Ann Arbor Approves PACE Program.

4 Oct 2011

Photo by Joe Braun Photography

In the spring, I blogged about the vote by Ann Arbor’s city council to set up a $432,800 loan loss reserve fund to support the city’s planned Property Assessed Clean Energy (PACE) program under HB 5640.  The PACE law gives local governments authority to establish programs to make loans to private property owners (it only applies to businesses for now) for energy efficiency improvements or the installation of renewable energy systems.  The property owner would be required to borrow all costs associated with the project from the municipality (at the municipality’s lower rates) and the loan would be repaid over a period of several years through special assessments added to their property tax bills.

Last night, the Ann Arbor city council formally voted in favor of establishing its PACE program – thought to be the first in the State.  Here is a link to the City’s September 12, 2011 Report on Proposed Pace Program.  The report provides some details on project and property eligibility and the application process.  I think this program has the potential to be an excellent tool for apartment, office, commercial and industrial property owners who would like to make energy efficiency improvements but are hesitant about assuming long-term financing for such upgrades.

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