property owner by the PACE
3 financing agreement.
4 (3) The PACE agency /authority /district shall record, or cause to be recorded, the financing
5 agreement or a summary memorandum of the financing agreement, in accordance with
6 Section 163.08(8), Florida Statutes.
7 Section 7. ELIGIBLE PROPERTIES/PROGRAM REQUIREMENTS:
8 (1) As defined in the PACE Statute, PACE agencies /authorities /districts that extend
9 financing pursuant to the PACE Statute and levy non -ad valorem assessments to fund the
10 qualifying improvements shall comply with the following:
11 (2) Residential Property. PACE agencies /authorities /districts may finance qualifying
12 improvements on Residential Properties provided they comply with the following criteria
13 inclusive of all eligibility criteria listed in the PACE Statute and all future amendments
14 thereto, along with additional consumer protections.
15 (a) Without the consent of the holders or loan servicers of any mortgage encumbering or
16 otherwise secured by the property, the total amount of any non -ad valorem
17 assessment for a property under the PACE Statute may not exceed twenty percent
18 (20 %) of the just value of the property as determined by the county property
19 appraiser, excepted as otherwise provided by statute; and
20 (b) All property taxes and other assessments levied on the property tax bill have been
21 paid and have not been delinquent for the preceding three years, or the property
22 owner's period of ownership, whichever is less; and
23 (c) There are no involuntary liens, including but not limited to construction liens on the
24 property; and
25 (d) No notices of default or other evidence of property -based debt delinquency have been
26 recorded during the preceding three years, or the property owner's period of
27 ownership, whichever is less; and, additionally
28 (e) All mortgage debt on the property is current and not delinquent; and
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29 (f) All mortgage - related debt on the underlying property may not exceed 90% of the
30 property's fair market value ( "FMV "); and
3 requirements set forth in the PACE Statute and all future amendments thereto and
4 inclusive of those listed under Section 7(2)(a -d) of this Ordinance.
5 (4) Quali in Improvements. The PACE agency /authority /district will finance energy
6 efficiency, renewable energy and wind resistant improvements that are permanently
7 affixed to the property as more specifically described in the PACE Statute. All
8 improvements and products should identify efficiency standards established by the U.S.
9
Department
of Energy,
the U.S. Environmental Protection
Agency,
or Florida state
10
agencies as
applicable.
All qualifying improvements must
comply
with the PACE
11 Statute for energy efficiency, renewable energy and wind resistance or other
12 improvements as permissible by law. PACE agencies /authorities /districts shall establish
13 procedures confirming that the property owner applying for financing through the PACE
14 agency /authority /district intends to install eligible products, and that at the time of
15 funding such improvements have been installed.
16 (5) Inquiries and Complaints.
17 (a) The PACE agency /authority /district shall be required to receive, manage, track,
18 timely resolve and report on complaints from property owners regarding the funded
19 work performed by the contractors. The PACE agency /authority /district shall
20 investigate and mediate disputes between property owners and contractors in a timely
21 manner.
22 (b) Payment inquiries. The PACE agency /authority /district shall be required to respond
23 to inquiries and resolve any issues in a timely manner, related to payments, including
24 but not limited to prepayments and payment reconciliation.
25 (c) Review. In the event that ten percent or more of a PACE
26 agency's /authority's /district's projects result in complaints or disputes, or such
27 complaints or disputes remain unresolved six months after completion of a project,
28 the County may review the PACE agency's /authority's /district's handling of
29 complaints and may request corrective actions or initiate suspension proceedings
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30 pursuant to Section 7(13).
3 (7) Consumer Privacy. The PACE agency /authority /district must develop and maintain a
4 privacy policy that complies with state and federal law and, in particular, shall provide a
5 property owner the ability to opt -out of having the property owner's information shared
6 with third parties, except where expressly permitted by state and federal law.
7 (8) Marketing and Communications. Marketing practices for a PACE
8 agency /authority /district that are or could appear to be unfair, deceptive, abusive, or
9 misleading, or that violate applicable laws or regulations, that are inappropriate,
10 incomplete or are inconsistent with the PACE agency's /authority's /district's purpose are
11 prohibited.
12 (9) Protected Classes. The PACE agency /authority /district shall not discriminate against
13 individuals on the basis of race, color, ancestry, disability, national origin, religion, age,
14 familial status, marital status, sex, gender, sexual orientation, gender identity and
15 expression, or genetic information.
16 (10) Contractor Many e
17 (a) Any work under a PACE agency /authority /district requiring a license under any
18 applicable law to make a qualifying improvement shall be performed by a contractor
19 properly licensed, certified or registered pursuant to state law.
20 (b) Contractors performing work under a PACE agency /authority /district shall comply
21 with each of the following conditions: (i) Be licensed and insured pursuant to the
22 applicable statutory requirements; (ii) Agree to comply with all program requirements
23 and marketing guidelines; (iii) Act in good faith to timely resolve property owner
24 complaints.
25 (c) PACE programs shall have and shall strictly enforce anti - kickback policies and
26 procedures that prohibit direct financial or other monetary incentives to contractors in
27 exchange for or related to such contractor being awarded work under a PACE
28 program, excepting payment for the contractor's installation of eligible improvements.
29 (11) Financin.. The PACE agency /authority /district will establish pricing rules and
30 enforcement mechanisms to ensure property owners are protected from excessive or
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3 (b) Verification that the qualifying improvements have been installed;
4 (c) The property owner and the contractor have signed a final inspection and /or
5 certificate of completion that all improvements have been installed to the property
6 owner's satisfaction.
7 (12) Reporting. Each PACE agency /authority /district shall provide a report to the County
8 on a quarterly calendar basis, which shall include, at a minimum, the following
9 information:
10 (a) Dates of the reporting period;
11 (b) List of PACE projects (including addresses including municipal jurisdiction, financed
12 amount, interest rate, assessment duration, and project description) started during the
13 reporting period, separated by building type (e.g., single family, multifamily, retail,
14 office, industrial, etc.);
15 (c) List of PACE projects (including addresses including municipal jurisdiction)
16 completed during the reporting period, separated by building type project (e.g., single
17 family, multifamily, retail, office, industrial, etc.), specify; (1) the qualifying
18 improvements made; (2) project start date and completion date; (3) the projected
19 energy savings and /or amount of potential renewable energy to be generated; (4)
20 financial information such as cost per kilowatt hour saved /generated; (5) other
21 resource savings if data is available; and (6) audits performed detailing the audit
22 results, if applicable to the project;
23 (d) Number of actual or estimated jobs created during the reporting period, including
24 local versus non -local jobs and permanent versus temporary jobs;
25 (e) Number of applications declined during the reporting period;
26 (f) Unresolved complaints and /or contractor issues and status; and
27 (g) Description of the standardized third -party methodologies and supporting
28 assumptions used to verify data, and any changes in the methodologies and
29 assumptions from the previous reporting period.
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30 (13) Suspension or Termination of PACE agency /authority /district. In the event any PACE
3 notice to that PACE agency /authority /district. Any project that has been initiated as of the
4 time of suspension or termination shall be permitted to be completed.
5 Section 8. REPEAL OF LAWS IN CONFLICT:
6 All local laws and ordinances in conflict with any provisions of this Ordinance are
7 hereby repealed to the extent of such conflict.
8 Section 9. SEVERABILITY:
9 If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for
10 any reason held by a Court of competent jurisdiction to be unconstitutional, inoperative, or
11 void, such holding shall not affect the remainder of this Ordinance.
12 Section 10. INCLUSION IN THE CODE OF LAWS AND ORDINANCES:
13 The provisions of this Ordinance shall become and be made a part of the Monroe
14 County Code. The sections of this Ordinance may be renumbered or relettered to accomplish
15 such, and the word Ordinance may be changed to section, article, or other appropriate word.
16 Section 11. CAPTIONS:
17 The captions, section headings and section designations used in this Ordinance are for
18 convenience only and shall have no effect on the interpretation of the provisions of this
19 Ordinance.
20 Section 12. TRANSMITTAL AND EFFECTIVE DATE:
21 This Ordinance shall be filed with the Department of State and shall be effective as
22 provided in section 125.66(2), Florida Statutes.
23
24 APPROVED and ADOPTED by the Board of County Commissioners of Monroe
25 County, Florida, on this the day of , 20
26
27
28
29
30
31
11
KEVIN MADOK, CLERK BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
Deputy Clerk
By:
David Rice, Mayor
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NOTICE OF INTENTION TO CONSIDER
ADOPTION OF COUNTY ORDINANCE
NOTICE IS HEREBY GIVEN TO WHOM IT MAY CONCERN that on January 17, 2018, at
3:00 P.M., or as soon thereafter as may be heard, in the Marathon Government Center, 2798
Overseas Highway, Marathon, Monroe County, Florida, the Board of County Commissioners of
Monroe County, Florida, intends to consider the adoption of the following County ordinance:
AN ORDINANCE OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA,
ESTABLISHING THE PROPERTY ASSESSED CLEAN
ENERGY (PACE) PROGRAM ORDINANCE; PROVIDING
FOR A TITLE; PROVIDING FOR AUTHORITY;
PROVIDING FOR APPLICABILITY; PROVIDING FOR
DEFINITIONS; PROVIDING FOR REPEAL OF LAWS IN
CONFLICT; PROVIDING FOR SEVERABILITY;
PROVIDING FOR INCLUSION IN THE CODE OF LAWS
AND ORDINANCES; PROVIDING FOR CAPTIONS; AND
PROVIDING FOR AN EFFECTIVE DATE.
Pursuant to Section 286.0105, Florida Statutes, notice is given that if a person decides to appeal any
decision made by the Board with respect to any matter considered at such hearings or meetings, he will
need a record of the proceedings, and that, for such purpose, he may need to ensure that a verbatim
record of the proceedings is made, which record includes the testimony and evidence upon which the
appeal is to be based.
ADA ASSISTANCE: If you are a person with a disability who needs special accommodations in order to
participate in this proceeding, please contact the County Administrator's Office, by phoning (305) 292 -4441,
between the hours of 8:30 a.m. - 5:00 p.m., no later than five (5) calendar days prior to the scheduled
meeting; if you are hearing or voice impaired, call "711':
Dated at Key West, Florida, this 29th day of December, 2017.
(SEAL)
KEVIN MADOK, Clerk of the Circuit Court
and ex officio Clerk of the Board of County
Commissioners of Monroe County, Florida
Publication dates:
Citizen Wed., 01/03/18
Keynoter Wed., 01/03/18
Reporter Fri., 01/05/18
January 1 -7, 2018
Presentation to
Monroe County
BOCC
Energy:
Overview of Proposed PACE
Ordinance &Updates Since
October 2 0 1 7
RHONDA HAAG - SUSTAINABILITY DIRECTOR
MONROE COUNTY
0
ERIN DEADY, ESQ., AICP, LEED AP
Overview of Proposed County Ordinance
• Applies to unincorporated County
and those municipalities not
adopting their own ordinance
Key definitions
• Authorization through Interlocal
Agreements with providers
Disclosures (signed, dated &
recorded)
Total amount financed
Repayment process and term
Levied through tax bill
No discount for early payment (statutory
requirement)
Lien collected like other taxes
Improvements to be financed
Prepayment without penalty
Potential repayment upon resale or
refinance
•
Eligibility
Residential cannot exceed 20% just value
Taxes and assessments paid (no
delinquency in previous 3 years)
No involuntary liens
No property delinquency in last 3 years
Mortgage debt current
Mortgage debt not to exceed go% FMV
Mortgage + PACE cannot exceed FMV
Commercial projects can be financed
improvements permanently affixed to
property
Providers must manage inquiries and
complaints (can be reviewed by
County)
Data Security protections
Property owner privacy protections
Prohibition on deceptive marketing
3 -day right to cancel • Non - discriminatory
Ordinance Provisions Continued
Contractor Management
Licensed contractors only
Q Anti - kickback procedures (monetary
incentives to contractors prohibited)
• Financing- prevent unjust or
excessive pricing
Necessary permits secured
Verification of project completion
Final inspection or Certificate of
Completion signed by property owner
Reporting back to County
(Quarterly)
Dates of reporting
List of projects by building type
Improvements made
Projected energy savings or energy
produced
• Cost savings
• Energy audits performed
• Estimate of job creation
Declined applications
Unresolved complaints or contractor
issues
Methods to develop data report
County has unilateral right to
terminate for lack of performance
of providers under Ordinance
No cost to County other than Staff
time for administration and
monitoring
Next Steps
. - n i
Today: Updates on PACE since October
Between now and next meeting: outreach to
municipalities regarding Ordinance
At next meeting (anticipated 2/21/18 in Key West):
Second Reading of Ordinance
Approval of Interlocal Agreements with PACE providers
WHAT IS PACE?
Property Assessed Clean Energy
• One of many tools that property owners have to
finance improvements
Financing solution requiring use of special
assessments (FL: interlocal agreements)
Financing for energy efficiency, renewables and wind
resistance improvements
Residential and commercial properties
• Voluntary
Enables long -term savings for property owners
Furthers regional energy and resiliency goals
Supports local economic development
J
MULTI - PROVIDER PACE IN FLORIDA
To date 120+ Local Governments have 1 or more PACE programs together
representing over 12 million residents
• 19,000 assessments statewide to date
• Total demand for PACE statewide (Jan 2018): $400 Million
• Approximately $500 Million in energy savings to residents
• Approximately $50 Million in insurance savings to residents
• 4 active providers that have closed transactions
• Available in 28 counties (or portions of counties)
• Approximately 1,600 contractors engaged
PACE Providers
Responding to Concerns
PACE is a loan PACE is a non -ad valorem assessment upheld by bond validations and FL
Supreme Court opinions (and Section 163.o8, F.S.)
Underwriting State law requires: 3 years on time property taxes and assessments; No
requirements Note: involuntary liens; No notices of default or property -based debt delinquency and
not everyone qualifies current on all mortgage debt on the property. All programs have similar
for PACE. underwriting criteria above the statute. No negative equity.
Not all improvements Not all benefits can be directly quantified (for example windows, doors or
offset payments generators). Some improvements also have longer paybacks (solar).
Fannie — Freddie Fannie and Freddie are reviewing PACE liens on a case by case basis and have
concerns allowed the lien to transfer to new buyers. Fannie / Freddie concerns are disclosed
to property owners so they are aware. VA / HUD PACE guidance allows transfer of
outstanding liens.
Interest rates See comparison table (next two slides)
Tax Collector /Property PACE programs operate by law (including Chapter 197, F.S.) requiring deadlines,
Appraiser Logistics costs and process to be those just like any other assessments.
Consumer protections The industry has greater protections than Section 163.o8,F.S. requires.
v. other financing tools See comparison table (next two slides)
PACE compared to PACE is one tool for consideration. Property owners should review all options and
other financing tools pursue the one that gives them the greatest benefit.
Repayment Term (years) 1 5/ 2 0 15 15 10 7 6 '' 15
Interest Rate 7.99% / 8.29% 3.865% 7.99% 12.00% 7.99% 12.00%
(Fixed or Variable) (F) (V) (F) (F) (F) (' )
Monthly Payments $189/$169 $132 $172 $258 $28o $216
Alternatives as 15 yrs. 100% 70% 91% 137% 148% 114%
% of PACE Pmt.
20 yrs. 100% 78% 102% 153% 166% 128%
1. PACE AC is $1,800 greater than project cost to account for capitalized fees and capitalized interest.
2. Assumes payments are made as if financing is fully amortized with equal payments over repayment term.
3. >15% of property owners throughout the US and CA have a HELOC in place (9.o% and 11.6 %, respectively).
4. Quote from Wells Fargo web site on 6/20/17 (76o+ FICO; HELOC with 1St year fixed, then variable; no HEL options >15
years.
5. Monthly payment calculations do not account for tax deductibility of interest for PACE, HELOC and HEL options.
' 6. Home Depot's longest term option for fixed rate financing is $55k at 7.99% APR and 84 months
THAN OTHER FINANCING OPTIONS
Rescission of FHA PACE Guidelines
-11.111-1 ---------------------------------- 0
Fannie /Freddie /FHFA have opposed PACE and control the major portion of the
mortgage market:
PACE program responses: disclose their opposition and the fact that assessments may need
to be paid in fiill before resale or refinancing may occur
FHA controls approx. 13% of mortgage finance market:
July 6, 2016 Federal Housing Administration breaks with Fannie/ Freddie/ FHFA opposition
stating they will lend on properties with PACE assessments as long as assessment is
processed like all other local government assessments
December 7, 2017 FHA reversed its position stating that PACE assessments must be paid off
before resale or refinance (on par with Fannie/ Freddie/ FH FA)
• Impact to PACE overall of FHA reversal: Minimal
Providers already disclose potential need to extinguish lien
Even though providers already do this, local government typically require it through
Ordinance, Resolution or in Interlocal Agreements
Monroe County Ordinance Section 6(1)J. requires this disclosure
• Despite these statements or actions the reality is PACE liens do transfer:
approximately 1/3 of assessments are transferring to new property owners in a
resale and about 2/3 are transferring over in a refinance
Other Updates
< Federal Legislation
S2155 (Crapo- Idaho)- Bi- partisan legislation prescribes Federal
rulemaking (under TILA) for PACE by the Consumer Financial
Protection Bureau — consumer protections
Passed out of Committee on Banking, Housing, and Urban
Affairs
< State Legislation
HB i255 (Jacobs) /SB 1858 (Passidomo)
Updates consumer protections: ability to pay, recorded
confirmation of terms call, written disclosure requirements,
statutory right to cancel, prohibition of contracts, publication of
program information (project status)
Questions
F L Q A I O A X E Y 5
KEYN40TER
Published Twice Weekly
Marathon, Monroe County, Florida
STATE OF FLORIDA
COUNTY OF MONROE
Before the undersigned authority personally
appeared RICHARD TAMBORRINO who on
oath, says that he is PUBLISHER of the
FLORIDA KEYS KEYNOTER, a twice weekly
newspaper published in Marathon, in Monroe
County, Florida: that the attached copy of
advertisement was published in said
newspaper in the issues of: (date(s) of
Pu ication) /
�i�& 3 /y
Affiant further says that the said FLORIDA
KEYS KEYNOTER is a newspaper published at
Marathon, in said Monroe County, Florida, and
that the said newspaper has heretofore been
continuously published in said Monroe County,
Florida, twice each week (on Wednesday and
Saturday) and has been entered as a second
class mail matter at the post office in
Marathon, in Monroe County, Florida, for a
period of one year next preceding the first
publication of the attached copy of
advertisement. The affiant further says that
he has neither paid nor promised any person,
firm, or corporation any discount, rebate,
commission or refund for the purpose of
securing this advertisement for publication in
the said newspaper(s) and that The Florida
Keys Keynoter is in full compliance with
Chapter 50 of the Florida State Statutes on
Legal zj1d Off' ' Advertisements.
RicKard Tamborrino, Publisher
Sworn to and subscribed before me this
A Day of 2018
IUota y _... - --
(SEAL)
ge ". a�., BEVERLY TRAEGER
+; + MY COMMISSION # FF 10870.1
=a'• a EXPIRES: April 18, 2018
Bonded Thru Nrtary Public Underwriters
Ad# 0003458715
NOTICE OF INTENTION TO
CONSIDER ADOPTION OF
COUNTY ORDINANCE
NOTICE IS HEREBY GIVEN
TO WHOM IT MAY CONCERN
that on January 17, 2018, at
3:00 P.M., or as soon there-
after as may be heard, in the
Marathon Government Cen-
ter, 2798 Overseas Highway,
Marathon, Monroe County,
Florida, the Board of County
Commissioners of Monroe
County, Florida, intends to
consider the adoption of the
following County ordinance:
AN ORDINANCE OF THE
BOARD OF COUNTY COM-
MISSIONERS OF MONROE
COUNTY, FLORIDA, ESTAB-
LISHING THE PROPERTY
ASSESSED CLEAN ENERGY
(PACE) PROGRAM ORDI-
NANCE; PROVIDING FOR A
TITLE; PROVIDING FOR AU-
THORITY; PROVIDING FOR
APPLICABILITY; PROVIDING
FOR DEFINITIONS; PROVID-
ING FOR REPEAL OF LAWS
IN CONFLICT; PROVIDING
FOR SEVERABILITY; PRO-
VIDING FOR INCLUSION IN
THE CODE OF LAWS AND
ORDINANCES; PROVIDING
FOR CAPTIONS; AND PRO-
VIDING FOR AN EFFECTIVE
DATE.
Pursuant to Section 286.0105,
Florida Statutes, notice is giv-
en that if a person decides to
appeal any decision made by
the Board with respect to any
matter considered at such
hearings or meetings, he will
need a record of the proceed -
ings, and that, for such pur-
pose, he may need to ensure
that a verbatim record of the
proceedings is made, which
record includes the testimony
and evidence upon which the
appeal is to be based.
ADA ASSISTANCE: If you
are a person with a disability
who needs special accom-
modations in order to partici-
pate in this proceeding,
please contact the County
AdminiFrrator's Office, by
phoning '305) 292 -4441,
between the hours of 8:30
a.m. - 5:00 p.m., no later than
five (5) calendar days prior
to the scheduled meeting;
if you are hearing or voice
impaired, call "711 ".
Dated at Key West, Florida,
this 29th day of December,
2017.
KEVIN MADOK, Clerk of the
Circuit Court (SEAL) and ex
officio Clerk of the Board of
County Commissioners of
Monroe County, Florida
Published January 3, 2018
Florida Keys Keynoter
Ad# 0003460528
NOTICE OF N TO
H R E PORT E R
CONSIDER ADOPTION OF
COUNT ORDINANCE
Published Weekly
NOTICE IS HEREBY GIVEN
TO WHOM IT MAY CONCERN
Tavernier, Monroe County, Florida
that on January 17, 2018, at
3:00 P.M., or as soon there-
after as may be heard, in the
P ROO F OF PUBLICATION
Marathon Government Cen-
ter, 2798 Overseas Hi
Marathon, Monroe County,
Florida, the Board of County
STATE OF FLORIDA
Commissioners of Monroe
County, Florida, intends to
COUNTY OF M O N RO E
consider the adoption of the
Before the undersigned authority personally
following County ordinance:
appeared RICHARD TAMBORRINO who on
AN ORDINANCE OF THE
oath, says that he is PUBLISHER of THE
BOARD OF COUNTY COM-
REPORTER, a weekly newspaper published in
MISSIONERS OF MONROE
Tavernier, in Monroe County, Florida: that the
COUNTY, FLORIDA, ESTAB-
LISHING THE PROPERTY
attached copy of advertisement was published in
ASSESSED CLEAN ENERGY
said newspaper in the issues of (date(s) of
(PACE) PROGRAM ORDI-
NANCE; PROVIDING FOR A
publi ation)
TITLE; PROVIDING FOR AU-
THORITY; PROVIDING FOR
�
APPLICABILITY; PROVIDING
FOR DEFINITIONS; PROVID-
7
FOR REPEAL OF LAWS
IN CONFLICT; PROVIDING
_
FOR SEVERABILITY; PRO-
VIDING FOR INCLUSION IN
THE CODE OF LAWS AND
Affiant further says that the said THE
ORDINANCES; PROVIDING
REPORTER is a newspaper published at
FOR CAPTIONS; AND PRO-
Tavernier, in said Monroe County, Florida, and
VIDING FOR AN EFFECTIVE
DATE.
that the said newspaper has heretofore been
published in said Monroe County,
continuously p y
Pursuant at Section ice is 05,
Florida Statutes, notice is giv-
Florida, each week (on Friday) and has been
en that if a person decides to
entered as a second class mail matter at the
appeal any decision made by
p ost office in Tavernier, in Monroe County
p y
the Board with respect any
matter considered at such
Florida, for a period of one year next preceding
hearings or meetings, he will
the first publication of the attached copy of
need a record of the proceed-
advertisement. The affiant further says that he
ings, and that, for such pur-
pose, he may need to ensure
has neither paid nor promised any person, firm
that a verbatim record of the
oration an discount, rebate, commission
or corporation Y
proceedings is made, which
record includes the testimony
or refund for the purpose of securing this
and evidence upon which the
advertisement for publication in the said
appeal is to be based.
newspaper(s) and that The THE REPORTER is
ADA ASSISTANCE: If you
in full compliance with Chapter 50 of the Florida
are a person with a disability
State Statutes on Legal and Official
who needs special accom-
modations in order to partici-
Advertiseme _
pate in this proceeding,
please contact the County
Administrator's Office, by
i
phoning (305) 292 -4441,
between the hours of 8:30
Rich d Tamborrino, Publisher
a.m. - 5:00 p.m., no later than
five (5) calendar days prior
to the scheduled meeting;
Sworn to and subscribed before me this
if you are hearing or voice
impaired, call "711 ".
Day of 2018
Dated at Key West, Florida,
this 29th day of December,
2017.
KEVIN MADOK, Clerk of the
Circuit Court (SEAL) and ex
officio Clerk of the Board of
Notary
County Commissioners of
(SEAL)
Monroe County, Florida
...
Published Published January 5, 2018
; � q .• •; BEVERLY TRAEGER
The Reporter
s•: .= MY COMMISSION it FF 103704
EXPIRES: April 18, 2018
Bonded Thru Nntaiy Public Urdervnters