16-017 1
2 ORDINANCE NO. 16 -017
3
4 AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
5 FLORIDA, AMENDING CHAPTER 2, "ADMINISTRATION" OF
6 THE CODE OF ORDINANCES, BY CREATING A NEW
7 • ARTICLE XVI, ENTITLED "REQUIREMENTS FOR CITY OF
8 BOYNTON BEACH'S PROPERTY ASSESSED CLEAN ENERGY
9 PROGRAMS ( "PACE ") "; PROVIDING FOR CONFLICTS,
10 SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE.
11
12 WHEREAS, Property Assessed Clean Energy (PACE) is a program which provides
13 upfront capital to property owners to invest in energy- efficiency, renewable energy or wind -
14 resistance improvements to their property; and
15 WHEREAS, the property owner's participation is entirely voluntary and puts in place
16 the security and repayment mechanism using a centuries -old tool of municipal government
17 finance; the non -ad valorem assessment; and
18 WHEREAS, by adopting these minimum standards the City of Boynton Beach will
19 be able to provide property owners the ability to finance energy improvements to their
20 properties through assessments on their tax bills and the program will encourage energy
21 efficient practices and create jobs; and
22 WHEREAS, the City Commission finds it is in the best interest of the health, safety,
23 and welfare of the public to increase the business tax receipt fees for businesses in the City of
24 Boynton Beach.
25 I NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
26 THE CITY OF BOYNTON BEACH, THAT:
27 Section 1. The foregoing "Whereas" clauses are true and correct and incorporated
28 herein by this reference.
29
1
30 Section 2. That Chapter 2, "Administration" is hereby amended by creating a new
31 Article XVI, entitled " Requirements for City of Boynton Beach's Property Assessed Clean
32 Energy programs ( "PACE "), to read as follows:
33 Chapter 2 Administration
34 Article XVI. Requirements for City of Boynton Beach's Property Assessed Clean Energy
35 programs ( "PACE ").
36
37 (a) Definitions. For purposes of this Section, the following words and phrases shall
38 have the following meanings:
39
40 (1) Financing Agreement shall mean the financing agreement or the summary
41 memorandum of such agreement required to be recorded in the public records
42 pursuant to the PACE Statute.
43
44
45 (2) PACE assessment shall mean the non -ad valorem assessment placed on a
46 property owner's tax bill as a result of financing obtained under the PACE Statute.
47
48 (3) PACE local government shall mean a local government (as defined in the PACE
49 Statute) that has taken all required actions to fund PACE improvements, and any
50 person or entity acting on that local government's behalf.
51
52 (4) PACE Statute shall mean Section 163.08. Florida Statutes, which establishes
53 Florida's PACE program.
54
55 (b) In addition to any disclosure requirements in the PACE Statute, PACE local
56 governments that extend financing pursuant to the PACE Statute and levy a non -ad
57 valorem assessment to fund the PACE improvements shall present to the property
58 owner a separate, written notice disclosing the following ( "Notice "):
59
60 (1) The full legal description of the property subject to the PACE assessment;
61
62 (2) The total amount of the debt, including amount financed, fees, fixed interest rate,
63 capitalized interest and the effective rate of the interest charged [APR];
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64
65 (3) The repayment process, amounts and a schedule that fully amortizes the amount
66 financed including the maximum annual PACE assessment:
67
68 (4) That the PACE assessment will appear on the property owner's tax bill:
69
70 (5) That there is no discount for paying the PACE assessment early:
71
72 (6) The nature of the lien recorded and that the PACE assessment will be collected in
73 the same manner as real estate taxes, that failure to pay the PACE assessment
74 may cause a tax certificate to be issued against the property, and that failure to
75 pay may result in the loss of property subject to the PACE assessment, including
76 homestead property, in the same manner as failure to pay property taxes; and
77
78
79 (7) The specific improvements to be installed and that the property improvements
80 and PACE assessment may or may not affect the overall value of the property.
81
82 (8) A term that does not exceed the useful life of the majority of the improvements,
83
84 (9) The 3 -day right to cancel the financing,
85
86 (10) FHFA policy toward PACE.
87
88 (c) The Notice must be delivered to the property owner by the PACE local government,
89 and must be signed and dated by the property owner prior to or contemporaneously with the
90 property owner's signing of any legally enforceable documents obligating the property owner
91 to participate in the PACE program or to repay financing obtained pursuant to a financing
92 agreement or the PACE Statute.
93
94 (d) The PACE local government shall record, or cause to be recorded, the signed Notice
95 in the public records as an attachment to the Financing Agreement, which must also be
96 recorded pursuant to the PACE Statute.
97
98 (e) Eligible Properties. PACE Programs may finance improvements on residential
99 properties (4 units or less) that meet the following criteria: (a) All mortgage- related debt on
100 the Property may not exceed 90% of the Property's fair market value (FMV); (b) The
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101 financing may not exceed (i) twenty percent (20 %) of the just value of the property consistent
102 with the PACE Statute (c) The total mortgage - related debt on the underlying Property plus
103 program financing may not exceed the FMV of the Property. PACE programs may finance
104 improvements on commercial, industrial, agricultural, multi - family residential properties of 5
105 or more units, and other non - residential properties.
106
107 (f) Eligible Improvements. When energy efficiency and renewable energy improvements
108 are financed by PACE assessment they must be permanently affixed to the property. All
109 improvements and products must meet standards established by the U.S. Department of
110 Energy, the U.S. Environmental Protection Agency, or Florida state agencies. All
111 improvements must comply with the PACE Statute for energy efficiency, renewable energy
112 and wind resistance.
113
114 (g) Complaints and Dispute Resolution. The Program must receive, manage, track, timely
115 resolve, and report on all inquiries and complaints from property owners. In addition, the
116 Program must investigate and mediate disputes between property owners and contractors.
117
118 (h) Data Security. The Program is responsible for taking security measures that protect
119 the security and confidentiality of consumer records and information in proportion to the
120 sensitivity of the information.
121
122 (i) Consumer Privacy. The Program must develop and maintain a privacy policy that
123 complies with state and federal law (e.g., the Gramm Leach Bliley Act) and, in particular,
124 prohibits sharing with third parties personal identifying information of property owners
125 without the property owner's express authorization except where expressly permitted by state
126 and federal law.
127
128 (j) Marketing and Communications. The Program prohibits marketing practices that are
129 or could appear to be unfair, deceptive, abusive, and/or misleading, that violate laws or
130 regulations that .rovide tax advice that are ina. pro .riate incom•lete or are inconsistent with
131 the Program's purpose.
132
133 (k) Protected Classes. The Program must develop and implement a program that validates
134 elder homeowner (i.e., homeowners over 64 years old) understanding of the eligible
135 improvement project for which they are seeking Program financing, including the terms of
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136 such financing.
137
138 (1) Contractor Management. The Program must ensure that contractors are licensed by
139 the appropriate State and Local agencies; and that they are insured and bonded. Additionally,
140 contractors must agree to follow program marketing guidelines, and act in good faith to timely
141 resolve property owner complaints.
142
143 (m) Maximum Financing Amounts. The Program will establish Maximum Financing
144 Amounts for every project type. The Program will establish pricing rules to ensure that
145 consumers are protected from excessive charges.
146
147 (n) Reporting. The Program will report on a quarterly basis to its local government
148 partners on the number of applications submitted, projects completed, energy saved, and jobs
149 created as a result of the Program.
150
151 (o) Closing and Funding. The Program requires that the property owner and the
152 contractor sign a certificate of completion prior to providing funding to the
153 contractor for the project. The Program also requires that any necessary permits are
154 pulled and verified prior to funding. The Program will conduct a randomized onsite
155 inspection protocol to verify that the appropriate financed products have been
156 installed.
157
158 Section 3. Each and every other provision of Chapter 2, of the Code of Ordinances of
159 the City of Boynton Beach not herein specifically amended shall remain in full force and
160 effect as previously enacted.
161 Section 4. All ordinances or parts of ordinances in conflict herewith be and the
162 same are hereby repealed.
163 Section 5. Should any section or provision of this ordinance or portion hereof, any
164 paragraph, sentence or word be declared by a court of competent jurisdiction to be invalid,
165 such decision shall not affect the remainder of this ordinance.
166 Section 6. Authority is hereby granted to codify said ordinance.
167 Section 7. This ordinance shall become effective immediately upon passage.
168
169
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170 FIRST READING this 16 day of August, 2016.
171
172 SECOND, FINAL READING AND PASSAGE this g day of
173 , 2016.
174
175 CITY OF BOYNTON BEACH, FLORIDA
176
177 YES NO
178
179 Mayor — Steven B. Grant
180
181 Vice Mayor — Mack McCray /
182
183 Commissioner — Justin Katz /
184
185 Commissioner — Christina L. Romelus 7
186
187 Commissioner — Joe Casello
188
189 �
190 VOTE
191
192 ATTEST:
193
194
195 ! i
196 Ju• t A. Pyle, CMC /
197 Inty City Clerk
198
199
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200 ,`����,,.
201 (Corporate Seal) "' 1'
202 A
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