Financing Energy-Saving Improvements. Through The Florida Green Energy Works PACE Financing Program

Transcription

1 Financing Energy-Saving Improvements Through The Florida Green Energy Works PACE Financing Program

2 Who we are - Towns: - Lantana & Mangonia Park - Chambers: - Greater Boynton Beach Chamber of Commerce - Central Palm Beach Chamber of Commerce (includes Lake Worth) - The EcoCity Partners Program Team

3 Our Program Two components: Green Business Certification Program Financing for Energy Saving Improvements

4 What is PACE? Property Assessed Clean Energy Administered through a special energy improvement district (the Florida Green Financing Authority) Funds are borrowed to do energy efficiency, renewable energy, water efficiency and wind resistance projects Repayment is through tax bill over terms up to 20 years

5 Why? Wasted energy means wasted money. Avoid large upfront costs. Pay over time. Reduce operating costs. Benefits both owners and tenants. Major green points!

6 Eligible Properties Commercial properties (not residential) Office Hotel Retail Multifamily housing Restaurant Churches and private schools Located in a participating jurisdiction Lantana Mangonia Park More soon

7 Financing Amounts Up to 100% of available equity in property Equity = appraised value minus balance of any existing mortgage loans

8 Eligible Improvements Dozens of eligible technologies Goal: Reduce total energy costs by 20% Energy efficiency Windows, doors Refrigeration Insulation Elevators Roofing Pool pumps and heaters

9 Eligible Improvements Renewable energy Solar photovoltaic Wind turbines Water Efficiency Irrigation systems Restaurant equipment Toilets Wind Resistance Roof deck / bracing Building envelope upgrades High impact windows and doors

10 Borrowing Process Online process no paper to lose! Check on status of application at any time. Partnership among owners, lenders, tenants, contractors and FGEW.

11 Steps Initial application & eligibility review Energy or water or wind-resistance improvement review (owner responsibility) FGEW underwriting Line up funds and obtain lender consent Execute documents Complete project and receive funds

12 Steps Repayment of loan is through non-ad valorem assessment on annual property tax bill If property is sold, assessment remains in place through the remaining term of the loan

13 It s easy to start!

14 Simple online application

15 Sample Project Loan Property: 40,000 sq ft grocery Energy Usage: 2,000,000 kwh / yr Annual Energy Costs: $250,000 per yr Cost of Improvements: $100,000 (HVAC, LED lighting, insulation)

16 Sample Loan Financed amount: $108,895 (includes closing costs; interest is capitalized) Interest: 7% Term: 10 years Annual payment: $15,984 Energy savings (20%): $50,000 NET SAVINGS: $34,016 / year * Additional rebates and depreciation may also be available.

17 Contractors Simple application to become a registered contractor for the program Receive leads for qualified applicants Contractors responsible for negotiating deals directly with owners

18 Landlords and Tenants Owners and tenants need to cooperate to achieve positive outcome for both Where tenant pays utilities and taxes are passed through, tenant will pay cost of financing and get the benefit of savings For gross leases, landlord pays financing cost and realizes savings on utility bills Sample lease amendment language available

19 Banks Mortgage holder s consent is required PACE projects make existing buildings into better collateral and improve the cash flow of borrowers Existing lenders are invited to extend credit with the additional collateral of a PACE assessment lien

20 Expanding our footprint We are actively recruiting additional municipalities and counties to join the program. Opting in is simple, with no cost. Talk to your elected officials about joining.

21 Thank You! Any questions? Florida Green Energy Works Program (855) FL-WORKS c/o: Florida Green Finance Authority