HomeMy WebLinkAbout23-009 ORDINANCE 23-009
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AN ORDINANCE OF ST. LUCIE COUNTY, FLORIDA AMENDING ARTICLE VI
OF CHAPTER 40 OF THE ST. LUCIE COUNTY CODE ENTITLED "ST. LUCIE '= Z
COUNTY SUSTAINABILITY DISTRICT" TO ADOPT ADDITIONAL
CONSUMER PROTECTION PROVISIONS FOR PROPERTY OWNERS = a
APPLYING FOR"PROPERTY ASSESSED CLEAN ENERGY" (PACE)FUNDING o 0 0
IN THE DISTRICT; PROVIDING THAT SUCH CONSUMER PROTECTIONS N
SHALL APPLY TO ALL PACE FUNDING WITHIN THE DISTRICT; RATIFYING w
o N
AND CONFIRMING COUNTY INTENT THAT THE DISTRICT SHALL HAVE w•
SOLE AUTHORITY AND JURISDICTION TO PROVIDE AND ADMINISTER o- coa
PACE FUNDING, AND TO IMPOSE AND COLLECT RELATED NON-ADLn
VALOREM ASSESSMENTS WITHIN DISTRICT BOUNDARIES, UNLESS Lu- U N Y z
OTHERWISE AGREED UPON AND CONSENTED TO BY THE DISTRICT i- *m o
THROUGH INTERLOCAL AGREEMENT; PROVIDING FOR SEVERABILITYEou_Ort
AND AN EFFECTIVE DATE.
WHEREAS, the Board of County Commissioners (the "Board") of St. Lucie County (the "County")
adopted Ordinance No. 10-025 on June 15, 2010 (the "Sustainability Ordinance") which created the St.
Lucie County Sustainability District(the"District")for the purpose of establishing a financing program (the
"Energy Financing Program") for efficiency and renewable energy improvements through the imposition
of property assessed clean energy ("PACE") non-ad valorem special assessments, consistent with and in
furtherance of the state energy efficiency policy objectives set forth in section 163.01(8), Florida Statutes
(the "PACE Act"); and
WHEREAS, a property owner may participate in the Energy Financing Program by applying for
funding, and if the application is approved, by entering into a financing agreement (the "Financing
Agreement") with the District setting forth the terms and conditions by which funding is made available
for qualifying improvements ("Qualifying Improvements") and by which the funding is repaid over time
through PACE assessments collected in annual installments on the ad valorem property tax bill pursuant
to section 197.3632, Florida Statutes and the PACE Act; and
WHEREAS, participation in the Energy Financing Program and the imposition of PACE assessments
pursuant to Financing Agreements is thus consensual and voluntary, and PACE assessments are only
imposed upon the request and consent of property owners who have applied for funding; and
WHEREAS, the Sustainability Ordinance provides that the District consists of and includes
property within the geographical boundaries of the County,and that if any such property is located within
any municipality in the County, such property shall be so included in the District unless such municipality
shall have enacted an ordinance opting out of the District; and
WHEREAS,the District engaged the Solar and Energy Loan Fund of St. Lucie County("SELF")to act
as program administrator and process and approve funding applications, facilitate financing of Qualifying
Improvements, and take such other actions and may be necessary and appropriate for ongoing
administration of the Energy Financing Program; and
WHEREAS, the District previously issued its Taxable Special Assessment Bond, Series 2014
(including any amendments thereto, the "2014 Bond") to Inland St. Lucie PACE, LLC (the "Lender"), and
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entered into that certain Special Assessment Funding Agreement (Energy and Sustainability Financing
Program) dated August 19, 2014 with SELF and the Lender (as amended from time to time, the "Funding
Agreement"), to establish a funding source with which to finance the costs associated with Qualifying
Improvements constructed pursuant to Financing Agreements entered into between the District and
qualifying property owners; and
WHEREAS, the Funding Agreement includes extensive disclosure requirements and consumer
protection provisions which meet or exceed the minimum requirements of the PACE Act, including
qualification criteria based on the applicant's ability to pay the PACE assessment over time, which are
applicable to Financing Agreements funded through proceeds of the 2014 Bond; and
WHEREAS, the Energy Financing Program has achieved great success over time, due in large part
to such disclosure requirements and consumer protections; and
WHEREAS, it has come to the Board's attention that PACE programs offered in other jurisdictions
in the State of Florida and nationally, particularly with respect to residential PACE assessments, have led
to negative property owner experiences including complaints against contractors and vendors who
construct and install Qualifying Improvements, and also against entities administering PACE financing
programs; and
WHEREAS, the County's Energy Financing Program has largely avoided such issues due to direct
oversight and involvement by the District and its consumer protection provisions; and
WHEREAS,since establishment in 2010,the District has been the sole authorized provider of PACE
Funding within the boundaries of the District, and the County wishes to ratify and confirm its continued
intent for the District to be the sole entity with authority and jurisdiction to provide PACE funding therein,
absent an interlocal agreement with a third party local government PACE provider by which the District
and/or the County expressly consents to the provision of PACE services, the imposition of PACE
assessments and administration of PACE services by such local government entity; and
WHEREAS, property owners are subject to losing title to assessed property, including homestead
property, in the event PACE assessments are unpaid, which underscores the necessity for appropriate
disclosure requirements,consumer protections and public safeguards,and the need for transparency and
local accountability; and
WHEREAS, this Ordinance is adopted for purposes of extending disclosure requirements and
consumer protections to all PACE funding within District boundaries.
NOW,THEREFORE, BE IT ORDAINED by the Board of County Commissioners of St. Lucie County,
Florida, as follows:
SECTION 1. Amendment.
(A) Division 1 of Article VI of Chapter 40 of the St. Lucie County Code is hereby amended as
follows, with additional text indicated by underline and deleted text indicated by sN.ikethreu►g is
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ARTICLE VI. ST. LUCIE COUNTY SUSTAINABILITY DISTRICT
DIVISION 1. GENERALLY
Sec. 40-172. Program Administration.
(a) The District may engage a for-profit or not-for-profit organization to administer the financing
program contemplated hereunder.
(b) Any such financing program offered within the District shall be administered pursuant to the
process, standards and requirements set forth in Division 3 and F.S. § 163.08, as may be
amended from time to time.
Sec. 40-173. Authorization of county officers and employees.
The board and all other county offices and employees are hereby authorized and directed to take
all action necessary and appropriate to effectuate the provisions of this article.
Secs. 40-174—40-205. Reserved.
pre g
(8) Improvements must be reasonable for the scope of the property project and to the
c 4017z Energ. udit
•
{3) Estimated renewable energy to be produced;
( Estimated greenhouse nas reduction• and
herein.
of the-application.
licensed contractor (including the name and license number of the contractor). This
{6) State fair lending notice, as required.
Sec A!1 17C Written agreemen+
per property, unless:
exists; and
financing.
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{3) The length of time permitted for the property owner to repay the non ad valorem
and financing fees.
{5) At the time of a transfer of property ownership, the past due balances of any non ad
pursuant to F.S. ch. 197.
energy savings measures, estimated energy savings for ach measure, estimated
assessment.
ements
arc made. The statements shall be due on the final day of the month when the
(B) Division 3 of Article VI of Chapter 40 of the St. Lucie County Code is hereby created to
read as follows:
DIVISION 3. PACE PROGRAM ADMINISTRATION;CONSUMER PROTECTIONS.
Sec. 40-208. Definitions.
For the purposes of this division, the following definitions shall apply:
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Assessed property shall mean property subject to a PACE assessment.
Board shall mean the St. Lucie County Board of County Commissioners.
County shall mean St. Lucie County, Florida.
District shall mean the St. Lucie County Sustainability District.
Eligible participant shall mean any residential or nonresidential property owner who voluntarily
participates in the PACE program and satisfies the eligibility requirements set forth in section 40-213.
PACE Act shall mean F.S. § 163.08, as may be amended from time to time.
PACE administrator shall mean a for-profit or not-for-profit organization engaged by the District to
administer a PACE program on behalf of and at the discretion of the District. In the event the County has
entered into a PACE interlocal agreement with PACE local government other than the District to
administer a PACE program within the County, the term PACE administrator shall include a for-profit or
not-for-profit organization engaged by such PACE local government.
PACE assessment shall mean the non-ad valorem assessment placed on a property owner's tax bill
as a result of financing obtained pursuant to the PACE financing agreement.
PACE contractor shall mean a contractor authorized by a PACE local government to sell,construct or
install qualifying improvements funded through the PACE program.
PACE financing agreement shall mean the agreement entered into between the eligible participant
and the PACE local government specifying the qualifying improvements to be installed at the property and
the terms and conditions for financing those improvements through PACE assessments levied on the
property.
PACE interlocal agreement shall mean an agreement entered into between the County and a PACE
local government other than the District authorizing the PACE local government to administer a PACE
program within the County in accordance with F.S. § 163.01 and this article.
PACE local government shall mean (i) the District, or (ii) a separate legal entity created pursuant to
F.S. § 163.01(7). To the extent that a PACE local government other than the District operates a PACE
program within the County through a contracted PACE administrator, the PACE local government is
responsible for the actions or inactions of the PACE administrator acting within the County in furtherance
of the PACE program as if it had taken such action, or failed to take such action, itself.
PACE program or program shall mean any Property Assessed Clean Energy program authorized by
F.S. § 163.08 offered within the boundaries of the District, excepting any municipality that has opted out
of the District.
Property means residential or nonresidential property located within the jurisdictional boundaries
of the District, excepting any municipality that has opted out of the District.
Qualifying improvements shall mean those improvements to real property provided for this article
or in F.S. § 163.08, including, but not limited to, energy conservation and efficiency, renewable energy
and wind-resistance improvements.
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Sec.40-209. Purpose.
(a) PACE programs allow a property owner to voluntarily finance qualifying improvements through a
non-ad valorem assessment repaid through installments collected on the annual property tax bill.
Failure to pay the annual property tax bill can result in loss of title to property, even property which
comprises a homestead.
(b) It is in the best interests of the citizens of the County to have uniform consumer protection
regulations that apply to all PACE local governments and PACE administrators who implement and
manage PACE programs in the District.
(c) The purpose of this article is to provide such uniform consumer protection regulations to ensure
that:
(1) The citizens of St. Lucie County are fully apprised of the program;
(2) PACE local governments have developed a responsive complaint process;
(3) Qualifying improvements meet the statutory goals set forth in F.S. § 163.08; and
(4) PACE contractors meet certain standards of conduct.
(d) This article is intended to add requirements to the provisions of F.S. § 163.08 and other applicable
law as it currently exists and should be construed consistently with the PACE Act and any such other
applicable law. To the extent that the PACE Act provides for additional or more restrictive
requirements not otherwise found in this article or applicable law, the provisions of the PACE Act
must be met.To the extent that this article provides for more restrictive or additional requirements
not found in the PACE Act or any such other applicable law,the provisions of this article are intended
to apply.
Sec.40-210. PACE Program Authorization.
The County hereby ratifies and confirms its intent that the District is and shall continue to be the
sole PACE local government authorized to provide a PACE program and related services in the County
(other than municipalities which have opted out of the District), unless otherwise agreed upon and
consented to by the District and/or the County in a PACE interlocal agreement expressly authorizing a
PACE local government other than the District to provide such PACE program and services. Upon entering
into a PACE interlocal agreement with the County, any such PACE local government shall be authorized to
administer a PACE program pursuant to F.S. § 163.08, the terms of this article as may be amended from
time to time, the PACE interlocal agreement and other regulations adopted by the board within the
District. The determination as to whether to grant such authorization and to enter into any such PACE
interlocal agreement shall be in the sole discretion of the District.
Sec. 40-211.Applicability.
The consumer protections and disclosure requirements set forth herein shall apply to any PACE
funding occurring in St. Lucie County, regardless of whether the program is administered by the County,
the District, a PACE local government other than the District where so authorized by PACE interlocal
agreement, or any PACE administrator. The adoption of uniform consumer protections applicable to all
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PACE funding in the County is in the best interests of, and is necessary for protection of, the property
owners and citizens of St. Lucie County.
Sec.40-212. PACE program standards.
At a minimum, PACE local governments shall comply with each of the following standards and
include the following requirements:
(1) Qualifying improvements. All qualifying improvements shall be properly permitted
(where applicable) and must comply with Florida and local codes. PACE local governments shall finance
only qualifying improvements that are permanently affixed to the property.
(2) Licensed contractors. Any contractor constructing or installing a qualifying improvement
shall be properly licensed and insured,and authorized by the PACE local government as a PACE contractor.
(3) Materials and improvements. PACE local governments shall fund, and PACE contractors
shall construct or install,only qualifying improvements. PACE local governments shall establish an"eligible
measures list" that identifies the types and specifications of qualifying improvements, using efficiency
standards for materials and installation established by the U.S. Department of Energy, the U.S.
Environmental Protection Agency, or Florida state agencies, or independent third-party expert rating
entities,as applicable.Any solar photovoltaic system financed under a PACE program must have an online
monitoring system for maintenance and production monitoring purposes unless the property owner
declines the monitoring system in writing.The eligible measures list shall be regularly updated and made
publicly available.The county shall have the right to review and approve that list annually.
(4) Data security and consumer privacy. PACE local governments shall take security measures
to protect the security and confidentiality of consumer records and information to the extent permitted
or mandated by law. In addition, a privacy policy must be in place that complies with state and federal
law and, in particular,shall provide a property owner the ability to opt-out of having the property owner's
information shared with third parties, except where expressly permitted or required by state or federal
law.
(5) Contractor pricing. Within six months of entering into a PACE interlocal agreement, PACE
local governments shall have in place pricing rules and enforcement mechanisms to ensure property
owners are protected from excessive or unjustified prices and charges of PACE contractors.
(6) Estimated energy savings disclosure. PACE local governments shall require that PACE
contractors inform eligible participants of the following:
a. Where applicable, an estimate of energy and/or insurance cost savings, including the
range of efficiency options if appropriate, to the best of the PACE contractors' knowledge and using
industry best practices;
b. Available rebates or incentives;
c. The benefits of installing energy efficiency improvements before renewable energy to
reduce costs overall;
d. The benefits of a full energy audit of their property, names or websites of energy audit
professionals qualified through the Building Performance Institute, Association of Energy Engineers, or
other comparable program, and any available incentive programs associated with a qualifying
improvement;
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e. That the actual potential energy savings and/or insurance cost savings will depend on
usage patterns, seasonal variation and weather, insurance or utility rates and trends and product
specifications;
f. That any tax incentives, credits or rebates should be confirmed and discussed with an
independent tax professional of the eligible participant's choosing if there are any tax questions; and
g. Costs of the energy audit are eligible for financing as part of the assessment. This
estimated energy savings disclosure requirement shall be included in the"code of conduct"and in training
for PACE contractors.
(7) Notice to property owner. Prior to or contemporaneously with entering into a PACE
financing agreement, PACE local governments shall provide the property owner with a written notice
disclosing the following items:
a. The total amount of the debt, including interest;
b. The maximum annual PACE assessment and payment term that does not exceed the
expected useful life of the improvements or 20 years, whichever is less;
c. A three-day right to cancel the PACE financing agreement;
d. That the PACE assessment will appear on the property owner's tax bill;
e. That the PACE assessment will be collected in the same manner as real estate taxes, that
failure to pay the PACE assessment may cause a tax certificate to be issued against the property, and that
failure to pay may result in the loss of property subject to the PACE assessment, including homestead
property, in the same manner as failure to pay property taxes;
f. That the installation of qualifying improvements and PACE assessment may or may not
affect the overall market value of the property or energy cost savings;
g. That all applicable warranties or guarantees terms are set forth in writing, and what
materials or labor are not warrantied or guaranteed for each qualifying improvement;
h. That the PACE assessment may affect the sale or refinance of the property;
i. The right of prepayment without penalty;
j. That the property owner may be required to pay any PACE assessment in full at the time
of refinance or sale of the property; and
k. That if the property owner is using an escrow or impound account to pay their property
taxes, they should contact their lender immediately to ensure that the escrow payments are adjusted
correctly and the property owner is aware of and prepared for the increased payment amount.
The notice shall be signed and dated by the property owner to acknowledge that they
understand these conditions.The PACE local government shall record,or cause to be recorded,the notice
in the public records as an attachment to the PACE financing agreement.The signature page must clearly
designate that it relates to the PACE financing agreement and notice to property owner
acknowledgement. In the alternative, the foregoing notice provisions may be incorporated into the
recorded financing agreement or summary memorandum of financing agreement relating to the PACE
assessment.
(8) PACE financing agreement. After achieving compliance with all other mandated steps
provided for by law, including but not limited to receiving a verified copy or other proof of such notice
required by F.S. § 163.08(13), the PACE local government shall enter into a voluntary written agreement
with each eligible participant. Such agreement, or supporting documentation referenced within such
agreement and attached thereto, must include, at a minimum,the following:
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a. The full legal description of the property subject to the PACE assessment.
b. The amount of funding to be provided to the eligible participant.
c. Express voluntary consent by the eligible participant to accept the non-ad valorem
assessment collection process, set forth in F.S. § 197.3632.
d. The length of time for the eligible participant to pay the non-ad valorem assessment,
which shall not exceed the expected useful life of the most costly qualifying improvement(s) funded by
the PACE program (based on certification or other documentation provided by the manufacturer of the
qualifying improvement), or 20 years, whichever is less.
e. The eligible participant shall be responsible for verifying that the qualifying improvements
are completed as reflected in the approved application documents.The eligible participant also consents
to providing access to the PACE local government or its agent to the property to verify that the qualifying
improvements have been completed as proposed in the application.
f. At or before the execution of a contract for the sale and purchase of any property for
which a non-ad valorem assessment for the PACE program has been levied and has an unpaid balance
due, the seller shall give the prospective purchaser a notice of the lien in accordance with F.S. §
163.08(14).
g. The risks associated with participating in the PACE program shall be clearly disclosed in
plain language in the written agreement with the eligible participant, including risks related to the failure
of the eligible participant to make payments,the risk that they may not be able to refinance the property
or sell the property unless the PACE assessment is paid off in full first, and the risk of issuance of a tax
certificate and loss of the property pursuant to F.S. ch. 197.
h. Description of the qualifying improvements, their cost, and estimated completion date.
i. Notice of the non-ad valorem assessment shall be recorded in the public records for the
property.
j. The PACE financing agreement shall clearly disclose, in plain language, the interest rate
to be charged, including points, as well as any and all fees or penalties that may be separately charged to
the eligible participant, including potential late fees.The subsequent charging or collecting any additional
fees that were not specifically disclosed in the written agreement with the property owner shall be
prohibited.
(9) The PACE local government shall record, or cause to be recorded, the following notice in
the public records within five days after execution of the PACE financing agreement, along with
appropriate PACE local government contact information for property owner inquiries:
QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND
RESISTANCE. This property is located within the jurisdiction of a PACE local government that has placed
an assessment on the property pursuant to Section 163.08, Florida Statutes. The assessment is for a
qualifying improvement to the property relating to energy efficiency, renewable energy or wind
resistance, and is not based on the value of property.You are encouraged to contact the county property
appraiser's office to learn more about this and other assessments that may be provided by law.
(10) Financing. The PACE local government may offer only fixed simple interest rates and
payments that fully amortize the obligation. Variable or negative amortization financing terms are not
permitted. Capitalized interest included in the original balance of PACE financing does not constitute
negative amortization.
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(11) Project completion. The PACE local government shall require compliance with each of the
following conditions prior to the issuance of any payment to a PACE contractor for which a property will
be assessed:
a. PACE contractor and property owner has certified in writing that any necessary permits
have been obtained and any necessary inspections have been completed to close out any such permits;
b. Verification that the qualifying improvements have been constructed or installed; and
c. The property owner and the PACE contractor have signed a certificate of completion that
all improvements have been installed to the property owner's satisfaction.
(12) Lender notification. The PACE local government shall ensure that the property owner
provides notice to the holders or loan servicers of any existing mortgages encumbering or otherwise
secured by the property of the owner's intent to enter into a PACE assessment that,at a minimum satisfies
the requirements of F.S. § 163.08(13).
(13) PACE contractor management. Each PACE local government shall:
a. To the extent possible, conduct outreach to and enroll local contractors as PACE
contractors;
b. Establish a "code of conduct" that sets standards for PACE contractors such as licensing,
advertising and marketing, accurate representation of the program, and consumer protections;
c. Have and shall strictly enforce anti-kickback policies and procedures that prohibit direct
or indirect financial or other monetary incentives to PACE contractors in exchange for or related to such
PACE contractor being awarded work under a PACE program,excepting payment for the PACE contractor's
construction or installation of eligible improvements;
d. Train all PACE contractors on the regulations related to the PACE program and the code
of conduct;
e. Ensure that all PACE contractors hold necessary licenses and insurance;
f. Confirm PACE contractor qualifications at least annually and as necessary based upon
consumer complaints or other indications of lack of compliance; and
g. Remove PACE contractors from the PACE program who no longer meet program criteria,
have not met program requirements, or fail to resolve consumer complaints.
(14) Customer service. PACE local governments or their PACE administrators shall provide
customer service, including:
a. Access to customer service representatives by email and phone during normal business
hours (not less than 9:00 a.m. to 5:00 p.m. Monday through Friday excluding holidays);
b. A detailed website with specific reference to the PACE program offered in the District;
c. A transparent customer feedback and complaint process with quick response and
resolution by both the PACE contractor and the PACE local government or PACE administrator as
applicable.
1. A document outlining a complaint process shall be clearly available on the PACE local
government or PACE administrator's website and provided to customers.
2. For PACE programs administered by PACE local governments other than the District, the
document shall make clear that neither the District nor the County are operating or administering the
PACE program in any way and that all concerns about the program should be addressed directly to the
PACE local government, with clear contact information provided.
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3. All complaints and resolutions shall be logged, with the following information at a
minimum: date and time of complaint, customer and PACE contractor information, details of complaint,
when and what actions were taken by both the PACE local government or PACE administrator, and the
PACE contractor, and final resolution.
4. All disputes and complaints shall be investigated, and resolved in a timely manner.
Reports of the number of complaints received, time until resolution of each complaint, and method of
resolution of each complaint shall be provided to the County annually.
(15) Marketing and communications.
a. Marketing practices for a PACE local government that are or could appear to be unfair,
deceptive, abusive, or misleading, or that violate applicable laws or regulations, that are inappropriate,
incomplete or are inconsistent with the PACE local government's purpose are prohibited.
b. Neither PACE local governments (other than the District) nor their PACE administrators
or PACE contractors, shall use facsimiles of the County, city, property appraiser, or tax collector logos in
their marketing materials. Marketing materials shall not state that PACE:
1. Is a free program;
2. Is a county or city program;
3. Does not involve a financial obligation by the property owner; or
4. Is a form of public assistance.
(16) Protected classes. No PACE local government, PACE administrator, nor PACE contractor
shall discriminate against individuals on the basis of race, color, ancestry, disability, national origin,
religion, age, familial status, marital status, sex, gender, sexual orientation, gender identity and
expression,or genetic information.
(17) Metrics reporting. After not more than one year from the date of adoption of this
ordinance, PACE local governments shall track program metrics and report those metrics to the County
and any participating municipalities, by jurisdiction and in total, at least quarterly, in spreadsheet format
or another electronic format agreed upon by the County.Those metrics shall include, at a minimum:
a. Dates of the reporting period;
b. List of PACE projects (including municipal jurisdiction, financed amount, interest rate,
assessment duration, and project description) started during the reporting period, separated by building
type (e.g. retail, office, industrial, etc.);
c. List of PACE projects (including municipal jurisdiction) completed during the reporting
period, separated by building type project (e.g. retail,office, industrial, etc.), specifying:
1. The qualifying improvements made;
2. Project start date and completion date;
3. The projected energy savings and/or amount of potential renewable energy to be
generated;
4. Financial information such as cost per kilowatt hour saved/generated associated with the
projected energy savings and/or amount of potential renewable energy to be generated;
5. Other resource savings if data is available; and
6. Energy audits performed detailing the audit results, if applicable to the project;
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d. Number of actual or estimated jobs created during the reporting period, including, if
available, local versus non-local jobs and permanent versus temporary jobs;
e. Number of applications declined during the reporting period;
f. Unresolved complaints and/or contractor issues and status;
g. PACE assessment defaults and tax certificates issued on properties subject to PACE
assessment(updated annually); and
h. All data included in the reports must be developed and collected using standardized and
verified principles and methodologies for the industry. The methodologies and supporting assumptions
and/or sources must be made available to the county by the PACE local government. It is the responsibility
of the PACE local government to test and verify the data collection and reporting methods and models
used.All reports shall include only aggregate data, excluding any nonpublic personal information.
(18) Amendments. The County reserves the right to amend this article to revise PACE program
standards. It is the obligation of the PACE local governments to remain abreast of and comply with all
changes in applicable law, including changes to this ordinance made at public hearings.
(19) Reporting. PACE local governments will respond to County requests for information on
the PACE program in a timely manner and shall provide sufficient documentation as requested by the
County to ensure that the requirements of this article and the state statutes are being met.The PACE local
government shall retain sufficient books and records demonstrating compliance with the agreement and
state and county requirements for a minimum period of seven years from the initial date of each non-ad
valorem assessment, and shall allow County representatives access to such books and records upon
request.
Sec.40-213. Eligible participants.
In order to be an eligible participant, a property owner (or property) must meet the criteria listed
below.The PACE local government is responsible for verifying that all of these conditions are met.
(1) Be the legal owner of the property and provide proof of ownership in the application for
the PACE program;
(2) Property must be within District boundaries;
(3) All property taxes and any other assessments levied on the same bill as property taxes are
paid and have not been delinquent for the preceding three years or the property owner's
period of ownership, whichever is less;
(4) Property owner must be current on any mortgage on the subject property;
(5) Property owner cannot be in bankruptcy nor can the property be an asset in any bankruptcy
proceeding;
(6) Property cannot have any federal income tax lien,judgment lien or similar involuntary lien,
including construction liens, encumbering it; and
(7) No notices of default or other evidence of property-based debt delinquency on the
property have been recorded during the preceding three years or the property owner's
period of ownership, whichever is less.
Sec.40-214.Ability to Pay Determination.
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Prior to approving a financing agreement for the financing of qualifying improvements on single
family residential property, the PACE administrator shall make a good faith determination that the
property owner has a reasonable ability to pay the annual payment obligations for the PACE assessment.
Such determination shall be made based on the property owner's current income, assets, and debt
obligations as follows.
(A) property owner applications shall include current monthly household income and current
monthly housing expenses.
(i) Housing expenses include:
(a) All mortgage principal and interest payments;
(b) Property insurance;
(c) Property taxes;
(d) Mortgage guaranty insurance; and
(e) Other preexisting fees and assessments on the property.
(ii) Household income includes:
(a) Income of mortgagor on the assessed property.
(b) Income may include the income of any persons 18 years of age or older who are
on the title of the property.
(c) The determination may also utilize the income of a property owner's legal spouse
through marriage or domestic partnership who is not on title to the assessed
property. Any spouse or domestic partner who is not on title to the property shall
consent, in writing,to the inclusion of his or her income and to the verification of
his or income.
(iii) For any person whose income is considered, the PACE administrator shall also
consider their debt obligations which may be verified by the PACE administrator through a credit
report.
(iv) In evaluating current income, assets and debt obligations of the property owner,
the PACE administrator shall not consider the equity of the assessed property.
(v) The PACE administrator shall determine and consider the current or reasonably
expected income or assets of the property owner using reasonably reliable third-party records of
the property owner's income or assets, which may include but are not limited to:
(1) A pay stub showing the most recent 30-day pay period or financial institution records
showing regular deposits consistent with reported income for the most recent 60
days.
(2) Copies of the most recent tax returns the property owner filed with the Internal
Revenue Service.
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(3) Copies of the most recent Internal Revenue Service Form W-2 (Wage and Tax
Statement), or other similar Internal Revenue Service forms that are used for
reporting wages or tax withholding.
(4) Payroll statements, including the Department of Defense Leave and Earnings
Statement(LES).
(5) Financial institution records, such as bank statements or investment account
statements reflecting the value of particular assets.
(6) Records from the property owner's employer or a third party that obtained income
information from the employer.
(7) Records from a federal, state, or local government agency stating the property
owner's income from benefits or entitlements. Income from benefits paid by a
government entity shall not include any benefits for which the recipient must satisfy
a means test or any cash equivalent nonmonetary benefits, such as food stamps.
(vi) Income may not be derived from:
(1) Temporary sources of income.
(2) Nonliquid assets.
(3) Proceeds derived from the equity from the assessed property.
(vii) Monthly debt obligations that shall be considered by the PACE administrator
include, but are not limited to:
(1) All secured and unsecured debt.
(2) Alimony.
(3) Child support.
(4) Monthly housing expenses. If property tax and insurance obligations are not included in
a property owner's escrow,the PACE administrator shall use reasonably reliable methods
to determine these obligations.
(viii) In calculating the ability of the property owner to pay the annual payment
obligations,the PACE administrator shall determine that the property owner's income is sufficient
to meet:
(1) Payment of the PACE assessment, including all interest and fees.
(2) Any mortgage payments, as defined by the higher of the property owner's self-reported
housing payment or housing expenses.
(3) All existing debts and obligations.
(4) Sufficient residual income to meet basic household living expenses, defined as expected
expenses which may be variable based on circumstances and consumption patterns of the
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household.The PACE administrator may make reasonable estimation of basic living expenses
based on the number of persons in the household. Examples of basic living expenses include,
but are not limited to, the following:
(a) Food and other necessary household consumables.
(b) Transportation costs to work or school, including fuel costs, auto insurance and
maintenance costs, and public transit costs.
(c) Utilities expenses for telecommunication, water, sewage, electricity, and gas.
(ix) In the event the PACE administrator is unable to make a reasonable good faith
determination that the property owner has a reasonable ability to pay the annual payment
obligations for the PACE assessment,then the application submitted by such property owner shall
be denied.
(x) Notwithstanding a determination by the PACE administrator that the property
owner has a reasonable ability to pay the annual payment obligations for the PACE assessment,
the PACE administrator shall not be held liable for any delinquency or default by the property
owner with respect to the owner's payment obligations under the applicable Financing
Agreement.
Sec.40-215. Recordation.
Any financing agreement entered into or a summary memorandum of such agreement between the
eligible participant and the PACE local government shall be recorded in the public records of the County
within five days after execution of the agreement pursuant to F.S. § 163.08(8). The recorded agreement
or summary memorandum of such agreement shall provide constructive notice that the assessment to be
levied on the property constitutes a lien of equal dignity to county taxes and assessments from the date
of recordation.
Sec.40-216. Notice to purchaser.
(1) Property owners must comply with F.S. § 163.08(14) regarding providing a written
disclosure statement to a prospective purchaser.
(2) Failure to provide the notice referenced above to a purchaser of the property shall have
no effect on either the validity of any PACE assessment or any obligation of a property owner.
Sec. 40-217.Suspension or termination.
In the event any PACE local government fails to abide by the provisions of this article and the PACE
interlocal agreement, following 60-day notice to cure, the Board, in its sole discretion, may suspend or
terminate the PACE interlocal agreement and the PACE local government shall have no authority to
continue with any new projects within the District. Notwithstanding termination of the PACE interlocal
agreement, however, property owners whose applications were approved prior to the termination date,
and who received funding through the PACE program, shall continue to be a part of the PACE program,
for the sole purpose of paying their outstanding assessment payments, until such time that all outstanding
assessment payments have been satisfied.
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Secs.40-218-40-237. -Reserved.
SECTION 2. Codification. County staff is hereby authorized and directed to codify, include
and publish the provisions of this Ordinance within the County Code.The provisions of this Ordinance may
be renumbered or re-lettered and the word "ordinance" may be changed to "section," "article" or other
appropriate word whenever necessary or convenient to accomplish such codification.
SECTION 3. Severability. In the event that any portion or section of this Ordinance is
determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision
shall in no manner affect the remaining portions or sections of this Ordinance which shall remain in full
force and effect.
SECTION 4. Effective Date. This Ordinance shall take effect immediately after its adoption.
SECTION 5. Adoption.
After motion and second, the vote on this ordinance was as follows:
Linda Bartz, Chair AYE
Jamie Fowler,Vice Chair AYE
Chris Dzadovsky, Commissioner AYE
Larry Leet, Commissioner AYE
Cathy Townsend, Commissioner AYE
PASSED AND DULY ADOPTED by the Board of County Commissioners Sustainability District of St. Lucie
County, Florida, this 15th day of August, 2023.
BOARD OF COUNTY COMMISSIONERS
SUSTAINABILITY DISTRICT
ATTEST: ST. LUCIE COUNTY, FLORIDA
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17
RON DESANTIS CORD BYRD
Governor Secretary of State
August 17, 2023
Michelle R. Miller
Clerk & Comptroller
St. Lucie County
2300 Virginia Ave.
Fort Pierce, FL 34982
Attn: Vera Smith
Dear Michelle Miller,
Pursuant to the provisions of Section 125.66, Florida Statutes, this will acknowledge receipt of your
electronic copy of the St. Lucie County Ordinance No. 23-009, which was filed in this office on August 17,
2023.
Sincerely,
Anya Owens
Administrative Code and Register Director
ACO/wlh
R. A. Gray Building 500 South Bronough Street Tallahassee, Florida 32399-0250
Telephone: (850) 245-6270