In order to be eligible for this Program, the following criteria must be met:
(a) Eligibility.
(1) The property must be a qualified property.
(2) Before any loan is approved under the Program, the County must give due regard to the property owner’s ability to repay a loan in a manner substantially similar to that required for a mortgage loan under Sections 1-401, 12-127, 12-311, 12-409.1, 12-925, and 12-1029 of the Commercial Law Article of the Maryland Code. The County has authority to deny approval of any loan under the Program that, in its sole determination, does not meet these Sections of the Maryland Code.
(3) The property owner must submit the following to the lender at the time of application for funding:
(A) express written consent of any holder of an existing mortgage or deed of trust on a qualified property;
(B) verification that there are no delinquent fees, taxes, water or sewer charges, liens, or other special assessments on the qualified property;
(C) describe and certify on an application submitted for review that best efforts will be used to contract for services with a minority-owned business enterprise, small business, or County-based business for energy efficiency, renewable energy, and other approved climate related improvements; and
(D) confirmation that:
(i) the proposed Climate Related Improvement will be properly permitted and permanently affixed to the qualified property and comply with all applicable State and federal statutes and regulations, as determined by the appropriate regulatory authority; or
(ii) final inspection of an installed Climate Related Improvement has occurred within a one-year (12 months) period immediately preceding the date of Program application.
(4) For new commercial construction, the property must be designed to meet or exceed the energy performance required by the County building code that is in effect at the time a property owner applies to participate in the Program.
(5) The loan amount under this Program must meet the following criteria:
(A) Existing commercial construction. This subsection, 18A-35(a)(5)(A), shall be in effect for five (5) calendar years after the effective date of this amendment unless further legislative action is taken to extend it. After such date, loan amounts are subject to the conditions set by subsection 18A-35(a)(5)(C) or may be set at a higher amount subject to Director approval.
(i) The loan amount must be at least $5,000 and not more than 30% of either the full cash value or the appraised value of the qualified property.
(ii) The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.
(iii) The full cash value is determined by the Maryland State Department of Assessments and Taxation. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.
(B) For new commercial construction. This subsection, 18A-35(a)(5)(B), shall be in effect for five (5) calendar years after the effective date of this amendment unless further legislative action is taken to extend it. After such date, loan amounts are subject to the conditions set by subsection 18A-35(a)(5)(D) or may be set at a higher amount subject to Director approval.
(i) If a qualified property is designed to meet or exceed the energy performance required by the County building code by no more than 5%, the maximum loan amount must not exceed 20% of the full cash value or appraised value of the qualified property.
(ii) If a qualified property is designed to exceed the energy performance required by the County building code by 5% or greater, the maximum loan amount must not exceed 30% of the full cash value or appraised value of the qualified property.
(iii) The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.
(iv) The full cash value and appraised value of the property must be determined based on the estimated value of the property as completed. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.
(C) Existing commercial construction.
(i) The loan amount must be at least $5,000 and not more than 20% of either the full cash value or the appraised value of the qualified property.
(ii) The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.
(iii) The full cash value is determined by the Maryland State Department of Assessments and Taxation. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.
(D) For new commercial construction.
(i) If a qualified property is designed to meet or exceed the energy performance required by the County building code by no more than 5%, the maximum loan amount must not exceed 15% of the full cash value or appraised value of the qualified property.
(ii) If a qualified property is designed to exceed the energy performance required by the County building code by 5% or greater, the maximum loan amount must not exceed 20% of the full cash value or appraised value of the qualified property.
(iii) The loan amount, together with the outstanding balance of the mortgage or deed of trust, must be no more than 90% of either the full cash value or the appraised value of the qualified property.
(iv) The full cash value and appraised value of the property must be determined based on the estimated value of the property as completed. The appraised value must be determined by a Certified General Real Estate Appraiser and must have been certified no more than 12 months before the date of the loan application.
(b) Property assessed clean energy surcharge.
(1) The property owner of qualified property must agree to repay the amount financed through a Surcharge levied on the County’s real property tax bill for the qualified property.
(2) A Surcharge must be imposed under a written agreement between the private lender and the County. The Surcharge will be recorded in land records of the County, at the expense of the owner, within 30 days of the execution of a clean energy loan financing agreement.
(3) As a condition for entering into an agreement under the Program, the private lender must provide the County designated program manager and the Department a copy of the loan documents and documents that verify:
(A) the property owner’s ability to repay the Property Assessed Clean Energy loan in a manner substantially similar to that required for a mortgage loan;
(B) there are no delinquent taxes, special assessments, liens, or water or sewer charges on the qualified property;
(C) there are no delinquent assessments on the qualified property under the Program;
(D) existing mortgage or deed of trust lender consent;
(E) appraised value of the qualified property as certified in the appraisal report submitted by a Certified General Real Estate Appraiser if the eligibility requirement in 18A-35(a)(4) is based on the appraised value of the qualified property;
(F) loan to value documentation; and
(G) any other financial or program document that the Director deems necessary.
(4) In addition to the administrative fees in Section 18A-34(c), the County may collect an administrative fee through the Surcharge to cover charges relating to lending, program management, billing, or collection. (2015 L.M.C., ch. 16, § 1; 2016 L.M.C., ch. 23, § 1; 2017 L.M.C., ch. 12, §1; 2018 L.M.C., ch. 31, §1; 2019 L.M.C., ch. 9, § 1;
2019 L.M.C., ch. 23
, §1; 2022 L.M.C., ch. 9, §1; 2023 L.M.C., ch. 21, § 1.)