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HomeMy WebLinkAboutOrdinance 2018-533 ORDINANCE NO. 2018 - 97 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, CREATING CHAPTER 251 OF THE CODE OF ORDINANCES OF THE CITY OF SUNNY ISLES BEACH ENTITLED "PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM", PROVIDING FOR FINDINGS OF FACT; PROVIDING FOR DEFINITIONS; PROVIDING A SHORT TITLE; PROVIDING A PURPOSE; PROVIDING PACE PROGRAM BOUNDARIES; PROVIDING FOR PACE LOCAL GOVERNMENTS AUTHORIZATION; PROVIDING FOR PACE PROGRAMS STANDARDS; PROVIDING FOR ELIGIBLE PARTICIPANTS; PROVIDING FOR NON-AD VALOREM ASSESSMENTS; PROVIDING FOR PACE PROGRAM ADMINISTRATION; PROVIDING FOR RECORDATION; PROVIDING FOR NOTICE TO PURCHASER; PROVIDING FOR SUSPENSION OR TERMINATION; PROVIDING FOR ENFORCEMENT; PROVIDING FOR INCLUSION IN THE CODE; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF CONFLICTING PROVISIONS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 163.08, Florida Statutes authorizes local governments defined as a county, a municipality, a dependent special district as defined in Section 189.012, Florida Statutes or a separate legal entity created pursuant to Section 163.01(7), Florida Statutes to establish and administer financing programs pursuant to which owners of real property may voluntarily obtain funding for Qualifying Improvements and repay such funding through non-ad valorem assessments, levied upon the improved property pursuant to financing agreements between the property owner and the PACE Local Government(s); and WHEREAS, several PACE Local Governments have been created and the availability of the voluntary, non-exclusive PACE Program offered by the separate PACE Local Governments is subject to an agreement with the City of Sunny Isles Beach and is without cost, assumption of liability by, or demand upon the credit of the City; and WHEREAS, Section 163.08(3), Florida Statutes authorizes a PACE Local Government to levy non-ad valorem assessments to fund qualifying improvements within jurisdictions that authorize the Program; and WHEREAS, it is within the best interests of the citizens of the City of Sunny Isles Beach to authorize a PACE Program through the adoption of an ordinance that sets uniform consumer protections that apply to all PACE Local Governments who implement and manage PACE Programs in the City of Sunny Isles Beach. WHEREAS, the City Commission of the City of Sunny Isles Beach finds that creating Chapter 251 entitled "Property Accessed Clean Energy (PACE) Program," is in the best interest of the citizens of the City. Page 1 of 17 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Incorporation of Recitals. The foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part by this Ordinance upon adoption hereof Section 2. New Chapter. Chapter 251 of the Code of Ordinances of the City of Sunny Isles Beach is hereby created and entitled "Property Assessed Clean Energy (PACE) Program". Within said Chapter 251 is hereby included Article I, "Establishing Property Assessed Clean Energy (PACE) Program", which shall read as follows: Chapter 251 PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM Article I. Establishing Property Assessed Clean Energy (PACE) Program § 251-1. Findings of Fact. (a) Section 163.08, Florida Statutes authorizes local governments defined as a county, a municipality, a dependent special district as defined in Section 189.012, Florida Statutes or a separate legal entity created pursuant to Section 163.01(7), Florida Statutes to establish and administer financing programs pursuant to which owners of real property may voluntarily obtain funding for Qualifying Improvements and repay such funding through non-ad valorem assessments, levied upon the improved property pursuant to financing agreements between the property owner and the PACE Local Government(s). (b) Several PACE Local Governments have been created and the availability of the voluntary, non-exclusive PACE Program offered by the separate PACE Local Governments is subject to an agreement with the local governing body and is without cost, assumption of liability by, or demand upon the credit of the local governing body. (c) Section 163.08(3), Florida Statutes authorizes a PACE Local Government to levy non-ad valorem assessments to fund qualifying improvements within jurisdictions that authorize the Program. (d) It is within the best interests of the citizens of the City of Sunny Isles Beach to authorize a PACE Program through the adoption of an ordinance that sets uniform consumer protections that apply to all PACE Local Governments who implement and manage PACE Programs in the City of Sunny Isles Beach. and in those municipalities within the City of Sunny Isles Beach who choose to opt into the Program. (e) A PACE Local Government shall be authorized to implement the PACE Program within the City of Sunny Isles Beach through the execution of an individual interlocal agreement with the City of Sunny Isles Beach. Page 2 of 17 (f) The installation and operation of Qualifying Improvements not only benefits the affected properties for which the improvements are made, but also provides a public benefit by assisting in fulfilling the goals of the State's and County's energy and hurricane mitigation policies. (g) The voluntary participation in the PACE Program by property owners will provide an alternative financing option to finance the costs to provide and install Qualifying Improvements to property located within the City of Sunny Isles Beach. § 251-2. Definitions. The following words, terms and phrases when used in this Chapter shall have the meanings ascribed to them in this chapter, except where the context clearly indicated a different meaning: (a) City Commission shall mean the City of Sunny Isles Beach Commissioners. (b) Eligible Participant shall mean any residential or non-residential Property owner who voluntarily participates in the PACE Program and satisfies the eligibility requirements set forth in Section 251-8 of this Chapter. (c) PACE Act shall mean Section 163.08, Florida Statutes. (d) PACE Assessment shall mean the non-ad valorem assessment placed on a property owner's tax bill as a result of financing obtained pursuant to the PACE Financing Agreement. (e) PACE Financing Agreement shall mean the agreement entered into between the Eligible Participant and the PACE Local Government specifying the Qualifying Improvements to be installed at the Property and the terms and conditions for financing those improvements through non-ad valorem assessments levied on the Property. (f) PACE Interlocal shall mean an agreement entered into between City of Sunny Isles Beach and a PACE Local Government authorizing the PACE Local Government to administer a PACE Program within the City of Sunny Isles Beach. (g) PACE Local Government shall mean a separate legal entity, other than a county or municipality, created pursuant to Section 163.01(7), Florida Statutes, and/ or its designated PACE Program administrator as applicable. (h) PACE Program or Program shall mean the Property Assessed Clean Energy program authorized by this Article within the boundaries of the City of Sunny Isles Beach. (i) PACE Program Coordinator shall mean the City staff liaison between the PACE Local Government and the City as delegated by the City Administrator. (j) Property means a residential or non-residential property, as determined by the most current version of the Florida Building Code, and/or the building or facility that is part of the property, as applicable, located within the jurisdictional boundaries of the City of Sunny Isles Beach. Page 3 of 17 (k) Qualifying Improvements shall mean those improvements to real property provided for in Section 163.08(2), Florida Statutes, including, but not limited to, energy conservation and efficiency, renewable energy and wind-resistance improvements. § 251-3. Short Title. This article shall be known as the "Property Assessed Clean Energy (PACE) Program." § 251-4. Purpose. (a) The PACE Program has been developed to allow a property owner to voluntarily finance energy efficient, renewable energy, or wind resistant improvements through a non-ad valorem assessment implemented and managed by a PACE Local Government and repaid through the annual tax bill. The purpose of this Ordinance is to provide uniform consumer protection regulations for all PACE Local Governments that are authorized to operate within the City of Sunny Isles Beach to ensure that: (i) the citizens of the City of Sunny Isles Beach are fully apprised of the Program; (ii) PACE Local Governments have developed a responsive complaint process, (iii) that Qualifying Improvements meet the statutory goals set forth in Section 163.08, Florida Statutes; and (iv) that contractors meet certain standards of conduct. (b) This Article is intended to add requirements to the provisions of Section 163.08, Florida Statutes and other applicable law as it currently exists and should be construed consistently with the PACE Act and any such other applicable law. To the extent that the PACE Act provides for additional requirements not otherwise found in this Article or applicable law; the provisions of the PACE Act must be met. To the extent that this Article provides for more restrictive or additional requirements not found in the PACE Act or any such other applicable law, the provisions of this Article shall apply. § 251-5. Pace Program Boundaries. The PACE Program shall be available to Eligible Participants residing within the City of Sunny Isles Beach. § 251-6. PACE Locai Governments Authorization. Upon entering into a PACE Interlocal with the City of Sunny Isles Beach, a PACE Local Government shall be authorized to administer a PACE Program pursuant to Section 163.08, Florida Statutes, the terms of this Article, as may be amended from time to time, the PACE Interlocal and other regulations adopted by the City Commission within the City of Sunny Isles Beach that have opted into the PACE Program. § 251-7. PACE Program standards. At a minimum, PACE Local Governments shall comply with each of the following standards: (a) General. (1) Qualifying Improvements: All Qualifying Improvements shall be properly permitted and must comply with Florida and local codes. PACE Local Governments shall finance only Qualifying Improvements that are permanently affixed to the Property. Page 4 of 17 (2) Licensed Contractors: Any contractor constructing or installing a Qualifying Improvement shall be properly licensed and insured. (3) Materials: PACE Local Governments shall fund, and contractors and owner- builders 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. as applicable. The Eligible Measures List shall be regularly updated and made publicly available. The City shall have the right to review that list annually to assure compliance with this article. (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 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 required by state and federal law. (5) Contractor Pricing: Within six months of entering into an 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. (6) Protected classes. The PACE program and the program administrator shall not discriminate on the grounds of race, color, religion, sex, gender identity or expression, genetic information, national origin, age, disability, familial status, marital status, or sexual orientation. Additionally, The PACE program and the program administrator shall specifically develop and implement a program that validates the understanding of the PACE program and the terms of such financing by any property owner who is 65 years of age or older. (7) Estimated Energy or Insurance Savings Disclosure: PACE Local Governments shall include in the "Code of Conduct" (referenced below) and in contractor training the requirement that contractors inform Eligible Participants of the following: (1) Estimate of energy savings, insurance cost savings (if applicable) and return on investment, including the range of efficiency options (if applicable) using industry best practices; (2) Available rebates or incentives associated with Qualifying Improvements; (3) If energy improvements are undertaken: i. The benefits of installing energy efficiency improvements before renewable energy to reduce costs overall; ii. The benefits of a full Energy Audit of their property, names of energy audit professionals qualified through the Residential Energy Services Network, Building Performance Institute, Association of Energy Page 5 of 17 Engineers, or other comparable program, and any available incentive programs; and iii. Costs of the Energy Audit are eligible for financing as part of the assessment. (8) 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 separate 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 estimated savings from the Qualifying Improvements, including a statement that actual savings will depend on usage patterns, seasonal variation and weather, utility rates and trends and product specifications. (d) The three-day right to cancel the PACE Financing Agreement; (e) Identification of prepayment fees or penalties. (f) The PACE Assessment will appear on the property owner's tax bill; (g) There is no discount or penalty for paying the PACE Assessment early; (h) 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; (i) The installation of Qualifying Improvements may or may not affect the overall market value of the Property; (j) The PACE Assessment may affect the sale or refinance of the Property; and (k) The property owner may be required to pay any PACE assessment in full at the time of refinance or sale of the property. (1) If the property owner is using an escrow or impound account to pay property taxes, he/she should contact his/her lender immediately to ensure that the escrow payments are adjusted correctly so that the property owner is aware of and prepared for the increased payment amount. (m)The notice shall be signed and dated by the property owner to acknowledge that they understand these conditions. Item (c) above may be provided in a separate document without property owner signature if necessary. If the PACE Local Government does not currently have the ability to include item cc above, it should modify its procedures in order to comply within one year of the effective date of its PACE Interlocal. Page 6 of 17 The consumer notice described in this section must be delivered to the property owner by the program administrator and must be signed and dated by the property owner prior to or contemporaneously with the property owner's signing of any legally enforceable documents under the PACE program. (9) Confirmation of Terms: PACE Local Governments must confirm, by telephone with the property owner, each Program financing term listed below before the property owner signs the PACE Financing Agreement. Such telephonic confirmation shall be recorded. A voicemail shall not satisfy this requirement. When confirming terms of a Program Financing Agreement with a homeowner, the Program Administrator will request the property owner to describe the Qualifying Improvements being financed using the Program financing, and will ascertain that the property owner understands or acknowledges the following: (a) The Qualifying Improvements being installed are financed by the Program; (b) The total estimated annual payment, including estimated annual collection costs; (c) The date the first tax payment will be due; (d) The term of the Program financing; (e) The payments will be made through the property owner's property taxes and paid either directly to the county tax collector's office or through his or her mortgage impound account; (f) A notice of assessment summarizing the financing agreement executed in connection with the Qualifying Improvements will be recorded and appear as a lien against the Property until paid; (g) That they are able to meet the increased property tax payment; (h) Questions on tax benefits or deductibility must be directed to a tax professional; (i) The possibility that the assessment may (a) remain on the Property or (b) be required to be paid off if the homeowner sells or refinances the Property; and (j) The three-day right to cancel the financing. Page 7 of 17 . (10) . PACE Financing Agreement. The PACE Local Government shall enterinto a voluntary written agreement with each Eligible Participant which shall 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) Statement of express voluntary consent by the Eligible Participant to accept the non-ad valorem assessment collection process, set forth in Section 197.3632, Florida Statutes. (d) The length of time for the Eligible Participant to repay the non-ad valorem assessment, which shall not exceed 30 years. (e) Statement that the Eligible Participant is responsible for assuring the Qualifying Improvements are completed as reflected in the approved application documents; consent by the Eligible Participant to providing the PACE Local Government with access to the Property to verify that the Qualifying Improvements have been completed as proposed in the application. (f) Statement that at the time of a transfer of Property ownership (except a transfer resulting from foreclosure), the past due balances of any non-ad valorem assessment may be due for payment, but future payments may continue as a lien on the Property, if the buyer and the mortgagor, if any, agree. (g) Statement that 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 any unpaid financed-balance-is due, the-seller must-give-the prospective purchaser a Notice of the lien. (h) In bold face caps, in a font larger than the rest of the Agreement, a statement of the risks associated with participating in the PACE Program, including risks related to the failure of the Eligible Participant to.make payments, the risk that they may not be able to refinance the home or sell the home 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 Chapter 197, Florida Statutes. (i) Description of the Qualifying Improvements and their cost. (j) Notice of the non-ad valorem assessment shall be recorded in the public records for the Property. (k) In bold face caps, in a font larger than the rest of the Agreement, a statement of 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 of any additional fees that were not specifically disclosed in the written agreement with the property owner is prohibited. Page 8 of 17 (11) Within five (5) days after execution of the PACE Financing Agreement, the PACE Local Government shall record, or cause to be recorded, the following notice in the public records along with appropriate 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 resistancc. (12) Prepayment. (a) The PACE Local Government shall provide to the Eligible Participant information as to any accrued interest that may be due upon early payment. (b) No prepayment penalties may be charged or allowed on residential projects. The PACE Local Government shall provide a mechanism for re- amortization of PACE assessments to account for partial pre-payment, particularly for application of tax credits, rebates, or other incentives. (c) For non-residential properties, prepayment penalties may be charged or imposed to the extent permitted by applicable law, as negotiated with the property owner, and providing all financial impacts of such penalties are clearly disclosed and agreed to by the property owner in writing. (13) 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. (14) Project Completion. The PACE Local Government shall require property owner verification of work and sign-off on project completion to owner's satisfaction before issuance of final payment to any contractor(s). (15) Property Owner Consent. PACE Local Governments are required to obtain written consent from the listed property owner to enter into the PACE Financing Agreement. If property is owned by multiple owners (i.e.joint tenancy, tenancy by the entirety etc.), PACE Local Governments shall be required to obtain written consent of all owners prior to the execution of the PACE Financing Agreement. (16) Lender notification. The PACE Local Government shall obtain from the property owner a verified copy or other proof of lender notification of intent to enter into the Financing Agreement, consistent with Section 163.08(13), Florida Statutes. (17) Contractor Management. PACE Local Governments shall: (a) To the extent available, recruit and approve local contractors; (b) Conduct local recruitment efforts; Page 9 of 17 (c) Establish a "Code of Conduct" that sets standards for participating contractors such as licensing, advertising and marketing, accurate representation of the program, and consumer protections; (d) Train all PACE program contractors on the regulations related to the PACE program and the Code of Conduct; (e) Ensure that all contractors hold necessary licenses and insurance; (f) Confirm contractor qualifications at least annually and as necessary based upon consumer complaints or other indications of lack of compliance; and (g) Remove contractors from the PACE program who no longer meet program criteria; have not met program requirements or fail to act in good faith to timely resolve consumer complaints. (h) PACE programs or program administrators shall have and shall strictly enforce anti-kickback policies and procedures that prohibit direct financial or other monetary incentives to contractors in exchange for or related to such contractor being awarded work under a PACE program, excepting payment for the contractor's installation of eligible improvements. (18) Customer Service: PACE Local Governments shall provide a high level of customer service, including: (a) Access to customer service representatives by email and phone during normal business hours; (b) A detailed website with specific reference to the City of Sunny Isles Beach PACE Program; (c) A transparent customer feedback and complaint process with, quick response and resolution by both the contractor and the PACE Local Government. i. A document outlining the complaint process shall be clearly available on the PACE Local Government website and provided to customers. ii. The document shall make clear that the City of Sunny Isles Beach 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. iii. All complaints and resolutions shall be logged, with the following information at a minimum: date and time of complaint, customer and contractor information, details of complaint, when and what actions were taken by both the PACE Local Government and the contractor, and final resolution. iv. All disputes and complaints shall be investigated and resolved in a timely manner. Reports shall be provided to the PACE Program Page 10 of 17 Coordinator upon request and an annual. summary provided automatically. (d) Language Translation Services. PACE Local Governments shall provide language translation services to assist property owners seeking to participate in the PACE Finance program. The language translation services shall be provided, upon request, to ensure that the property owner understands the terms and conditions when entering into a PACE Financing Agreement. (19) Marketing: Neither PACE Local Governments nor their contractors, shall use facsimiles of the City, Property Appraiser, or Tax Collector logos in their marketing materials. Marketing materials shall not state that PACE: (i) is a free program; (ii) is administered by the City; (iii) does not involve a financial obligation by the property owner; (iv) is a form of public assistance. Marketing practices for a PACE program that are or could appear to be unfair, deceptive, abusive, or misleading, or that violate laws or regulations, or that are inappropriate, incomplete or are inconsistent with the program's purpose are prohibited. (20) Reporting: (a) Each PACE program shall provide a report to the city on a quarterly calendar basis, which shall include, at a minimum, the following information: (1) Dates of reporting period; (2) List of PACE projects started during the reporting period, separated by building type (e.g., single family, multifamily, retail, office, industrial, etc.); (3) List of PACE projects completed during the reporting period, separated by building type (e.g., single family, multifamily, retail, office, industrial, etc.). For each completed project, specify: (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 (may be based on averages for type of improvement); (4) financial information such as cost per kWh saved/generated; (5) other resource savings if data is available; and (6) audits performed detailing the audit results, if applicable to the project. (4)Number of jobs (actual or estimated) created during the reporting period; (5) Number of applications declined during the reporting period; (6) Unresolved complaints or contractor issues and status; (7) Description of the standardized third-party methodologies and supporting assumptions used to verify data, and any changes in the methodologies and assumptions from the previous reporting period. (b) If the PACE Local Government does not currently have the ability to provide reports that contain this minimum reporting information, it should modify its Page 11 of 17 data collection and maintenance-procedures and systems within one-year of the effective date of its PACE Interlocal in order to comply. The City of Sunny Isles Beach reserves the right to publish reports on program progress and results and PACE Local Government compliance. (c) PACE Local Governments will respond to requests from the PACE Program • Coordinator for information related to the Program in a timely manner and shall provide sufficient documentation as requested by the PACE Program Coordinator to ensure that the requirements of this Article and the State statutes are being met. (d) The PACE Local Government shall retain sufficient books and records demonstrating compliance with the Agreement and State and City requirements for a minimum period of seven years from the initial date of each non-ad valorem assessment and shall allow City representatives access to such books and records upon request. (21) Amendments. City reserves the right to amend this ordinance to revise Program standards. (b)Additional Program standards for residential properties: In addition to requirements set forth in Section 163.08, Florida Statutes, PACE Local Governments that finance PACE Qualifying Improvements on residential properties within the City of Sunny Isles Beach shall, at a minimum, comply with at least one of the following additional standards for projects affecting residential properties with four residential units or fewer: (1) Financing limits: PACE Local Governments shall ensure that the total amount of any annual property taxes and assessments do not exceed five percent of the Property's fair market value, determined at the time financing is approved and ensure that the total amount of annual PACE Assessments do not exceed four percent of the total annual gross income of the Property owner in the prior calendar or fiscal year, based upon an affidavit or attestation by the Property owner of the owner's total annual gross income. Fair market value shall be that value determined by the Miami-Dade County Property Appraiser, or by a credentialed commercial property appraiser or licensed realtor, or by an automated valuation service or model from a reputable third-party source; or (2) Mortgage Holder Consent or Escrow: PACE Local Governments shall verify that each prior mortgage or financing instrument holder has consented to any proposed Financing Agreement and PACE Assessment, or that the prior mortgage or financing instrument holder or loan servicer has consented to escrow sufficient funds to ensure payment of the annual assessment with each year's tax bill; or (3) Insurance or Energy Savings: PACE Local Governments shall verify that the total cost of the PACE Assessment is equal to or less than the projected savings to the property owner based upon the projected energy savings in a written statement from a Certified Energy Auditor, certified by the Association of Energy Engineers, the Residential Energy Services Network, or the Building Performance Institute, or Page 12 of 17 the projected insurance savings in a written statement from the property owner's. insurer; or (4 § 251-8. Eligible Participants. In order to be an Eligible Participant, a property owner (or property) must meet the criteria listed below. The PACE Local Government is responsible for verifying that the following conditions are met: (a) Residential property with four units or fewer: (1) All property taxes and other assessments levied on the property tax bill have been paid and have not been delinquent for the preceding three years, or the property owner's period of ownership, whichever is less; and (2) There are no involuntary liens, including but not limited to construction liens on the property; and (3) No notices of default or other evidence of property-based debt delinquency have been recorded during the preceding three years, or the property owner's period of ownership, whichever is less; and (4) All mortgage debt on the property is current and not delinquent; and (5) For residential property, all mortgage-related debt on the property may not exceed 90 percent of the property's fair market value; and (6) The amount to be financed by the PACE program may not exceed 20 percent of the just value of the property as determined by the county property appraiser, excepted as otherwise provided by statute; and (7) The total mortgage-related debt on the underlying property plus PACE program financing may not exceed the fair market value of the property. (b) Multi-family residential.properties of five or more units, commercial, industrial, agricultural, and other non-residential properties may be eligible for financing qualifying improvements through a PACE program. Program requirements and eligibility shall be determined by the PACE Local Government. § 251-9. Eligible Improvements. Energy efficiency, renewable and wind resistance improvements that are permanently affixed to the property shall be eligible for financing under a PACE program in accordance with statute. PACE programs and program administrators shall identify efficiency standards established by the U.S. Department of Energy, the U.S. Environmental Protection Agency, or Florida state agencies, as applicable. PACE programs and program administrators shall confirm that property owners intend to install eligible products, and that at the time of funding such improvements have been installed. Page 13 of 17 § 251-10. Pricing. Each PACE program shall establish rules and enforcement mechanisms to ensure that the estimated costs of a project are consistent with standard industry price ranges for the type of project and equipment installed, to protect property owners from excessive or unjustified prices and charges. § 251-11. Inquiries and Complaints. (a) Complaints regarding contractors. The PACE program or program administrator shall be required to receive, manage, track, timely resolve and report on complaints from property owners regarding the funded work performed by the contractors: The PACE program or program administrator shall investigate and mediate disputes between property owners and contractors in a timely manner. (b) Payment inquiries. The PACE program or program administrator shall be required to respond to inquiries and resolve any issues, in a timely and complete manner, related to payments, including but not limited to prepayments and payment reconciliation. (c) Review. In the event that ten percent or more of a PACE program's projects result in complaints or disputes, or complaints or disputes remain unresolved six months after completion of a project, the city may review the PACE program or program administrator's handling of complaints. § 251-11. PACE Program Administration. The PACE Program shall be administered by the PACE Local Government pursuant to Section 163.08, Florida Statutes, this Article and any additional regulations adopted by the City Commission. § 251-12. Compliance Period. Any PACE program that does not have the current ability to provide the pricing rules and enforcement mechanisms or the minimum reporting required by this article shall have one year from the date of its initial agreement with the city to modify its pricing mechanisms, data collection and data maintenance systems to comply with this Article. § 251-13. Non-ad valorem Assessments. (a) Pursuant to Section 163.08, Florida Statutes, the PACE Local Government is authorized to impose non ad-valorem assessments on Property to secure the repayment of any financing provided to an Eligible Participant to pay for Qualified Improvement(s). The assessments are collected pursuant to Section 197.3632, Florida Statutes, or any successor Section. Notwithstanding Section 197.3632(8)(a), the assessments shall not be subject to discount for early payment and shall not require notice and adoption as set forth in Section 197.3632(4). Page 14 of 17 (b) Pursuant to Chapter 197, Florida Statutes, non-ad valorem assessments levied pursuant to this Article shall remain liens, coequal with the lien of all state, County, district and municipal taxes, superior in dignity to all other liens, titles and claims, until paid. (c) PACE Local Governments shall timely notify the Miami-Dade Property Appraiser of all PACE Assessments for inclusion in the Truth in Millage (TRIM) notice with other non-ad valorem assessments levied within the County. § 251-14. Recordation. Any financing agreement entered into or a summary memorandum of such agreement between the Eligible Participant and the PACE Local Government, shall be recorded by the PACE Local Government in the public records of the County within five days after execution of the Financing Agreement. The recorded Agreement or summary memorandum of such Agreement shall provide constructive notice that the assessment to be levied on the Property constitutes a lien of equal dignity to County taxes and assessments from the date of recordation. § 251-15. Notice to Purchaser. (a) Property owner must comply with Section 163.08(14) regarding providing a written disclosure statement to a prospective purchaser. (b) Failure to provide the notice referenced above to a purchaser of the Property shall have no effect on either the validity of any PACE Assessment or any obligation of a Property owner. § 251-16. Suspension or Termination. In the event that the PACE Program Coordinator determines that any PACE Local Government has failed to abide by the provisions of this Ordinance and the PACE Interlocal, following sixty day notice to cure, the City Commissioners in their sole discretion, may suspend or terminate the Interlocal agreement and the PACE Local Government shall have no authority to continue with any new projects within the City of Sunny Isles Beach. The City Commission's determination shall be considered final administrative action for purposes of appeal. Notwithstanding termination of the Interlocal agreement, however, property owners whose applications were approved prior to the termination date, and who received funding through the PACE Program, shall continue to be a part of the PACE Program, for the sole purpose of paying their outstanding assessment payments, until such time that all outstanding assessment payments have been satisfied. § 251-17. Enforcement The City may enforce this Ordinance by any means provided by law. Additionally, the City may choose to enforce this Ordinance by seeking injunctive relief in the Eleventh Judicial Circuit of Miami- Dade County, Florida. Section 3. Inclusion in the Code. It is the intention of the City Commission, and it is hereby ordained that the provisions of this Ordinance shall become and made a part of the City of Sunny Isles Beach Code; that the sections of this Ordinance may be renumbered or re-lettered to accomplish such intentions; and that the word "Ordinance" shall be changed to "Section" or other Page 15 of 17 appropriate word, as required. Section 4. Severability. The provisions of this Ordinance are declared to be severable and if any section, sentence, clause or phrase of this Ordinance shall for any reason be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clause, and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part. Section 5. Repealer. All ordinances or part of ordinances in conflict herewith be and the same are hereby repealed. Section 6. Effective Date. This Ordinance shall become effective upon adoption on second reading. PASSED and ADOPTED on first reading the day of SelitttAWL 2018. PASSED and ADOPTED on second reading the 1.7 day of NIA.; to-2018. 111 George H. Scho , Mayor 7-Mauf'i,io Betanc,r,'CMC, City Clerk 4�• . 1 APPROVED AS TO FORM AND LEGAL SUFFICIENCY: /4 ba' Ham Otti ot, City Attorney Moved by: COM 45l0tatOr`i Seconded by: C.01/014161qt12- 'ie W`J Page 16 of 17 Vote: Mayor Scholl (Yes) (No) Vice Mayor Goldman (Yes) (No) Commissioner Aelion V(Yes) (No) Commissioner Gatto Yes) (No) Commissioner Svechin (Yes) (No) Page 17 of 17 i fiNY'_ i ! City Commission tstF Ct of SunnyIsles Beach - s George Bud"Scholl,Mayor - --',..;4,,t-k:9,.. 18070 Collins Avenue, Suite 250 Dana Goldman, Vice Aa}ortti' .,,%:.,:-.4,---A7—, v Isaac Aelion Commissioner - -, ' -` _ = Sunny Isles Beach, Florida 33160 Jeanette Gatto,Commissioner (305)947-0606 City Hall Larisa Svechin,Commissioner Y * (305) 949-31 13 Fax a s' �� %' P Christo her J.Russo Cit y Manager 5''' 9, N° P (305)947-2150 Building Department P } 8 F * F L e Hans Ottinot,City Attorney cir '° (305)947-5107 Fax >or suN " i\7auricio Betancur,CMC,City Clerk MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Hans Ottinot, City Attorney DATE: • September 20, 2018 RE: Creating Chapter 251 in the Code of Ordinances of the City of Sunny Isles Beach entitled "Property Assessed Clean Energy (PACE) Program". RECOMMENDATION • This Ordinance is presented for your consideration. . REASONS The City of Sunny Isles Beach is dedicated to providing our residents with opportunities improve their health, safety, and welfare. To that end, the City realizes the need for programs that encourage clean energy and efficiency creating upgrades for our property owners. The Property Assessed Clean Energy (PACE) Program, established through Section 163.08, Florida Statutes, authorizes counties, municipalities and certain separate Local Government entities to establish agreements with private providers who will administer finance programs related to clean energy initiatives. Specifically, the PACE Program allows property owners to receive upfront financing for Qualifying Improvements, such as solar panel and hurricane shutter installation, and provides repayment through voluntary assessments on property tax. This program has been introduced in many counties and municipalities statewide as a viable option for homeowners who seek to complete these upgrades to their homes. This Ordinance will allow the City to establish the PACE Program, provide the minimum standards of compliance by private providers who shall administer the financing program, and define the necessary criteria for participation in the PACE Program. This Ordinance was requested by the Office of the City Manager.