(a) Definitions. For purposes of this section, the following words and phrases shall have the following meanings:
Financing Agreement shall mean the financing agreement or the summary memorandum of such agreement required to be recorded in the public records pursuant to the PACE Statute.
PACE assessment shall mean the non-ad valorem assessment placed on a property owner's tax bill as a result of financing obtained under the PACE Statute.
PACE local government shall mean a local government (as defined in the PACE Statute) that has taken all required actions to fund PACE improvements, and any person or entity acting on that local government's behalf.
PACE Statute shall mean F.S. § 163.08, which establishes Florida's PACE program.
(b) In addition to any disclosure requirements in the PACE Statute, PACE local governments that extend financing pursuant to the PACE Statute and levy a non-ad valorem assessment to fund the PACE improvements shall present to the property owner a separate, written notice disclosing the following ("Notice"):
(1) The full legal description of the property subject to the PACE assessment;
(2) The total amount of the debt, including amount financed, fees, fixed interest rate. capitalized interest and the effective rate of the interest charged (APR);
(3) The repayment process, amounts and a schedule that fully amortizes the amount financed Including the maximum annual PACE assessment;
(4) That the PACE assessment will appear on the property owner's tax bill;
(5) That there is no discount for paying the PACE assessment early;
(6) The nature of the lien recorded and 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; and
(7) The specific improvements to be installed and that the property improvements and PACE assessment may or may not affect the overall value of the property.
(8) A term that does not exceed the useful life of the majority of the improvements.
(9) The 3-day right to cancel the financing.
(10) FHFA policy toward PACE.
(c) The Notice must be delivered to the property owner by the PACE local government, 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 obligating the property owner to participate in the PACE program or to repay financing obtained pursuant to a financing agreement or the PACE Statute.
(d) The PACE local government shall record, or cause to be recorded, the signed Notice in the public records as an attachment to the Financing Agreement, which must also be recorded pursuant to the PACE Statute.
(e) Eligible properties. PACE Programs may finance improvements on residential properties (4 units or less) that meet the following criteria:
(1) All mortgage-related debt on the property may not exceed 90% of the property's fair market value (FMV);
(2) The financing may not exceed twenty percent (20%) of the just value of the property consistent with the PACE Statute;
(3) The total mortgage-related debt on the underlying property plus program financing may not exceed the FMV of the Property.
PACE programs may finance improvements on commercial, industrial, agricultural, multi-family residential properties of 5 or more units, and other non-residential properties.
(f) Eligible improvements. When energy efficiency and renewable energy improvements are financed by PACE assessment they must be permanently affixed to the property. All improvements and products must meet standards established by the U.S. Department of Energy, the U.S. Environmental Protection Agency, or Florida state agencies. All improvements must comply with the PACE Statute for energy efficiency, renewable energy and wind resistance.
(g) Complaints and dispute resolution. The Program must receive, manage, track, timely resolve, and report on all inquiries and complaints from property owners. In addition, the Program must investigate and mediate disputes between property owners and contractors.
(h) Data security. The Program is responsible for taking security measures that protect the security and confidentiality of consumer records and information in proportion to the sensitivity of the information.
(i) Consumer privacy. The Program must develop and maintain a privacy policy that complies with state and federal law (e.g.. the Gramm Leach Bliley Act) and, in particular, prohibits sharing with third parties personal identifying information of property owners without the property owner's express authorization except where expressly permitted by state and federal law.
(j) Marketing and communications. The Program prohibits marketing practices that are or could appear to be unfair, deceptive, abusive, and/or misleading, that violate laws or regulations, that provide tax advice, that are inappropriate, incomplete or are inconsistent with the Program's purpose.
(k) Protected classes. The Program must develop and implement a program that validates elder homeowner ("i.e.. homeowners over 64 years old) understanding of the eligible improvement project for which they are seeking Program financing, including the terms of such financing.
(l) Contractor management. The Program must ensure that contractors are licensed by the appropriate state and local agencies: and that they are insured and bonded. Additionally, contractors must agree to follow program marketing guidelines, and act in good faith to timely resolve property owner complaints.
(m) Maximum financing amounts. The Program will establish maximum financing amounts for every project type. The Program will establish pricing rules to ensure that consumers are protected from excessive charges.
(n) Reporting. The Program will report on a quarterly basis to its local government partners on the number of applications submitted, projects completed, energy saved, and jobs created as a result of the Program.
(o) Closing and funding. The Program requires that the property owner and the contractor sign a certificate of completion prior to providing funding to the contractor for the project. The Program also requires that any necessary permits are pulled and verified prior to funding. The Program will conduct a randomized onsite inspection protocol to verify that the appropriate financed products have been installed.
(Ord. No. 16-017, § 2, 9-8-16)