(A) The City finds that the financing of energy projects is a valid public purpose;
(B) The boundaries of the District shall be the corporate boundaries of the City and its extraterritorial jurisdiction, as allowed pursuant to Neb. RS § 13-3204(1);
(C) The District Administrator shall use a contract form for assessment contracts between the City, the owner of the qualifying property, and a third-party lender, substantially in the form or containing terms as attached hereto as Exhibit “A,” governing the terms and conditions of financing and annual assessments that is in accordance with the Act, including Neb. RS § 13-3205(1), which provides for repayment of the costs financed through annual assessments upon the qualifying property benefited by the energy project;
(D) The Mayor of the City is authorized to enter into assessment contracts on behalf of the District;
(E) The District Administrator will use a financing application process and eligibility requirements, which shall be more specifically defined in a program manual created by the District Administrator, for financing energy projects in accordance with the requirements of the Act and accepted by the third-party lender. The application process and program eligibility requirements shall be, at a minimum, as follows:
(1) Submission of an application to the District Administrator, which shall include, but not be limited to, the following information:
(a) Applicant name and contact information, including property owner and developer;
(b) Project location and legal description;
(c) Identification of contractor or supplier, including anticipated PACE contractor and a copy of the approved bid for the energy efficiency project;
(d) Project description;
(e) Total project cost;
(f) Description of proposed improvements;
(g) Description of energy efficiency project to be financed;
(h) Amount of requested assessment;
(i) Interest rate on the PACE assessment and any required fees;
(j) Term of assessment;
(k) Estimated savings;
(1) Title report showing any mortgage or lien holders;
(m) Lender consent;
(n) Projected jobs created by PACE project;
(o) Project environmental benefits;
(p) Energy audit report;
(q) Funding source; and
(r) All other such information as needed to demonstrate the project complies with all the requirements of the Act.
(2) The District Administrator shall review the application to determine whether the energy project meets the eligibility requirements of the Act and this article. An energy project shall not be eligible for PACE financing if the qualifying property is subject to any of the following:
(a) Delinquent ad valorem taxes;
(b) Delinquent personal property taxes;
(c) Delinquent special assessments;
(d) Overdue or delinquent water or sewer charges;
(e) Involuntary liens, including but not limited to construction liens;
(f) Notice of default pursuant to any mortgage or deed of trust related to the qualifying property, or
(g) If the property owner or property developer is delinquent in the payment of any assessment required to be paid for any energy efficiency improvement financed pursuant to the Act.
(3) If the energy project is determined to be eligible under the terms of the Act and as required in this article, the District Administrator shall review the application and recommend approval, request additional information, or deny the application, in its sole discretion.
(4) Upon approval of an application, the District Administrator is authorized to proceed with an assessment contract, as allowed for and required herein.
(F) Pursuant to Neb. RS § 13-3205(7), annual assessments agreed to under an assessment contract shall be levied against the qualifying property and collected in accordance with the Act;
(G) The District shall establish procedures to determine the following in the future:
(1) Provisions for an adequate debt service reserve fund created under Neb. RS § 13-3209, if applicable;
(2) Provisions for an adequate loss reserve fund created under Neb. RS § 13-3208, if applicable; and
(3) Any application, administration, or other program fees to be charged to owners participating in the program that will be used to finance costs incurred by the City as a result of the program; which costs shall be deducted before remitting the remainder to the third-party PACE financing program administrator.
(H) The term of the annual assessments shall not exceed the weighted average useful life of the energy project paid for by the annual assessments;
(I) Any energy efficiency improvement that is not permanently affixed to the qualifying property upon which an annual assessment is imposed to repay the cost of such energy efficiency improvement must be conveyed with the qualifying property if a transfer of ownership of the qualifying property occurs during the term of the annual assessment;
(J) Prior to the effective date of any contract that binds the purchaser to purchase qualifying property upon which an annual assessment is imposed, the owner shall provide notice to the purchaser that the purchaser assumes responsibility for payment of the annual assessment as provided in Neb. RS § 13-3205(3)(d), that the obligations set forth in the assessment contract, including the obligation to pay annual assessments, are a covenant that shall run with the land and must be obligations upon future owners of the qualifying property;
(K) In connection with providing PACE financing, the District will provide for marketing and participant education;
(L) After the energy project is completed, the District and/or its third-party lenders shall obtain verification that the renewable energy system or energy efficiency improvement was properly installed and is operating as intended.
(Ord. 3912, § 1, passed 9-24-2018)