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SOLAR AND ENERGY LOAN FUND
POLICIES
- 1 - 9/9/2010
TABLE OF CONTENTS
PROGRAM DEFINITION 1
APPLICANT ELIGIBILITY 1
TERMS AND CONDITIONS 2
ELIGIBLE IMPROVEMENTS 3
SECURING THE SOLAR AND ENERGY LOAN 3
POLICY CHANGES AND APPEALS 4
COMPLIANCE WITH LAWS AND REGULATIONS 4
Revised 9/2/2010
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PROGRAM DEFINITION
1)The Solar and Energy Loan Fund of St. Lucie County was initially funded through an Energy
Efficiency and Conservation Block Grant, and was initiated on the basis of findings for the need to
increase energy efficiency and conservation and the use of renewable energy sources.
2)Program objectives include the following:
a)Reduce energy costs for residential and business owners,
b)Promote energy efficiency, conservation and renewable energy technologies,
c)Create new employment opportunities in the economy’s emerging green markets,
d)Expand existing green job training facilities,
e)Lay the foundation for a more sustainable economic and environmental future,
f)Reduce the nation’s dependence on foreign oil,
g)Reduce the cost of energy efficiency improvements and renewable energy technologies through
low interest financing,
h)Attract private investment through mechanisms such as Property Assessed Clean Energy
(PACE) and Community Development Financial Institution (CDFI) programs.
i)Ensure that a minimum of sixty per cent (60%) of loan funds be loaned within targeted
investment areas. For the purposes of CDFI certification, an eligible investment area is a
geographic unit that:
i)Has a population poverty rate of at least twenty per cent (20%); or
ii)Has an unemployment rate 1.5 times the national average; or
iii)For a metropolitan area – has a median family income (MFI) at or below eighty per cent
(80%) or the greater of either the metropolitan or national metropolitan MFI; or
iv)For a non-metropolitan area – has an MFI at or below eighty per cent (80%) of the greater
either the statewide or national non-metropolitan MFI; or
v)Is wholly located within an Empowerment Zone or Enterprise Community.
APPLICANT ELIGIBILITY:
1) In order to be eligible for a Solar and Energy Loan, an applicant
must meet all of the following requirements:
a)Ownership: The applicant must own the property. For the purposes of this subsection,
"Applicant" includes all persons sharing title to the property. Applicant must present a clear
title to the property.
b)Occupancy: The property may be owner occupied, non-owner occupied or commercial
business property.
c)Income: Total gross income includes, but is not limited to the following: wages, tips, interest,
dividends, rental income, investment or business income, social security benefits, pensions,
annuity income, alimony, child support, welfare payments, veterans' benefits, disability
benefits, stipends, or living allowances. Income does not include "windfall payments" such as
lump sum insurance settlements, capital gains due to the sale of a personal residence or
business or food stamps.
i)To determine the applicant's income for eligibility purposes, one of the following methods
will be used:
(1)Income and employment information submitted by applicants will be subject to
verification.
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Revised 9/2/2010
(2)Applicants working temporary, part-time and seasonal occupations will have income
computed from their latest federal income tax return.
(3)Self-employed persons will take the average of their income from their last two federal
income tax returns. A year-to-date profit and loss statements may be required.
d)Property Taxes: It must be determined whether the property owner is delinquent on property
taxes, has been delinquent in the previous three years, or the property owner’s period of
ownership, whichever is less. If the property owner is or has been delinquent on property
taxes, as stated, this will be cause for denial.
e)Liens: All involuntary liens, including, but not limited to; construction liens, notice of default,
or other property-based debt delinquency that has been recorded in the previous three years,
should be identified. If the property owner is delinquent on any property-related lien, this will
be cause for denial.
f)Restrictions: Determine whether restrictions such as power of attorney, easements, or
subordinate agreements will affect the applicant’s authority to legally execute documents with
regard to the property.
g)Mortgage: Determine if the property owner is current on all mortgage debt. If the property
owner is delinquent on their property mortgage, this will be cause for denial.
h)Defaults: Determine if property is in foreclosure, part of a bankruptcy filing, or any recent
property related debt defaults, this will be cause for denial.
TERMS AND CONDITIONS
2):
a)Loan’s interest rate will not be less than 2% or more than 6% amortized over a period of up to
20 years. The rate of interest will be fixed for the term of the loan.
b)The amount and term of the loan will be tied to the expected useful life of the improvement.
Loan amounts will be no less than $2,500, or more than $50,000.
c)The total loan-to-value (LTV) cannot exceed 125% of the property appraiser’s market value.
The LTV is calculated by adding the first mortgage plus any liens on the property such as home
equity loans, plus the amount of the new loan through this Solar and Energy Loan Fund divided
by the market value of the property as determined by the property appraiser.
d)The total debt to income ratio of up to fifty-five per cent (55%) will be used for initial
qualification.
e)The total debt to income ratio, LTV and term of the loan can be exceeded when compensating
factors exist. These factors will be documented and may require verification.
f)If the cost of the energy efficient improvements can exceed twenty percent (20%) of the market
value, as determined by the county property appraiser, if justification is supported by an energy
audit which provides the information to calculate the Savings to Investment Ratio (SIR). Based
on cost, energy efficiency improvements are encouraged before renewable energy
improvements are performed. These are the SIR standards, but exceptions can be made.
g)At least thirty (30) days before entering into an assessment agreement, the property owner shall
provide, to the holder or loan servicers, of any existing mortgage(s) notice of the owner’s intent
to enter into an assessment agreement together with the maximum assessment amount to be
financed and the maximum annual assessment needed to pay that amount. A verified copy of
this notice shall be provided before closing.
h)Evidence of current owner’s and required flood insurance coverage must be presented at the
time of closing. The limits of insurance must cover the total amount of all liens and the total
amount of the assessment.
Revised 9/2/2010
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i)Each property must receive an energy audit or survey based on the type of improvement in the
application.
j)Property taxes shall be kept current during the term of the loan.
k)Any verification documentation must be received within sixty (60) days of submitting the
application.
l)Applicants will be notified in writing of his or her eligibility for a loan within thirty (30) days,
of receipt of a completed application. If an eligibility determination cannot be made within
thirty (30) days, the applicant will be notified in writing of the reasons(s) for the delay and the
approximate time needed to make the determination.
m)The loan amount should be net of all expected direct cash rebates.
i)Contractor may receive the rebate, which could reduce contract cost.
ii)Rebates may be assigned to the Fund.
n)Only certified and licensed contractors shall be used to complete improvements. A list of
certified and licensed contractors will be provided to the applicant.
o)All loan requests shall be reviewed and will require approval by the Solar and Energy Loan
Committee. However, the Board of Directors may authorize Executive Director to approve
loans within certain limits.
p)There are no prepayment penalties.
q)There are no late fees other than those customary penalties through tax collection.
r)Access to utility bills 12 months prior to, and 18 months post improvements, is a requirement.
ELIGIBLE IMPROVEMENTS:
3) A Solar and Energy Loan may be used to finance the cost of
energy efficient improvements as recommended by the Energy Auditor.
a)All improvements funded by the Fund shall be performed by a contractor properly certified or
registered pursuant to Part I and Part II of the Chapter 489 Florida Statute and licensed in the
municipalities and/or county where the improvements are to be performed
b)A Solar and Energy Loan may not be used to finance the cost of:
i)New construction.
ii)Materials, fixtures, or equipment of a type or quality which fails to meet specifications as
recommended by recognized organizations that test and certify such products and materials.
iii)Appliances that can be easily removed from home.
iv)Purchase, installation or repair of furnishings.
v)The applicant's labor or the labor of a member of the applicant's family or household.
SECURING THE SOLAR AND ENERGYLOAN
4) : Every Solar and Energy Loan will be
secured an assessment agreement to allow a special assessment for the term of the loan.
a)The agreement to use a special assessment shall be recorded in the public records of the county
within five (5) days of execution.
b)The cost of the Ownership & Encumbrance Report will be included in the loan. In the event
that a loan application is not approved, or in the event that an applicant decides not to accept an
approved loan, the applicant will not be required to pay for fees other than the application fee,
if applicable.
c)An application fee will be required at the time application is submitted.
d)An annual fee may be charged to administer the loan.
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Revised 9/2/2010
POLICY CHANGES AND APPEALS
5): These policies are intended as a guide and a safeguard to
the interests of all parties involved in the Solar and Energy Loan transaction.
a)Policy Exceptions: In an extraordinary situation where an exception to a policy or policies
would be justified, reasonable and appropriate, staff may present the matter to the Solar and
Energy Loan Committee for review. Any such policy exception recommended by the
Committee shall be applicable to the particular case in question only, and subject to approval
from the Board of Directors.
b)Policy Changes. Policies may be changed by the Solar and Energy Loan Committee subject to
the approval of Board of Directors.
c)Homeowner/Contractor Disputes: In the event of a conflict between the homeowner and the
contractor, the settlement of the dispute will be determined through procedures in the
Contractors’ Policy for Participation.
COMPLIANCE WITH LAWS AND REGULATIONS:
6)The Fund will at all times strive to be
in compliance with all applicable rules and regulations of the various national and state laws and
regulations. The officers and employees involved in the evaluation function shall be sufficiently
familiar with such rules and regulations so as to insure that the Fund does not willfully violate any
rule or regulation pertaining to the extension of credit. The Solar Energy Loan Fund is committed
to complying with the Equal Credit Opportunity Act (Regulation B) and the Fair Housing Act, not
only by following the written requirements of the laws, but also by following the spirit and intent
of the laws. It is the policy of the Fund to make its program available to all qualified applicants
without discrimination on the basis of race, color, religion, sex, national origin, marital or family
status, age (over that of majority), handicap, in receipt of public assistance, or good faith exercise
of rights under the Federal Consumer Protection Act. It is the Fund's policy not to discourage the
submission of an application by any applicant. When implementing policies and programs, the
Fund will consider the impact of these policies and programs and does not implement those that
disproportionately exclude or burden persons on a prohibited basis.
Revised 9/2/2010
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