§ 8-15-113. Financing projects

(a) A property assessed energy improvement district may establish a PACE program to provide loans for the initial acquisition and installation of energy efficiency improvements, renewable energy projects, and water conservation improvements with consenting real property owners of existing real property and new construction.

(b)

1. (1) The district may authorize by resolution the issuance of bonds or the execution of a contract with a governmental entity or a private entity to provide the loans under subsection (a) of this section.

2. (2) The resolution shall include without limitation the following:

   1. (A) The type of renewable energy project, water conservation improvement, or energy efficiency improvement for which the loan may be offered;

   2. (B) The proposed arrangement for the loan program, including without limitation:

      1. (i) A statement concerning the source of funding that will be used to pay for work performed under the loan contract;

      2. (ii) The interest rate and time period during which contracting real property owners would repay the loan; and

      3. (iii) The method of apportioning all or any portion of the costs incidental to the financing, administration, and collection of the arrangement among the consenting real property owners and the governmental entity;

   3. (C) A minimum and maximum aggregate dollar amount that may be financed per property;

   4. (D)

      1. (i) A method for prioritizing requests from real property owners for financing if the requests appear likely to exceed the authorization amount of the loan program.

      2. (ii) Priority shall be given to those requests from real property owners that meet the eligibility requirements on a first-come, first-served basis;

   5. (E) Identification of a local official authorized to enter into loan contracts on behalf of the district; and

   6. (F) A draft contract specifying the terms and conditions proposed by the district.

(c)

1. (1) The district may combine the loan payment required by the loan contract with the billing for the real property tax assessment for the real property where the renewable energy project, water conservation improvement, or the energy efficiency improvement is installed.

2. (2) The district may establish the order in which a loan payment will be applied to the different charges.

3. (3) The district may not combine the billing for a loan payment required by a contract authorized under this section with a billing of another county or political subdivision unless the county or political subdivision has given its consent by a resolution or ordinance.

(d) The district shall offer private lending institutions the opportunity to participate in local loan programs established under this section.

(e)

1. (1)

   1. (A) In order to secure a loan authorized under this section, the district may place a lien equal in value to the loan against any real property where the renewable energy project, water conservation improvement, or the energy efficiency improvement is installed.

   2. (B) The lien shall attach to the real property when it is filed in the county recorder’s office for record.

2. (2)

   1. (A)

      1. (i) The priority of the lien created under this chapter is determined based on the date of filing of the lien.

      2. (ii) Except as provided in subdivision (e)(2)(A)(iii) of this section, the priority of the lien shall be determined in the same manner as the priority for other real property tax and assessment liens.

      3. (iii) A lien created under this chapter shall be subordinate to any real or personal property tax liens.

      4. (iv) A district shall discharge the lien created under this chapter upon full payment of the lien.

   2. (B) If the real property is sold, the lien shall stay attached to the real property, and the loan created under this chapter will be owed by the new real property owner.

   3. (C) If the real property enters into default or foreclosure:

      1. (i) Payment of the assessment shall not be sought from a member of the district who does not own the real property that entered into default or foreclosure;

      2. (ii) Repayment of the assessment shall not be accelerated automatically; and

      3. (iii) The balance of the assessment shall be repaid according to the terms of the agreed-upon schedule.

3. (3) The district may bundle or package the loans for transfer to private lenders in a manner that would allow the liens to remain in full force to secure the loans.

(f)

1. (1) Before the enactment of an ordinance under this section, a public hearing shall be held at which interested persons may object to or inquire about the proposed loan program or any of its particulars.

2. (2) The public hearing shall be advertised one (1) time per week for two (2) consecutive weeks in a newspaper of general circulation in the district.