§ 42-446. 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;

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 useful life of the improvements;

c.

The 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.

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

j.

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:

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 life of the most costly qualifying improvement(s) funded by the PACE program, or 30 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.

(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 Pinellas County PACE program;

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 complaint process shall be clearly available on the PACE local government or PACE administrator's website and provided to customers.

2.

The document shall make clear that Pinellas County is not 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.

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 Pinellas 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 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 Pinellas County and any participating municipalities, by jurisdiction and in total, at least quarterly, in spreadsheet format or another electronic format agreed upon by Pinellas 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;

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. 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.

(Ord. No. 17-37, § 2, 12-12-17)