PACE Legislation Implications on Tax Collectors and Tax Lien Investors #NTLAANNUAL17 PACE Legislation Implications on Tax Collectors and Tax Lien Investors Hon. Sarah Benatar, Coconino County Treasurer, Arizona © 2017 National Tax Lien Association www.NTLA.org

© 2014 National Tax Lien Association www.theNTLA.com What is PACE? PACE: Property Assessed Clean Energy Programs Residential and Commercial Programs Loans for improvements on a property Property owner chooses a capital provider to finance the project and for the capital provider to be repaid through assessments © 2014 National Tax Lien Association www.theNTLA.com

States with PACE Legislation California Oregon Nevada Utah Colorado New Mexico Texas Wyoming Oklahoma Louisiana Florida Georgia Minnesota Wisconsin Michigan Arkansas N. Carolina Virginia Ohio Illinois Maryland New York Missouri New Jersey Maine Connecticut Rhode Island Massachusetts Vermont New Hampshire © 2014 National Tax Lien Association www.theNTLA.com

© 2014 National Tax Lien Association www.theNTLA.com Why it matters? Workforce Development Economic Development Building Stock Clean Environment Increase in Assessed Values Tax Collections and Enforcement Creates local jobs, lowers cost of doing business, buildings are mainted and upgraded, all which impact local businesses. The environment in a community is improved as well. However, there is an increase in assessed values, specifically for the property. This leads to an increase in taxes, which impacts a taxing district (depends if property is exempt or not). Also, property owners may not have budgeted for the increase in values based on the improvements they make. Tax collection and enforcement issues may arise. © 2014 National Tax Lien Association www.theNTLA.com

Timeline of PACE in Arizona Arizona currently does not have PACE Legislation Attempts to bring PACE legislation to Arizona for commercial use for several years In 2017 draft legislation was created Proposed legislation for financing water and energy conservation projects on commercial properties Timeline of PACE in Arizona. This is a priority for City Council in Flagstaff Arizona. After a few years, a constituent with a nonprofit brought PACE to City Council. Fall of 2016 League of Cities and City Council in Flagstaff made PACE a top priority for 2017 legislative session. © 2014 National Tax Lien Association www.theNTLA.com

© 2014 National Tax Lien Association www.theNTLA.com PACE In Arizona How did PACE come up in Arizona? Local Government involvement City Council County Board of Supervisors County Treasurers Legislation expected to be introduced in the 2018 legislative session Continue with timeline and importance of working together on legislative issues. City Council told lead on writing legislation to reach out to Coconino County Supervisors for their support. There was a desire to have Coconino County be the lead. Due to the positive relationship and involvement of elected offices and supervisors, the board of supervisors directed contact be made with the County Treasurer for support. At this point we were able to be actively involved with draft legislation and made our point very clear, we would not be supporting proposed language until our concerns were addressed. © 2014 National Tax Lien Association www.theNTLA.com

Treasurer Concerns in Arizona Concerns on how PACE would be implemented in terms of collection and enforcement of funds due These included: Treasurer’s responsibility without a say in opting in Process for collection and distribution of funds Separation of PACE from general property taxes and special assessments Nonprofits and other exempt properties Priority of a PACE lien to a tax lien and other liens Impact on the properties assessed value Go into detail on each bullet point © 2014 National Tax Lien Association www.theNTLA.com

© 2014 National Tax Lien Association www.theNTLA.com Get Involved If PACE is not in your state, it’s only a matter of time until it comes Whether or not PACE is in your state, you can: Start the Conversation Follow Proposed Legislation and Legislative Changes Reach Out Voice Concerns Make the Case Review of getting involved, share how in Arizona we were able to insert ourselves into the conversation before legislation was introduced to address concerns and issues. Still working on it but it’s easier to change legislation in a draft before it’s introduced than after it’s law © 2014 National Tax Lien Association www.theNTLA.com

© 2014 National Tax Lien Association www.theNTLA.com Questions? Hon. Sarah Benatar, Coconino County Treasurer sbenatar@Coconino.az.gov (928) 679-8188 © 2014 National Tax Lien Association www.theNTLA.com