This supplemental resolution is intended to expand upon the existing Orlando PACE Program that was established by Resolution adopted on March 28th, 2016 (Original Resolution). The Original Resolution created a Property Assessed Clean Energy (PACE) program within the City of Orlando to provide a mechanism to finance energy conservation and efficiency improvements, renewable energy improvements, and wind resistance improvements (Qualifying Improvements), and joined the PACE Programs of the Florida Green Finance Authority, the Florida Pace Funding Agency, and the Green Corridor PACE District  This Supplemental Resolution enables FRED, and its selected third-party administrator, Renovate America, to also operate a PACE Program within the City of Orlando.

Financing options for property improvements has proved to be the limiting factor for homeowners and building owners looking modernize, mitigate wind damage, and improve the energy and water efficiency of their property. Several Florida communities and cities across the U.S. shared similar findings, and now more than 60 local governments have launched community-based financing programs to address this market barrier.

PACE has emerged as the primary method of developing voluntary, community-based finance programs for wind protection, energy efficiency and renewable energy improvements. PACE was created to overcome commonly cited barriers to energy efficiency investments, including:

·         High up-front cost barrier to energy efficiency and renewable energy  improvements,

·         Reluctance of property owners to make investments with long paybacks coupled with uncertainty of how long they will retain ownership of the property, and  

·         Unease of navigating contractors and viability of efficiency improvements.

Pursuant to the Florida PACE enabling legislation (Fla. Stat. 163.08), a local government may establish a PACE financing program for qualified improvements wherein the local government or a third-party administrator (via an inter-local agreement between multiple FL government) provides project financing for the costs of qualified improvements and the property owner repays the costs, with interest, through a special assessment levied on the property. The PACE assessments are repaid over a set term and billed annually on the property tax bill (5-20 years).  

Adoption of the attached Supplemental Resolution, approval of the Limited Purpose Party Membership Agreement Between the City and FRED, and authorization for the Mayor and City Clerk to execute the Resolution and Agreement, subject to review by the City Attorney’s Office.