,i #aac? ,,congress #b;d ,session ,h4 ,r4 #dbhe ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,m>* #bd1 #bjad ,mr4 ,?ompson ( ,cali=nia 7= himself1 ,mr4 ,k+ ( ,new ,york1 ,mr4 ,sean ,patrick ,maloney ( ,new ,york1 ,mr4 ,calv]t1 ,ms4 ,matsui1 ,ms4 ,e%oo1 ,mr4 ,george ,mill] ( ,cali=nia1 ,mr4 ,s*iff1 ,mr4 ,mc,nerney1 ,mr4 ,fitzpatrick1 & ,mr4 ,g>am5di7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to facilitate ,/ate & local gov]nm5tal entities 9 develop+ & implem5t+ private sector job creat+ programs ?r\gh local gov]nm5t f9anc+ ( ! in/allation ( en]gy effici5cy1 wat] cons]vation1 & r5ewable en]gy g5]ation improvem5ts on privately own$ prop]ty ) ! f9anc+ to be repaid f assessm5ts t may be levi$ on ! local prop]ty tax bill1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,,pace ,assessm5t ,protection ,act ( #bjad4 #b4 ,f9d+s & purpose 7a7 ,congressional f9d+s ,! ,congress f9ds t ! legislatures ( #ca ,/ates & ! ,di/rict ( ,columbia h det]m9$ t !re exi/ job creation b5efits1 o!r economic b5efits1 & significant o!r public b5efits f ! in/allation ( improvem5ts enc\rag$ by local gov]nm5t f9ance programs1 & h !re=e enact$ legislation au?oriz+ _! ,/ate & local gov]nm5ts to develop & implem5t programs "u :i* su* ,/ate & local gov]nm5ts f9ance ! in/allation ( ! improvem5ts on private prop]ty & ! prop]ty own]s may pay ! f9anc+ co/s on ! prop]ty tax bill4 ,su* legislatures include ,arkansas1 ,cali=nia1 ,colorado1 ,connecticut1 ,florida1 ,georgia1 ,hawaii1 ,ill9ois1 ,l\isiana1 ,ma9e1 ,m>yl&1 ,massa*usetts1 ,mi*igan1 ,m9nesota1 ,miss\ri1 ,nevada1 ,new ,hamp%ire1 ,new ,j]sey1 ,new ,mexico1 ,new ,york1 ,nor? ,c>ol9a1 ,ohio1 ,oklahoma1 ,oregon1 ,p5nsylvania1 ,texas1 ,utah1 ,v]mont1 ,virg9ia1 ,wa%+ton1 ,,dc1 ,wiscons91 & ,wyom+4 7b7 ,purpose ,x is ! purpose ( ?is ,act to ensure t ,,pace programs :i* incorporate prud5t programmatic safegu>ds to protect ! int]e/ ( mortgage hold]s & prop]ty own]s rema9 viable z a pot5tial av5ue = ,/ates & local gov]nm5ts to a*ieve ! _m public b5efits associat$ ) en]gy effici5cy1 wat] effici5cy1 & r5ewable en]gy retr(its4 ,9 addition1 x is ess5tial t ! p[] & au?ority ( ,/ate & local gov]nm5ts to ex]cise _! long/&+ & traditional p[]s to levy taxes = public purposes n be imp$$4 #c4 ,def9itions ,= purposes ( ?is ,act ! foll[+ def9itions apply3 7#a7 ,! t]m local gov]nm5t includes c\nties1 cities1 bor\ghs1 t[ns1 p>i%es1 villages1 di/ricts1 & o!r political subdivisions au?oriz$ "u ,/ate laws to e/abli% ,,pace programs4 7#b7 ,! t]m ,,pace agreem5t means an agreem5t betwe5 a local gov]nm5t & a prop]ty own] detail+ ! t]ms ( f9anc+ = a ,,pace improvem5t4 7#c7 ,! t]m ,,pace assessm5t means a tax or assessm5t levi$ by a local gov]nm5t to provide f9anc+ = ,,pace improvem5ts4 7#d7 ,! t]m ,,pace improvem5ts means qualifi$ clean en]gy improvem5ts1 qualifi$ en]gy cons]vation & effici5cy improvem5ts1 & qualifi$ wat] cons]vation & effici5cy improvem5ts4 7#e7 ,! t]m ,,pace li5 means a li51 held by a local gov]nm5t1 t secures a ,,pace assessm5t1 :i* may be s5ior to ! li5 ( pre-exi/+ pur*ase money mortgages on ! same prop]ty subject to ! ,,pace li54 7#f7 ,! t]m ,,pace program means a program implem5t$ by a local gov]nm5t "u ,/ate law to provide f9anc+ = ,,pace improvem5ts by levy+ ,,pace assessm5ts4 7#g7 ,! t]m resid5tial prop]ty means a prop]ty ) up to #d private resid5ces4 7#h7 ,! t]m non-resid5tial prop]ty means private prop]ty t is-- 7,a7 n us$ = resid5tial purposes2 or 7,b7 resid5tial prop]ty ) #e or m resid5ces4 7#i7 ,! t]m clean en]gy improvem5ts means any sy/em on privately own$ prop]ty = produc+ electricity =1 or meet+ heat+1 cool+1 or wat] heat+ ne$s ( ! prop]ty1 us+ r5ewable en]gy s\rces1 comb9$ heat & p[] sy/ems1 or en]gy sy/ems us+ wood biomass 7b n con/ruction & demolition wa/e7 or natural gas4 ,su* improvem5ts include sol> photovoltaic1 sol> !rmal1 wood biomass1 w9d1 & geo!rmal sy/ems4 ,su* t]m includes ! reasonable co/s ( a /udy und]tak5 by a prop]ty own] to analyze ! feasibility ( in/all+ any ( ! improvem5ts describ$ 9 ?is p>agraph & ! co/ ( a w>ranty or insurance policy = su* improvem5ts4 7#aj7 ,! t]m en]gy cons]vation & effici5cy improvem5ts means measures to r$uce consumption1 ?r\gh cons]vation or m effici5t use1 ( electricity1 fuel oil1 natural gas1 propane1 or o!r =ms ( en]gy by ! prop]ty1 includ+ air seal+1 in/allation ( insulation1 in/allation ( heat+1 cool+1 or v5tilation sy/ems1 build+ modification to increase ! use ( daylight+1 replacem5t ( w9d[s1 in/allation ( en]gy controls or en]gy recov]y sy/ems1 in/allation ( build+ managem5t sy/ems1 & in/allation ( effici5t light+ equipm5t1 provid$ t su* improvem5ts are p]man5tly affix$ to ! prop]ty4 ,su* t]m includes ! reasonable co/s ( an audit und]tak5 by a prop]ty own] to id5tify pot5tial en]gy sav+s t c\ld be a*iev$ ?r\gh in/allation ( any ( ! improvem5ts describ$ 9 ?is p>agraph4 7#aa7 ,! t]m wat] cons]vation & effici5cy improvem5ts means measures to r$uce consumption1 ?r\gh cons]vation or m effici5t use ( wat] by ! prop]ty1 includ+ in/allation ( l[-fl[ toilets & %[]heads1 in/allation ( tim] or tim+ sy/em = hot wat] heat]s1 & in/allation ( ra9 cat*m5t sy/ems4 7#ab7 ,! t]m prop]ty own] means ! own] ( record ( real prop]ty t is subject to a ,,pace assessm5t1 :e!r su* prop]ty is zon$ or us$ = resid5tial1 comm]cial1 indu/rial1 or o!r uses4 7#ac7 ,! t]m qualifi$ means1 ) respect to ,,pace improvem5ts1 t ! improvem5ts meet ! crit]ia specifi$ 9 section #e4 #d4 ,treatm5t ( pace programs by ,,fnma & ,,fhlmc 7a7 ,l5d] guidance ,! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy1 act+ 9 ! ,director's g5]al sup]visory capacity1 %all direct ! ,f$]al ,national ,mortgage ,association & ! ,f$]al ,home ,loan ,mortgage ,corporation to-- 7#a7 issue guidance1 )9 #cj days aft] ! date ( enactm5t ( ?is ,act1 provid+ t ! levy ( a ,,pace assessm5t & ! creation ( a ,,pace li5 d n con/itute a default on any loan secur$ by a uni=m in/rum5t ( ,f$]al ,national ,mortgage ,association or ,f$]al ,home ,loan ,mortgage ,corporation & d n trigg] ! ex]cise ( rem$ies ) respect to any provision ( su* uni=m security in/rum5t if ! ,,pace assessm5t & ! ,,pace li5 meet ! requirem5ts ( section #e2 7#b7 resc9d any prior issu$ guidance or ,sell+ & ,s]vic+ ,guides t are inconsi/5t ) ! provisions ( p>agraph 7#a72 & 7#c7 take all su* o!r actions necess>y to effect ! purposes ( ?is ,act4 7b7 ,prohibition ( discrim9ation ,! ,director ( ! ,f$]al ,h\s+ ,f9ance ,ag5cy1 ! ,comptroll] ( ! ,curr5cy1 ! ,f$]al ,national ,mortgage ,association1 ! ,f$]al ,home ,loan ,mortgage ,corporation1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,national ,cr$it ,union ,adm9i/ration1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 & all ,f$]al ag5cies & entities *>t]$ or o!rwise e/abli%$ "u ,f$]al law %all n discrim9ate 9 any mann] aga9/ ,/ates or local gov]nm5ts implem5t+ or p>ticipat+ 9 a ,,pace program1 or aga9/ any prop]ty t is obligat$ to pay a ,,pace assessm5t or is subject to a ,,pace li51 includ+1 )\t limitation1 by-- 7#a7 prohibit+ ! orig9ation1 l5d+1 pur*as+1 or gu>antee+ ( loans on resid5tial prop]ty )9 su* jurisdiction or requir+ m re/rictive und]writ+ crit]ia = prop]ties )9 su* jurisdiction2 7#b7 except = ! escr[+ ( funds z p]mitt$ by section #e7;g77#b71 requir+ paym5t ( ,,pace assessm5t am\nts t are n due or t are n del9qu5t2 or 7#c7 apply+ m re/rictive und]writ+ crit]ia to any prop]ty t is obligat$ to pay a ,,pace assessm5t & is subject to a ,,pace li5 ?an any su* entity w\ld apply to su* prop]ty 9 ! ev5t t su* prop]ty 7 subject to a ,/ate or municipal tax or assessm5t t 0 n a ,,pace assessm5t4 #e4 ,,pace programs eligible = protection 7a7 ,9 g5]al ,a ,,pace program1 & any ,,pace assessm5t & ,,pace li5 relat$ to su* program1 are entitl$ to ! protections ( ?is ,act only if ! ,program meets all ( ! requirem5ts "u ?is section at ! "t ( its e/abli%m5t1 or1 9 ! case ( any ,,pace program 9 effect ^u ! date ( ! enactm5t ( ?is ,act1 n lat] ?an #fj days aft] su* date ( enactm5t4 7b7 ,consum] protections applicable to resid5tial prop]ty ,a ,,pace program %all provide1 ) respect to resid5tial prop]ty1 = ! foll[+3 7#a7 ,prop]ty own] agreem5ts 7,a7 ,,pace assessm5t ,! prop]ty own] %all agree 9 writ+ to a ,,pace assessm5t1 ei!r pursuant to a ,,pace agreem5t or by vot+ 9 ! mann] specifi$ by ,/ate law4 ,9 ! case ( any prop]ty ) multiple own]s1 ea* own] or ! own]'s au?oriz$ repres5tative %all execute a ,,pace agreem5t or vote 9 ! mann] specifi$ by ,/ate law1 z applicable4 7,b7 ,paym5t s*$ule ,! prop]ty own] %all agree to a paym5t s*$ule t id5tifies ! t]m ov] :i* ,,pace assessm5t in/allm5ts w be due1 ! frequ5cy ) :i* ,,pace assessm5t in/allm5ts w be bill$ & am\nt ( ea* in/allm5t1 & ! annual am\nt due on ! ,,pace assessm5t4 ,^u full paym5t ( ! am\nt ( ! ,,pace assessm5t1 includ+ all out/&+ int]e/ & *>ges & any p5alties t may become due1 ! local gov]nm5t %all provide ! p>ticipat+ prop]ty own] ) a writt5 /atem5t c]tify+ t ! ,,pace assessm5t has be5 paid 9 full & ! local gov]nm5t %all also satisfy all requirem5ts ( ,/ate law to ext+ui% ! ,,pace li54 7#b7 ,disclosures by local gov]nm5t ,! local gov]nm5t %all disclose to ! p>ticipat+ prop]ty own] ! co/s & risks associat$ ) p>ticipat+ 9 ! ,,pace program1 includ+ risks relat$ to _! failure to pay ,,pace assessm5ts & ! risk ( en=cem5t ( ,,pace li5s4 ,! local gov]nm5t %all disclose to ! prop]ty own] ! effective int]e/ rate ( ! ,,pace assessm5t1 includ+ all program fees4 ,! local gov]nm5t %all cle>ly & conspicu\sly provide ! prop]ty own] ! "r to resc9d 8 or h] decision to ent] into a ,,pace assessm5t1 )9 #c days ( ! orig9al transaction4 7#c7 ,confid5tiality ,any p]sonal f9ancial in=mation provid$ by a prop]ty own] to a local gov]nm5t or an entity adm9i/]+ a ,,pace program on behalf ( a local gov]nm5t %all comply ) applicable local1 ,/ate1 & ,f$]al laws gov]n+ ! privacy ( ! in=mation4 7c7 ,requirem5ts applicable only to non-,resid5tial prop]ty ,a ,,pace program %all provide1 ) respect to non-resid5tial prop]ty1 = ! foll[+3 7#a7 ,au?orization by li5hold]s ,be=e ent]+ into a ,,pace agreem5t ) a local gov]nm5t or vot+ 9 favor ( ,,pace assessm5ts 9 ! mann] specifi$ by ,/ate law1 ! prop]ty own] %all obta9 writt5 au?orization f ! hold]s ( ! fir/ mortgage on ! prop]ty4 7#b7 ,,pace ,agreem5t 7,a7 ,t]ms ,! local gov]nm5t & ! own] ( ! prop]ty to :i* ! ,,pace assessm5t applies at ! "t ( comm5cem5t ( assessm5t %all ent] into a writt5 ,,pace agreem5t address+ ! t]ms ( ! ,,pace improvem5t4 ,9 ! case ( any prop]ty ) multiple own]s1 ! ,,pace agreem5t %all be sign$ by all own]s or _! legally au?oriz$ repres5tative or repres5tatives4 7,b7 ,,pace improvem5ts ,! prop]ty own] %all contract = ,,pace improvem5ts1 pur*ase mat]ials to be us$ 9 mak+ su* improvem5ts1 or bo?1 & ^u submission ( docum5tation requir$ by ! local gov]nm5t1 ! local gov]nm5t %all disburse funds to ! prop]ty own] 9 paym5t = ! ,,pace improvem5ts or mat]ials us$ 9 mak+ su* improvem5ts4 7,c7 ,paym5t s*$ule ,! ,,pace agreem5t %all include a paym5t s*$ule %[+ ! t]m ov] :i* paym5ts w be due on ! assessm5t1 ! frequ5cy ) :i* paym5ts w be bill$ & am\nt ( ea* paym5t1 & ! annual am\nt due on ! assessm5t4 ,^u full paym5t ( ! am\nt ( ! assessm5t1 includ+ all out/&+ int]e/ & *>ges & any p5alties t may become due1 ! local gov]nm5t %all provide ! p>ticipat+ prop]ty own] ) a writt5 /atem5t c]tify+ t ! assessm5t has be5 paid 9 full & ! local gov]nm5t %all also satisfy all requirem5ts ( ,/ate law to ext+ui% ! ,,pace li54 7#c7 ,disclosures by local gov]nm5t ,! local gov]nm5t %all disclose to ! p>ticipat+ prop]ty own]s ! co/s & risks associat$ ) p>ticipat+ 9 ! program1 includ+ risks relat$ to _! failure to make paym5ts & ! risk ( en=cem5t ( ,,pace li5s4 7#d7 ,confid5tiality ,any p]sonal f9ancial in=mation provid$ by a prop]ty own] to a local gov]nm5t or an entity adm9i/]+ a ,,pace program on behalf ( a local gov]nm5t %all comply ) applicable local1 ,/ate1 & ,f$]al laws gov]n+ ! privacy ( ! in=mation4 7d7 ,public notice ( ,,pace assessm5t ,! local gov]nm5t %all file a public notice ( ! ,,pace assessm5t 9 a mann] suffici5t to provide notice ( ! ,,pace assessm5t to pot5tial l5d]s & pot5tial pur*as]s ( ! prop]ty4 ,! notice %all consi/ ( ! foll[+ /atem5t or its sub/antial equival5t3 ,?is prop]ty is subject to a tax or assessm5t t is levi$ to f9ance ! in/allation ( qualify+ en]gy & wat] cons]vation & effici5cy improvem5ts or clean en]gy improvem5ts4 ,! tax or assessm5t may be secur$ by a li5 t is s5ior to all private li5s44 7e7 ,eligibility ( resid5tial prop]ty own]s ,be=e levy+ a ,,pace assessm5t on a prop]ty1 ! local gov]nm5t %all ensure t at lea/ all ( ! foll[+ are true ) respect to ! prop]ty3 7#a7 ,all prop]ty taxes & any o!r public assessm5ts are curr5t4 7#b7 ,!re are no involunt>y li5s1 su* z me*anics li5s1 on ! prop]ty 9 excess ( #a1jjj4 7#c7 ,no notices ( default1 includ+ prop]ty taxes & o!r public assessm5ts1 h be5 record$ dur+ ! pa/ ?ree ye>s or ! prop]ty own]'s p]iod ( own]%ip1 :i*ev] is %ort]4 7#d7 ,! prop]ty own] has n fil$ = or decl>$ bankruptcy 9 ! previ\s #c ye>s4 7#e7 ,! prop]ty own] is curr5t on all mortgage debt on ! prop]ty & has n _h m ?an "o in/ance ( prop]ty-bas$ debt del9qu5cy dur+ ! pa/ #f mon?s or ! prop]ty own]'s p]iod ( own]%ip1 :i*ev] is %ort]4 7#f7 ,! prop]ty own] or own]s are ! hold]s ( record ( ! prop]ty4 7#g7 ,! prop]ty title is n subject to p[] ( attorney1 easem5ts1 or subord9ation agreem5ts re/rict+ ! au?ority ( ! prop]ty own] to subject ! prop]ty to a ,,pace li54 7#h7 ,! prop]ty meets any geographic eligibility requirem5ts e/abli%$ by ! ,,pace program4 ,! local gov]nm5t may adopt additional crit]ia1 appropriate to ,,pace programs1 = det]m9+ :e!r to provide ,,pace f9anc+ to a prop]ty4 7f7 ,qualify+ improvem5ts & qualify+ contractors = resid5tial prop]ties ,,pace improvem5ts = resid5tial prop]ties %all be qualifi$ if !y meet ! foll[+ crit]ia3 7#a7 ,u4,s4 ,dep>tm5t ( ,en]gy en]gy /> qualifi$ products or o!r ,/ate gov]nm5tal ag5cies qualifi$ products ,= clean en]gy improvem5ts & en]gy cons]vation & effici5cy improvem5ts1 products %all meet ,en]gy ,/> guidel9es or o!r simil> guidel9es provid$ by ,/ate gov]nm5tal ag5cies ( ! applicable ,/ate4 7#b7 ,affix$ = useful life ,! local gov]nm5t %all h det]m9$ ! improvem5ts are int5d$ to be affix$ to ! prop]ty = ! entire useful life ( ! improvem5ts bas$ on ! expect$ useful lives ( en]gy cons]vation1 effici5cy1 & clean en]gy measures approv$ by ! ,dep>tm5t ( ,en]gy4 7#c7 ,own] improvem5ts ,a local gov]nm5t may elect to provide f9anc+ = improvem5ts made by ! own] ( ! prop]ty1 b %all n p]mit ! value ( ! own]'s labor to be includ$ 9 ! am\nt f9anc$4 7#d7 ,disbursem5t ( paym5ts ,a local gov]nm5t mu/ require1 prior to disbursem5t ( f9al paym5ts = ! f9anc$ improvem5ts1 submission by ! prop]ty own] 9 a =m acceptable to ! local gov]nm5t (-- 7,a7 a docum5t sign$ by ! prop]ty-own] reque/+ disbursem5t ( funds2 7,b7 a c]tificate ( completion1 c]tify+ t improvem5ts h be5 in/all$ satisfactorily2 & 7,c7 docum5tation ( all co/s to be f9anc$ & copies ( any requir$ p]mits4 7g7 ,f9anc+ t]ms applicable only to resid5tial prop]ty ,a ,,pace program %all provide1 ) respect to resid5tial prop]ty1 = ! foll[+3 7#a7 ,am\nt f9anc$ ,9 det]m9+ ! am\nt t may be f9anc$ by a ,,pace assessm5t1 ! total am\nt ( all rebates1 grants1 & o!r direct f9ancial assi/ance receiv$ by ! own] on acc\nt ( ! ,,pace improvem5ts %all be d$uct$ f ! co/ ( ! ,,pace improvem5ts4 7#b7 ,,pace assessm5ts ,! total am\nt ( ,,pace assessm5ts = a prop]ty %all n exce$ #ae p]c5t ( ! e/imat$ value ( ! prop]ty4 ,a prop]ty own] :o escr[s prop]ty taxes ) ! hold] ( a mortgage on a prop]ty subject to ,,pace assessm5t may be requir$ by ! hold] to escr[ am\nts due on ! ,,pace assessm5t1 & ! mortgage hold] %all remit su* am\nts to ! local gov]nm5t 9 ! mann] t prop]ty taxes are escr[$ & remitt$4 7#c7 ,own] equity ,z ( ! effective date ( ! ,,pace agreem5t or ! vote requir$ by ,/ate law1 ! prop]ty own] %all h equity 9 ! prop]ty ( n less ?an #aj p]c5t ( ! e/imat$ value ( ! prop]ty calculat$ )\t consid]ation ( ! am\nt ( ! ,,pace assessm5t or ! value ( ! ,,pace improvem5ts4 7#d7 ,t]m ( f9anc+ ,! maximum t]m ( f9anc+ provid$ = a ,,pace improvem5t may be #be ye>s4 ,! t]m %all 9 no case exce$ ! weight$ av]age expect$ useful life ( ! ,,pace improvem5t or improvem5ts4 ,expect$ useful lives us$ = all calculations "u ?is p>agraph %all be consi/5t ) ! expect$ useful lives ( en]gy cons]vation & effici5cy & clean en]gy measures approv$ by ! ,dep>tm5t ( ,en]gy or ! ,int]nal ,rev5ue ,s]vice4 7h7 ,collection & en=cem5t ,a ,,pace program %all provide t-- 7#a7 ,,pace assessm5ts %all be collect$ 9 ! mann] specifi$ by ,/ate law2 7#b7 ,,pace assessm5t in/allm5ts t are n due may n be accel]at$ by =eclosure2 & 7#c7 paym5t ( a ,,pace assessm5t in/allm5t f any loss res]ve t may be e/abli%$ = a ,,pace program %all n relieve a p>ticipat+ prop]ty own] f ! obligation to pay t am\nt4