City of North Little Rock
Energy Improvement District
Property Assessed Clean Energy (PACE).
Authorized by State legislature.
PACE financing provides access to capital for property owner’s energy
PACE financing is repaid through a voluntary “special assessment” on
the property tax bill.
Financing is secured by a lien on the property.
Any unpaid special assessment has a priority over other liens.
If a property is sold, the new owner inherits both the repayment
obligation and financed improvements.
What is PACE?
There is no financial obligation imposed on the
PACE financing is secured solely by special
PACE financing will be funded by property owner
or financial institution.
Property owner will pay all reasonable costs to
implement the program.
City to create PACE District (Ordinance # 8623)
Mayor appoints District Board members
District requests County to levy special
County collects special assessments and transfers
them to District
Special assessments are pledged to the principal
and interest on PACE financing
PACE Legislation Requirements
Local government creates PACE
Building owner selects projects and
gets consent from mortgage lender.
PACE program arranges financing
Assessment added to tax roll.
How PACE Works
Provides access to capital for implementation of long-term
building energy efficiency improvements.
Low cost – secured by senior lien.
Positive cash flow – by matching payback and financing
No holding period bias – assessment stays with the
property upon sale.
Why PACE for Property Owners?