This document outlines Property Assessed Clean Energy (PACE) financing for energy efficient projects in North Little Rock. PACE financing provides property owners access to capital for energy improvements through a voluntary special assessment on their property tax bill. The assessment has priority over other liens and is inherited by new owners if the property is sold. The city would create a PACE district but not be financially obligated. Property owners would pay costs to implement the program and finance improvements through assessments or loans.

1. City of North Little Rock
Energy Improvement District
April 2014

2.  Property Assessed Clean Energy (PACE).
 Authorized by State legislature.
 PACE financing provides access to capital for property owner’s energy
efficient projects.
 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?

3.  There is no financial obligation imposed on the
City.
 PACE financing is secured solely by special
assessments.
 PACE financing will be funded by property owner
or financial institution.
 Property owner will pay all reasonable costs to
implement the program.
PACE financing

4.  City to create PACE District (Ordinance # 8623)
 Mayor appoints District Board members
 District requests County to levy special
assessments
 County collects special assessments and transfers
them to District
 Special assessments are pledged to the principal
and interest on PACE financing
PACE Legislation Requirements

5.  Local government creates PACE
benefit district.
 Building owner selects projects and
gets consent from mortgage lender.
 PACE program arranges financing
Assessment added to tax roll.
How PACE Works

6.  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
term.
 No holding period bias – assessment stays with the
property upon sale.
Why PACE for Property Owners?