TITLE
Recommendation to adopt resolution authorizing the City to join the CounterpointeSRE Program, the CleanFund Commercial PACE Capital Program, and the Petros PACE Finance Program; authorizing the California Statewide Communities Development Authority to accept applications from commercial property owners, conduct contractual assessment proceedings and levy contractual assessments within the jurisdiction of the City of Long Beach; and, authorizing related actions. (Citywide)
DISCUSSION
Assembly Bill 811 (AB 811) was approved by the State Legislature and signed by the Governor on July 21, 2008. AB 811 and its amendments authorize local governments to provide financing to qualified property owners for the installation of energy and water efficiency improvements, as well as distributed generation renewable energy sources. Participating property owners repay the cost of the improvements through an assessment levied against their property, payable in semi-annual installments on property tax bills, with a lien filed against the property as security. The assessment remains with the property should the owner transfer or sell it. In turn, government jurisdictions, such as cities, counties, or joint powers authorities, issue municipal bonds backed by the assessments.
This financing mechanism, Property Assessed Clean Energy (PACE), mitigates two key barriers that may prevent property owners from implementing a greater number of energy efficiency, water efficiency, and renewable energy projects: (1) it eliminates the need for property owners to pay out-of-pocket, up-front costs for improvements; and, (2) it establishes a lien obligation that is attached to the property and not the individual borrower.
On June 22, 2010, the City Council adopted a Resolution authorizing participation in the Los Angeles County Clean Energy Program (which has since been renamed as L.A. County PACE). The program provides commercial property owners financing for projects over $500,000. Th...
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