§ 38-326. PACE Program standards.

At a minimum, PACE Local Governments shall comply with each of the following standards:

(a)

General.

(1)

Qualifying Improvements: All Qualifying Improvements shall be properly permitted and must comply with Florida and local codes. PACE Local Governments shall finance only Qualifying Improvements that are permanently affixed to the Property.

(2)

Licensed Contractors: Any contractor constructing or installing a Qualifying Improvement shall be properly licensed and insured.

(3)

Materials: PACE Local Governments shall fund, and contractors and owner-builders shall construct or install, only Qualifying Improvements. PACE Local Governments shall establish an "Eligible Measures List" that identifies the types and specifications of Qualifying Improvements, using efficiency standards for materials and installation established by the U.S. Department of Energy, the U.S. Environmental Protection Agency, or Florida state agencies, as applicable. The Eligible Measures List shall be regularly updated and made publicly available. The County shall have the right to review that list annually to assure compliance with this article.

(4)

Data Security and Consumer Privacy: PACE Local Governments shall take security measures to protect the security and confidentiality of consumer records and information to the extent permitted by law. In addition, a privacy policy must be in place that complies with state and federal law and, in particular, shall provide a property owner the ability to opt-out of having the property owner's information shared with third parties, except where expressly required by state and federal law.

(5)

Contractor Pricing: Within six months of entering into an Interlocal agreement, PACE Local Governments shall have in place pricing rules and enforcement mechanisms to ensure property owners are protected from excessive or unjustified prices and charges.

(6)

Estimated Energy or Insurance Savings Disclosure: PACE Local Governments shall include in the "Code of Conduct" (referenced below) and in contractor training the requirement that contractors inform Eligible Participants of the following:

aa.

Estimate of energy savings, insurance cost savings (if applicable) and return on investment, including the range of efficiency options (if applicable) using industry best practices;

bb.

Available rebates or incentives associated with Qualifying Improvements;

cc.

If energy improvements are undertaken:

aaa.

The benefits of installing energy efficiency improvements before renewable energy to reduce costs overall;

bbb.

The benefits of a full Energy Audit of their property, names of energy audit professionals qualified through the Residential Energy Services Network, Building. .Performance Institute, Association of Energy Engineers, or other comparable program, and any available incentive programs; and

ccc.

Costs of the Energy Audit are eligible for financing as part of the assessment.

(7)

Notice to Property Owner: Prior to or contemporaneously with entering into a PACE Financing Agreement, PACE Local Governments shall provide the property owner with a separate written notice disclosing the following items:

aa.

The total amount of the debt, including interest;

bb.

The maximum annual PACE Assessment and payment term that does not exceed the useful life of the improvements;

cc.

The estimated savings from the Qualifying Improvements, including a statement that actual savings will depend on usage patterns, seasonal variation and weather, utility rates and trends and product specifications.

dd.

The three-day right to cancel the PACE Financing Agreement;

ee.

The PACE Assessment will appear on the property owner's tax bill;

ff.

There is no discount or penalty for paying the PACE Assessment early;

gg.

The PACE Assessment will be collected in the same manner as real estate taxes; that failure to pay the PACE Assessment may cause a tax certificate to be issued against the property; and that failure to pay may result in the loss of property subject to the PACE Assessment, including homestead property, in the same manner as failure to pay property taxes;

hh.

The installation of Qualifying Improvements may or may not affect the overall market value of the Property;

ii.

The PACE Assessment may affect the sale or refinance of the Property; and

jj.

The property owner may be required to pay any PACE assessment in full at the time of refinance or sale of the property.

kk.

If the property owner is using an escrow or impound account to pay property taxes, he/she should contact his/her lender immediately to ensure that the escrow payments are adjusted correctly so that the property owner is aware of and prepared for the increased payment amount.

The notice shall be signed and dated by the property owner to acknowledge that they understand these conditions. Item cc above may be provided in a separate document without property owner signature if necessary. If the PACE Local Government does not currently have the ability to include item cc above, it should modify its procedures in order to comply within one year of the effective date of its PACE Interlocal.

(8)

PACE Financing Agreement. The PACE Local Government shall enter into a voluntary written agreement with each Eligible Participant which shall include, at a minimum, the following:

aa.

The full legal description of the Property subject to the PACE Assessment.

bb.

The amount of funding to be provided to the Eligible Participant.

cc.

Statement of express voluntary consent by the Eligible Participant to accept the non-ad valorem assessment collection process, set forth in Section 197.3632, Florida Statutes.

dd.

The length of time for the Eligible Participant to repay the non-ad valorem assessment, which shall not exceed 30 years.

ee.

Statement that the Eligible Participant is responsible for assuring the Qualifying Improvements are completed as reflected in the approved application documents; consent by the Eligible Participant to providing the PACE Local Government with access to the Property to verify that the Qualifying Improvements have been completed as proposed in the application.

ff.

Statement that at the time of a transfer of Property ownership (except a transfer resulting from foreclosure), the past due balances of any non-ad valorem assessment may be due for payment, but future payments may continue as a lien on the Property, if the buyer and the mortgagor, if any, agree.

gg.

Statement that at or before the execution of a contract for the sale and purchase of any Property for which a non-ad valorem assessment for the PACE Program has been levied and any unpaid financed-balance-is due, the-seller must-give-the prospective purchaser a Notice of the lien.

hh.

In bold face caps, in a font larger than the rest of the Agreement, a statement of the risks associated with participating in the PACE Program, including risks related to the failure of the Eligible Participant to make payments, the risk that they may not be able to refinance the home or sell the home unless the PACE Assessment is paid off in full first, and the risk of issuance of a tax certificate and loss of the Property pursuant to Chapter 197, Florida Statutes.

ii.

Description of the Qualifying Improvements and their cost.

jj.

Notice of the non-ad valorem assessment shall be recorded in the public records for the Property,

kk.

In bold face caps, in a font larger than the rest of the Agreement, a statement of the interest rate to be charged, including points, as well as any and all fees or penalties that may be separately charged to the Eligible Participant, including potential late fees. The subsequent charging or collecting of any additional fees that were not specifically disclosed in the written agreement with the property owner is prohibited.

(9)

Within five (5) days after execution of the PACE Financing Agreement, the PACE Local Government shall record, or cause to be recorded, the following notice in the public records along with appropriate contact information for property owner inquiries:

QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND RESISTANCE. This property is located within the jurisdiction of a PACE Local Government that has placed an assessment on the property pursuant to Section 163.08, Florida Statutes. The assessment is for a Qualifying Improvement to the property relating to energy efficiency, renewable energy or wind resistance.

(10)

Prepayment.

aa.

The PACE Local Government shall provide to the Eligible Participant information as to any accrued interest that may be due upon early payment.

bb.

No prepayment penalties may be charged or allowed on residential projects. The PACE Local Government shall provide a mechanism for re-amortization of PACE assessments to account for partial pre-payment, particularly for application of tax credits, rebates, or other incentives.

cc.

For non-residential properties, prepayment penalties may be charged or imposed to the extent permitted by applicable law, as negotiated with the property owner, and providing all financial impacts of such penalties are clearly disclosed and agreed to by the property owner in writing.

(11)

Financing. The PACE Local Government may offer only fixed simple interest rates and payments that fully amortize the obligation. Variable or negative amortization financing terms are not permitted. Capitalized interest included in the original balance of PACE financing does not constitute negative amortization.

(12)

Project Completion. The PACE Local Government shall require property owner verification of work and sign-off on project completion to owner's satisfaction before issuance of final payment to any contractor(s).

(13)

Lender notification. The PACE Local Government shall obtain from the property owner a verified copy or other proof of lender notification of intent to enter into the Financing Agreement, consistent with Section 163.08(13), Florida Statutes.

(14)

Contractor Management. PACE Local Governments shall:

aa.

To the extent available, recruit and approve local contractors;

bb.

Conduct local recruitment efforts;

cc.

Establish a "Code of Conduct" that sets standards for participating contractors such as licensing, advertising and marketing, accurate representation of the program, and consumer protections;

dd.

Train all PACE program contractors on the regulations related to the PACE program and the Code of Conduct;

ee.

Ensure that all contractors hold necessary licenses and insurance;

ff.

Confirm contractor qualifications at least annually and as necessary based upon consumer complaints or other indications of lack of compliance; and

gg.

Remove contractors from the PACE program who no longer meet program criteria; have not met program requirements or fail to resolve consumer complaints.

(15)

Customer Service: PACE Local Governments shall provide a high level of customer service, including:

aa.

Access to customer service representatives by email and phone during normal business hours;

bb.

A detailed website with specific reference to the Sarasota County PACE Program;

cc.

A transparent customer feedback and complaint process with quick response and resolution by both the contractor and the PACE Local Government.

aaa.

A document outlining the complaint process shall be clearly available on the PACE Local Government website and provided to customers.

bbb.

The document shall make clear that Sarasota County is not operating or administering the PACE Program in any way and that all concerns about the Program should be addressed directly to the PACE Local Government, with clear contact information provided.

ccc.

All complaints and resolutions shall be logged, with the following information at a minimum: date and time of complaint, customer and contractor information, details of complaint, when and what actions were taken by both the PACE Local Government and the contractor, and final resolution.

ddd.

All disputes and complaints shall be investigated, and resolved in a timely manner. Reports shall be provided to the PACE Program Coordinator upon request and an annual summary provided automatically.

(16)

Marketing: Neither PACE Local Governments nor their contractors, shall use facsimiles of the county, city, Property Appraiser, or Tax Collector logos in their marketing materials. Marketing materials shall not state that PACE: (i) is a free program; (ii) is administered by the county; (iii) does not involve a financial obligation by the property owner; (iv) is a form of public assistance.

(17)

Metrics Reporting: PACE Local Governments shall track Program metrics and report those metrics to the PACE Program Coordinator at least quarterly, in spreadsheet format or another electronic format agreed upon by Sarasota County. Those metrics shall include, at a minimum, the total number and value of projects approved and completed in that reporting period and a running total of the projects approved and completed since the beginning of the Program, and the following, to the extent allowed by law:

aa.

Name, address, contact information and sector type (commercial, industrial or residential) of participants;

bb.

Number of defaults or delinquencies;

cc.

Project description including Qualifying Improvement made, completion dates, contractor information, financed value, assessment amount, assessment duration, and total cost to property owner;

dd.

Estimated baseline energy use, and estimated annual savings of energy use, energy cost and insurance cost; whether ENERGY STAR certified materials were used, if appropriate; solar capacity installed with expected annual renewable energy generation; any other resource saving metrics;

ee.

Energy audits performed, detailing the energy audit results, if property owner chose to include an energy audit in the financing;

ff.

Number of actual or estimated jobs created during the reporting period related to the projects;

gg.

Record of complaints and resolution of complaints. County reserves the right to review the material used to prepare the reports and to contact customers or contractors directly to verify experiences.

If the PACE Local Government does not currently have the ability to provide reports that contain this minimum reporting information, it should modify its data collection and maintenance-procedures and systems within one-year of the effective date of its PACE Interlocal in order to comply. Sarasota County reserves the right to publish reports on program progress and results and PACE Local Government compliance.

(18)

Amendments. County reserves the right to amend this ordinance to revise Program standards.

(19)

Reporting. PACE Local Governments will respond to requests from the PACE Program Coordinator for information related to the Program in a timely manner and shall provide sufficient documentation as requested by the PACE Program Coordinator to ensure that the requirements of this Article and the State statutes are being met. The PACE Local Government shall retain sufficient books and records demonstrating compliance with the Agreement and State and County requirements for a minimum period of seven years from the initial date of each non-ad valorem assessment, and shall allow County representatives access to such books and records upon request.

(b)

Additional Program standards for residential properties: In addition to requirements set forth in Section 163.08, Florida Statutes, PACE Local Governments that finance PACE Qualifying Improvements on residential properties within Sarasota County shall, at a minimum, comply with at least one of the following additional standards for projects affecting residential properties with four residential units or fewer:

(1)

Financing limits: PACE Local Governments shall ensure that the total amount of any annual property taxes and assessments do not exceed five percent of the Property's fair market value, determined at the time financing is approved and ensure that the total amount of annual PACE Assessments do not exceed four percent of the total annual gross income of the Property owner in the prior calendar or fiscal year, based upon an affidavit or attestation by the Property owner of the owner's total annual gross income. Fair market value shall be that value determined by the Sarasota County Property Appraiser, by a credentialed commercial property appraiser or licensed realtor, or by an automated valuation service or model from a reputable third party source; or

(2)

Mortgage Holder Consent or Escrow: PACE Local Governments shall verify that each prior mortgage or financing instrument holder has consented to any proposed Financing Agreement and PACE Assessment, or that the prior mortgage or financing instrument holder or loan servicer has consented to escrow sufficient funds to ensure payment of the annual assessment with each year's tax bill; or

(3)

Insurance or Energy Savings: PACE Local Governments shall verify that the total cost of the PACE Assessment is equal to or less than the projected savings to the property owner based upon the projected energy savings in a written statement from a Certified Energy Auditor, certified by the Association of Energy Engineers, the Residential Energy Services Network, or the Building Performance Institute, or the projected insurance savings in a written statement from the property owner's insurer; or

(4)

Debt Limits: PACE Local Governments shall verify that all mortgage-related debt on the underlying property does not exceed 90 percent of the property's fair market value and ensure that the total mortgage-related debt on the underlying property plus the PACE Assessment does not exceed the fair market value.

(Ord. No. 2017-051, § 2, 10-11-2017)