Property Assessed Clean Energy

1. City of North Little Rock
Energy Improvement District
April 2014

2.  Property Assessed Clean Energy (PACE).
 Authorized by State legislature.
 PACE financing provides access to capital for property owner’s energy
efficient projects.
 PACE financing is repaid through a voluntary “special assessment” on
the property tax bill.
 Financing is secured by a lien on the property.
 Any unpaid special assessment has a priority over other liens.
 If a property is sold, the new owner inherits both the repayment
obligation and financed improvements.
What is PACE?

3.  There is no financial obligation imposed on the
City.
 PACE financing is secured solely by special
assessments.
 PACE financing will be funded by property owner
or financial institution.
 Property owner will pay all reasonable costs to
implement the program.
PACE financing

4.  City to create PACE District (Ordinance # 8623)
 Mayor appoints District Board members
 District requests County to levy special
assessments
 County collects special assessments and transfers
them to District
 Special assessments are pledged to the principal
and interest on PACE financing
PACE Legislation Requirements

5.  Local government creates PACE
benefit district.
 Building owner selects projects and
gets consent from mortgage lender.
 PACE program arranges financing
Assessment added to tax roll.
How PACE Works

6.  Provides access to capital for implementation of long-term
building energy efficiency improvements.
 Low cost – secured by senior lien.
 Positive cash flow – by matching payback and financing
term.
 No holding period bias – assessment stays with the
property upon sale.
Why PACE for Property Owners?