Title
Resolution to Establish Fees for Property Assessed Clean Energy (PACE) Applications
Memorandum
This resolution establishes the fees for application review and an annual administration fee for the City of Ann Arbor’s Property Assessed Clean Energy (PACE) program.
Previously, City Council has acted to support state enabling PACE legislation, authorized grant funds to be used for program development and established a loan loss reserve fund to leverage private funding for PACE projects at lower interest rates. The resolution of intent, R-11-403, found that financing of energy projects is a valid public purpose because it furthers essential public and governmental purposes, including, but not limited to, reduced energy costs, reduced greenhouse gas emissions, economic stimulation and development, improved property valuation, and increased employment. On October 3, 2011, Council passed Resolution R-11-425 which established the PACE program.
The development and implementation of the PACE program is funded by a grant from the U.S. Department of Energy. Should application review costs exceed the fees collected in the first year of the program, excess costs will be covered by the grant funds, and fees will be adjusted accordingly.
This resolution establishes the following program fees for the new PACE program, which were designed to cover the technical review and administration costs:
Application fees
The application fees covers three distinct program costs and is to be remitted with the energy assessment project application.
1. Review Fee
The fee covers technical review, information, approval and project tracking.
2. Title Search Fee
This fee covers the actual cost of a title search to verify ownership of property and determine the presence of existing liens or encumbrances on the property. Applicants will be required to pay the actual cost billed by the title company.
3. Recording fee
This fee covers the cost of recording the assessment at the County C...
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