Clean Energy Green Corridor: Florida’s First PACE Program Joe Spector Vice President of Operations...
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Transcript of Clean Energy Green Corridor: Florida’s First PACE Program Joe Spector Vice President of Operations...
Clean Energy Green Corridor:Florida’s First PACE Program
Joe SpectorVice President of OperationsYgrene Energy Fund Florida
THE BASICS OF PACE
NEW SPIN ON THE ASSESSMENT POWERS OF THE CITY
ENERGY EFFICIENCY AND HURRICANE PROTECTION = COMPELLING STATE INTEREST
MUNICIPALITIES CAN FINANCE ENERGY EFFICIENCY AND HURRICANE PROTECTION UPGRADES
REPAID BY THE PROPERTY OWNER THROUGH NON-AD VALOREM ASSESSMENT ON PROPERTY TAX BILL
WHAT IS PACE?
100% FINANCING No out of pocket expense to property owner Removes single largest obstacle to implement these projects
VOLUNTARY Simply an option for those who want it All traditional forms of financing are still available
INDIVIDUAL Zero affect on neighbors Only those who choose to participate pay the assessment
NON CREDIT BASED Eligibility based on property values and owner equity Allows many to participate that would not be eligible for
traditional financing
ELIGIBLE IMPROVEMENTS
ENERGY EFFICIENCY
RENEWABLE ENERGY
HURRICANE PROTECTION
ELIGIBLE IMPROVEMENTS (examples)
Air sealing and ventilationAir filtrationBuilding envelopeBathroom, ceiling, attic, and whole-house fansInsulationDefect correctionAttic, floor, walls, roof, ductsWeather strippingSealingGeothermal exchange heat pumpsHVAC systemsEvaporative coolersNatural gas storage water heaterTankless water heaterSolar water heater systemReflective insulation or radiant barriersCool roofWindows and glass doorsWindow filmingSkylightsSolar tubesAdditional building openings for natural light
Solar thermal hot-water systemsSolar thermal systems for pool heatingEmerging technologiesLighting (fixture retrofits only)Pool equipmentOccupancy-sensor lighting fixturesSMART parking-lot bi-level fixtureSMART parking-garage bi-level fixturesSMART pathway lightingSMART wall-pack fixturesTask ambient office lightingClassroom lightingRefrigerator case LED lightingWireless daylight-lighting controlsDuct leakage and sealingKitchen exhaust variable air-volume controlsWireless HVAC controls & fault detection
Faucet aeratorsCore-plumbing systemGray-water systemIrrigation-control systemIrrigation systemRainwater cisternDemand initiated hot-water systemLow-flow showerheadHigh-efficiency toiletsDeionizationFilter upgradesRoof deck & foundation strength improvementsWind-resistant shingles or other roofingSecondary water barrierGable-end bracingRoof-to-wall connection reinforcementStorm shuttersPerimeter-opening protectionsRaising building elevationsPhotovoltaic SystemsElectric Car Charging Stations
WHAT IS CLEAN ENERGY GREEN CORRIDOR
7 MUNICIPALITIES JOINED FORCES Coral Gables, Miami, Miami Shores, South Miami, Palmetto Bay,
Pinecrest, & Cutler Bay
BENEFITS OF JOINING A PACE DISTRICT Take advantage of economies of scale No risk to the individual municipalities
District is a separate legal entity
SELECTED YGRENE AS THE ADMINISTRATOR Fully funded, turn-key solution Handles all education, marketing, training, community outreach,
administration, reporting, and financing Operated at zero cost to the district and zero cost to the members
ONLY ZERO RISK & ZERO COST SOLUTION TO UNLEASH THE POTENTIAL OF THE PACE PROGRAM
CEGC INCLUDES RESIDENTIAL PROPERTIES
FL LAW CLEARLY STATES THAT MORTGAGES CAN NOT BE ACCELERATED “A provision in any agreement between a mortgagee or other lienholder and a
property owner, or otherwise now or hereafter binding upon a property owner, which allows for acceleration of payment of the mortgage, note, or lien or other unilateral modification solely as a result of entering into a financing agreement as provided for in this section is not enforceable.”
FL IS A NOTIFICATION ONLY STATE “Without the consent of the holders or loan servicers of any mortgage
encumbering or otherwise secured by the property…. At least 30 days before entering into a financing agreement, the property owner shall provide to the holders or loan servicers of any existing mortgages encumbering or otherwise secured by the property a notice of the owner’s intent….
FULL DISCLOSURE TO PROPERTY OWNER Rights and Responsibilities
RIGHTS & RESPONSIBILITIES
(6) In accordance with Florida law, the lien securing the obligation to pay the special assessments will be senior to all private liens, including existing mortgage(s)….. Recently, the Federal Housing Finance Agency (FHFA) issued policy guidelines that question the validity and lien status of PACE assessments. Property owners should confirm with their lender(s) that participation in the PACE program does not adversely impact their rights under any existing loan documents.
(7) ….. The FHFA appears to have instructed its GSEs not to purchase home loans when there is a senior lien such as a PACE special assessment. Therefore, in order to refinance your home loan, or for a prospective purchaser of your property to obtain a loan secured by the property, the special assessment may need to be paid off.
I CERTIFY THAT I HAVE READ AND UNDERSTAND THE ABOVE DISCLOSURE Signature:________________________________ Address: ________________________________ Printed Name:_____________________________Date: ______________________________
BENEFITS TO PROPERTY OWNERS
ELIMINATE UP-FRONT EXPENSE
NOT CREDIT BASED – OFF-BALANCE SHEET
LONG PAYBACK PERIODS
PAYMENTS STAY WITH PROPERTY
SOLVE SPLIT INCENTIVE ISSUE
POTENTIAL FOR REAL SAVINGS
BENEFITS TO PROPERTY OWNERS
CURRENT STATUS
• Over 300 contractors have been trained and certified• Contractors have run almost $2 billion in eligible projects• $65 million of projects in various stages of the pipeline
• Launch event for Green Corridor on September 12 hosted by Ygrene and the Carbon War Room.
• Job creation through private investment• Attract new businesses and direct investment• Reduce carbon footprint of the city• Reduce energy bills for property owners• Increase hurricane preparedness• Completely voluntary for property owners• No Risk/No Cost to the City