Phase 1: Bill 11-13
Council Bill 11-13, Commercial Property Assessed Clean Energy Program (PACE) directed staff to develop an Implementation Plan (the “Plan”) for PACE. PACE is designed to assist qualifying commercial properties with financing energy improvements. The PACE loan from a private lender is paid back through annual surcharges on the property tax bill. This loan stays with the property and a subsequent owner continues to pay the surcharge until the loan is fully paid. Having the PACE surcharge included on the tax bill provides greater security in the loan repayment as it allows the charge to be part of the tax bill and therefore part of the tax lien process if the PACE surcharge goes unpaid.
Phase 2: Implementation Plan
The Department of Finance worked closely with the Department of Environmental Protection, Department of General Services, County Attorney, and Public Financial Management (PFM), the County’s Financial Advisor, to develop this Plan. This Plan conforms to Senate Bill 186, Clean Energy Loan Programs, adopted by the Maryland General Assembly during the 2014 session. SB 186 enables counties to pass a local law to authorize Commercial PACE for private lenders; collect a surcharge on the property tax bill; and allow certain administrative fees to be charged to borrowers. Lender consent is required for all Commercial PACE loans.
Phase 3: Bill 6-15
Council Bill 6-15, Commercial Property Assessed Clean Energy Program (PACE), which was adopted on March 31, 2015, establishes a PACE Program to assist qualifying commercial property owners to make energy improvements; allows private lenders that provide capital for a commercial loan provided under a local clean energy loan program to have annual loan payments collected by the County as a surcharge on a real property tax bill; establishes that the surcharge on a real property tax bill is treated as all other taxes and charges and that an unpaid surcharge shall be, until paid, a lien on the real property on which it is imposed; and generally amends the environment sustainability law.
Phase 4: Developing and introducing the C-PACE program
The County is proud to have its Commercial PACE Program fully operational and “Open for Business”. A Program Manager (PACE Financial Servicing, LLC) and County Designated Lender (Greenworks Lending, LLC) were selected for the Program through a competitive solicitation. Click here for the press release announcing the selection of each vendors.
To learn more about the County’s C-PACE Program Manager - PACE Financial Servicing, LLC - please click here.
To learn more about the County’s C-PACE County Designated Lender - Greenworks Lending, LLC - please click here.
For additional information on this Program and how it relates to other County Energy Programs and Initiatives, please visit the County’s Department of Environmental Protection C-PACE Webpage click here.
Contact: David Crow, Department of Finance 240-777-8859 David.Crow@montgomerycountymd.gov