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Agenda 06/25/2019 Item # 9A (PACE)06/25/2019 EXECUTIVE SUMMARY Recommendation to further discuss the adoption of the Collier County Property Assessed Clean Energy (PACE) Consumer Protection Ordinance to better protect the public by providing additional requirements. _____________________________________________________________________________________ OBJECTIVE: To further discuss the Collier County Property Assessed Clean Property Assessed Clean Energy (PACE) Consumer Protection Ordinance to better protect the public by providing for more restrictive or additional requirements not found in the PACE Statute or the Standard Membership Agreement. This item is a continuation from the June 11, 2019 regular Board Meeting. CONSIDERATIONS: This matter was first brought to the Board by Commissioner Taylor on March 12, 2019 as Item 10B. At the Board of County Commissioners March 26, 2019 meeting, the Board directed the County Manager to work with all stakeholders to identify opportunities to provide additional consumer protection, and to bring back at a future regular meeting an executive summary creating an Ordinance that addresses the concerns brought forth by the Board. This was further discussed at the May 14, 2019 and May 28, 2019 regular Board meetings. The Board of County Commissioners voted at its regular meeting of May 28, 2019 to terminate the Property Assessment Clean Energy (PACE) program pursuant to paragraph 18 of the Standard Form Membership Agreement and instructed the County Manager to bring back a PACE Consumer Protection Ordinance for consideration. On June 11, 2019 the Board was presented with PACE Consumer Protection Ordinance recommendations, provided feedback and edits, and continued this item until their next regular meeting for further consideration. Background In 2010, the State of Florida passed its PACE enabling statute, F.S. Section 163.08, in an effort to promote energy efficiency, renewable energy, and wind resistance/hardening measures for residential, commercial, and industrial buildings throughout the State of Florida. The PACE program is a method of public financing designed to have “qualifying improvements” paid for through a special tax assessment, on the property, which would allow project expenditures to be spread out over a term up to 30 years and repaid as part of a property owner’s tax bill. As outlined in Section 163.09(2)(b), Florida Statutes, eligible PACE improvements are limited to: energy efficiency (including electric vehicle charging equipment) renewable energy equipment and wind resistance/hurricane mitigation measures. PACE financing is a land-secured assessment that property owners voluntarily undertake in order to secure 100% up-front financing of a qualifying improvement, which includes fees and interest over the term of the PACE assessment. PACE loans are unique in that they take priority over other traditional liens, regardless of the date the prior liens were recorded. In addition to economic and property value benefits, PACE also presents benefits in terms of resource conservation, environmental protection, and hurricane preparedness. By removing barriers to implementation of energy efficiency and renewable energy projects, PACE could result in decreased use of energy and a shift to cleaner energy sources, decreasing air pollutants, and greenhouse gases. Florida’s inclusion of resiliency projects in the list of eligible types could also increase the number of properties with hurricane preparedness improvements. In 2017, by Resolution No. 2017-130, the Board of County Commissioners adopted a Resolution establishing the Property Assessment Clean Energy (PACE) program within the unincorporated areas of 9.A Packet Pg. 41 06/25/2019 Collier County for residential, commercial and industrial properties. Since that time, by Resolution Nos. 2017-127, 2017-128, 2017-129, and 2017-153, four PACE providers have entered into the standard membership agreement and are operating a PACE program within Collier County. It has been reported that potential abuses of the PACE program have taken place, largely from a minority of PACE program contractors, which the proposed new Ordinance seeks to address. This item was discussed by the Board on March 12, 2019 and then on March 26, 2019, where the Board directed the County Manager to work with the PACE providers, the Collier Building Industry Associ ation (CBIA) and local housing organizations to bring back an updated Ordinance for consideration that enhanced consumer protections while allowing the PACE providers to continue to operate within unincorporated Collier County. On June 11, 2019 the Board was presented with PACE Consumer Protection Ordinance recommendations, provided feedback and edits, and continued the item until a final Ordinance draft could be considered at the next regular meeting. Research Staff conducted a review of the current liens filed with the Collier County Tax Collector and requested information from each of the four PACE providers to better understand how the current program is functioning. The primary focus was on work performed, licensed contractor, permit issued, project certificate of completion from the County, loan to appraised value, terms of loan, and the annual PACE assessment owed. Staff was provided with feedback from Pasco and Palm Beach County and further researched consumer protections within PACE programs throughout the state. This Executive Summary, together with the attached documents, is intended to address concerns and provide for additional consumer protections that are not currently identified within Resolution Nos. 2017- 130, 2017-127, 2017-128, 2017-129, and 2017-153. Considerations for the Board The purpose of the current PACE Program is to facilitate the financing of qualifying improvements in accordance with Section 163.08, Florida Statutes, for County property owners within unincorporated Collier County, including residential, commercial and industrial properties. This new Ordinance provides for more restrictive and/or additional requirements not found in the PACE Statute, the Standard Membership Agreement or any other applicable law. FISCAL IMPACT: A PACE residential program customer disclosure form review at the time of building permit application would have no financial impact on the County General Fund. It is the responsibility of PACE Provider and a Third-Party Administrator to secure the private financing necessary for the implementation of the program, and they are responsible for recovering any losses in the event of defaults on the assessments. They cover the costs of collecting the assessments and administrative costs through their fees and interest rates. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: That the Board of County Commissioner adopt the Collier County Property Assessed Clean Energy (PACE) Consumer Protection Ordinance to better protect the public by providing additional requirements and reconsider the decision to terminate the PACE program and associated 9.A Packet Pg. 42 06/25/2019 membership agreements identified within Collier County Resolutions Nos. 2017-130, 2017-127, 2017- 128, 2017-129, and 2017-153. Prepared by: James French, Deputy Department Head, Growth Management Department ATTACHMENT(S) 1. Ordinance PACE Consumer Protection-JF_6.19.19 (003) (PDF) 2. PACE program - Customer Disclosure Agreement Final (JFv8)_6.18.19 (PDF) 3. FPFA Eligible Products Estimated Life Specifications (PDF) 4. 6-18-19 PACE Consumer Protections (PDF) 9.A Packet Pg. 43 06/25/2019 COLLIER COUNTY Board of County Commissioners Item Number: 9.A Doc ID: 9311 Item Summary: ***This item was continued from the May 14, 2019 BCC meeting, and further continued from the June 11, 2019 BCC meeting .*** Recommendation to further discuss the adoption of the Collier County Property Assessed Clean Energy (PACE) Consumer Protection Ordinance to better protect the public by providing additional requirements. Meeting Date: 06/25/2019 Prepared by: Title: Manager - Technical Systems Operations – Administrative Services Department Name: Michael Cox 06/19/2019 4:54 PM Submitted by: Title: Division Director - Operations Support – Growth Management Operations & Regulatory Management Name: Kenneth Kovensky 06/19/2019 4:54 PM Approved By: Review: Growth Management Department Judy Puig Level 1 Reviewer Skipped 06/19/2019 4:52 PM Growth Management Department Judy Puig Deputy Department Head Review Skipped 06/19/2019 4:52 PM Growth Management Department Judy Puig Department Head Review Skipped 06/19/2019 4:52 PM Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 06/19/2019 3:51 PM Office of Management and Budget MaryJo Brock Additional Reviewer Skipped 06/19/2019 3:51 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/19/2019 4:55 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/19/2019 5:03 PM Board of County Commissioners MaryJo Brock Meeting Pending 06/25/2019 9:00 AM 9.A Packet Pg. 44 Page 1 of 4 ORDINANCE NO. 2019 - _____ 1 2 AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF 3 COLLIER COUNTY, FLORIDA, ADOPTING THE COLLIER COUNTY 4 PROPERTY ASSESSED CL EAN ENERGY (PACE) CONSUMER PROTECTION 5 ORDINANCE; PROVIDING FOR CONFLICT AND SEVERABILITY; 6 PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; 7 AND PROVIDING FOR AN EFFECTIVE DATE. 8 9 WHEREAS, individual residents of Collier County may wish to improve energy efficiency, install 10 energy improvements or retrofits, wind resistance/wind hardening measures, and improve water 11 conservation for residential, commercial or industrial properties; and 12 13 WHEREAS, one way to facilitate such improvements to real property is through a Property 14 Assessment Clean Energy (PACE) financing program pursuant to Section 163.08, Florida Statutes; and 15 16 WHEREAS, a PACE financing program is a financing structure by which commercial or 17 residential property owners may voluntarily opt into a special assessment district to receive a loan to 18 finance energy improvements and retrofits, where those loans are repaid through an annual assessment on 19 the property owner's property tax bill; and 20 21 WHEREAS, PACE providers that have been created under Section 163.01(7) Florida Statutes are 22 considered local governments, and the County may select from those PACE providers and enter into 23 agreements with the selected providers, without proceeding with a solicitation; and 24 25 WHEREAS, by Resolution No. 2017-130, the Board (1) approved the establishment of a PACE 26 program within the unincorporated area of Collier County for residential, commercial and industrial 27 properties; and (2) approved a standard form membership agreement which would among other things 28 authorize a PACE provider to operate a PACE program within Collier County; and 29 30 WHEREAS, a number of PACE providers have entered into the standard membership agreement 31 and are operating a PACE program within Collier County; and 32 33 WHEREAS, it has come to the Board’s attention that potential abuses of the PACE program may 34 have taken place, which the Board wishes to correct and address by this Ordinance. 35 36 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY 37 COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: 38 39 SECTION ONE: Title and Intent 40 41 This Ordinance shall be known and cited as “The Collier County Property Assessed Clean Energy 42 (PACE) Consumer Protection Ordinance ," and is intended to add requirements to the provisions of 43 Section 163.08, Florida Statutes , the Standard Membership Agreement and other applicable law as it 44 currently exists and should be construed consistently with the PACE Statute and any such other 45 applicable law. To the extent that the PACE Statute provides for additional requirements not otherwise 46 9.A.1 Packet Pg. 45 Attachment: Ordinance PACE Consumer Protection-JF_6.19.19 (003) (9311 : **PACE Program Modification) Page 2 of 4 found in this Ordinance or applicable law; the provisions o f the PACE Statute must be met. To the 47 extent that this Ordinance provides for more restrictive or additional requirements not found in the 48 PACE Statute, the Standard Membership Agreement or any other applicable law, the provisions of 49 this Ordinance shall apply. 50 51 SECTION TWO: Definitions 52 53 The following words, terms and phrases, when bolded and used in this Ordinance, shall have the 54 meanings set forth herein: 55 56 Board shall mean the Collier County Board of County Commissioners. 57 58 PACE Assessment shall mean the non-ad valorem assessment placed on a property owner's tax bill as 59 a result of financing obtained through a PACE Provider. 60 61 PACE Financing Agreement shall mean the agreement entered into between a property owner and the 62 PACE Provider or its administrator specifying the Qualifying Improvements to be installed at the 63 property and the terms and conditions for financing those improvements through non -ad valorem 64 assessments levied on the property. 65 66 PACE Provider shall mean an entity created pursuant to the PACE Statute that has entered into a 67 Standard Membership Agreement . 68 69 PACE Statute shall mean Section 163.08, Florida Statutes , as may be amended from time to time. 70 71 Qualifying Improvements shall mean only those improvements defined by the PACE Statute. 72 73 Standard Membership Agreement shall mean the Board-approved standard form agreement as 74 described in Resolution 2017 -130 and as entered into by the PACE Provider. 75 76 SECTION THREE: PACE Program Standards 77 78 At a minimum, PACE Providers shall comply with each of the following standards: 79 80 (1) Qualifying Improvements : PACE Providers shall finance, and contractors and owner-builders 81 shall construct or install, only Qualifying Improvements , which shall be properly permitted and must 82 comply with Florida and local codes. 83 84 (2) Customer Service: PACE Providers shall provide a high level of customer service, including: 85 86 a. Access to customer service representatives by email and phone during normal business 87 hours; 88 b. A transparent customer feedback and complaint process with quick response and 89 resolution by both the contractor and the PACE Provider; 90 c. All complaints and resolutions shall be logged, with the following information at a 91 minimum: date and time of complaint, customer and contractor information, details of 92 9.A.1 Packet Pg. 46 Attachment: Ordinance PACE Consumer Protection-JF_6.19.19 (003) (9311 : **PACE Program Modification) Page 3 of 4 complaint, when and what actions were taken by both the PACE Provider and the 93 contractor, and final resolution ; and 94 d. All disputes and complaints shall be investigated and resolved in a timely manner. 95 Reports of such disputes and complaints, the actions taken and how they were resolved, 96 or not resolved, shall be created and thereafter be treated as Public Records and provided 97 to Collier County, upon request. 98 99 (3) Additional Program standards for residential pr operties: In addition to all requirements set forth 100 in Section 163.08, Florida Statutes, PACE Providers that finance Qualifying Improvements on 101 residential properties within Unincorporated Collier County shall: 102 103 a. Verify that each prior mortgage or financing instrument holder has been notified of any 104 proposed PACE Financing Agreement and PACE Assessment and if obtainable, ensure 105 that the mortgage or financing instrument holder or loan servicer has consented to escrow 106 sufficient funds to ensure payment of the annual assessment with each year’s tax bill ; and 107 b. Require the property owner sign a PACE Customer Disclosure Document provided by 108 Collier County, in the presence of a notary, prior to the issuance of a building per mit. 109 i. The PACE Customer Disclosure Document must provide detailed PACE 110 Assessment consumer information and shall be submitted to Collier County by the 111 contractor or owner-builder as part of the building permit application; and 112 c. Ensure that the total amount of any PACE Assessments on any property does not exceed an 113 aggregate amount of twenty percent (20%) of the property's just or market rate value, as 114 determined by the Collier County Property Appraiser, pursuant to Section 163.08 (12), 115 Florida Statutes; and 116 d. Ensure that the total amount of the annual PACE Assessments do not exceed four percent 117 (4%) of the total annual gross income of the property owner in the prior calendar or fiscal 118 year, based upon an affidavit or attestation by the property owner of the owner’s total annual 119 gross income; and 120 e. The term of the PACE Assessment should not exceed the useful life of the Qualifying 121 Improvement, as determined by the 2017 Florida Pace Funding Agency Eligible Products 122 Estimated Life Specifications . 123 f. Not process any PACE Assessments against the property owner with the Collier County Tax 124 Collector until the Qualifying Improvement on that property has received all required 125 permits and inspections from Collier County, pursuant to the Collier County Land 126 Development Code, Chapter 489, Florida Statutes, and Chapter 553, Florida Statutes. 127 128 (4) Documents: Within 10 business days following written request by the County, the PACE Provider 129 shall provide the County at no cost to the County any and all requested records produced and maintained 130 by the PACE District, it’s employees, contractors, and consultants. Records shall be deemed as Public 131 Records in accordance with Section 119.01 Florida Statute, General State Policy on Public Records. 132 133 134 SECTION FOUR: Penalty for Violations 135 136 All alleged violations of this Ordinance shall be processed according to the Collier County 137 Consolidated Code Enforcement Ordinance (Ord. No. 2010-04, as amended) and per provisions of 138 9.A.1 Packet Pg. 47 Attachment: Ordinance PACE Consumer Protection-JF_6.19.19 (003) (9311 : **PACE Program Modification) Page 4 of 4 Chapter 162, pts. I or II, Florida Statutes, as may be applicable. The Special Magistrate shall hear and 139 decide cases involving violations of this ordinance and any fines shall be consistent with the Collier 140 County Consolidated Code Enforcement Ordinance (Ord. No. 2010-04, as amended). In addition to the 141 imposition of a fine, based upon the finding of the Special Magistrate, the Board may immediately 142 terminate for cause the Standard Membership Agreement, and may request the Collier County Tax 143 Collector, on a going-forward basis, to remove the PACE Assessment from the propert y which is the 144 subject of the violation for future collection, requiring the PACE Provider to arrange for any and all 145 future collection for repayment. 146 147 SECTION FIVE: Conflict and Severability 148 149 In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable 150 law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held invalid or 151 unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct 152 and independent provision and such holding shall not affect the validity of the remaining portion. 153 154 SECTION SIX: Inclusion in the Code of Laws and Ordinances 155 156 The provisions of this Ordinance shall become and be made a part of the Code of Laws and 157 Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or relettered 158 to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other 159 appropriate word. 160 161 SECTION SEVEN: Effective Date 162 163 This Ordinance shall become effective upon receipt of notice from the Secretary of State that this 164 Ordinance has been filed with the Secretary of State. 165 166 PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, 167 Florida, this _______ day of _____________________, 2019. 168 169 ATTEST: BOARD OF COUNTY COMMISSIONERS 170 CRYSTAL K. KINZEL, Clerk COLLIER COUNTY, FLORIDA 171 172 173 By: ___________________________ By: _____________________________ 174 , Deputy Clerk W. L. McDaniel, Jr., Chairman 175 176 177 Approved as to form and legality: 178 179 180 _______________________________ 181 Jeffrey A. Klatzkow, County Attorney 182 9.A.1 Packet Pg. 48 Attachment: Ordinance PACE Consumer Protection-JF_6.19.19 (003) (9311 : **PACE Program Modification) 1 Collier – Residential PACE Program Disclosure ______ Property Owner Initials PROPERTY ASSESSMENT CLEAN ENERGY (PACE) PROGRAM RESIDENTIAL CUSTOMER DISCLOSURE AGREEMENT THINGS YOU SHOULD KNOW ABOUT PARTICIPATING IN THE RESIDENTIAL PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM THIS IS NOT A COLLIER COUNTY GOVERNMENT ADMINISTERED PROGRAM What is the Residential PACE program? PACE or Property Assessed Clean Energy Program is a government sponsored program that is used in Florida to finance energy efficiency improvements, renewable energy improvements and wind resistance improvements in accordance Section 163.08, Florida Statutes. Is the PACE program free for me? The PACE Program is not free. To participate in the program, you must qualify for the PACE funds that finance the improvements. You owe the amount of the PACE lien plus interest, which is paid in installments as an additional line item on your property tax bill. When the assessment is paid off in full, the lien will be removed, and yo u will no longer see this line item on your property tax bill. How do I qualify for the financing? The law requires that to qualify you must have paid all your property taxes and not have been delinquent for the last 3 years, that there are no involuntary liens on your home and no notices to default and that you are current on your mortgage. The PACE Program is not required to look at whether your family budget can afford the additional loan. 9.A.2 Packet Pg. 49 Attachment: PACE program - Customer Disclosure Agreement Final (JFv8)_6.18.19 (9311 : **PACE Program Modification) 2 Collier – Residential PACE Program Disclosure ______ Property Owner Initials How do I repay the PACE funds? The PACE Program funds are paid with your property tax assessment. If you have a mortgage, your lender may include the property taxes in your monthly payment. If so, your monthly mortgage payment will increase accordingly. However, your mortgage lender will typically not make the adjustment until they receive the first tax bill with the assessment. Do I pay interest for the financing? PACE Programs charge interest over the repayment term you selected (up to 30 years). Please review the Financing Estimate to see the interest rate applicable to your PACE assessment, which may be higher than other financing options available to you. You should ask about any low interest loans available, like utility sponsored programs, federal weatherization programs or a lower rate loan at your bank or credit union with a second mortgage or a home equity line of credit. Are there other costs? PACE Program assessments also charge borrowers an up-front free, typically based on a percentage of project costs, and an administration fee bas ed on a percentage of the annual payment, which is payable each year during the repayment term you selected. Please review the Financing Estimate to see the fees application to your PACE assessment. What happens If I am not happy with the improvements? A licensed contractor must do all PACE program improvements requiring a license under applicable law. However, your recourse against the contractor if you are not happy with the improvements may be limited by the nature of the PACE Program financing. That is why it is important to carefully select the contractor and read all paperwork carefully. 9.A.2 Packet Pg. 50 Attachment: PACE program - Customer Disclosure Agreement Final (JFv8)_6.18.19 (9311 : **PACE Program Modification) 3 Collier – Residential PACE Program Disclosure ______ Property Owner Initials For energy improvements, does the contractor have to give me an energy audit? The law does require any verification of energy savings for improvements to your home from a PACE Program loan. Any figures about energy savings given to you by a contractor should be independently verified by you. What happens if I have trouble making the increased tax payment? The PACE program is essentially a home improvement loan that is paid off by assessments to your tax bill. If you default on your PACE Program loan by failing to pay your property taxes, a tax certificate will be sold on the property. After two years of an unpaid tax certificate, your home could be sold through the Tax Deed Application process. Failure to pay your PACE assessment can result in your losing your home. Can I refinance my home while I still am making payments on my PACE Program Loan? PACE Program loans may impede your ability to refinance your home loan or to receive a home loan modification because some lenders will not want to enter into a new loan terms while a PACE Program loan is assessed against your home. You may be required to prepay PACE assessment as a requirement to refinancing. Can I sell my home before I have paid off the PACE Program loan? The PACE Program lien is automatically transferred to the buyer when you sell your home. BUT Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veterans Affairs may not insure mortgages with PACE assessments. Other lenders are not required to accept PACE Program liens. As a result, you may be required to prepay the PACE assessment as a requirement to selling your home. What is the most important thing I can do to protect myself? 1. Take your time before you sign any documentation. 2. Ask for and read all documentation relating to a PACE Program financing. 3. Consider receiving multiple estimates from licensed and insured contractors, other financial lenders or approved PACE Program providers to ensure that you are receiving the most competitive prices and the best value. 9.A.2 Packet Pg. 51 Attachment: PACE program - Customer Disclosure Agreement Final (JFv8)_6.18.19 (9311 : **PACE Program Modification) 4 Collier – Residential PACE Program Disclosure ______ Property Owner Initials 4. Make sure that your contractor files a Notice of Commencement signed by you and filed with the Collier County Clerk of Courts. 5. Make sure that your contractor acquires all required permits before a project is started, all inspections from the County after the project is completed, and the project is signed off to your satisfaction. 6. Make sure that you ask for a printed copy of all documentation and warranties. 7. Do not sign anything that you do not understand. MAKE SURE YOU ASK FOR A PRINTED COPY OF ALL DOCUMENTS TO READ BEFORE YOU ALLOW ANYONE TO WORK ON YOUR HOME. KNOW BEFORE YOU OWE Please fill out the following: Full Legal Name: _____________________________________________________ Phone Number: Area Code ( ) _____ - ________ Physical Address: ____________________________________________________ Parcel Number: _____________________________________________________ Estimated Annual Payment: $ _____________________________ (Cannot exceed 4% of the total annual gross income of the property owner in the prior calendar or fiscal year) Total Assessment Amount: $ ____________________________ (Includes financing amount, interest charges and fees) Total Length of Assessment in Years: _____________ Estimated Tax Year First Payment Due: ___________________________ 9.A.2 Packet Pg. 52 Attachment: PACE program - Customer Disclosure Agreement Final (JFv8)_6.18.19 (9311 : **PACE Program Modification) 5 Collier – Residential PACE Program Disclosure ______ Property Owner Initials Annual Tax with PACE Assessment payment: ___________________________ (Cannot exceed 5% of the property’s just value (fair market) as determined by the Collier County Property Appraiser at time of financing) I have read the above and I understand the information provided to me. I also understand there are other financing options possibly available, this is not a FREE program, or a program administered by Collier County Government . I also acknowledge that there may be other approved PACE authorized contractors and PACE providers available. Signature: ___________________________________________ (Property Owner) Signature: ___________________________________________ (Property Owner) Signature: ___________________________________________ (Property Owner) Signature: ___________________________________________ (Property Owner) ------------------------------------------------------------------------------------------------------------- State of Florida The foregoing instrument was acknowledged before me this ________ day of _____________________, 20______. by ___________________________________________________________ and __________________________________________________ (Property owner(s)) ☐ Personally Known to me ☐ Has produced identification: __________________________________ Florida Notary Signature: _______________________________________ Seal Applicant (Licensed Contractor or Owner Builder) and PACE Provider: Please note that this entire completed and notarized package must be submitted at the time of the building permit application. All inspections must be completed by Collier County prior to filing a PACE Assessment with the Collier County Tax Collector. Please contact a customer service representative at the Collier County Growth Management Department Business Center for more information at (239) 252-2400. 9.A.2 Packet Pg. 53 Attachment: PACE program - Customer Disclosure Agreement Final (JFv8)_6.18.19 (9311 : **PACE Program Modification) Exhibit B - Eligible Products List Product Category Product Type Product Specifications Estimated Life (Years) Heating, Ventilation, and Air Conditioning (HVAC) Air-Source Heat Pump 1. Product must be AHRI Certified and the AHRI number must be provided. 2. Product must be Energy Star Compliant: a. Mini-Split: L6((5 LL+63) LLL((5 b. Packaged Unit: L6((5 LL+63) LLL((5 3. Must be new and replace an existing product. 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 Central Air Conditioner 1. Product must be AHRI Certified and the AHRI number must be provided. 2. Product must be Energy Star Compliant: a. Mini-Split: L6((5 LL((5 b. Packaged Unit: L6((5 LL((5 3. Must be new and replace an existing product. 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 Furnace 1. Product must be AHRI Certified and the AHRI number must be provided 3URGXFWPXVWEH(QHUJ\6WDU&RPSOLDQW$)8( 3. Must be new and replace an existing product. 4. Must be installed according to manufacturer specs and all applicable state and local codes 10 9.A.3 Packet Pg. 54 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Evaporative Cooler 1. Must have separate duct system; separate from of the air conditioning and heating duct system 2. Must be permanently installed through wall or on the roof; window installed units are not eligible 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Boiler 1. Product must be AHRI Certified and the AHRI number must be provided. D3URGXFWPXVWEH(QHUJ\6WDU&RPSOLDQW$)8( 2. Must be installed according to manufacturer specs and all applicable state and local codes 20 Geothermal Heat Pump 1. Product must be Energy Star Compliant: a. Closed Loop Water-to-Air: L((5 LL&23 b. Open Loop Water-to-Air: L((5 LL&23 d. Closed Loop Water-to-Water: L((5 LL&23 e. Open Loop Water-to-Water: L((5 LL&23 f. Direct Expansion (DGX): L((5 LL&23 2. Product must be new and replace an existing product 3. Must be installed according to manufacturer specs and all applicable state and local codes 15 9.A.3 Packet Pg. 55 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Hydronic Radiant Heating System 1. System must be powered by an high-efficiency AllianceNRG- eligible heating source 2. Must be installed according to manufacturer specs and all applicable state and local codes 15 Mini-Split Air Conditioner 1. Product must be AHRI certified and the AHRI number must be provided. 2. Efficiency: D6((5 3. Product must replace an existing product 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 Mini-Split Heat Pump 1. Product must be AHRI certified and the AHRI number must be provided. Efficiency: D6((5 E+63) 2. Product must replace an existing product 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Biomass / Wood Stove 1. Product must be certified and listed on the EPA Certified Wood Stoves list 2. Must be installed according to manufacturer specs and all applicable state and local codes 15 Duct Replaceme nt 1. Duct system leakage limits: D$OORZHGSDUWLDOUHSODFHPHQWZKHQWRWDOV\VWHP nominal flow or E$OORZHGIXOOUHSODFHPHQWZKHQWRWDOV\VWHPQRPLQDO flow 'XFW,QVXODWLRQ59DOXH5 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Heat/ Energy Recovery Ventilator 1. Product must be certified by the Home Ventilation Institute (HVI) 2. Must be installed according to manufacturer specs and all applicable state and local codes 10 Exhaust Ventilation Fixture 1. Product must be Energy Star Compliant 2. Must be installed according to manufacturer specs and all applicable state and local codes 10 9.A.3 Packet Pg. 56 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Whole House Fan 1. Product must be Energy Star Compliant 2. Must be installed according to manufacturer specs and all applicable state and local codes 10 Attic Ventilation Fixture 1. Product must have thermostatic control 2. Must be installed according to manufacturer specs and all applicable state and local codes 20 Ceiling Fan 1. Product must be certified as Energy Star compliant 2. Must be installed according to manufacturer specs and all applicable state and local codes 15 Windows, Doors, and Skylights Window 1. Product must be ENERGY STAR compliant and NFRC Certified: D8)DFWRU E6+*& 2. Product must replace an existing product 3. Product NFRC labels must be submitted with Certificate of Compliance or Occupancy 4. Must be installed according to manufacturer specs and all applicable state and local codes 20 9.A.3 Packet Pg. 57 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Door 1. Product must be ENERGY STAR compliant and NFRC Certified: a. Opaque: L8)DFWRU ii. SHGC = Any E/LWH L8 LL6+*& c. > 1/2-Lite: L8 LL6+*& 2. Product must replace existing product 3. Product NFRC labels must be submitted with Certificate of Compliance or Occupancy 4. Must be installed according to manufacturer specs and all applicable state and local codes 20 Skylights and Tubular Daylighting Device 1. Product must be ENERGY STAR Compliant and NFRC Certified: D8)DFWRU E6+*& 2. Product NFRC labels must be submitted with Certificate of Compliance or Occupancy 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Applied Window Film 1. Product must be NFRC Certified 2. Product NFRC labels must be submitted with Certificate of Compliance or Occupancy 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Solar Photovoltaic and Thermal Solar Panel 1. (California only) Product must be listed as California Solar Initiative incentive-eligible photovoltaic module in compliance with CA-SB1 guidelines 2. Installation Contractor must hold an NABCEP Solar PV Certification in good standing 3. (California only) Be registered with the California Solar Initiative Program and have the correct CSLB licensure to install solar systems 4. System must be grid connected unless the property is not currently connected to the grid 5. Must be installed according to manufacturer specs and all applicable state and local codes 20 9.A.3 Packet Pg. 58 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Solar Inverter 1. (California only) Product must be listed as California Solar Initiative eligible inverter in compliance with CA-SB1 guidelines. 2. (California only) Installation contractor must be registered with the California Solar Initiative Program and have the correct CSLB licensure to install solar systems 3. System must be grid connected unless the property is not currently connected to the grid 4. Must be installed according to manufacturer specs and all applicable state and local codes 5. The inverter must be warrantied for a period equal to the financing term 20 Solar Water Heating 1. System must have the OG-300 System Certification by the Solar Rating and Certification Corporation (SRCC) 6\VWHP6RODU)UDFWLRQ6)PXVWEH 3. Auxiliary tank must be residential class 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 Solar Pool Heating 1. Product must have the OG-100 Collector Certification by the Solar Rating and Certification Corporation (SRCC) 2. Must be installed according to manufacturer specs and all applicable state and local codes 20 9.A.3 Packet Pg. 59 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Alternative Energy Small Wind Turbine 1. Product must be certified by the Small Wind Certification Council as meeting the requirements of the AWEA Small Wind Turbine Performance and Safety Standard (9.1-2009) 2. Product must be grid connected unless the property is not currently connected to the grid 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Advanced Energy Storage System 1. (California only) System must meet the eligibility requirements outlined in the current California Self-Generation Incentive Program (SGIP) Handbook 2. System must be tied to a program eligible Solar PV system 3. System must be grid connected unless the property is not currently connected to the grid 4. Must be installed according to manufacturer specs and all applicable state and local codes 10 Electric Vehicle Charging Station 1. Product must certified as meeting the UL Subject 2594 Standard Testing for Charging Stations 2. Product must be a Level 2 charger with SAE J1772 standard charging plug 3. Must be installed according to manufacturer specs and all applicable state and local codes. 9.A.3 Packet Pg. 60 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Stationary Fuel Cell Power System 1. System must be certified as meeting the ANSI/CSA America FC1 standard 2. Must be installed according to manufacturer specs and all applicable state and local codes and/or: a. Standard for the Installation of Stationary Fuel Cell Power Plants, NFPA 853, b. National Fuel Gas Code, ANSI Z223.1/NFPA 54, c. National Electrical Code, NFPA 70, as applicable. 15 Building Envelop Exterior Window Shading Device 1. Product must be permanently secured to the exterior of the property with attachments or fasteners that are not intended for removal 2. Each device must be installed to provide shading to at least one window or door 3. Product must be one of the following styles: a. Fixed Awning b. Operable Awning c. Louvered Shutter d. Roll-down Shutter e. Roll-down Solar Screen 4. Exterior structural elements including, but not limited to sunroom enclosures, exterior decks, balconies, roof overhangs, trellises, pergolas, arbors, and/or carports are NOT eligible 5. Interior window shading products including, but not limited to, blinds, shutters, shades, or curtains are NOT eligible 6. Must be installed according to manufacturer specs and all applicable state and local codes 10 Cool Wall Coating 1. Product must be Energy Star Compliant 3URGXFWPXVWKDYHVRODUUHIOHFWDQFHDVWHVWHGE\ recognized third-party laboratory to ASTM C1549-09 standard 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Cool Roof - Prescriptive 1. Product must be listed in the CRRC or ENERGY STAR product directories /RZ6ORSH5RRI(IILFLHQF\ D$JHG\UV6RODU5HIOHFWDQFH 3. Steep-Slope Roof (>2:12) Efficiency: a. Aged Solar Reflectance > 0.15 4. Must be installed according to manufacturer specs and all applicable state and local codes 20 9.A.3 Packet Pg. 61 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Cool-Roof - Performance 1. If a Cool Roof –Prescriptive roofing product is not specified, one of the following performance measures must also be implemented in the scope of work: a. Provide an air-space of at least 1”between the top of the roof deck and the bottom of the roofing product E,QVXODWHDWWLFIORRUWR5YDOXH F6HDO ,QVXODWHDWWLF+9$&GXFWZRUNWR5DQG leakage G,QVWDOODQHOLJLEOHUDGLDQWEDUULHU5HIOHFWLYLW\DQG (PLWWDQFHZLWKUHIOHFWLYHVLGHIDFLQJDLUVSDFH H,QVXODWHURRIGHFNWR5YDOXH f. Install roof construction with thermal mass over a membrane with a weight of at least 25 lb/ft2 2. Project stakeholder is fully and solely responsible to meet any such additional requirements. 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Attic Insulation 5YDOXH 2. Must be installed according to manufacturer specs and all applicable state and local codes 20 Wall insulation 5YDOXHWRIXOOIUDPLQJFDYLW\GHSWK 2. Must be installed according to manufacturer specs and all applicable state and local codes 20 Under-floor Insulation 5YDOXHWRIXOOMRLVWGHSWK 2. Must be installed according to manufacturer specs and all applicable state and local codes 20 Radiant barrier (PLVVLYLW\ 5HIOHFWLYLW\ 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Air Sealing 1. Installation must comply with BPI, ENERGY STAR, and ASHRAE 62.2 guidelines.10 9.A.3 Packet Pg. 62 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) High- Efficiency Water Heating Gas Storage water Heater 1. Product must be ENERGY STAR Compliant () 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Electric Heat Pump Storage Water Heater 1. Product must be ENERGY STAR Compliant () 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Gas Tankless Water Heater 1. Product must be ENERGY STAR Compliant () 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 High Efficiency Pool Equipment Pool Pump and Motor 1. Product must be ENERGY STAR Compliant: D6LQJOH6SHHG3XPS()IRUVLQJOHVSHHG E0XOWL9DULDEOH6SHHG)ORZ()IRUPRVWHIILFLHQW speed 2. Product must replace existing product 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Electric Heat Pump Pool Heater 1. Product must be ENERGY STAR Compliant &23 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Gas Pool heater 1. Product must be ENERGY STAR Compliant 7KHUPDO(IILFLHQF\ 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 Automatic pool cover 1. Product must be an automatic pool cover UL certified as meeting ASTM F1346 Standard Performance Specification 2. Product must be permanently installed on an existing swimming pool 3. Must be installed according to manufacturer specs and all applicable state and local codes 4.Manual swimming pool covers are not eligible. 10 9.A.3 Packet Pg. 63 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) High Efficiency Lighting Indoor Lighting Fixture 1. Product must be ENERGY STAR Compliant 2. Product must be permanently installed 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Outdoor Lighting Fixture 1. Product must be ENERGY STAR Compliant 2. Product must be permanently installed 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Lighting Control 1. Product must be ENERGY STAR Compliant a. Eligible control types include: b. Automatic Time-Switch c. Daylight/Photo- Sensor d. Dimmer e. Occupant/Motion/Vacancy Sensor 2. Must be installed according to manufacturer specs and all applicable state and local codes 20 Indoor water Efficiency High Efficiency Toilet Fixture 1. Product must be listed in the EPA WaterSense product database 2. Toilet and urinals fixtures are eligible )ORZUDWH*3) 4. Must be installed according to manufacturer specs and all applicable state and local codes 20 High Efficiency Faucet Fitting 1. Product must be listed in the EPA WaterSense product database )ORZUDWH*30 3. Must be permanently installed 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 High Efficiency Shower Head 1. Product must be listed in the EPA WaterSense product database 2. Efficiency Database )ORZ*30 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 9.A.3 Packet Pg. 64 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Indoor water Efficiency High Efficiency Faucet Fitting 1. Product must be listed in the EPA WaterSense product database )ORZUDWH*30 3. Must be permanently installed 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 High Efficiency Shower Head 1. Product must be listed in the EPA WaterSense product database 2. Efficiency Database )ORZ*30 4. Must be installed according to manufacturer specs and all applicable state and local codes 15 Hot water delivery System 1. System meets the definition of one of the following water delivery options: a. Dedicated Recirculation Line b. Whole House Manifold System c. Demand-initiated Recirculating System d. Core Plumbing System 2. Must be installed according to manufacturer specs and all applicable state and local codes 15 Outdoor Water efficiency High Efficiency Sprinkler Nozzle 1. Product must be listed in the EPA WaterSense product database 2. Must be installed according to manufacturer specs and all applicable state and local codes 10 Weather- based Irrigation Controller 1. Product must be listed in the EPA WaterSense product database 2. Must be installed according to manufacturer specs and all applicable state and local codes 10 Drip Irrigation 1. Product must be installed in turf, garden, planter, or flower bed area 2. Product must be listed in the EPA WaterSense product database 3. Must be installed according to manufacturer specs and all applicable state and local codes 10 9.A.3 Packet Pg. 65 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) Product Category Product Type Product Specifications Estimated Life (Years) Rainwater catchment System 6L]HGWRKROGJDOORQVDWRQHWLPH 2. Must be permanently installed. 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Gray Water System 1. Product must comply with local code and permitting requirements 2. Eligible system types include: a. Single-Fixture E0XOWL)L[WXUH6LPSOH*3' c. Multi-Fixture Complex (> 250 GPD) 3. Must be installed according to manufacturer specs and all applicable state and local codes 20 Artificial Turf 1. Product must be water and air permeable 2. Product must be non-toxic and lead free 3. Product must be recyclable 3URGXFWLQVWDOODWLRQPXVWFDUU\\HDUZDUUDQW\ 5. Must be installed according to manufacturer specs and all applicable state and local codes 6. Product infill material must be one of the following: a. Acrylic Covered Sand b. Crumb Rubber c. Zeolite 10 9.A.3 Packet Pg. 66 Attachment: FPFA Eligible Products Estimated Life Specifications (9311 : **PACE Program Modification) PROPERTY ASSESSMENT CLEAN ENERGY (PACE) CONSUMER PROTECTION ENHANCEMENTS PRESENTATION CURRENT PACE PROGRAM CONSUMER PROTECTIONS PROPOSED CONSUMER PROTECTIONS Customer Service Limited Local Requirements as Stated Within the Standard Membership Agreement 1. Program Guidelines 2. Enhanced Customer Service 3. Dispute and Resolution Requirements Residential - Notice to lender No Local Requirement Verify prior to entering into a financing agreement, a Notice to Lien holder to be provided to the holders or loan servicers of any existing mortgages holders, stating the intent to enter into a financing agreement that includes the maximum principal amount to be financed and the maximum annual assessment necessary to repay that amount Residential - Customer Disclosure No Local Requirement Prior to entering into a PACE Financing Agreement, the property owner to file Customer Disclosure Document must be signed by the property owner, notarized, submitted for processing with building permit. Residential - Cap on Lending No Local Requirement May not exceed an aggregate amount of 20% of just (market) value, as determined by the Collier County Property Appraiser Residential - Ability to pay No Local Requirement Total amount of any annual taxes and assessments not to exceed five percent (5%) of the property’s fair market value, total amount of the annual Pace Assessments not to exceed four percent (4%) of the total annual gross income of the property owner in the prior calendar or fiscal year. Property owner to provide an affidavit of the owner’s total annual gross income (Pasco Resolution – Financing Terms) Residential - Loan Terms No Local Requirement Limit the financing term to not exceed the useful life of the qualified improvement 9.A.4 Packet Pg. 67 Attachment: 6-18-19 PACE Consumer Protections (9311 : **PACE Program Modification) Residential - Project Completion No Local Requirement – Current practices indicates that the contractor and property owner agree that the project is completed before the assessment is processed The assessment against the property owner will not be processed with the Tax Collector until all required permits and inspections are completed by the County Reporting of Documents No Local Requirement Ten day written request where the PACE Provider shall supply the County all requested records produced and maintained by the PACE Provider. Records shall be deemed as public record in accordance with Florida Statute 119 Enforcement Membership may be revoked by the BCC for violations of the Standard Membership Agreement Adds provisions to assess violations of any provision of the Membership Agreement and shall be considered a substantial breach of the agreement and punishable, in accordance with the Collier County Consolidated Code Enforcement Ordinance, by a fine consistent with Ord. No. 2010-04, as amended, after being heard by the Special Magistrate. Upon determination of the Board, this may be grounds for termination of the Standard Membership Agreement and a request the Tax Collector to remove a PACE Assessment on a going-forward basis on properties identified to be in violation of the Ordinance 9.A.4 Packet Pg. 68 Attachment: 6-18-19 PACE Consumer Protections (9311 : **PACE Program Modification)