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Ord No. 13-17ORDINANCE NO. 13-17 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, ESTABLISHING REQUIREMENTS FOR THE CITY OF DELRAY BEACH'S PROPERTY ASSESSED CLEAN ENERGY PROGRAM ('PACE"); PROVIDING FOR MULTIPLE, NON- EXCLUSIVE PACE PROGRAMS IN ORDER TO ALLOW FOR THIRD - PARTY ADMINISTRATORS, EITHER FOR-PROFIT OR NOT-FOR- PROFIT, TO ADMINISTER THE PACE PROGRAM WITHIN THE CITY PURSUANT TO STATE LAW AND THE REQUIREMENTS SET BY THE CITY; PROVIDING A CONFLICTS CLAUSE AND A SEVERABILITY CLAUSE; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, Property Assessed Clean Energy (PACE) is a program which provides upfront capital to property owners to invest in energy-efficient, renewable energy or wind -resistance improvements to their properties; and WHEREAS, Sec 163.08, Florida Statutes, has provided supplemental authority for such improvements through general law and states that the "...Legislature finds that there is a compelling state interest in enabling property owners to voluntarily finance such improvements with local government assistance"; and WHEREAS, Sec. 163.08, Florida Statutes, also authorizes a local government to either levy non -ad valorem assessments in order to fund qualifying improvements or ,alternatively, allows a for-profit entity or a not-for-profit organization to act as a third -party administer for a PACE program on behalf of and at the discretion of the local government such that a financing agreement with the property owner, when recorded, constitutes a lien of equal dignity to county taxes and assessments from the date of recordation; and WHEREAS, a property owner's participation in such financing agreements is entirely voluntary and the local government shall not incur or be requested to authorize any obligations secured by special assessments associated with qualifying improvements imposed by the third -party administrator; and - - -- WH, based upon thebeve-ele€nts-©f tli€ . of De- - Beach deems it necessary and to be in the best interests of the health, safety, and welfare of the citizens and residents of the Delray Beach, to adopt the following minimum standards within the City of Delray Beach such that its residents will be able to finance energy improvements to their properties through non -ad valorem assessments on their tax bills and also allow for PACE programs within the City which will ultimately promote energy conservation, energy security, and the reduction of greenhouse gases in conformance with the declared public policy of the state. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF CITY OF DELRAY BEACH, FLORIDA THAT: Section 1. Incorporation. The recitations set forth above are incorporated herein. Section 2. Title 11. Business Regulations. at Chapter 111. Reserved. of the Code of Ordinances of the City of Delray Beach, Florida, shall hereby be repealed and readopted to read as provided in Exhibit "A": See EXHIBIT A attached hereto and made a part hereof Section 3. Severability. If any clause, section, or other part or application of this Ordinance shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part or application shall be considered as eliminated and so not affecting the validity of the remaining portions or applications remaining in full force and effect. Section 4. Compliance Period. With respect to the compliance period established by Section 111.10 of the Code, a PACE provider's initial agreement with the City shall be deemed to be such PACE's provider's first agreement with the City executed concurrent with or after the effective date of this Ordinance, or as provided at Sec. 111.10. Section 5. Codification. Authority is hereby granted to codify the text amendments set forth in EXHIBIT "A" this Ordinance. Section 6. Conflicts. All ordinances or parts of ordinances, resolutions or part of resolutions in conflict herewith are to the extent of such conflicts hereby repealed. day of ATTEST: Clerk First Reading Second Reading ii') ao 2017. � Mayor EXHIBIT "A" To be codified at: TITLE 11. BUSINESS REGULATIONS. CHAPTER 111. Reserved. PROPERTY ASSESSED CLEAN ENERGY PROGRAM ("PACE") Sec. 111.01- DEFINITIONS De6nitions For p=oses of this article, 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 of Palm Beach County in accordance with F.S. sec. 163.08. PACE assessment shall mean the non -ad valorem assessment placed on a property owner's tax bill as a result of financing obtained under a PACE program. PACE program shall mean one or more authorities or programs authorized by the city commission to offer financing of qualifying improvements. Program administrator shall mean the enti responsible for offering managing and administrating the specific PACE program. Qua in improvement shall include those improvements as defined by F.S. sec. 163.08, including energy efficiency,renewable energy and wind resistance or as may be amended by law. Sec. 111.02 - ELIGIBLE PROPERTIES. (A) Residential property with 4 units or fewer may be eligible for financing qualifying improvements through a PACE program provided each of the following criteria are met: (1) AllAll property taxes and other assessments levied on the property tax bill have been paid and have not been delinquent for the preceding three 3 gears, 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) The amount to be financed by the PACEprogram 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 (6) 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 5 or more units in addition to commercial, industrial agricultural and other non-residential properties may be eligible for financing qualifying improvements through a PACE prograin. Sec. 111.03 - 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 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. Sec. 111.04 - PRICING. Each PACE program shall establish pricing rules and enforcement mechanisms to ensure that property owners are protected from excessive or Lmjusdfied prices and charges. Sec. 111.05 - CONSUMER PROTECTION. fA) ProPeM owner. Only the record owner of the property may enter into a financing agreement with a PACE grogram. (B) Consumer notice. In addition to any statutory disclosure requirements the program administrator shall ensure that each property owner is provided with a separate, written notice disclosing each of the following (1) The estimated total amount of the debt, including amount financed, fees, fixed interest rate, capitalized interest and the effective rate of the interest charged annual percentage tate); (2) The 3-daght to cancel the financing; (3) A repayment term that does not exceed the average erected useful life of the improvements; (4) The repayment process and terms amounts and a schedule that fully amortizes the amount financed including the estimated annual assessment amount; (5) Identification of any pre payment fees or penalties; (6) That there is no re-oresentation that the property improvements to be financed will increase the overall value of the property; (7) That there is no discount for pa,i�ng the PACE assessment early; (8) That the PACE assessment will appear on the property owner's tax bill; (9) 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 1'ay the PACE assessment may cause a tax certificate to be issued against the properM and that failure to Pay may result in the loss of the prol2erty sub)ect to the PACE assessment in the same manner as failure to pay property taxes; (10) The specific improvements to be financed and installed; (11) Notice that the property owner may be required to pay any PACE assessment in full at the time of refinance or sale of the properM. (Q) 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 prop= owner prior to or contemporaneously with the property owner's signing of anyle_gally enforceable documents under the PACE program. (D) 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. (E) Funding The PACE program shall require compliance with each of the following conditions prior to the issuance of any funding to the contractor: (2) Verification that the appropriate financed Products and improvements have been installed; and (3) The property owner and the contractor have signed a certificate of completion that all improvements have been installed to the property owner's satisfaction. (F) Consumerprivacy The PACE program shall have and maintain a privacy policy 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 permitted by state and federal law. (G) Data Security The Pacerogram shall be responsible for taking security measures that protect the security and confidentiality of property owner records and information in proportion to the sensitivity of the information, and as may be requited by state and federal law. Sec. 111.06 - MARKETING 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. Sec. 111.07 - CONTRACTOR MANAGEMENT. (A) Any work under a PACE program requiting a license under any applicable law to make a qualifying improvement shall be performed by a contractor properly license, certified or registered pursuant to state law. (B) Contractors performing work under a PACE program shall comply with each of the following conditions: (1) Be licensed and insured pursuant to the applicable statutory requirements; (2) Agree to comply with all program requirements and marketing_ guidelines; (3) Act in good faith to timely resolve property owner complaints. (C) No cash payment may be made to or from a contractor in exchange for or related to such contractor being awarded work under a PACE program, exccptingpayment fot the contractor's Installation of eligible improvements. (A) Comtilaints 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 pa, eats, 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 Sec. 111.09 - REPORTING. Each PACE program shall provide a report to the city on a quarterly calendar basis, which shall include, at a minimum, the following information: (A) Dates of reporting period; (B) List of PACE projects started during the repordng period, separated by building type f e.g. single family, multifamily, retail, office, industrial, etc.). (C) List of PACE projects completed during the reporting period, separated by building We (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 ainount 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. (D) Number of jobs created during the reporting period, including local versus non -local jobs and permanents versus temporary jobs; (E) Number of applications declined during the reporting period; (F) Unresolved complaints or contractor issues and status; (G) Description of the standardized third -party methodologies and suPborting assumptions used to verify data, and any changes in the methodologies and assumptions from the previous reporting period. Sec. 111.10 - 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 dM -to modify its pricing mechanisms, data collection and data maintenance systems to comply with this chapter. Florida Green Finance Autho ft (EGFAJ shall continue funding pursuant to the adopted Amended Interlocal Agreement recorded in public records for Palm Beach County at ORB 28757 Page 0813) and the Party Membership Agreement originally executed on June 25, 2012, but shall be subject retroactively to these requirements: and FGFA shall have one year from the effective date of this ordinance to comply with the requirements of this chapter if it does not already comply. Sec. 111.11- SUSPENSION OF PROGRAM. (A) Failure of a PACE program or progtam administrator to cooperate with the city's review of the administration of such program shall be grounds for suspension of that PACE program or program administrator by the city commission. Any project that has been initiated as of the time of suspension shall be permitted to be completed. (B) The city commission may suspend a PACE program from funding new projects for a term determined appropriate by the city commission, should the city commission find that the PACE program or its program administrator has failed to comply with the statutory requirements or the requirements of this article. Anv proiect that has been initiated as of the time of suspension shall be ermitted to be completed. Secs. 111.12-111.99. RESERVED. City of Delray Beach 100 N.W. 1st Avenue Delray Beach, FL 33444 Legislation Text File #: 17-403, Version: 1 TO: Mayor and Commissioners FROM: Dale Sugerman, Asst. City Manager/Acting Director of ESD THROUGH: Chief Neal de Jesus, Interim City Manager DATE: May 2, 2017 ORDINANCE NO. 13-17: ESTABLISHING REQUIREMENTS FOR THE CITY OF DELRAY BEACH'S PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM PROVIDING FOR MULTIPLE, NON -EXCLUSIVE PACE PROGRAMS IN ORDER TO ALLOW FOR THIRD -PARTY ADMINISTRATORS, EITHER FOR-PROFIT OR NOT-FOR-PROFIT, TO ADMINISTER THE PACE PROGRAM WITHIN THE CITY (SECOND READING) Recommended Action: Motion to Approve Ordinance No. 13-17 on second reading. Background: Property Assessed Clean Energy (PACE) was authorized by the Florida Legislature in 2010 though Section 163.08 F.S., in an effort to improve energy efficiency, incentivize installation of solar arrays, and increase storm resilience of Florida's built environment. Using PACE, property owners can implement a variety of 'qualifying improvements' including, but not limited to, the installation of energy efficient air conditioning systems, water heaters, insulation, impact resistant and insulated windows and doors, solar energy panels, and roof improvements that address energy efficiency and/or wind mitigation on homes and commercial buildings. The Property Assessed Clean Energy (PACE) program in Delray Beach has been relatively dormant since inception in 2012. In order adapt to changing market conditions and help ensure the program's success, staff recommends that the City Commission should take the following actions: (1) Adopt an ordinance that establishes guidelines for multiple, non-exclusive PACE programs providing PACE funding within the City and provides additional consumer protections for our residents; (2) Join the Second Amended Interlocal Agreement with Florida Green Finance Authority (the "Authority"), implemented through the RenewPACE qualifying improvements program, by adopting a resolution which provides that the original 2012 membership agreement is still in effect; and (3) Join the Interlocal Agreement that forms the Green Corridor PACE District, currently administered by Ygrene Energy Fund, Florida LLC., by entering into a membership agreement with the Green Corridor District. Proposed Ordinance 13-17 addresses the changes in the PACE market. The proposed ordinance establishes that the City will have multiple PACE providers. It will require that current and future PACE providers that provide financing for property in Delray Beach have transparent and fair operating and marketing practices with clear disclosures to consumers. The proposed ordinance is similar to the ordinances adopted in Boynton Beach and West Palm Beach. City of Delray Beach Page 1 of 2 Printed on 5/2/2017 pow[ lod by I ogiFfl ar nvl File M 17-403, Version: 1 RenewPACE (fka Florida Green Energy Works) and Ygrene Energy Fund Florida, LLC have already adopted consumer protection and disclosure measures commensurate to those recommended by PACE Nation. Other companies entering the market may have different operating models. Adopting a local PACE ordinance will require any new PACE administrator to adhere to these nationally recognized business practices. The ordinance ensures that the City has taken steps to protect residents participating in the program and City Commission need not entertain joining other Interlocal Agreements that do not meet these requirements. There are no costs to the City from the PACE program. The program allows the private sector to operate within the City's jurisdiction. City Attorney Review: Approved as to form and legal sufficiency. Finance Department Review: Finance recommends approval. Funding Source: N/A Timing of Request: Adopting these changes will help reenergize the Delray Beach PACE Program. City of Delray Beach Page 2 of 2 Printed on 5/2/2017 pow[ lod by I ogiFfl ar nvl City of Delray Beach Environmental Services Department M E M O R A N D U M www.mvdelraybeach.com TO: John Morgan FROM: Ana Puszkin-Chevlin DATE: February 21, 2017 SUBJECT: Updates to PACE Program, Resolutions and Ordinances for Commission Approval I am hoping to advance the Property Assessed Clean Energy (PACE) program in Delray Beach, which has been relatively dormant since inception in 2012. To do this, the City needs to: 1) adopt an ordinance that establishes guidelines for multiple, non-exclusive PACE programs providing PACE funding within the City and provides additional consumer protections for our residents ; 2) Join the Second Amended Interlocal Agreement with Florida Green Finance Authority (the "Authority"), implemented through the RenewPACE qualifying improvements program, by adopting a resolution which provides that the original 2012 membership agreement is still in effect; and 3) join the Interlocal Agreement that forms the Green Corridor PACE District, currently administered by Ygrene Energy Fund, Florida LLC., by entering into a membership agreement with the Green Corridor District. Below I have provided a summary of the PACE program's history, its benefits and an explanation of why these three actions are needed to make PACE active and successful in Delray Beach. Background: What is PACE? Property Assessed Clean Energy (PACE) was authorized by the Florida Legislature in 2010 though Section 163.08 F.S., in an effort to improve energy efficiency, incentivize installation of solar arrays, and increase storm resilience of Florida's built environment. PACE offers property owners a novel form of low-interest rate, long-term, private sector financing for environmentally sustainable building improvements that is tied to the real estate property asset, rather than the credit of the property owner(s). The financed amount is repaid annually through a non -ad valorem property tax assessment over a period of years, based on the life -span of the qualified improvements. PACE does not cause local jurisdictions to incur any costs, as it does not involve government subsidies or tax incentives. While cities and counties must join PACE districts to allow property owners to use the program, participation by the city's property owners is completely voluntary. Simplified Explanation of How it Works —Section 163.08 F.S., authorizes local governments to create PACE programs and create a framework within which local governments (including municipalities, counties or special districts) can levy and collect a non -ad valorem assessment to pay for qualified improvements. In order to reduce the difficulty and administrative costs of individual local governments organizing, financing, implementing and managing the PACE programs, separate legal entities have been created pursuant to Section 163.01, F.S. the Florida Intergovernmental Coordination Act of 1969, which then procure third -party administrators for their programs. Local governments join in an Interlocal Agreement establishing such separate legal entities through membership agreements, which then allow that entity (the funding authority) along with their third -party administrator to provide their PACE funding program within the boundaries of the municipality in order to: • Identify a funding source, either private capital from either private equity firms or bond offering • Certify the property improvements per the statute; • Provide financing to the property owners; • Assess and collect the non ad valorem assessment on the improved property; and, • Repay the funds within the program. Essentially, the program functions without further involvement or cost to the participating municipality. From the property owner's perspective, an owner wishing to make qualifying improvements contacts either a participating contractor, or the PACE program administrator, which can suggest a list of qualified contractors they have vetted. Properties that meet a standard lending criteria are eligible for the program. The criteria include: 1) the property is located within the geographic boundaries of the program, that is within the boundaries of the municipalities party to that Interlocal Agreement 2) there are no delinquent taxes or late taxes in the past three years, 3) there are no bankruptcies on record for the owner. The property owners complete a PACE project and financing application, select a contractor, gets approved for the scope of the qualifying improvements and then completes the financing agreement. The PACE Administrator disburses funds to the contractor for the work, ensuring that the work is properly permitted and completed prior to disbursement. The PACE administrator then arranges for the project costs to be placed as a non ad valorem assessment on the property for the period of time it takes to pay off the improvements, finance charges and administrative fees. The property owner sees the amount on their next property tax bill and pays back the assessment in annual installments until it is paid off. If the property is sold during the intervening period, the remaining lien amount has typically been paid at the closing, prior to transfer. PACE Benefits - Using PACE, property owners can implement a variety of 'qualifying improvements' including, but not limited to, the installation of energy efficient air conditioning systems, water heaters, insulation, impact resistant and insulated windows and doors, solar energy panels, and roof improvements that address energy efficiency and/or wind mitigation on homes and commercial buildings. • These improvements to the residential and commercial inventory increase community resilience to coastal storms, driving down insurance costs and utility bills and increase property values. • The property improvements advance community sustainability, reducing the community's carbon footprint by lowering energy consumption and promoting the use of solar, which reduces the need for new power sources. • Unlike traditional loan or home equity line, the PACE financing rate is not based directly on credit quality of the owners and does not impact the owners' credit rating, allowing property owners to make building improvements they might not otherwise be able to finance. • The PACE Assessment is tied to the equity in the real estate asset, and amortized over the life - expectancy of the improvements. The cost savings in terms of property insurance or utility costs is intended to offset a portion of the monthly repayment amount. • PACE is seen as economic development tool, driving business to local contractors and simulating job growth. • Cities may see a small increase in revenue from permit fees filed for the work. • The PACE administrators vet and enlist only licensed qualified contractors for implementing the improvements. As PACE will only release payment to contractors once the work is completed to the property owners' satisfaction and appropriate permits have been closed out, the program provides a measure of consumer protection and quality control on all installations. They also are required to mediate and resolve disputes. History of PACE - PACE was born in California in 2008 and gained momentum nationally, but particularly on the West Coast in its early years. Florida legislature passed Section 163.08 F.S. authorizing local governments to create PACE programs in 2010. Locally, the Town of Lantana and the Town of Mangonia Park led the development of a PACE program called Florida Green Energy Works. To raise the financing, administer the program and the assessments, the Florida Green Finance Authority (Authority) and Florida Green Energy Works were created by Interlocal Agreement. The Authority is the financing agency, and because it is a separate legal body, there is no obligation to the City for financing contributions. In July 2012, the City of Delray Beach passed Resolution 24-12 joining the Interlocal Agreement with Florida Green Finance Authority, and Florida Green Energy Works PACE program. To our south approximately 20 cities joined a similar Interlocal establishing the Clean Energy Green Corridor District, administered by Ygrene. LLC. Other programs have been established in other geographic regions of the state. Just as the Florida's PACE programs were getting established, the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac cast a chill over the growing PACE movement, raising questions about the seniority of the PACE lien over the mortgage. Litigation involving these institutions hung over the PACE program from 2010 through late 2012, slowing its proliferation nationally and leading some PACE providers to focus exclusively on commercial projects during this period. Ultimately, the Federal Courts did not strike down, nor affirm the validity of PACE programs, but issued narrow rulings on procedural issues, allowing PACE to proceed. In 2012, FHFA issued a Notice of Proposed Rulemaking and later a Proposed Rule concerning the underwriting standards related to PACE. FHFA's guidelines quelled concerns about foreclosing on properties with PACE improvements and financing, but affirmed that FHFA and related institutions would not purchase mortgages with PACE liens, thus requiring sellers to satisfy the leans prior to a property transfer or refinance. Additionally, in Florida, between 2013 and 2015, several parties filed suits in State court against some of the financing districts, contesting their bond validations. Districts whose bonds were not appealed, including Green Corridor District, administered by Ygrene, grew steadily. Those caught up in litigation, including Florida Green Finance Authority, to which Delray Beach was party, were unable to advance effectively and remained rather inactive until litigation in State Courts was finally resolved in October 2015. In September 2015, as the litigation was concluding, Florida Green Energy Works was purchased by Renew Financial, a very large and well -funded California-based PACE provider eager to expand in this market. In January 2016, the Obama Administration issued directive to FHA/ HUD and the VA to facilitate PACE. The FHA guidelines released in late July 2016 outline how properties with PACE assessments can now be purchased and refinanced with a FHA -insured mortgage, permitting among other things, that some PACE assessments can roll-over to a new property owner. Freddie and Fannie backed mortgages still require the lien to be satisfied, but the policy direction is shifting toward unencumbering PACE. This suggests that PACE finally has a "green light", and a period of steady growth and consumer adoption is anticipated. Justification for the requested actions As PACE programs have matured, new players entered the market and there have been some consolidations among firms. The PACE market has also evolved from a model of having one -financing authority and administrator dominating a specific geographic territory, to a more competitive model where municipalities and counties are party to multiple Interlocal Agreements run by different administrators. As the number of PACE providers has grown, cities, along with a national non-profit PACE advocacy organization, PACE Nation, developed best -practice guidelines for these programs and their administrators. The guidelines are intended to raise the professionalism of the PACE providers, create some standardization and most importantly, protect consumers from poor business practices. Cities have used the guidelines to craft local ordinances that ensure PACE operators are working within these best practices. The ordinance and resolutions that should be presented to the Commission address these changes in the PACE market. 1. The new ordinance will establish that the City will have multiple PACE providers and it will require that current and future PACE providers financing property in Delray Beach to have transparent and fair operating and marketing practices with clear disclosures to consumers. The ordinance is fashioned to mirror the ordinances adopted in Boynton Beach and West Palm Beach, though most similar to West Palm's format. While Renew PACE (fka Florida Green Energy Works) program and Ygrene Energy Fund Florida, LLC already adopted consumer protection and disclosure measures commensurate to those recommended by PACE Nation, other companies entering the market have different operating models. Adopting a local PACE ordinance will require any new PACE administrator to adhere to these nationally recognized business practices. The ordinance ensures that the City has taken steps to protect residents participating in the program and Commission need not entertain joining other Interlocal Agreements that do not meet these requirements. 2. Staff recommends that two resolutions be presented to the City Commission. The first resolution will authorize the City to join the Second Amended and Restated Interlocal Agreement with Delray Beach's current PACE program entity, Florida Green Finance Authority. The Second Amended and Restated Interlocal reflects a change in the program name pursuant to the acquisition of the third -party administrator by Renew Financial. It also introduces changes providing greater flexibility for the Authority's Board of Supervisors, greater geographic representation on the board, and provides that the 2012 membership agreement is still in full force and effect. Although the former Florida Green Energy Works program was impacted by the challenges to its bond validation and did not roll out many projects, the Florida Green Finance Authority expanded to include 49 jurisdictions across nine counties including Alachua Broward, Escambia, Indian River, Martin, Orange, Palm Beach, Pasco, and Pinellas. The program's acquisition by Renewal Financial brings significant resources, both monetary and personnel, to help make the program more successful throughout Florida. Renew Financial administers the largest multi -jurisdictional PACE program in California, CaliforniaFIRST, which available to 27 million people in over 300 local governments in California. Renew Financial has closed on over 7,300 PACE assessments at a total value of $186 Million across the U.S. and secured $650 million in total financing to date. The RenewPACE program now launching the residential portion of its program with an expedient project approval process. Since July 2016, RenewPACE has completed approximately $70,000 in residential transactions. 3. The second resolution and a membership Agreement allows joinder by the City to the Interlocal Agreement forming the Clean Energy Green Corridor District, currently administered by Ygrene Energy Fund Florida, LLC ("Ygrene"). This will allow Delray Beach residents to have a choice in selecting which PACE provider to work with, if they choose to use the program. Ygrene was one of the first, and is the largest PACE provider in Florida, having funded more than 2000 projects in Miami -Dade and Broward Counties. It now includes 52 jurisdictions in Florida. The company has closed on more than $300 million dollars in projects nationally and has a well- developed network of approved contractors and easy electronic application portal that simplifies and expedites use of the program. Ygrene approached the City in early 2016 and presented their program to staff and Delray Beach's Green Implementation Advancement Board in April 2016. Local contractors who have work with Ygrene in other cities also asked staff to make Ygrene a local PACE provider. The GIAB unanimously passed a motion to support opening up the PACE to Ygrene and potentially other providers. GIAB and city staff recognized the benefit of having multiple administrators, noting that competition could lower application and administration fees, provide slightly different financing options, and allow residents to choose from a larger pool of approved contractors. Moreover, Ygrene is known for an expeditious approval process and an ability to finance small projects. The second resolution would also direct staff to, on occasion, review and present to commission other PACE programs that are successfully operating in Florida, thus creating more choice for consumers.