[HISTORY: Adopted by the Board of Supervisors of Oneida County 4-16-2019 by Res. No. 47-2019, effective 4-27-2019. Amendments noted where applicable.]
This chapter shall be known as, referred to, and cited as the
"Property-Assessed Clean Energy Financing Ordinance" and hereinafter
referred to as the "ordinance."
This chapter is enacted pursuant to Wis. Stat. § 66.0627,
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.
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.
For the purpose of this chapter, certain words or phrases shall
have meanings that either vary somewhat from their customary dictionary
meanings or are intended to be interpreted to have a specific meaning.
Words used in the present tense in this chapter include the future.
The word "person" includes a firm, association, partnership, trust,
company, or corporation as well as an individual. The word "he" includes
the word "she." The word "shall" is mandatory, the word "should" is
advisory, and the word "may" is permissive. Any word not defined in
this chapter shall be presumed to have its customary dictionary definition.
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 installments 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 section
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 § 27.041(2).
Any premises located in the County on which any 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 § 27.043.
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 section 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 section 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.
(1)
Any of the powers and duties of the County under this section, except for those under § 27.06, may (but are not required to) be delegated to the Wisconsin PACE Commission.
(2)
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
section and in § 66.0627, Wis. Stats., as amended.
(1)
The County, the borrower and the PACE lender shall execute the supplemental
agreement, which, without limitation:
(a)
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;
(b)
Shall recite the amount and the term of the PACE loan;
(c)
Shall provide for the amount, or a method for determining the
amount, of the annual installment due each year;
(d)
Shall provide whether default interest may be applied to unpaid
annual installments;
(e)
Shall require the PACE lender and the borrower to comply with
all federal, state and local lending and disclosure requirements;
(f)
Shall provide for any fees payable to the County and/or Program
Administrator;
(g)
Shall recite that the supplemental agreement is a covenant that
runs with the land;
(h)
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;
and
(i)
May allow for amendment by the parties.
(2)
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 section
and its consequences, including the remedies for collecting the special
charge.
(3)
Each PACE loan shall be amortized over the term of the PACE loan
as provided in the supplemental agreement.
(4)
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, if delinquent, 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 section, including
penalties and charges thereon, it may receive from any taxing district
or the County Treasurer pursuant to Ch. 74, Wis. Stats., as amended.
(1)
The County elects to utilize the provisions of § 75.521,
Wis. Stats., as amended, for the purposes of enforcing tax liens if
a subject property owner fails to pay any special charges imposed
on the subject property under this section as required.
(2)
The County shall begin an in rem property tax foreclosure proceeding
on a subject property at the earliest time allowed under Wisconsin
Statutes, unless the County determines that subject property is a
"brownfield" (as defined is § 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.
(3)
If the County has determined that it does not wish to obtain judgment
on a subject property, then the PACE lender may request that the County,
pursuant to § 75.106, Wis. Stats., as amended, commence
an in rem proceeding against the subject property and assign the County's
right to take judgment against the subject property to the PACE lender,
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, 1m and 3, Wis. Stats., as amended.
If the County obtains judgment 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.
Any ordinance or amendatory ordinance adopted by the County
Board shall become effective, after adoption by the County Board,
after posting or publication of such adoption pursuant to § 59.14,
Wis. Stats.