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HomeMy WebLinkAbout21-011 ORDINANCE NO. 21-01 l AN ORDINANCE AMENDING THE ST. LUCIE COUNTY CODE OF ORDINANCES BY AMENDING CH. 40, ARTICLE VI, "ST. LUCIE COUNTY SUSTAINABILITY DISTRICT," TO PROVIDE FOR THE ADDITIONAL FINANCING OF ANY QUALIFYING IMPROVEMENTS AUTHORIZED BY SECTION 163.08, FLORIDA STATUTES, AND TO PROVIDE THAT SUCH QUALIFYING IMPROVEMENTS MAY BE FINANCED FOR COMMERCIAL OR RESIDENTIAL PROPERTY UNDER NEW CONSTRUCTION TO THE EXTENT CONSISTENT WITH SECTION 163.08, FLORIDA STATUTES; PROVIDING FOR CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY AND APPLICABILITY; PROVIDING FOR FILING WITH THE DEPARTMENT OF STATE; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR ADOPTION; AND PROVIDING FOR CODIFICATION. WHEREAS,pursuant to Article VII, Section 10 of the Florida Constitution, Chapter 125, Florida Statutes, and Chapter 189, Florida Statutes, the St. Lucie County ("County") Board of County Commissioners ("Board") adopted Ordinance No. 10-025 on June 15, 2010 ("District Ordinance"), which established the St. Lucie County Sustainability District("District"); WHEREAS, the District Ordinance is codified at Chapter 40, Article VI of the St. Lucie County Code of Ordinances ("Code"); WHEREAS, the purpose of the District is to accomplish energy efficiency and renewable energy improvements, as well as broader sustainability issues, such as water conservation on residential and commercial properties,by financing such improvements to be repaid through non- ad valorem assessments on the property owner's property taxes; WHEREAS, the ordinance currently encourages, accommodates, and allows for the financing of energy efficiency, renewable energy and broader sustainability improvements on eligible commercial and residential property; WHEREAS, Section 163.08, Florida Statutes ("PACE Statute") provides local governments with supplemental authority for the financing of such improvements through the imposition of non-ad valorem special assessments ("PACE Assessments"), and includes an exemplary list of improvements which qualify for financing thereunder; WHEREAS,the Florida Legislature may consider amendments to the PACE Statute from time to time which expand the types of improvements which may be financed through PACE Assessments; WHEREAS, the District Ordinance currently authorizes the financing of qualifying improvements only for existing structures or buildings as of the date of application, whereas the 25048/030/01777191.DOCXv2 MICHELLE R.MILLER,CLERK OF THE CIRCUIT COURT SAINT LUCIE COUNTY Words in strike-through type are deletions from existing text. FILE# 4877782 06/10/2021 05:09:30 PM Words in underlined type are additions to existing text. OR BOOK 4628 PAGE 500-508 Doc Type:ORDN RECORDING: $78.00 Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 PACE Statute allows in some cases for the financing of qualifying improvements on commercial and residential property under new construction; WHEREAS, the Board desires to amend Chapter 40, Article VI of the Code to allow for the additional financing of any qualifying improvements authorized by the PACE Statute as may be amended from time to time, including but not limited to wind resistance improvements, and to encourage, accommodate, and allow for the financing of qualifying improvements on commercial and residential property under new construction to the extent such financing is consistent with the PACE Statute; WHEREAS, the Board finds that a program designed to provide new and existing residential, commercial and business properties the financial means to install qualifying improvements will further help reduce harmful environmental hazards, and that the installation and operation of qualifying improvements will not only benefit affected properties for which the improvements are made, but will also provide a public benefit by assisting in fulfilling the goals of the State's and County's energy and hurricane mitigation policies; and WHEREAS,the Board determines that the amendments to the District Ordinance adopted herein are reasonable and necessary to serve an important public purpose; and are necessary for the prosperity and welfare of the county and its property owners and inhabitants. NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of St. Lucie County, Florida: SECTION 1. RATIFICATION OF RECITALS. The foregoing recitals are hereby ratified and confirmed as true and correct and are hereby made a part of this Ordinance. SECTION 2. Chapter 40, Article VI, "St. Lucie County Sustainability District)," is amended as follows: ARTICLE VI. - ST. LUCIE COUNTY SUSTAINABILITY DISTRICT DIVISION 1. - GENERALLY * * * Sec. 40-163. - Findings. The board makes the following specific findings: (1) A program designed to provide residential, commercial and business properties the financial means required to reduce electricity consumption will help reduce the burden of greenhouse gas emissions otherwise created by property in the state and potentially mitigate adverse impacts to the state property and the environment. 25048/030/01777191.DOCXv2 Words in strike through type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 (2) Energy conservation and efficiency and clean energy improvements to residential, commercial, industrial, and other buildings, facilities and improvements can reduce greenhouse gas emissions resulting from the use of improved property. Energy conservation and efficiency and clean energy improvements can protect and preserve state property by diminishing energy demand and environmental burdens. (3) A program designed to provide residential, commercial and business properties the financial means to install other qualifying improvements will help reduce other harmful environmental hazards. (4) The installation and operation of qualifying improvements not only benefits the affected properties for which the improvements are made,but also provides a public benefit by assisting in fulfilling the goals of the state's and county's energy and hurricane mitigation policies. (35) The up-front costs of qualifying improvements, such as energy conservation and efficiency and clean energy improvements necessary to reduce greenhouse gas emissions.,inhibits or prevents many property owners from making such improvements. (46) To make qualifying improvements more affordable and assist property owners who wish to undertake them, it is necessary to authorize a procedure for enabling property owners, on a voluntary basis, to finance such improvements and make repayments in the form of special assessments collected on their property tax bills. (57) The county hereby determines that the actions authorized under this article, including, but not limited to, the establishment of the sustainability district, the financing therein of qualifying improvements through the execution of financing agreements and the related imposition of voluntary special or non-ad valorem assessments, are reasonable and necessary to serve an important public purpose; and are necessary for the prosperity and welfare of the county and its property owners and inhabitants. Sec. 40-166. - Purpose of the district. The purpose of the county sustainability district(the "district") is to allow a property owner to voluntarily finance qualifying improvements including but not limited to those described in F.S. § 163.08 (or any successor in function),accomplish energy conservation and efficiency.,and renewable energy, and wind resistance improvements, as well as broader sustainability issues, such as water conservation on residential and commercial properties, by financing such improvements to be repaid through non-ad valorem assessments collected on the property owner's annual property tax bill property taxes. 25048/030/01777191.DOCXv2 Words in strikeg h type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 * * * Sec. 40-168. -Description of improvements. The improvements to be financed by th county f r-proper►ies within the district shall consist of any qualifying improvements authorized by F.S. § 163.08 (or any successor in function),and shall be limited to, any improvements constituting energy conservation and efficiency, renewable energy improvements, wind resistance, or broader sustainability improvements, such as water conservation, as defined herein. The qualifying improvements to be constructed on each property shall be set forth in a written agreement executed between the property owner and the district. Sec. 40-169. - Financing. The cost of the qualifying improvements undertaken by the property owner and financed by the district shall be assessed on the related property in the amounts set forth in the written assessment financing agreement for such property and shall be financed by federal or state grant funds, special assessment bonds,private loans from a financial institution, state or federal loan or bond guarantee programs or other private or not-for-profit sources of funds which shall be payable through non-ad valorem assessments by the property owner. Notwithstanding anything herein to the contrary, an assessment financing agreement may cover qualifying improvements on commercial or residential properties under new construction to the extent the financing thereof is consistent with F.S. 163.08. * * * Sec. 40-171. - Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Broader sustainability improvements includes improvements such as water conservation thru improved sustainability. Energy efficiency improvement means a material improvement made to an existing residential or commercial property that reduces energy consumption, including,but not limited to: (1) Caulking, weather-stripping(cost of weather stripping shall not exceed $1,500.00) and air duct sealing. (2) Insulation in walls, roofs, floors, foundations and in heating and cooling distribution systems radiant barriers. 25048/030/01777191.DOCXv2 Words in strike through type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 (3) Heating and cooling system upgrades, combined heat and power systems, automatic energy control systems, heating, ventilating or air conditioning and distribution system modifications or replacements in homes, buildings or central plants including microturbines and fuel cells. (4) Storm or weathertight windows and doors,multiglazed windows and doors, heat- absorbing or heat-reflective glazed and coated windows and door systems, additional glazing, reductions in glass area, and other window and door system modifications that reduce energy consumption. (5) Replacement or modification of lighting fixtures to increase the energy efficiency of the system without increasing the overall illumination of a residential or commercial building unless such increase in illumination is necessary to conform to the applicable building code for the proposed lighting system. (6) High efficiency water or pool heating systems. (7) Permanent rainwater harvesting systems reducing energy demands such as cisterns or rain barrels for capture, storage and reuse of water. (8) Reflective roof or other cool roof systems that increase solar reflectance and thermal emittance. (9) Commercial refrigeration system upgrades and systems for heat recovery from compressors and condensers. An energy efficiency improvement does not include a household appliance such as a washing machine or refrigerator that is not permanently fixed to real property. Renewable energy improvement means any fixture, product, system, device or interacting group of devices installed behind the meter on any residential or commercial building that produces energy from renewable resources, including,but not limited to, photovoltaic systems, small wind systems,biomass systems, or biogas or methane recovery systems, as may be authorized. Qualifying improvements shall mean those improvements to real property provided for in F.S. § 163.08, including, but not limited to, energy conservation and efficiency, renewable energy, and wind-resistance improvements. Sec. 40-174. -Application. An eligible property owner must submit a complete application to the district for its approval. A complete application shall include the following information: 25048/030/01777191.DOCXv2 Words in strike through type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 (1) Proof of ownership and location of the property; organizational documents if the property owner is not on the title as an individual. (2) If applicable, Ddocumentation showing the existing structure or buildings that is the subject of the application, is an existing structure or building on the date of amen. (3) A cost estimate for the installation of the energy savings measures qualifying improvements completed by a state licensed contractor(including the name and license number of the contractor). This estimate shall include all construction costs, equipment, permitting fees, recording fees for the assessment of liens, energy audit costs, and contingency fees. Estimated costs shall be reasonable for the scope of the proposed project and in relation to the property value. (4) Written documentation indicating that the property owner is current in the mortgage, if one exists on the property, and that there are no federal or state tax liens,judgments liens or similar involuntary liens against the property subject of the application. (5) Disclosure regarding non-ad valorem assessments. (6) State fair lending notice, as required. Sec. 40-175. - Written agreement. Upon submittal of a complete application to enter into the program as approved by the district, the property owner shall enter into a voluntary written agreement with the district that shall constitute the property owner's consent to be subject to a non-ad valorem assessment. The written agreement shall be recorded and provide for the following: (1) The maximum limit of the financing for the program shall be$50,000.00 or 20 percent of assessed value, whichever is greater, per property, unless: a. A higher financing amount is consented to by the mortgage holder on the property, if one exists; and b. For energy conservation and efficiency improvements or renewable energy improvements,Tthe energy audit, or information on energy savings measures provided in the application, shows a demonstrated high level of energy savings that is equal to or greater than the proposed assessment amount or renewable energy produced over the duration of the financing. (2) Express voluntary consent to accept the non-ad valorem assessment has been given. (3) The length of time permitted for the property owner to repay the non-ad valorem assessment shall not exceed 20 years, including the term, interest rate and administrative and financing fees. 25048/030/01777191.DOCXv2 Words in strike through type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 (4) The property owner shall be responsible for ensuring the improvements are completed as reflected in the approved application documents. The property owner also consents to providing access to property to the county to verify that the improvements have been completed as proposed in the application. (5) At the time of a transfer of property ownership, the past due balances of any non-ad valorem assessment under this subsection shall be due for payment,but future payments shall continue as a lien on the property. (6) The risks associated with participating in the program shall be disclosed in the written agreement, including risks related to the failure of the participating property owners to make payments and the risk of issuance of a tax certificate and loss of the property pursuant to F.S. ch. 197. (7) For energy conservation and efficiency improvements or renewable energy improvements, Tthe cost of an energy savings audit or the cost to complete an estimate of information on energy savings measures, estimated energy savings for each measure, estimated greenhouse gas reductions and estimated cost savings from the projects will be subject to reimbursement upon execution of the written agreement to accept the non-ad valorem assessment. (8) The property owner shall agree to apply any rebates provided by an entity other than the district, received for the projects approved by the district, towards the repayment of the non-ad valorem assessment. (9) If property taxes are paid through an escrow account, the property owner is responsible for notifying the lender of any adjustment to monthly payments. (10) The property owner shall provide all copies of final permits and inspections to the district upon completion of the projects. (11) The property owner shall agree to provide the district five years of utility statements showing the energy usage for the property following the year in which the improvements are made. The statements shall be due on the final day of the month when the improvements were completed. DIVISION 2. - ALTERNATIVE ASSESSMENT AND FINANCING PROCEDURE * * * Sec. 40-207. -Alternative assessment procedures. 25048/030/01777191.DOCXv2 Words in strike through type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 As an alternative assessment and financing procedure to those set forth in division 1 of this article, the county hereby implements, as an alternative, the assessment procedures set forth in F.S. § 163.08, to finance , qualifying improvements as described in F.S. § 163.08(20). The county hereby authorizes such assessments to be levied on any real property located within the boundaries of the county, which assessment will be document by a financing agreement between the county and the participating property owners; provided, however, that for any real property located within a municipality, the owner of such real property may elect to participate in the county assessment program unless the municipality in which the real property is located in fact establishes its own assessment program under the authority of F.S. § 163.08, and notifies the county of such action with a formal request to the county to not offer its program within municipal limits. The county,by subsequent resolution, shall specify the terms and conditions under which it will enter into a financing agreement with a property owner within the parameters set forth in F.S. § 163.08, and shall specify the terms and conditions of the financing agreement to be used by the county. Secs. 40-208-40-237. - Reserved. SECTION 3. CONFLICTING PROVISIONS. Special acts of the Florida legislature applicable only to unincorporated areas of St. Lucie County, and adopted prior to January 1, 1969, County ordinances and County resolutions, or parts thereof, in conflict with this ordinance are hereby superseded by this ordinance to the extent of such conflict. SECTION 4. SEVERABILITY AND APPLICABILITY. If any portion of this ordinance is for any reason held or declared to be unconstitutional, inoperative, or void, such holding shall not affect the remaining portions of this ordinance. If this ordinance or any provision thereof shall be held to be inapplicable to any person,property,or circumstance, such holding shall not affect its applicability to any other person, property, or circumstance. SECTION 5. FILING WITH THE DEPARTMENT OF STATE.The Clerk is hereby directed forthwith to send a certified copy of this ordinance to the Bureau of Administrative Code and Laws, Department of State, The Capitol, Tallahassee, Florida 32304. SECTION 6. EFFECTIVE DATE. A certified copy of this ordinance shall be filed with the Department of State by the Clerk of the Board of County Commissioners of St. Lucie County within ten days after enactment by the Board, and this ordinance shall take effect on the date of adoption. SECTION 7. ADOPTION. After motion and second, the vote on this ordinance was as follows: Chair Chris Dzadovsky AYE Vice Chair Sean Mitchell AYE Commissioner Linda Bartz AYE Commissioner Frannie Hutchinson AYE Commissioner Cathy Townsend AYE 25048/030/01777191.DOCXv2 Words in strike-through type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. ORDINANCE NO. 21-011 Section 15. CODIFICATION. Provisions of this ordinance shall be incorporated in the Code of Ordinances of St. Lucie County, Florida, and the word "ordinance" may be changed to "section", "article", or other appropriate word, and the sections of this ordinance may be renumbered or relettered to accomplish such intention. PASSED AND DULY ADOPTED this 1st day of June 2021. BOARD OF COUNTY COMMISSIONERS ATTEST: ST. LUCIE COUNTY, FLORIDA kc.0 CLth BY: Deputy Clerk oJ,. 4 COM,y�� Chair ts- y { ., M APPROVED AS TO FORM AND rG — y CORRECTNESS: r fr Co, FLo¢�9 BY: C01.0 �w Ass.. County Attorney 25048/030/01777191.DOCXv2 Words in strike type are deletions from existing text. Words in underlined type are additions to existing text. Asterisks(***)indicate existing text not shown. FLORIDA DEPARTMENT O STATE RON DESANTIS Governor June 9, 2021 Ms. Michelle R. Miller Clerk & Comptroller St. Lucie County 2300 Virginia Avenue Fort Pierce, Florida 34982 Attn: Ms. Vera Smith Dear Ms. Miller: LAUREL M. LEE Secretary of State Pursuant to the provisions of Section 125.66, Florida Statutes, this will acknowledge receipt of your electronic copy of St. Lucie County Ordinance No. 21-011, which was filed in this office on June 9, 2021. Sincerely, Anya Grosenbaugh Program Administrator AG/lb R. A. Gray Building • 500 South Bronough Street • Tallahassee, Florida 32399-0250 Telephone: (850) 245-6270