EPAD-Louisville 101 EPAD-Louisville 101 Making Cent$ of Energy Andrea Webster July 26, 2017

EPAD-Louisville: Overview EPAD: Energy Project Assessment District Known as PACE (Property Assessed Clean Energy) in other states

EPAD-Louisville: Overview Energy/Water Improvement Services $$ EPAD Contractor Property Owner Project Types: Energy efficiency Renewable energy Water conservation Open to: All Lenders All Contractors

EPAD-Louisville: Overview $$ Energy/Water Improvement Services EPAD Contractor Property Owner $$ EPAD Lender Project Types: Energy efficiency Renewable energy Water conservation Open to: All Lenders All Contractors

EPAD-Louisville: Overview Energy/Water Improvement Services $$ Payment via Annual Assessment EPAD Contractor Property Owner Jefferson County Sheriff Sheriff Remits Annual Payment to LMG $$ EPAD Lender Louisville Metro Government (LMG) LMG Remits Annual Payment to Lender Project Types: Energy efficiency Renewable energy Water conservation Open to: All Lenders All Contractors

EPAD-Louisville: Eligibility Participants Office Retail Industrial Agricultural Non-profits Multi-family residential properties with 5 or more units Projects Energy efficiency Renewable energy Water conservation Minimum cost - $20K Minimum useful life – 5 years Permanently affixed to the property

EPAD- Louisville: Example Projects Mechanical HVAC upgrades Combined Heat and Power (CHP) Elevator and escalator upgrades Building automation (energy management) systems Envelope Roofing with insulation Window and door replacements Green roofs Lighting High efficiency lighting such as LED lighting Automated controls Parking lot lights Renewable Energy Systems Solar electric or thermal Geothermal Water Low or no flow fixtures

EPAD-Louisville: Benefits Can finance up to 100% of an energy project’s cost (meaning NO down payment) Improvements are designed to increase the cash flow of the property owner Improvements increase the value of the property Improvements can reduce maintenance and repair costs Loan repayment transfers to the new owner upon sale or transfer On Notice of EPAD Special Assessment: Total cost of improvements, Total financing requested, term of repayment period, total estimated annual payment

EPAD-Louisville: How to Participate Office of Sustainability Initial Eligibility Form Formal Program Application Loan Closing Repayment Property owner contact General property information Parcel ID Square footage Type of business Existing mortgages Project information Has an energy audit been completed? Estimated project cost Requested financing amount Property appraisal Office of Sustainability Approval At this point, you should have begun talking to prospective lenders and contractors

EPAD-Louisville: How to Participate Initial Eligibility Form Formal Program Application Loan Closing Repayment First 2 pages = Initial Eligibility Form Legal description of the property Found on County Clerk’s Website Energy project summary List of contractors Signed project bid Project budget Lender contact information Title search Mortgage lien holder consent Submit to Office of Sustainability with Application Fee: lesser of $500 or 1% of the cost of the project At this point, you should have selected your lender and contractor(s) Office of Sustainability Approval

EPAD-Louisville: How to Participate Initial Eligibility Form Formal Program Application Loan Closing Repayment First 2 pages = Initial Eligibility Form Legal description of the property Found on County Clerk’s Website Energy project summary List of contractors Signed project bid Project budget Lender contact information Title search Mortgage lien holder consent Submit to Office of Sustainability with Application Fee: lesser of $500 or 1% of the cost of the project At this point, you should have selected your lender and contractor(s) Office of Sustainability Approval

EPAD-Louisville: How to Participate Initial Eligibility Form Formal Program Application Loan Closing Repayment Loan closing documents from lender EPAD Program Financing Agreement Property Owner Louisville Metro Government Lender

EPAD-Louisville: How to Participate Initial Eligibility Form Formal Program Application Loan Closing Repayment Annual Requirements Pay your bill every July Billed issued just like property tax assessment Track your energy use in Portfolio Manager Share account with Office of Sustainability Respond to annual survey from Office of Sustainability Bill transfers to new owner upon sale or transfer Included in Your Bill Installment payment Administrative Fee (lesser of: $200 or 1% of the installment) Sheriff’s Commission (1% of the installment)

EPAD-Louisville: Sample Project Project Cost: $40,000 Application Fee: $400 Loan terms: 4% interest rate 25 year term Annual Assessment: Installment $2,560 Administrative Fee $26 Sherriff's Commission $26 TOTAL ASSESSMENT $2612 (~218 per month) (lesser of $500 or 1% of the cost of the project) (lesser of $200 or 1% of the installment) (1% of the installment) For example, the property owner of a project costing $40,000 would pay an application fee of $400 (1% of the cost of the project). After obtaining a 4% interest rate on a $40,000 loan with a 25 year term, the property owner will pay an annual assessment of $2,560.48 plus the 1% administrative fee ($25.60) and the 1% Sheriff’s fee ($25.60), for a total amount due each year of $2,611.69.

EPAD-Louisville: Tips You can include in your loan: Audit costs Feasibility study costs Engineering and design expenses Application and permit fees And more Get started on these right away Find a contractor Project cost estimate / loan estimate Notify existing mortgage lien holders Find a lender Title search On Notice of EPAD Special Assessment: Total cost of improvements, Total financing requested, term of repayment period, total estimated annual payment

EPAD-Louisville: Benefits www.louisvilleky.gov/sustainability > EPAD Program Andrea Webster sustainability@louisvilleky.gov 502-574-6285 More resources: www.PACEnation.us On Notice of EPAD Special Assessment: Total cost of improvements, Total financing requested, term of repayment period, total estimated annual payment

Go Green Loan Program Contact: Louisville Forward 574-4140 Small businesses can take advantage of a below market-rate incentive program aimed at increasing energy efficiency and creating “green” jobs. Can be used for energy-efficiency upgrades, or creating green products or services.