(50 ILCS 50/25)
Contracts with record owners of property.
(a) After creation of a program and PACE area, a record owner of property within the PACE area may apply with the local unit of government or its program administrator for funding to finance an energy project.
(b) A local unit of government may impose an assessment under a property
assessed clean energy program only pursuant to the terms of a recorded assessment contract with the
record owner of the property to be assessed.
(c) Before entering into an assessment contract with a record owner under
a program, the local unit of government shall verify all of the following:
(1) that the property is within the PACE area;
(2) that there are no delinquent taxes, special
assessments, or water or sewer charges on the property;
(3) that there are no delinquent assessments on the
property under a property assessed clean energy program;
(4) there are no involuntary liens on the property,
including, but not limited to, construction or mechanics liens, lis pendens or judgments against the record owner, environmental proceedings, or eminent domain proceedings;
(5) that no notices of default or other evidence of
property-based debt delinquency have been recorded and not cured;
(6) that the record owner is current on all mortgage
debt on the property, the record owner has not filed for bankruptcy in the last 2 years, and the property is not an asset to a current bankruptcy.
(7) all work requiring a license under any applicable
law to make a qualifying improvement shall be performed by a registered contractor that has agreed to adhere to a set of terms and conditions through a process established by the local unit of government.
(8) the contractors to be used have signed a written
acknowledgement that the local unit of government will not authorize final payment to the contractor until the local unit of government has received written confirmation from the record owner that the improvement was properly installed and is operating as intended; provided, however, that the contractor retains all legal rights and remedies in the event there is a disagreement with the owner;
(9) that the amount of the assessment in relation to
the greater of the assessed value of the property or the appraised value of the property, as determined by a licensed appraiser, does not exceed 25%; and
(10) a requirement that an assessment of the existing
water or energy use and a modeling of expected monetary savings have been conducted for any proposed project.
(d) At least 30 days before entering into an agreement with
the local unit of government, the record owner shall provide to the holders or
loan servicers of any existing mortgages encumbering or otherwise
secured by the property a notice of the record owner's intent to enter
into an assessment contract with the local unit of government, together with the maximum principal amount to be financed and the
maximum annual assessment necessary to repay that amount, along
with a request that the holders or loan servicers of any existing
mortgages consent to the record owner subjecting the property to the
program. A verified copy or other proof of those notices and the written
consent of the existing mortgage holder for the record owner to enter
into the assessment contract and acknowledging that the existing
mortgage will be subordinate to the financing and assessment
agreement and that the local unit of government can foreclose the
property if the assessment is not paid shall be provided to the local
unit of government.
(e) A provision in any agreement between a local unit of
government and a public or private power or energy provider or other
utility provider is not enforceable to limit or prohibit any local unit of
government from exercising its authority under this Section.
(f) The record owner has signed a certification that the local unit of government has complied with the provisions of this Section, which shall be conclusive evidence as to compliance with these provisions, but shall not relieve any contractor, or local unit of government, from any potential liability.
(g) This Section is additional and supplemental to county and
municipal home rule authority and not in derogation of such authority
or limitation upon such authority.
(Source: P.A. 100-77, eff. 8-11-17.)