Title 344 · Chapter 344 - COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY (C-PACE) PROGRAM

Chapter 344 - COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY (C-PACE) PROGRAM

Section: 344

Sec. 343.101. - Adoption of Standard Gas Code. TITLE IX - ELECTION CODE Chapter 344 - COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY (C-PACE) PROGRAM

Sec. 344.101. - Short Title.

This Chapter shall be known as the "City of Jacksonville Commercial Property Assessed Clean Energy Program" or "JAX C-PACE."

(Ord. 2021-824-E, § 2)

Sec. 344.102. - Definitions.

For the purpose of this Title, the definitions for the following terms, shall apply:

(a)

City shall mean the consolidated City of Jacksonville and Duval County.

(b)

C-PACE Assessment shall mean the voluntary non-ad valorem assessment placed on a property owner's tax bill as a result of financing obtained pursuant to the C-PACE Financing Agreement.

(c)

Contractor shall mean an appropriately licensed contractor authorized by the C-PACE Administrator to sell, construct or install C-PACE Qualifying Improvements funded through the JAX C-PACE Program.

(d)

C-PACE Financing Agreement shall mean the agreement entered into between the Eligible Participant and the City, the C-PACE Local Government, or the C-PACE Administrator, as applicable, specifying the C-PACE Qualifying Improvements to be installed at the property and the terms and conditions for financing those improvements through voluntary non-ad valorem special assessments levied on the property.

(e)

C-PACE Qualifying Improvement shall mean those improvements to new or existing commercial real property provided for in F.S. § 163.08(2)(b), including, but not limited to, energy conservation and efficiency, renewable energy and wind-resistance improvements, which shall be affixed to a building or facility that is part of the property, as set forth in F.S. § 163.08(10).

(f)

C-PACE Program, Program or JAX C-PACE Program shall mean the City of Jacksonville's C-PACE program.

(g)

Eligible Participant shall mean any commercial property owner who voluntarily participates in the C-PACE Program and satisfies the eligibility requirements set forth in Section 344.108, below.

(h)

Eligible Property means nonresidential properties and planned developments, as well as multifamily apartment buildings with five or more leased apartment units owned by an entity legally authorized to enter a contract, located within the jurisdictional boundaries of Duval County excepting any municipality that has opted out of the JAX C-PACE Program.

(i)

PACE Act shall mean F.S. § 163.08, as it may be amended from time to time.

(j)

C-PACE Administrator shall mean a for-profit or not-for-profit organization responsible for administering the JAX C-PACE Program on behalf of and at the discretion of the City or a C-PACE Local Government consistent with F.S. § 163.08(6).

(k)

C-PACE Local Government shall be defined as provided in the PACE Act, F.S. § 163.08(2)(a), which may be amended from time to time.

(Ord. 2021-824-E, § 2)

Sec. 344.103. - Purpose.

The assessments authorized by this Chapter shall be imposed, levied, collected and enforced against commercial properties located within Duval County which have voluntarily agreed to enhance their commercial property with energy efficient improvements that they wish to be financed and repaid through non-ad valorem special assessments. This ordinance further provides requirements for all C-PACE Local Governments that are authorized to operate within Duval County to ensure that:

(1)

The citizens of Jacksonville are fully apprised of the Program;

(2)

C-PACE Qualifying Improvements meet the statutory goals set forth in F.S. § 163.08; and

(3)

Contractors meet certain standards of conduct as set forth in federal, State, or local law.

This Chapter is intended to add requirements to the provisions of F.S. § 163.08 and other applicable law as it currently exists and should be construed consistently with the PACE Act and any such other applicable law. To the extent that the PACE Act provides for additional or more restrictive requirements not otherwise found in this Chapter or applicable law, the provisions of the PACE Act must be met. To the extent that this Chapter provides for more restrictive or additional requirements not found in the PACE Act or any such other applicable law, the provisions of this Chapter are intended to apply.

(Ord. 2021-824-E, § 2)

Sec. 344.104. - Authority.

The City of Jacksonville, a consolidated municipal corporation and political subdivision existing under the laws of the State of Florida, is authorized under F.S. § 163.08(3) to levy voluntary non-ad valorem special assessments to fund C-PACE Qualifying Improvements. Consistent with the findings of the Florida Legislature set forth in F.S. § 163.08(1)(c), the use of voluntary special assessments to finance C-PACE Qualifying Improvements represents a direct and special benefit to the real properties electing to participate in the Program which is in furtherance of compelling State and local interests in energy conservation and promotes the health, safety and welfare of the public.

(Ord. 2021-824-E, § 2)

Sec. 344.105. - Program Administration.

Pursuant to F.S. § 163.08(6), the City and C-PACE Local Government in establishing its C-PACE Program may utilize private administrators, defined in Section 344.102, Ordinance Code, as C-PACE Administrators, to facilitate the program application and approval process.

(Ord. 2021-824-E, § 2)

Sec. 344.106. - Program Requirements.

C-PACE Administrators shall establish a uniform process for Eligible Participants to apply for participation in the JAX C-PACE program. Any JAX C-PACE program established shall comply with the following standards, at a minimum, and include the following:

(a)

Application.

(1)

Data Security. C-PACE Administrators and C-PACE Local Governments shall take security measures to protect the security and confidentiality of consumer records and information to the extent permitted or mandated by law. In addition, a privacy policy must be in place 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 or required by State or federal law.

(2)

Florida Public Records and Sunshine laws. C-PACE Administrators shall be required to abide by all applicable laws related to public records, and their retention, including those set forth in F.S. Ch. 119. Further, C-PACE Administrators shall ensure that the organization and its employees/directors comply with any requirements of F.S. Ch. 286, regarding open government which apply to their organization.

(a)

Notices.

(1)

To Lender. At least 30 days before entering into a financing agreement, the property owner shall provide to the holders or loan servicers of any existing mortgages encumbering or otherwise secured by the property a notice of the owner's intent to enter into a financing agreement together with the maximum principal amount to be financed and the maximum annual assessment necessary to repay that amount. A verified copy or other proof of such notice shall be provided to the C-PACE Local Government and the C-PACE Administrator.

(2)

To Purchaser. Property owner must comply with F.S. § 163.08(14) regarding providing a written disclosure statement to a prospective purchaser. Failure to provide the notice referenced above in F.S. § 163.08(14) to a purchaser of the property shall have no effect on either the validity of any C-PACE Assessment or any obligation of a property owner.

(c)

Improvements.

(1)

All C-PACE Qualifying Improvements shall be properly permitted (where applicable) and must comply with Florida and local codes.

(d)

Permits.

(1)

Pre-Performance. Contractors are responsible for obtaining any and all permits required by law for installation of the C-PACE Qualifying Improvements. If a project requires use of sub-contractors or other licensed specialty contractors (i.e. electrical, plumbing, etc.), the general or lead contractor is responsible for verifying that all permits have been obtained for the specialty/sub-contracted work.

(e)

Contractors.

(1)

Licensure. As required under F.S. § 163.08(11), and other State and local laws, any contractor constructing or installing a C-PACE Qualifying Improvement shall be properly licensed as a Contractor.

(2)

Management. Each C-PACE Administrator shall:

To the extent possible, conduct outreach to and enroll local contractors as Contractors;

Strictly enforce anti-kickback policies and procedures consistent with federal, State and local law;

Ensure that all Contractors hold necessary licenses;

Confirm Contractor qualifications based upon consumer complaints or other indications of lack of compliance; and

(f)

Financing. The C-PACE Administrator shall do the following:

(1)

Agreement. After achieving compliance with all other mandated steps provided for by law, including but not limited to receiving a verified copy or other proof of such notice required by F.S. § 163.08(13), the C-PACE Administrator shall coordinate the execution of the C-PACE Financing Agreement, including obtaining the signatures of all applicable parties. Such agreement and supporting documentation referenced within such agreement and attached thereto, must include, at a minimum, the following:

The full legal description or property address of the property, subject to the C-PACE Assessment.

The amount of funding, including a breakdown of the estimated costs for the C-PACE Qualifying Improvements, any fees or administrative costs, and the estimated annual assessment figure to be provided to the Eligible Participant.

Express voluntary consent by the Eligible Participant to accept the voluntary non-ad valorem special assessment collection process, set forth in F.S. § 197.3632, with express consent regarding waiver of published notice and other procedural requirements that are not applicable due to the single property being assessed in every scenario.

The length of time for the Eligible Participant to pay back the amount financed through the voluntary non-ad valorem special assessment, which shall not exceed 30 years.

The Eligible Participant shall be responsible for verifying that the C-PACE Qualifying Improvements are completed as reflected in the approved application documents. The Eligible Participant also consents to providing access to the C-PACE Administrator and the C-PACE Local Government to the property to verify that the C-PACE Qualifying Improvements have been completed as proposed in the application.

At or before the execution of a contract for the sale and purchase of any property against which a voluntary non-ad valorem special assessment for the JAX C-PACE Program has been levied and has an unpaid balance due, the seller shall give the prospective purchaser a notice of the lien in accordance with F.S. § 163.08(14).

The risks associated with participating in the JAX C-PACE Program shall be clearly disclosed in plain language in the C-PACE Financing Agreement with the Eligible Participant, including risks related to the failure of the Eligible Participant to make payments, the risk that they may not be able to refinance the property or sell the property unless the C-PACE assessment is paid off in full first, and the risk of issuance of a tax certificate and loss of the property pursuant to F.S. Ch. 197.

Description of the C-PACE Qualifying Improvements, their cost, and, if applicable, the estimated completion date.

Notice of the voluntary non-ad valorem special assessment for the property shall be recorded in the public records maintained by the Clerk of Courts for Duval County Florida.

The C-PACE Financing Agreement shall clearly disclose, in plain language, the interest rate to be charged, as well as any and all fees or penalties that may be separately charged to the Eligible Participant, including potential late fees. The subsequent charging or collecting of any additional fees that were not specifically disclosed in the written agreement with the property owner shall be prohibited.

The C-PACE Financing Agreement shall clearly disclose, in plain language, that Eligible Participants have the right at any time to prepay in whole or in part the C-PACE assessments as further outlined in the financing agreement upon ten days' notice to the C-PACE Administrator.

(g)

Prohibited Practices.

(1)

Marketing and Communications.

Marketing practices for a C-PACE Administrator that are or could appear to be unfair, deceptive, abusive, or misleading, or that violate applicable laws or regulations, that are inappropriate, incomplete or are inconsistent with the C-PACE Administrator's or C-PACE Local Government's purpose are prohibited.

C-PACE Administrators shall not use facsimiles of the County, City, property appraiser, or tax collector logos in their marketing materials. Marketing materials shall not state that the JAX C-PACE Program:

Is a free program;

Is a County or City program;

Does not involve a financial obligation by the property owner; or

Is a form of public assistance.

(2)

Protected Classes. No C-PACE Administrator, nor Contractor shall discriminate against individuals on the basis of race, color, religion, national origin, sex, sexual orientation, gender identity, marital or familial status, age and disability.

(h)

Reporting.

(1)

Metrics. After not more than one year from the date of adoption of this ordinance, C-PACE Administrators shall track program metrics and report those metrics to City, through the Mayor's JAX C-Pace Program designee, which is the Chief Administrative Officer, and any participating quasi-municipalities, by jurisdiction and in total, at least quarterly, in spreadsheet format or another electronic format agreed upon by City. Those metrics, if available, shall include, at a minimum:

Dates of the reporting period;

List of C-PACE projects (including municipal jurisdiction, financed amount, project cost, interest rate, assessment duration, and project description) started, but not completed, during the reporting period, separated by building type (e.g. retail, office, industrial, etc.);

List of C-PACE projects (including municipal jurisdiction) completed during the reporting period, separated by building type project (e.g. retail, office, industrial, etc.), specifying:

The C-PACE Qualifying Improvements made;

Project start date and completion date;

At the aggregate level, the projected energy savings and/or amount of potential renewable energy to be generated;

At the aggregate level, financial information such as projected energy savings and/or amount of potential renewable energy to be generated;

At the aggregate level, other resource savings if data is available; and

Energy audits performed detailing the audit results, if applicable to the project;

Number of applications declined during the reporting period;

Unresolved complaints and/or contractor issues and status;

C-PACE Assessment defaults and tax certificates issued on properties subject to C-PACE Assessment (updated annually); and

All data included in the reports must be developed and collected using standardized and verified principles and methodologies for the industry. The methodologies and supporting assumptions and/or sources must be made available to the City by the C-PACE Administrator. It is the responsibility of the C-PACE Administrator to test and verify the data collection and reporting methods and models used. All reports shall include only aggregate data, excluding any nonpublic personal information.

(2)

City requests. C-PACE Administrators will respond to City requests for information on the JAX C-PACE Program in a timely manner and shall provide sufficient documentation as requested by the City to ensure that the requirements of this Chapter and the State statutes are being met. The C-PACE Administrator shall retain sufficient books and records demonstrating compliance with the agreement and State and City requirements for a minimum period of seven years from the non-ad valorem assessment and shall allow City representatives including the Council Auditor's Office access to such books and records upon request.

(i)

Recording. The City, C-PACE Local Government or C-PACE Administrator, as applicable, shall record, or cause to be recorded, the C-PACE Financing Agreement or a Memorandum thereof, in the public records of the Clerk of Courts for Duval County within five days after execution of the C-PACE Financing Agreement, along with appropriate C-PACE Administrator contact information for property owner inquiries.

(1)

The recorded agreement or summary memorandum of such agreement shall provide constructive notice that the assessment to be levied on the property constitutes a lien of equal dignity to City/County taxes and assessments from the date of recordation.

(j)

Amendments. City reserves the right to amend this Chapter to revise JAX C-PACE Program standards. It is the obligation of the C-PACE Administrators to remain abreast of and comply with all changes in applicable law, including changes to this ordinance made at public hearings.

(Ord. 2021-824-E, § 2)

Sec. 344.107. - Program Boundary.

The C-PACE Program is open to Eligible Participants within Duval County upon the effective date of this Chapter.

(Ord. 2021-824-E, § 2)

Sec. 344.108. - Eligible Participants.

In order to be an Eligible Participant, a property owner or its owners and the property itself must meet the criteria listed below. The C-PACE Administrators are responsible for verifying that all of these conditions are met.

(a)

Be the legal owner of the property and provide proof of ownership in the application for the JAX C-PACE Program;

(1)

In the event the property is owned by a corporation, LLC, joint venture, or limited partnership, consent to participate in the project shall be provided as an attachment to the application in the form of a Resolution that reflects the majority opinion of the Board of Directors or membership of the entity, signed by the appropriate officer, member, or partner.

(b)

Property must be within the JAX C-PACE Program boundaries, as defined in Section 344.107, Ordinance Code;

(c)

The C-PACE Administrator must evaluate the property and its ownership under the obligations set forth in F.S. § 163.08 to determine if the property meets all legal requirements and thus qualifies as an Eligible Property and Eligible Participants.

(Ord. 2021-824-E, § 2)

Sec. 344.109. - Program Completion and Non-ad valorem special assessment implementation.

Pursuant to F.S. § 163.08(4), the City or C-PACE Local Government is authorized to impose non-ad valorem special assessments on property to secure the repayment of the costs incurred by an Eligible Participant to pay for Qualified Improvement(s), which shall be collected pursuant to F.S. § 197.3632 or any successor section. Notwithstanding F.S. § 197.3632(8)(a), the special assessments shall not be subject to discount for early payment and shall not require notice and adoption as set forth in F.S. § 197.3632(4). Pursuant to F.S. Ch. 197, non-ad valorem special assessments levied pursuant to this Chapter shall remain liens, coequal with the lien of all State, County, district and municipal taxes, superior in dignity to all other liens, titles and claims, until paid.

(Ord. 2021-824-E, § 2)

Sec. 343.101. - Adoption of Standard Gas Code. TITLE IX - ELECTION CODE