[HISTORY: Adopted by the Board of Supervisors of Pierce County 9-25-2018 by Ord. No. 18-03. Amendments noted where applicable.]
The County finds that renovations or additions to premises located
in the County made to improve energy efficiency, improve water efficiency,
and/or use renewable resource applications, increase property values,
stimulate local economic activity, provide local and global environmental
benefits, and promote the general welfare of County residents. The
purpose of this chapter is to facilitate loans arranged by property
owners or lessees to make such improvements by treating loan principal
and interest, fees, and other charges as special charges eligible
for inclusion on the tax roll for these properties.
This ordinance is enacted pursuant to § 66.0627, Wis.
Stats., as amended, which authorizes a county to make a loan or enter
into an agreement regarding loan repayments to a third party for owner-arranged
or lessee-arranged financing, to an owner or a lessee of a premises
located in the county for making or installing an energy efficiency
improvement, a water efficiency improvement or a renewable resource
application to a premises.
As used in this chapter, the following terms shall have the
meanings indicated:
The portion of the PACE loan that is due and payable for
a particular year under the supplemental agreement.
The property owner or lessee of the subject property that
borrows the proceeds of a PACE loan.
The outstanding balance, whether or not due, of a PACE loan
at the time that the County receives foreclosure proceeds.
The proceeds received by the County from the disposition
of a subject property through an in rem property tax foreclosure.
The principal, interest, administrative fees (including the
Program Administrator's fees) and other loan charges to be paid
by the borrower under the PACE loan.
The acronym for property assessed clean energy.
The delinquent annual installment(s) due when the County initiates
the in rem property tax foreclosure on the subject property;
Any additional annual installment(s) that become due between
the time that the County initiates in rem property tax foreclosure
on the subject property and the date the County receives the foreclosure
proceeds;
Any default loan balance.
Any person that makes a PACE loan, and which may include
an affiliate of the borrower.
A loan made by a PACE lender to a borrower under this chapter
for energy efficiency improvements, water efficiency improvements,
or renewable resource applications made to or installed on a subject
property.
Any individual, association, firm, corporation, partnership,
limited liability company, trust, joint venture or other legal entity,
or a political subdivision as defined in § 66.0627, Wis.
Stats.
The person retained by the Wisconsin PACE Commission as provided in § 34-5B.
Any premises located in the County on which energy efficiency
improvements, water efficiency improvements, or renewable resource
applications are being or have been made and financed through an outstanding
PACE loan.
A written agreement among a borrower, a PACE lender and the County, as provided for in § 34-7.
The Wisconsin PACE Commission formed under § 66.0301,
Wis. Stats., as amended, by the County and one or more other political
subdivisions as defined in § 66.0627, Wis. Stats., pursuant
to a joint exercise of powers agreement relating to the Wisconsin
PACE Commission.
Any PACE loan made and secured pursuant to this chapter shall
be considered a special charge on the subject property. Any annual
installment or portion of a PACE loan made and secured pursuant to
this chapter that becomes delinquent according to the terms of the
PACE loan shall be a lien against the subject property and placed
on the tax roll, as permitted pursuant to § 66.0627, Wis.
Stats., as amended.
A.
Any of the powers and duties of the County under this chapter, except for those under § 34-9, may (but are not required to) be delegated to the Wisconsin PACE Commission.
B.
The Wisconsin PACE Commission is further authorized to retain a Program
Administrator to act as its agent and administer the PACE program,
subject to adherence with PACE program requirements set forth in this
chapter and in § 66.0627, Wis. Stats., as amended.
A.
The County, the borrower and the PACE lender shall execute the supplemental
agreement which, without limitation:
(1)
Shall inform the participants that the PACE loan amount shall be
imposed as and considered a special charge, and each year's annual
installment may be included on the property tax roll of the subject
property as a special charge, and an annual installment that is delinquent
shall be a lien against the subject property pursuant to § 66.0627,
Wis. Stats., as amended;
(2)
Shall recite the amount and the term of the PACE loan;
(3)
Shall provide for the amount, or a method for determining the amount,
of the annual installment due each year;
(4)
Shall provide whether default interest may be applied to unpaid annual
installments;
(5)
Shall require the PACE lender and the borrower to comply with all
federal, state and local lending and disclosure requirements;
(6)
Shall provide for any fees payable to the County and/or Program Administrator;
(7)
Shall recite that the supplemental agreement is a covenant that runs
with the land;
(8)
May provide for prepayments of annual installments by the borrower
with a resulting reduction in the special charge for the prepayment,
subject to any prepayment premium charged by the PACE lender, if any;
(9)
May allow for amendments by the parties.
B.
Prior to executing the supplemental agreement, the owner of the subject
property, if different from the borrower, and any existing mortgage
holder(s) on the subject property must have executed a separate writing
acknowledging the borrower's use of PACE financing for the subject
property and the special charge that will be imposed under this chapter
and its consequences, including the remedies for collecting the special
charge.
C.
Each PACE loan shall be amortized over the term of the PACE loan
as provided in the supplemental agreement.
D.
The annual payments of a PACE loan may be payable in installments
as authorized by § 66.0627, Wis. Stats., as amended.
Upon the request of the Program Administrator, the County shall
place each year's annual installment on the tax roll for the
subject property as permitted pursuant to § 66.0627, Wis.
Stats., as amended.
The County shall promptly remit to the Wisconsin PACE Commission
any payment(s) for a special charge imposed under this chapter, including
penalties and charges thereon, it may receive from any taxing district
or the County Treasurer pursuant to Chapter 74, Wis. Stats., as amended.
A.
The County elects to utilize the provisions of § 75.521,
Wis. Stats., as amended, for the purpose of enforcing tax liens if
a subject property owner fails to pay any special charges imposed
on the subject property under this chapter as required.
B.
The County shall begin an in rem property tax foreclosure proceeding
on the subject property at the earliest time allowed under Wisconsin
Statutes, unless the County determines that the subject property is
a "brownfield" (as defined in § 75.106, Wis. Stats., as
amended) or that in rem property tax foreclosure is not in the best
interests of the County due to the condition of the property or for
other reasons.
C.
If the County has determined that it will not commence an in rem
property tax foreclosure proceeding, then the PACE lender may request
that the County, pursuant to § 75.106, Wis. Stats., as amended,
assign the County's right to take judgment against the subject
property, provided that the PACE lender and the County fully comply
with all provisions of § 75.106, Wis. Stats., as amended,
concerning the subject property and the PACE lender agrees to pay
the amounts required by § 75.36(3)(a)1 and 1m, Wis. Stats.,
as amended.
If the County prevails in an in rem property tax foreclosure
action against a subject property, the County shall diligently proceed
to sell the subject property pursuant to the procedures set forth
in § 75.69, Wis. Stats., as amended.
The County Treasurer shall follow the procedures set forth in
§ 75.36, Wis. Stats., as amended, to distribute the proceeds
from the sale of a subject property.