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1/ 1 RESOLUTION NO. ______ _ 2 3 A Resolution of the City of South Miami ("City") directing the City 4 Manager and City Attorney to take action against Ygrene Florida 5 Energy Fund, LLC (the "Ygrene") for the unauthorized use of the 6 City's seal. 7 8 WHEREAS, Section 13-31 of the City's Code of Ordinances provides that: 9 10 "All persons are hereby prohibited from using the name, logo or the official 11 seal of the City of South Miami, whether directly or indirectly, expressly or 12 impliedly, for any purpose, without the prior written consent of the city; and 13 14 WHEREAS, Section 13-31 (a) of the City's Code of Ordinances provides that: 15 16 " ... the word "use" is intended to and shall mean the express or implied 17 appropriation and publication, whether orally or in writing, printed or in electronic 18 media or in any other means of communication, of ... a depiction of the official 19 seal or logo of the city, in a way that expressly or impliedly creates the perception 20 that the city, or some department thereof, is involved in, or supports in any way, a 21 person or organization in any pursuit, activity, or thing of any kind whatsoever, 22 including but not limited to causes or events"; and 23 24 WHEREAS, Section 13-31 (d) of the City's Code of Ordinances provides that: 25 26 "... In the event that a person uses the city's name, logo or official seal 27 without the city's consent, the city shall have the right to an injunction to prevent 28 future use as well as damages for the unauthorized use of the city's name in an 29 amount as set forth in subsection (c) in this section"; and 30 31 WHEREAS, Section 13-31 (c) of the City's Code of Ordinances provides that: 32 33 "If any person uses the city's name ... or official seal without the written 34 consent of the city and if the city should thereafter ratify the use by resolution ... , 35 the person who uses the city's name ... or official seal ... shall pay to the city an 36 amount equal to twenty-five (25) percent of the funds due or payable ... and in an 37 amount equal to twenty-five (25) percent of the value of the property ... received 38 .... The person who used the city's name ... and who fails to pay the city for the 39 use of the city's name, logo or official seal, shall be jointly and severally liable to 40 the city in damages for the amount set forth in this section to be paid to the city 41 for the unauthorized use .... "; and 42 43 WHEREAS, at the City Commission Meeting of October 15 th , 2013, it was stated 44 by the City Manger and the Mayor that they had not approved of the Ygrene mailer that 45 went to the residents with the City of South Miami seal; and 46 Page 1 of2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 WHEREAS, the Ygrene materials were not approved by the Commission and therefore constituted unauthorized use of the City's seal. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: Section 1. The City Manager and City Attorney are hereby directed to take action against Ygrene Florida Energy Fund, LLC (the "Ygrene") for the unauthorized use of the City's seal or, in lieu of other action, Ygrene shall pay for the cost of mailing the attached disclaimer letter which is to be sent from the City of South Miami to the South Miami residential property owners. In the latter case, the City Clerk shall transmit the attached letter to said property owners after being advanced a deposit of _____ from Ygrene Florida Energy Fund, LLC. Section 2. Severability. If any section clause, sentence, or phrase of this resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, the holding shall not affect the validity of the remaining portions of this resolution. Section 3. Effective Date. This resolution shall become effective immediately upon adoption by vote of the City Commission. PASSED AND ADOPTED this __ day of _____ , 2013. ATTEST: CITY CLERK READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXECUTION THEREOF CITY ATTORNEY Page 2 of2 APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Liebman: Commissioner Newman: Commissioner Harris: Commissioner Welsh: To All Residents of South Miami Please be advised that the City of South Miami did not approve of the use of its name in literature promoting the financing of green technology through Y grene Florida Energy Fund, LLC, ("Y grene") Any and all flyers, brochures, or other literature that you may have received from Y grene using the City of South Miami's name contain representations made by Y grene and they are not the representation or sentiments of the City of South Miami. While this commission supports and encourages the residents of South Miami to utilize technologies such as Solar Panels and Solar Water Heaters etc., at this time we do not believe the Y grene program is a financially sound financing option for residential. Aside from the unattractive interest rates that are being charged, there are two other serious concerns. Y grene does not adequately vet their contractors for quality or price charged. Borrowers could face serious consequences with their home mortgage companies and find that they may have difficulties selling their home to other than a cash buyer in the future. South Miami bOd IUjl; 2001 (5& [!/Jo-utkJ/f2cuJti, 6130 Sunset Drive, South Miami, FL 33143 \ PreSort S.td USP6stage Paid .·Miaml,F.L Permit # 4270 Clean Energy Groon Corridor 3390 Mary Street, Suite 124 Miami, Fl. 33133 Phone: (305) 569-0015 Fax: (305) 569·0014 GreenCorrldor@ygrene.us www.CloanEnergyGreenCorrldor.com -- ,... v • The City· of S~uthMlaml'receritlYI~ui)iRiia'itn~ ¢~t:Ii~~f~~Ji:ib1:i~gi·~~~9r~~t6·ffi~k~·it··~~·~i~~f6~·i'i'·' '. homeown~rsllkeyou to obtain10Q% fin~ncin~.to·pl'otectyourhome trotrihurrlcanes; save energy, lower utility costs and make your home safer and h~althier. The financing offered by Clean Energ~GreeJ:) Corr1c:lo;can b~ .used for many types ofhome.lmprovement projects, ranging frorn hurricane protection to energy effiCiencyand.renewableenergymeasures, including: • Impac:fV\lindoWs '!V\later Heaters • NeW Roofs • ~ob. PUnips • SoJar Panels • Ductlng 8dnstflation • Heating & Air Conditioning Systems • Lighting • Storm Shutters and much more You get to choose your own contractor and make the Improvements you want. The project cost is repaid on your property taX bill over extended periods of uP to 20 years, allowing for a low annual payment We hope you willtake advantage ofthls opportunity by going to www.CleanEnergyGreenCorridor.com and getting started on your home improvement project today. Our local team, Dr. Philip Stoddard Joe Spector Mayo!; City of South Miami VP of Operations, Ygrene Energy Fund Florida P.S. Apply before October 7th using the promotional code SOUTHMIAMIUPGRADE to waive the $50 application fee. Visit the Ygrene Energy Center in person at 3390 Mary Street, Suite 124 In Coconut Grove to find out more. www·Y9rGna.us J m ru .... ~ .... Ul ru rn .:r .... t'- r::c 0- •• -15 J t:<l Ul ~ 0 .... IU :r: ru .... g ~ HurrlcaneproJeclion&cleaneriergyimprovements,can put cash they cost.Wi~hCJeanEnergy.~reen Corrldpr"youcan finance, all,typ~~iQt.cI~~O,~I1~.~Qyhom~':irT HURRICANE PRO'ri:c:nON JMPROVEMENTS ~' .lmpactyvindoV's >+ ,Sb:~r~ s,nutters >+ Ne~r9()fs' >+Foundatiol)strengtn improvmants oJRa.isiJ19~tiil~iogele~tions oJ Rooflngti~downs ENERGYEFFIC1Et.iCY IMPROYEfoii:NTS .. 'NEiVlwindows .. Lighting .. ,He13~If:lgand AirConditiol1il1gi~j:ell)s .. Waterneatars ' " + Insulation .. S~lights/Solartubes oJ Poolequipment CONTAtTUSTOF,INPOU.ro~~.~.~~ wirem asterselectric.com dauerled.com mr-solar.com Phone: (305) 378-1880 Tg;tnak~iyqur>H9I11e>of buslnessfrulyenergy" eff!~!ent,[EPJI9IJtlng ·Isamust. Dau~rp:[) produc;tsar,~i the mostInnovatlvelntl'l~ Indu~try.AnDauer LED products. are back~c!· by .~ .. rnanufi3cttJrer' 'wYClrnmo/9lving yg~Jhe·· sCltiSfac;tlgfl thaf your .sw.ltch to tED UghtlhgJs. ?srnClrtmpve: .. Be~tyet DaUer LEDsystern~ aiE!(Jnst~lIediln our area· .. by Wlre.Masters Electric, the.top . enoree hi el€ictrlcal' c;qntractors for Mlarnl"Dade.Wltn.·WlreMaster,s and Dau~r[ED,. yqu're well· on your way to· Gre,en Corridor sav'ngs and a more en (;!rgy effic;lent future. Contact us. today. Mr-Solar Is the leader In Green Corridor solar Installations for your area. ·We're Ygrene Certified and have the experience. and tecl}nology to do your Job right. WithMr.,.Solsr,youcclO i . assured that your solar project will be a success so you can start to enjoy the savings and peace of mind that solar brings. We are experienced with photovoltalc, solar hot water and solar pool heater systems and are approved suppliers of the best equipment In the business. Use a solar company that you can trust. Contact Mr-Solar today. 3390 MARY STREET -SUITE 124 COCONUT GROVE www.CleanEnergyGreenCorridor.com Phone: (305) 569-0015 South Dade Matters About . ; I /: ,i Looking,at the World South of Miami: Palmetto Bay, Cu~ler Bay, Pinecrest, South Miami and Miami-Dade t-I. " County. -, . I, ',' Former Councilman Feller to Municipalities: Wake Upl bySDM Former Palmetto Bay Councilman, Dr. Ed Feller authors in the Palmetto Bay News (October 18-31) a compelling argument again~t the South Dade Green'Corridor District. This special taxing district is advertised as offering a financing opportunity to install energy savings devices on commercial and residential properties. J. .. . "' ... ~ ... Among the prqlilems according to Dr. Feller's analysis: ItlLegal iss~es related to the priority of the special taxing district's lien against the commercial or residential property; ItlHigh interest rate and financing restrictions; rnA troubling bid process that leaves Palmetto Bay virtuallyno option but to contract with a company called Ygrene Florida -a company with no assets or track record; , , ItlA lack of insurance on the energy savings expected to be realized; and f!JThe lack of relevant qualifications for the district's board of directors. SDM did a little research on Ygrene, a limited liability company, and found that its "Manager" is Lykes Brothers, Inc., which is a large family-owned concern out of Tampa. lykes and Ygrene share the same CEO: Howell L. Ferguson, a scion of the lykes family. Lykes touts itself as an environmentally conscious company, but others consider it an environmental despoiler. In a recent column in News-Press.com (covering lee and Collier Counties), environmentalist Ellen Peterson excoriates the head of Florida Audubon for supporting Lykes Brothers' " ... conversion of Nicodemus Slough into a shallow holding tank for industrial-strength polluted water from Lake Okeechobee ... " and " ... placement of dams in Fisheating Creek, formerly the last unimpeded waterway in South Florida." SDM prides itself on not stooping to ad hominem argurrlE~nts, so to be dear: SDM doesn't know if Lykes Brothers is a "good" or ubad" company with regard to environmental issues. The problem is neither does Palmetto Bay or Cutler Bay. . " " I I: 1 • Our:~oC?~,leaders ats9 don't know if Ygrene will be backed up by Lykes Brothers. In fact, our leaders don't'see.m to understand much about this deal, excep~ that it sounds ~ood and that it's "green." '~ .. . i '. '~ . .: Villa'ge leaders take note: the "green" Lykes usually likes is the green found on money, regardless of the true environmental cost. Palmetto Bay and Cutler Bay would do well to heed Dr. Fellers wake-up call. 1 ' -.. " ••......•. -.... ---....... -. __ ...... -_ ... -.._ ... ---._.-.------_ .. _ .. _---_._-_.----._--------------_._-_ ... Breaking News: PACE Dies in the Ninth Circuit The West Coast PACE litigation party appears to have ended. After favorable rulings from the California Northern District Court for PACE backers, the Ninth Circuit today dismissed the case outright. As background, Property Assessed Clean Energy (PACE) programs allow municipal governments to finance residential and commercial energy improvements, with property owners repaying the governments via property tax assessments. The program was just taking off in states across the country when in 2010 the Federal Housing Finance Agency (FHFA) decided to stop insuring residential mortgages on properties with PACE assessments (commercial properties were unaffected). Lots oflawsuits were filed, but the West Coast version went the farthest. Judge Claudia Wilken ordered FHF A in 2012 to begin a rule-making process to justify the agency's action, although she allowed the present policy to stay in place (Jayni wrote about Berkeley Law's comments submitted in this process). Today the Ninth Circuit ruled that the courts have no jurisdiction to interfere with FHF A's decision because the agency acted as a "conservator" of Fannie and Freddie, rather than as a regulator. The conservator role has been well established in the context of the FDIC and private banks, but not for FHF A and Freddie and Frannie, which are government-sponsored entities. Plaintiffs had argued that 1) FHF A never invoked the "conservator" role when they issued the original 2010 policy directives and that 2) the agency's PACE policy involved substantive regulations not fit for the more limited statutory powers of a conservator. The court disagreed, finding that the policy was meant to shield taxpayers from liability over losses from foreclosed homes: in the event of a foreclosure, municipal governments would get paid back on their PACE assessments before Fannie and Freddie. This ruling has the unfortunate outcome of hindering an important municipal financing program for residential properties that will benefit the environment and economy (reduced utility bills and residential construction/retrofit jobs). And the scope of the conservator role, as the ninth circuit has now defined it (and as the Second and Eleventh Circuits also ruled in their PACE cases), allows FHF A to make almost any decision it wants without public input or judicial review, as long as FHF A can document that the policy saves the agency money and therefore fits its role as a "conservator." The immediate question for PACE backers will be whether of not FHF A continues its rule- making process that began in 2012 in response to the now-dismissed lawsuit. Legally, it can now abandon that effort, but it may be more difficult politically to do so. Otherwise, PACE backers will either have to hope for congressional action to overturn the FHF A policy or for the Obama Administration to make a change at FHF A. Either option would be welcome, given this decision today. GL..EAN ENERGVfi" GREEN CORRIDOR BYYGRENE CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES CLEAN ENERGY GREEN CORRIDOR www.flgreencorridor.com CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES In order to apply for financing under the Clean Energy Green Corridor (the "District") Program (the "Program") the property owner must read, accept, and comply with the terms provided herein (the "Program Terms"). These Program Terms, along with the documents property owners execute in connection with the Program (the "Program Documents"), establish the terms of the District Program. Property owners should become familiar with and understand the provisions of the Program Terms. By executing the Program Documents, the property owner agrees to all of the Program Terms. The District reserves the right to amend these Program Terms from time to time as described below. The District has contracted with Ygrene Energy Fund Florida, LLC (the "Administrator") to administer the program. The District will share information with the Administrator and other third parties as necessary to administer the Program. 1. Purpose of the Program The Program is intended to assist property owners in the District in financing the installation of energy efficiency, wind resistance and renewable energy improvements as defined in Section 163.08, Florida Statutes (the "Qualifying Improvements"). The financing and the costs of administering the Program will be repaid through non-ad valorem special assessments added to the property tax bills paid by only those property owners who voluntarily choose to participate in the Program. There may be other types of financing available to property owners and the District does not guarantee that the Program is the best financing option. Property owners should obtain help in selecting the option that is most appropriate for their particular situation. 2. Summary of the Program Process As discussed in more detail below, in order to receive funding from the Program, property owners must complete the following steps for all property types: a. Determine that they meet the eligibility requirements. (see "Eligibility" below). b. Apply online or submit a paper application for the Program. (see "Application; Approval or Denial; Application Fee" below). c. Agree to the Program Terms and pay an application fee (see Appendix II) as part of the application process. d. The Administrator must approve the completed application e. If there is an existing mortgage on the property, at least 30 days before entering into a financing agreement (the "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. The Program administrator will supply the property owner with the necessary documents. f. A contractor certified (the "Certified Contractor") through the Program must be selected by the property owner to install the Qualifying Improvements. The Certified Contractor must submit a bid for the installation of Qualifying Improvements on the property g. The District will record the signed Finance Agreement or a summary memorandum of such agreement within 5 days of signing. Upon disbursement of funds, the District will record an addendum to the Financing Agreement indicating the final amount financed which will be annually assessed (the "Settlement Statement"). CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES h. The District will authorize the release of funds to the property owner after project completion. Property owners may choose to assign payment directly to their Certified Contractor. i. Pay the special assessments in the amounts and at the times specified in the Settlement Statement. 3. Eligibility The Program is available to all privately owned property within the District. The financing terms and conditions set forth in these Program Terms are applicable to financings for the installation of Qualifying Improvements in residential and non-residential properties (as determined by guidelines established by each member municipality of the District). In order to 'participate in the Program, a property owner must meet and complete the following requirements and steps: a. The property to be improved with the Qualifying Improvements must be located within the District (see Appendix III). b. All holders of fee simple title to the subject property or, for corporate owners their designee(s), must sign the Program Documents. Therefore, before submitting an application, property owners must ensure that all property owners will agree to participate in the Program on the terms set forth in these Program Terms. c. In the case of renewable energy and energy efficiency retrofits, the property owner must agree to provide the Certified Contractor or an energy auditor with access to the property's utility usage history and information to enable the Program to analyze energy savings. d. All property taxes and any other assessments levied on the same bill as property taxes must be paid and have not been delinquent for the preceding 3 years or the property owner's period of ownership, whichever is less. There shall be no involuntary liens, including, but not limited to, construction liens on the property. There shall be no notices of default or other evidence of property-based debt delinquency recorded during the preceding 3 years or the property owner's period of ownership, whichever is less. The property owner must be current and not have more than one late mortgage payment on the property for the preceding 3 years or the property owner's period of ownership, whichever is less. Property owner must not have any notices of bankruptcy for the past three years. e. The total debt of the property, including (i) mortgages and equity lines of credit, secured by the property, and (ii) the aggregate principal amount of any fixed assessment liens on the property must not exceed 85% of the fair market value of the property. f. For energy efficiency and renewable energy measures, the property owner must submit an energy analysis of the property along with the Certified Contractor's formal bid. An energy analysis of the property is not required for wind resistance improvements. g. It is critical to the health of the Program that property owners pay their special assessments and other property-related obligations in full on a timely basis. Consequently, the District reserves the right, in its sole discretion, to request supplemental information from owners and to deny applications based on any negative reports. 2 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES 4. Initial Application All property owners interested in applying to the Program must submit the initial application documents listed below along with the required application fee. At the time of application, property owners must agree to the Program Terms. Project applications will receive an administrative point of contact from the Administrator, who will assist in the process. a. Application Form, either submitted online or printed and signed, and application fee. b. Upon review of the application by the Administrator, applicants will receive either a Notice of Approval or a Notice of Denial. c. Upon receipt of a Notice of Approval, applicants must obtain Lender Notification forms, available either on-line or from the Administrator, and submit them to their lender(s). Property owners will be required to provide to the Administrator a Proof of Mailing for Lender Notification forms. This process can actually be done by the property owner before applying; however, this is left to the discretion of the property owner. d. Upon receipt of a Notice of Approval, applicants can proceed to submit their proposed project for approval (See "Project Approval" below). e. Should an application be denied, the notice will include recommend remedial action that may be available to the applicant. 5. Qualifying Improvements; Certified Contractors; Maximum Funding The following general provisions apply to all projects submitted for funding under the Program: a. Program financing may only be used to finance those improvements that are described in the list of Qualifying Improvements (see appendix I). Property owners are responsible to ensure that improvements installed on their property qualify under the program. b. The Program is a financing program only. Neither the District nor the Administrator is responsible for installation of the Qualifying Improvements or their performance. c. The Qualifying Improvements must be affixed to the building or facility that is part of the property and shall constitute an improvement to the building or facility or a fixture attached to the building or facility. Appliances built-in to cabinetry qualify, but freestanding units do not. Built-in lighting fixtures qualify, but replacement of light bulbs alone cannot be financed. Questions regarding Qualified Improvements should be directed to the Administrator. d. Qualifying Improvements must be installed by Certified Contractors who meet the eligibility criteria set forth for the specific category of work being financed, and who are listed on the Certified Contractors list that may be obtained on-line or from the Administrator. e. The Program requires a minimum funding request of $2,500. f. The Program will approve maximum funding requests in an amount equal to the lesser of (i) the amount which when added to existing debt secured by the property does not exceed 95% of the fair market value of the property, or (ii) the final cost of installing the Qualifying Improvements (including allowable fees). Maximum principal amount of the financing is set at 20% of the just value of the property as determined by the county property appraiser. For proposed energy related, commercial projects, the Certified Contractor must submit evidence that the project provides either an SIR of one or greater or a Benefits-to-Cost Ratio (BCR) of one or greater. This BCR value means that the financial benefits of the improvement; including energy savings, reductions in repairs and maintenance expenditures, and reductions in insurance premiums; equal or exceed the Marginal Cost of the system. The Marginal Cost is defined as the difference 3 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES between the cost of the improvement and a non-efficient alternative. The funding limits are per property per financing request. The Program will not provide financing for any costs in excess of the maximum amounts allowed under FL law. 6. Project Approval Upon receipt of a Notice of Approval of a Program application and following verification of lender notification being sent, the property owner may proceed to apply for project funding. Following are the steps required to obtain authorization for funding under the Program: a. Select a Certified Contractor from the Certified Contractor List. This list is available on-line and/or from the Administrator. Applicants may wish to obtain bids and advice from more than one Certified Contractor. b. Work with Certified Contractor(s) to determine the scope and cost of your project, and verify that the proposed work qualifies for funding under the Program. Once Qualifying Improvements are selected, obtain a formal bid from one or more Certified Contractors. c. Following review of the project bid(s) select a Certified Contractor to coordinate the project with the Program Administrator. Even if the project requires using more than one trade for various aspects of the work (i.e. -retrofit and solar), applicants must select a lead contractor to process the project. If independent project approvals are being requested by more than one Certified Contractor, multiple applications will be required. d. Upon review of the proposed project and the bid(s) submitted for the work, the Administrator will issue either a Project Approval Letter or a Project Denial Letter. This communication will be provided by email unless directed otherwise by the applicant. e. Once the project is approved, applicants will be required to execute the Financing Agreement. This is the contract that authorizes the Administrator and the District to record on the property tax record the assessment that will secure the project financing. The Financing Agreement must be recorded prior to commencement of construction. f. Once the Financing Agreement is recorded, applicants will receive a Notice to Proceed. Upon receipt of this notice, applicants can sign construction contracts and authorize commencement of the project. If construction begins prior to receipt of a Notice to Proceed, applicants run the risk of not qualifying for Program funding. g. If the project is denied, the Project Denial Letter will outline remedial action that may be available to the applicant. 4 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES 7. Funding a. Once the Certified Contractor has completed installation of the Qualifying Improvements, property owners must submit a funding request and the project verification documents. Contact the Administrator for a complete list of required forms and agreements. b. If the funding request is not submitted to the Administrator within 7 calendar days after transmittal of the final Program forms, the interest rate may be reset (See "Financing Costs; I nterest Rate below). c. Upon review of the project record the Administrator will confirm its eligibility for funding and calculate the final assessment details. Prior to the issuance of checks, the property owner must approve and sign the final Settlement Statement. d. In the event a property owner cancels financing after submitting a request for funding, all expenses incurred by the Program for recording documents, preparing bond documents and releasing any liens will be the responsibility of the property owner. Property owners may be responsible for expenses incurred by Certified Contractors according to their contracts. The District has no responsibility to release funds to property owners or Certified Contractors for work that has not been completed for any reason. 8. Financing Costs; Interest Rate a. In order to receive funding, property owners agree to pay special assessments in an amount equal to (i) the principal amount received from the Program, (ii) interest on the principal amount received from the Program and (iii) initial and on-going administrative expenses (see Appendix II). b. Principal. This is the total of all financed project costs. These may include costs associated with implementing the project such as closing fees, permits, audit expenses, application fees and capitalized interest (see "Capitalized Interest" below). c. Interest Rate. The rate of interest charged on the amount funded will be fixed for the full term of the assessment. The rate will be set for a pre-determined time period on the date of signing of the Finance Agreement. . This rate may be subject to change if project is not funded within this period. Property owners can monitor interest rates on the Program website or by contacting the Administrator. d. Capitalized Interest. Because of administrative delays involved in placing assessments on County tax rolls, capitalized interest will be added to the assessment for the time period between funding and the placement of the assessment on the tax roll. 9. Repayment Terms; Special Assessments a. Repayment Terms. Following placement of the assessment on the tax roll, the property owner will be obligated to pay the special assessments specified in the Project Approval. b. Special Assessments. A property owner must pay the agreed-upon special assessment regardless of personal financial circumstances, the condition of the property, or the performance of the Qualifying Improvements. Property owners should not apply for financing if they are not certain they can meet the assessment obligations. The failure to pay property taxes in full or in part will result in financial repercussions including penalties, interest, the sale of a tax certificate on the property, and possible loss of the property. If property owners use an escrow account to pay their property taxes, they must notify the escrow company of the special assessment. In such cases, property owners will need to increase monthly payments to the escrow account by an amount equivalent to the annual assessment payments, divided by 12 months. 5 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES 10. Compliance with Existing Mortgages Recordation of the assessment on the tax roll will establish a continuing lien as security for the obligation to pay the special assessments. In accordance with Florida law, the lien securing the obligation to pay the special assessments will be senior to all private liens, including existing mortgage(s). Many mortgage and loan documents limit the ability of a property owner to place senior liens on property without the consent of the lender, or authorize the lender to obligate borrowers to prepay the senior obligation. Recently, the Federal Housing Finance Agency has issued policy guidelines that question the validity and assessment status of PACE assessments. Program participants should confirm with their lender(s) that participation in the Program does not adversely impact their rights with respect to any existing loan documents. Property owners are required to notify their lenders prior to a funding request and to provide the Administrator with a copy of the letter and proof of mailing. The Administrator will provide required forms for lender notification, but ultimate responsibility for addressing issues with existing lenders remains with property owners. 11. Transfer or Resale of the Subject Property Special Assessments run with the property. In the event of a sale, unless other arrangements are made prior to closing, the annual payments will appear on the new owner's tax bill. For this reason, ownership of any funded Qualifying Improvements (including light bulbs) transfer to the new owner. and may not be removed from the property. Program participants agree to make all legally required disclosures regarding the existence of the assessment lien on the property in connection with any sale. At or before the time a purchaser executes a contract for the sale and purchase of any property for which a non-ad valorem assessment has been levied and has an unpaid balance due, the seller shall give the prospective purchaser a written disclosure statement in the following form, which shall be set forth in the contract or in a separate writing: QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND RESISTANCE.-The property being purchased is located within the jurisdiction of a local government that has placed an assessment on the property pursuant to s. 163.08, Florida Statutes. The assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy, or wind resistance, and is not based on the value of property. You are encouraged to contact the county property appraisers office to learn more about this and other assessments that may be provided by law. 12. Rebates and Taxes Participation in this Program does not reduce rebates available through federal, state, utility sponsored and District rebate programs. More information on available programs can be found on- line or through Certified Contractors and other vendors. Participants should consult with their tax advisors with respect to the state and federal tax benefits and consequences of participating in the Program. Neither the District nor the Administrator is responsible for the tax considerations of participating in the Program. 6 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES 13. Changes in State and Federal Law The District's ability to continue to finance the Program is subject to a variety of state and federal laws. If those laws or the judicial interpretation thereof changes after a property owner applies for the Program, but before the District fulfills the funding request, the District may be unable to fulfill the request. In such event, the District shall have no liability as a result of any such change in law or judicial interpretation. 14. Changes in Program Terms The District reserves the right to change the Program Terms at any time without notice. However, no such change will affect a participant's obligation to pay special assessments as set forth in the Settlement Statement. Participation in the Program will be subject to the Program Terms in effect from time to time. 7 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES APPENDIX I QUALIFYING IMPROVEMENTS The following list represents improvements that will be Qualifying Improvements under the District PACE Program. Additional and/or alternative measures may be approved on a case-by-case basis and/or as the list is modified from time to time in compliance with State Law or instructions from the District. 1. Energy Efficiency a. Air Sealing and Ventilation • Air Filtration • Building Envelope • Duct Leakage and Sealing • Bathroom, ceiling, attic, and whole house fans b. Insulation • Defect Correction • Attic, floor, walls, roof, ducts c. Weather-Stripping d. Home Sealing e. Geothermal Exchange Heat Pumps f. HVAC Systems g. Evaporative Coolers • Cooler must have a separate ducting system from air conditioning and heating ducting system h. Natural gas storage water heater • Energy Star listed i. Tankless water heater j. Solar water heater system k. Reflective insulation or radiant barriers I. Cool roof m. Windows and glass doors • U value of OAO or less and solar heat gain coefficient of 0040 or less n. Window filming o. Skylights p. Solar tubes q. Additional building openings to provide addition natural light r. Lighting • Energy Star listed (only retrofits) s. Pool equipment • Pool circulating pumps 8 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES 2. Other Non-Residential Building Measures The following measures are allowed for commercial and non-residential buildings, in addition to all applicable energy efficiency measures listed above: a. Occupancy-Sensor Lighting Fixtures • SMART Parking Lot Bi-Level Fixture • SMART Parking Garage Bi-Level Fixtures • SMART Pathway Lighting • SMART Wall Pack Fixtures b. Task Ambient Office Lighting c. Classroom Lighting d. Refrigerator Case LED Lighting with Occupancy Sensors e. Wireless, daylight lighting controls f. Kitchen Exhaust Variable Air Volume Controls g. Wireless HVAC Controls & Fault Detection 3. Solar Equipment a. Solar thermal hot water systems b. Solar thermal systems for pool heating c. Photovoltaic systems (electricity) d. Emerging technologies -following the Custom Measures Track 4. Wind Resistance Measures a. Wind hardening measures can be deployed through this Program. The measures described qualify. b. Improving the strength of the roof deck and foundation attachment. c. Creating a secondary water barrier to prevent water intrusion. d. Installing wind-resistant shingles or other roofing. e. Installing gable-end bracing. f. Reinforcing roof-to-wall connections. g. Installing storm shutters. h. Installing perimeter-opening protections. i. Raising building elevations. 9 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES 5. Custom Measures The Custom Measures Track is a process by which the Energy Center Manager and/or staff can evaluate and approve funding for projects that are not "off the shelf' improvements listed in the Qualifying measures. These custom projects may involve large scale industrial or commercial energy efficiency improvements; processing or industrial mechanical systems; and renewable energy generation from sources such as geothermal and fuel cells. The following are examples of custom measures that will be considered for Clean Energy Green Corridor funding: a. Custom Energy Efficiency Measures • Building energy management controls • HVAC duct zoning control systems • Irrigation pumps and controls • Lighting controls • Industrial and process equipment motors and controls • Electric Vehicle Charging Equipment b. Custom Energy Generation Measures • Fuel Cells • Wind turbine power system • Natural gas • Hydrogen fuel • Other fuel sources (emerging technologies) • Co-generation (heat and energy) 10 CLEAN ENERGY GREEN CORRIDOR PROGRAM GUIDELINES APPENDIX" ADMINISTRATIVE FEES AND CLOSING COSTS Application Fee Processing & Underwriting Fee Jurisdiction Cost Recovery Fee Recording & Disbursement Fee Escrow/Trustee Fee Title Insurance Fee Energy Pro Fee (Wind Excluded) COMMERCIAL 250 250 See Table 250 90 TBD See Table1 1CostlBenefit or SIR must be greater than or equal to 1. Application Fee Processing & Underwriting Fee Jurisdiction Cost Recovery Fee Recording & Disbursement Fee Escrow/Trustee Fee Title Insurance Fee Energy Pro Fee (Wind Excluded) RESIDENTIAL 50 125 See Table 100 90 TBD 502 2Audit for informational purposes only RESIDENTIAL COMMERCIAL JURISDICTION COST RECOVERY FEE3 Project Size Fee < $62,500 125 :2: $62,500 75 + (.0008 x Project Size) < $250,000 225 :2: $250,000 75 + (.0008 x Project Size) 375 allocated for District cost recovery, remainder for Bond Counsel ENERGY PRO -COMMERCIAL PROJECTS Project Size Fee ~ $100,000 450 $100,001 -$200,000 600 $200,001 -$300,000 750 :2: $300,001 + 900 11 CLEAN ENERGY GREEN CORRIDOR APPENDIX III PROPERTY ELIGIBILITY GUIDELINES Coral Gables Miami Cutler Bay Miami Shores Palmetto Bay Pinecrest South Miami Industrial • • • • • • • Commercial • • • • • • • Multi-Family Residential NOT ELIGIBLE • • • • • • PROGRAM GUIDELINES Single-Family Residential NOT ELIGIBLE NOT ELIGIBLE • • • • • 12