1. Property Assessed Clean Energy (PACE)
Environmental Planning and Community Resilience Division

2. PACE
Broward

3. A Brief History California (2008) FL Statute 163.08 (2010)
First to pass PACE legislation
FL Statute (2010)
Key difference: authorizes improvements for storm protection
Solar and Energy Loan Fund, Port St. Lucie County
Miami Clean Energy Corridor
When PACE legislation passed in FL in 2010 there were only 3 states with PACE legislation.

4. PACE Programs – US Map
Now there are over 30 states with PACE enabled legislation, in over 2,000 municipalities

5. PACE Economic Impacts Source: PACENation
Over 2 billion dollars has been financed using the PACE protocol.

6. Why PACE? Voluntary Furthers regional energy and resiliency goals
Supports economic development
Provides consumers with long-term cost savings
Innovative means of financing
PACE is innovative, it gives consumers a different financial tool to consider, for example, for commercial properties PACE is off-balance sheet financing, for home owners allows the owner to finance improvements without a large up-front cash payment and it is not based on the individual’s credit
The PACE program is completely voluntary
PACE furthers regional energy and resiliency goals by funding specific qualifying projects related to energy, According to stats from the HERO program for every $100,000 invested leads to 182 tons of CO2 emissions 
PACE supports economic development by creating local jobs and building local skills sets for contractors
The proper PACE projects will benefit from long-term cost savings on insurance and energy bills

7. Public Private Partnership
PACE Districts
PACE Providers
Property Owners
Broward County
Joint Powers Authorities are a common PACE program umbrella structure, where local governments opt to join one of a number of state-sanctioned authorities that contract with companies
turn-key PACE Program offering legal infrastructure, financing, training, and outreach to property owners and the contractor community
to administer and offer PACE financing. 
Bond Issued
Joins Through Inter-Local Agreement
Program Administrators Manage the Program
Located in a Participating City and have a Qualifying Improvement
Lender – Provides funding
Levies the Assessment on the Property Tax Bill
Process Applications, Qualify Projects, and Arranges Financing
Cities Opt In

8. Participating Cities Nearly 70% (by pop.) participating
Initial program launched in June
Program expansion August – December to add 2 additional Providers
Number of Providers by city may vary

9. Broward PACE Providers
Renew Financial “RenewPACE Program”
Ygrene “Clean Energy Program”
CounterPointe Energy Solutions “Alliance NRG Program”
Coming Soon!
Renovate America “HERO Program”

10. Qualifying Improvements Must be permanent improvements
ROOFING
LIGHTING
INSULATION
HURRICANE
SOLAR
HEATING & A/C
WINDOWS & DOORS

11. How PACE Works Minimum $2,500
Typical term of 10 to 20 years - Debt repaid through annual property assessments, in conjunction with property tax bill
Assessment tied to property, not individual (not reflected as personal debt)
Commercial and residential programs

12. PACE Considerations Interest and various fees
PACE treated as senior lien
Potential FHFA implications
Qualified improvements generally increase the value of a property
Nonpayment treated the same as nonpayment of taxes
In July 2010, the Federal Housing Finance Agency (FHFA) along with Fannie Mae and Freddie Mac objected to the senior lien status that residential PACE financing shares with other property taxes and assessments and took steps to stop residential PACE. The Agency issued a statement advising Fannie Mae and Freddie Mac to avoid buying mortgages with PACE assessments and hinted at more drastic actions, such as finding PACE homeowners in default under their mortgages. These actions stalled the development of residential PACE programs. Despite these concerns, residential programs continued to develop and began to gain traction in  In August 2015, President Obama and the FHA announced support for the PACE concept

13. Refinance your mortgage
It Depends on Your Circumstances
You have options, PACE is now another option, may not be best
Due your due diligence
Research options
Talk to your financial adviser
Basic good guidance: Don’t finance improvements for a longer time than they will last
Bank Loan
Construction loan
Home equity loan
Credit cards
Borrow from your 401(k)
Reverse mortgage
Contractor financing 
Refinance your mortgage
Cash
Home equity line of credit 
PACE
100% PACE Financing (no out of pocket cash drain), and approval process is normally quick. You also may not have to start making payments for a while and your energy savings could be more than your annual assessment depending on what projects you are completing.

14. Consumer Protection Provisions
PACE providers must ensure contractor pricing is within market norms
PACE providers must ensure one of the following happens:
Insurance and/or energy cost savings ≥ annual assessment
Mortgage lender consent, or approval to escrow assessment
Annual assessment shall not exceed 4% gross annual income, with annual property taxes/assessments not to exceed 5% FMV
PACE providers must disclose financial details to property owner

15. PACE Project Cost/Income Threshold Examples

16. Broward.org/GoGreen PACE Broward Contact Broward County Environment
@BrowardEnv