Full Text of HB3501 101st General Assembly
HB3501sam002 101ST GENERAL ASSEMBLY | Sen. Melinda Bush Filed: 5/14/2019
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| 1 | | AMENDMENT TO HOUSE BILL 3501
| 2 | | AMENDMENT NO. ______. Amend House Bill 3501 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Assessed Clean Energy Act is | 5 | | amended by changing Sections 5, 10, 15, 20, 25, 30, and 35 and | 6 | | by adding Sections 42, 45, and 50 as follows: | 7 | | (50 ILCS 50/5) | 8 | | Sec. 5. Definitions. As used in this Act: | 9 | | "Alternative energy improvement" means any fixture, | 10 | | product, system, equipment, device, material, or interacting | 11 | | group thereof intended the installation or upgrade of | 12 | | electrical wiring, outlets, or charging stations to charge a | 13 | | motor vehicle that is fully or partially powered by | 14 | | electricity , including, but not limited to, electrical wiring, | 15 | | outlets, or charging stations . | 16 | | "Assessment" means a special assessment imposed by a |
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| 1 | | governmental unit pursuant to an assessment contract. | 2 | | "Assessment contract" means a voluntary written contract | 3 | | between the applicable governmental local unit
of government | 4 | | (or a permitted assignee) and record owner governing the terms | 5 | | and conditions of financing and
assessment under a program. | 6 | | "Authority" means the Illinois Finance Authority. | 7 | | "Capital provider" means any credit union, federally | 8 | | insured depository institution, insurance company, trust | 9 | | company, or other institution approved by a governmental unit | 10 | | or its program administrator or program administrators that | 11 | | finances or refinances an energy project by purchasing PACE | 12 | | bonds issued by the governmental unit or the Authority for that | 13 | | purpose. "Capital provider" includes any special purpose | 14 | | vehicle that is directly or indirectly wholly owned by one or | 15 | | more of the entities listed in this definition or any bond | 16 | | underwriter. | 17 | | "PACE area" means an area within the jurisdictional | 18 | | boundaries of a local unit of government created by an | 19 | | ordinance or resolution of the local unit of government to | 20 | | provide financing for energy projects under a property assessed | 21 | | clean energy
program. A local unit of government may create | 22 | | more than one PACE area under
the program, and PACE areas may | 23 | | be separate, overlapping, or coterminous. | 24 | | "Energy efficiency improvement" means any fixture, | 25 | | product, system, equipment, device, material, or interacting | 26 | | group thereof devices, or materials
intended to decrease energy |
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| 1 | | consumption or enable promote a more efficient use of | 2 | | electricity, natural gas,
propane, or other forms of energy on | 3 | | property, including, but not limited to, all of the
following: | 4 | | (1) insulation in walls, roofs, floors, foundations, | 5 | | or heating and
cooling distribution systems; | 6 | | (2) energy efficient storm windows and doors, | 7 | | multi-glazed windows and doors, heat-absorbing
or | 8 | | heat-reflective glazed and coated window and door systems, | 9 | | and additional glazing, reductions in glass area, and other | 10 | | window and
door systems system modifications that reduce | 11 | | energy consumption; | 12 | | (3) automated energy or water control systems; | 13 | | (4) high efficiency heating, ventilating, or | 14 | | air-conditioning and
distribution systems system | 15 | | modifications or replacements ; | 16 | | (5) caulking, weather-stripping, and air sealing; | 17 | | (6) replacement or modification of lighting fixtures | 18 | | to reduce the
energy use of the lighting system ; | 19 | | (7) energy controls or recovery systems; | 20 | | (8) day lighting systems; | 21 | | (8.1) any energy efficiency project, as defined in | 22 | | Section 825-65 of the
Illinois Finance Authority Act; and | 23 | | (9) any other fixture, product, system, installation | 24 | | or modification of equipment, device, or material intended | 25 | | devices, or
materials approved as a utility or other | 26 | | cost-savings measure as approved by the governmental unit |
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| 1 | | governing
body . | 2 | | "Energy project" means the acquisition, construction, | 3 | | installation , or modification of an alternative energy | 4 | | improvement, energy
efficiency improvement, renewable energy | 5 | | improvement, resiliency improvement, or water use improvement , | 6 | | or the acquisition, installation, or improvement of a renewable | 7 | | energy
system that is affixed to real a stabilized existing | 8 | | property (including new construction). | 9 | | "Governing body" means the legislative body, council, | 10 | | board, commission, trustees, or any other body by whatever name | 11 | | it is known having charge of the corporate affairs of a | 12 | | governmental unit county board or board of county commissioners | 13 | | of a county, the city council of a city, or the board of | 14 | | trustees of a village . | 15 | | " Governmental Local unit of government " means a county or | 16 | | municipality , city, or village . | 17 | | "PACE area" means an area within the jurisdictional | 18 | | boundaries of a governmental unit created by an ordinance or | 19 | | resolution of the governmental unit to provide financing for | 20 | | energy projects under a property assessed clean energy program. | 21 | | A governmental unit may create more than one PACE area under | 22 | | the program and PACE areas may be separate, overlapping, or | 23 | | coterminous. | 24 | | "PACE bond" means any bond, note, or other evidence of | 25 | | indebtedness representing an obligation to pay money, | 26 | | including refunding bonds, issued under or in accordance with |
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| 1 | | Section 35. | 2 | | "Permitted assignee" means (i) the Authority any body | 3 | | politic and corporate , (ii) any bond trustee, or (iii) any | 4 | | capital provider warehouse lender , or (iv) any other assignee | 5 | | of a governmental local unit of government designated by the | 6 | | governmental unit in an assessment contract. | 7 | | "Person" means an individual, firm, partnership, | 8 | | association, corporation,
limited liability company, | 9 | | unincorporated joint venture, trust, or any other type of | 10 | | entity that is recognized by law and has the title to or | 11 | | interest in property. "Person" does not include a local unit of | 12 | | government or a homeowner's or condominium association, but | 13 | | does include other governmental entities that
are not local | 14 | | units of government. | 15 | | "Program administrator" means a for-profit entity or a | 16 | | not-for-profit not-for profit entity that will administer a | 17 | | program on behalf of or at the discretion of the governmental | 18 | | unit local unit of government. It or its affiliates, | 19 | | consultants, or advisors shall have done business as a program | 20 | | administrator or capital provider for a minimum of 18 months | 21 | | and shall be responsible for arranging capital for the | 22 | | acquisition of bonds issued by the local unit of government or | 23 | | the Authority to finance energy projects . | 24 | | "Property" means any privately-owned commercial, | 25 | | industrial, non-residential agricultural, or multi-family (of | 26 | | 5 or more units) real property
located within the governmental |
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| 1 | | local unit of government , but does not include property owned | 2 | | by a governmental local unit of government or property used for | 3 | | residential purposes and subject to a homeowner's or | 4 | | condominium association or non-condominium common interest | 5 | | community association . Real property located within the | 6 | | governmental unit that is owned or leased by a not-for-profit | 7 | | entity is deemed "commercial" for purposes of this Act. | 8 | | "Property assessed clean energy program" or "program" | 9 | | means the program of a governmental unit to provide financing | 10 | | or refinancing for energy projects within PACE areas it has | 11 | | created under Section 10 and Section 15 a
program as described | 12 | | in Section 10 . | 13 | | "Record owner" means the titleholder or holder of another | 14 | | person who is the titleholder or owner of the beneficial | 15 | | interest in property , including lessees . | 16 | | "Renewable energy improvement" means any fixture, product, | 17 | | system, equipment, device, material, or interacting group | 18 | | thereof on the property of the record owner that uses one or | 19 | | more renewable energy resources to generate electricity, | 20 | | including a renewable energy project, as that term is defined | 21 | | in Section 825-65 of the Illinois Finance Authority Act. | 22 | | "Renewable energy resource" includes energy and its | 23 | | associated renewable energy credit or renewable energy credits | 24 | | from wind energy, solar thermal energy, geothermal energy, | 25 | | photovoltaic cells and panels, biodiesel, anaerobic digestion, | 26 | | and hydropower that does not involve new construction or |
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| 1 | | significant expansion of hydropower dams. For purposes of this | 2 | | Act, landfill gas produced in the State is considered a | 3 | | renewable energy resource. The term "renewable energy | 4 | | resources" does not include the incineration or burning of any | 5 | | solid material. | 6 | | "Renewable energy system" means a fixture, product, | 7 | | device, or
interacting group of fixtures, products, or devices | 8 | | on the customer's side of the meter that use one or more | 9 | | renewable energy resources to generate electricity, and | 10 | | specifically includes any renewable energy
project, as defined | 11 | | in Section 825-65 of the Illinois Finance Authority Act. | 12 | | "Resiliency improvement" means any fixture, product, | 13 | | system, equipment, device, material, or interacting group | 14 | | thereof intended to increase resilience, including but not | 15 | | limited to, seismic retrofits, flood mitigation, fire | 16 | | suppression, wind resistance, energy storage, microgrids, and | 17 | | backup power generation. | 18 | | "Warehouse fund" means any fund or account established by a | 19 | | governmental unit, the Authority, or a capital provider local | 20 | | unit of government, body politic and corporate, or warehouse | 21 | | lender . | 22 | | "Warehouse lender" means any financial institution | 23 | | participating in a PACE area that finances an energy project | 24 | | from lawfully available funds in anticipation of issuing bonds | 25 | | as described in Section 35. | 26 | | "Water use improvement" means any resiliency improvement, |
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| 1 | | fixture, product, system, equipment, device, material, or | 2 | | interacting group thereof intended to conserve for or serving | 3 | | any property that has the effect of conserving water resources | 4 | | or improve water quality on property, including, but not | 5 | | limited to, all of the following: through improved | 6 | | (1) water management or efficiency systems; . | 7 | | (2) water recycling; | 8 | | (3) capturing, reusing, managing, and treating | 9 | | stormwater; | 10 | | (4) bioretention, trees, green roofs, porous | 11 | | pavements, or cisterns for maintaining or restoring | 12 | | natural hydrology; | 13 | | (5) replacing or otherwise abating or mitigating the | 14 | | use of lead pipes in the supply of water; or
| 15 | | (6) any other resiliency improvement, fixture, | 16 | | product, system, equipment, device, or material intended | 17 | | as a utility or other cost-savings measure as approved by | 18 | | the governmental unit. | 19 | | (Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19; | 20 | | revised 9-28-18.) | 21 | | (50 ILCS 50/10) | 22 | | Sec. 10. Property assessed clean energy program; creation. | 23 | | (a) Pursuant to the procedures provided in Section 15, a | 24 | | governmental a local unit of
government may establish a | 25 | | property assessed clean energy program and, from time to
time, |
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| 1 | | create a PACE area or PACE areas under the program. | 2 | | (b) Under a program, the governmental local unit of | 3 | | government may enter into an assessment
contract with the | 4 | | record owner of property within a PACE area to finance or | 5 | | refinance one or
more energy projects on the property. The | 6 | | assessment contract shall provide for the repayment of all or a | 7 | | portion of the cost
of an energy project through assessments | 8 | | upon the property benefited. The amount of the financing or
| 9 | | refinancing may include any and all of the following: the cost | 10 | | of materials and labor necessary for acquisition, | 11 | | construction, installation, or modification of the energy | 12 | | project, permit fees,
inspection fees, application and | 13 | | administrative fees, financing fees, reserves, capitalized | 14 | | interest, costs of billing and collecting the assessment bank | 15 | | fees , and all other fees , costs, and expenses that may be
| 16 | | incurred by the record owner pursuant to the acquisition, | 17 | | construction, installation , or modification of the energy | 18 | | project, and the costs of issuance of PACE bonds on a specific | 19 | | or pro rata basis, as
determined by the governmental local unit | 20 | | of government and may also include a prepayment premium. | 21 | | (b-5) A governmental local unit of government may sell or | 22 | | assign, for consideration, any and all
assessment contracts; | 23 | | the permitted assignee of the assessment contract shall have | 24 | | and
possess the delegable same powers and rights at law or in | 25 | | equity as the applicable governmental local unit of government
| 26 | | and its tax collector would have if the assessment contract had |
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| 1 | | not been assigned with regard
to (i) the precedence and | 2 | | priority of liens evidenced by the assessment contract, (ii) | 3 | | the accrual of
interest, and (iii) the fees and expenses of | 4 | | collection. The permitted assignee shall have the right same
| 5 | | rights to enforce such liens pursuant to subsection (a) of | 6 | | Section 30 as any private party holding a lien on real | 7 | | property, including, but not
limited to, foreclosure . Costs and | 8 | | reasonable attorney's fees incurred by the permitted assignee
| 9 | | as a result of any foreclosure action or other legal proceeding | 10 | | brought pursuant to this Act Section and
directly related to | 11 | | the proceeding shall be assessed in any such proceeding against | 12 | | each record owner subject to the proceedings. A governmental | 13 | | unit or the Authority may sell or assign assessment contracts | 14 | | without competitive bidding or the solicitation of requests for | 15 | | proposals or requests for qualifications Such costs and fees | 16 | | may be collected by the assignee at any
time after demand for | 17 | | payment has been made by the permitted assignee . | 18 | | (c) A program shall may be administered by either one or | 19 | | more than one program administrators or the governmental local | 20 | | unit , as determined by the governing body of government .
| 21 | | (Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19 .) | 22 | | (50 ILCS 50/15) | 23 | | Sec. 15. Program established. | 24 | | (a) To establish a property assessed clean energy program, | 25 | | the governing body of a local unit of government shall adopt a |
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| 1 | | resolution or ordinance that includes all of the following: | 2 | | (1) a finding that the financing or refinancing of | 3 | | energy projects is a valid
public purpose; | 4 | | (2) a statement of intent to facilitate access to | 5 | | capital (which may be from one or more program | 6 | | administrators or as otherwise permitted by this Act ) to | 7 | | provide funds for energy projects,
which will be repaid by | 8 | | assessments on the property benefited with the agreement of | 9 | | the record owners; | 10 | | (3) a description of the proposed arrangements for | 11 | | financing
the program through the issuance of PACE bonds | 12 | | under or in accordance with Section 35, which PACE bonds | 13 | | may be purchased by one or more capital providers , which | 14 | | may be through one or more program administrators ; | 15 | | (4) the types of energy projects that may be financed | 16 | | or refinanced ; | 17 | | (5) a description of the territory within the PACE | 18 | | area; | 19 | | (6) a transcript of public comments if any | 20 | | discretionary public hearing reference to a report on the | 21 | | proposed program was previously held by the governmental | 22 | | unit prior to the consideration of the resolution or | 23 | | ordinance establishing the program; and as described
in | 24 | | Section 20 ; | 25 | | (7) (blank); the time and place for a public hearing to | 26 | | be held by the local unit of government if required for the |
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| 1 | | adoption of the proposed
program by resolution or | 2 | | ordinance; | 3 | | (8) the report on the proposed program as described in | 4 | | matters required by Section 20 to be included in the | 5 | | report ; for this purpose, the resolution or ordinance may | 6 | | incorporate the report or an
amended version thereof by | 7 | | reference ; and shall be available for public inspection. | 8 | | (9) (blank). a description of which aspects of the | 9 | | program may be
amended without a new public hearing and | 10 | | which aspects may be
amended only after a new public | 11 | | hearing is held. | 12 | | (b) A property assessed clean energy program may be amended | 13 | | in accordance with by
resolution or ordinance of the governing | 14 | | body. Adoption of the resolution or ordinance establishing the | 15 | | program shall be preceded by a public
hearing if required .
| 16 | | (Source: P.A. 100-77, eff. 8-11-17; 100-863, eff. 8-14-18; | 17 | | 100-980, eff. 1-1-19 .) | 18 | | (50 ILCS 50/20) | 19 | | Sec. 20. Program Report. The report on the proposed program | 20 | | required under Section 15 shall include all of the following: | 21 | | (1) a form of assessment contract between the | 22 | | governmental local unit of government and
record owner | 23 | | governing the terms and conditions of financing and | 24 | | assessment under the
program ; . | 25 | | (2) identification of one or more officials an official |
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| 1 | | authorized to enter into an assessment contract
on behalf | 2 | | of the governmental local unit of government ; | 3 | | (3) (blank); a maximum aggregate annual dollar amount | 4 | | for all financing to be
provided by the applicable program | 5 | | administrator under the program; | 6 | | (4) an application process and eligibility | 7 | | requirements for financing or refinancing energy
projects | 8 | | under the program; | 9 | | (5) a method for determining interest rates on amounts | 10 | | financed or refinanced under assessment contracts | 11 | | installments ,
repayment periods, and the maximum amount of | 12 | | an assessment , if any ; | 13 | | (6) an explanation of the process for billing and | 14 | | collecting how assessments will be made and collected ; | 15 | | (7) a plan to raise capital to finance improvements | 16 | | under the program
pursuant to the issuance sale of PACE | 17 | | bonds under or in accordance with Section 35; , subject to | 18 | | this Act or the Special Assessment Supplemental Bond and
| 19 | | Procedures Act, or alternatively, through the sale of
bonds | 20 | | by the Authority pursuant to subsection (d) of Section | 21 | | 825-65 of the Illinois Finance Authority
Act; | 22 | | (8) information regarding all of the following, to the | 23 | | extent known, or
procedures to determine the following in | 24 | | the future: | 25 | | (A) any revenue source or reserve fund or funds to | 26 | | be used as security for PACE bonds described
in |
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| 1 | | paragraph (7); and | 2 | | (B) any application, administration, or other | 3 | | program fees to be charged
to record owners | 4 | | participating in the program , which revenues generated | 5 | | by a governmental unit as a result thereof shall only | 6 | | that will be used to
finance and reimburse all or a | 7 | | portion of costs incurred by the governmental local | 8 | | unit of government as a result of its the
program; | 9 | | (9) (blank); a requirement that the term of an | 10 | | assessment not exceed the useful life of
the energy project | 11 | | paid for by the assessment; provided that the local unit of | 12 | | government may allow projects that consist of multiple | 13 | | improvements with varying lengths of useful life to have a | 14 | | term that is no greater than the improvement with the | 15 | | longest useful life; | 16 | | (10) a requirement for an appropriate ratio of the | 17 | | amount of the assessment
to the greater of any of the | 18 | | following: assessed value of the property or market value | 19 | | of the property as determined by a recent
appraisal no | 20 | | older than 12 months; | 21 | | (A) the value of the property as determined by the | 22 | | office of the county assessor; | 23 | | (B) the value of the property as determined by an | 24 | | appraisal conducted by a licensed appraiser; or | 25 | | (C) the value of the property calculated using | 26 | | either an automated valuation model provided by an |
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| 1 | | independent third party or broker price opinion; | 2 | | (11) a requirement that the record owner of property | 3 | | subject to a mortgage
obtain written consent from the | 4 | | mortgage lender holder before participating in the | 5 | | program; | 6 | | (12) provisions for marketing and participant | 7 | | education; and | 8 | | (13) (blank); provisions for an adequate debt service | 9 | | reserve fund, if any; and | 10 | | (14) quality assurance and antifraud measures.
| 11 | | (Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19 .) | 12 | | (50 ILCS 50/25) | 13 | | Sec. 25. Assessment contracts Contracts with record owners | 14 | | of property. | 15 | | (a) A After creation of a program and PACE area, a record | 16 | | owner of property within the PACE area may apply to with the | 17 | | governmental local unit of government or its program | 18 | | administrator or program administrators for funding to finance | 19 | | or refinance an energy project under the governmental unit's | 20 | | program . | 21 | | (b) A governmental local unit of government may impose an | 22 | | assessment under a property
assessed clean energy program only | 23 | | pursuant to the terms of a recorded assessment contract with | 24 | | the
record owner of the property to be assessed. | 25 | | (c) Before entering into an assessment contract with a |
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| 1 | | record owner under
a program, the governmental unit or its | 2 | | program administrator or program administrators local unit of | 3 | | government shall verify that the applicable property is | 4 | | entirely within the PACE area and receive evidence of all of | 5 | | the following: | 6 | | (1) that the holder of the fee title interest in the | 7 | | property has consented to the record owner entering into an | 8 | | assessment contract pertaining to such property property | 9 | | is within the PACE area ; | 10 | | (2) that there are no delinquent taxes, special | 11 | | assessments, or
water or sewer charges on the property; | 12 | | (3) that there are no delinquent assessments on the | 13 | | property under
a property assessed clean energy program; | 14 | | (4) whether there are any no involuntary liens on the | 15 | | property, including, but
not limited to, construction or | 16 | | mechanics liens, lis pendens or judgments against the
| 17 | | record owner, environmental proceedings, or eminent domain
| 18 | | proceedings; | 19 | | (5) that no notices of default or other evidence of | 20 | | property-based
debt delinquency have been recorded and not | 21 | | cured; | 22 | | (6) that the record owner is current on all mortgage | 23 | | debt on the
property, the record owner has not filed for | 24 | | bankruptcy in the last 2 years, and the property is not an | 25 | | asset in to a current bankruptcy proceeding; . | 26 | | (7) that all work requiring a license under any |
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| 1 | | applicable law to acquire, construct, install, or modify an | 2 | | energy project make a
qualifying improvement shall be | 3 | | performed by a licensed registered contractor that has | 4 | | agreed to adhere to a set of terms and conditions through a | 5 | | process established by the governmental local unit or its | 6 | | program administrator or program administrators; of | 7 | | government. | 8 | | (8) that the contractor or contractors to be used have | 9 | | signed a written acknowledgement that the governmental | 10 | | unit or its program administrator or program | 11 | | administrators local unit of government will not authorize | 12 | | final payment to the contractor or contractors until the | 13 | | governmental local unit of government has received written | 14 | | confirmation from the record owner that the energy project | 15 | | improvement was properly acquired, constructed, installed , | 16 | | or modified and is operating as intended; provided, | 17 | | however, that the contractor or contractors retain retains | 18 | | all legal rights and remedies in the event there is a | 19 | | disagreement with the record owner; | 20 | | (9) that the aggregate amount financed or refinanced | 21 | | under one or more amount of the assessment contracts does | 22 | | not exceed 25% in relation to the greater of any of the | 23 | | following: | 24 | | (A) the value of the property as determined by the | 25 | | office of the county assessor; | 26 | | (B) the value of the property as determined by an |
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| 1 | | appraisal conducted by a licensed appraiser; or | 2 | | (C) the value of the property calculated using | 3 | | either an automated valuation model provided by an | 4 | | independent third party or broker price opinion the | 5 | | assessed value of the property or the appraised value | 6 | | of the property, as determined by a licensed appraiser, | 7 | | does not exceed 25% ; and | 8 | | (10) a requirement that an evaluation assessment of the | 9 | | existing water or energy use and a modeling of expected | 10 | | monetary savings have been conducted for any proposed | 11 | | energy efficiency improvement, renewable energy | 12 | | improvement, or water use improvement, unless the water use | 13 | | improvement is undertaken to improve water quality | 14 | | project . | 15 | | (d) Before At least 30 days before entering into an | 16 | | assessment contract with
the governmental local unit of | 17 | | government , the record owner shall provide to the mortgage | 18 | | lenders holding holders or
loan servicers of any existing | 19 | | mortgages encumbering or otherwise
secured by the property a | 20 | | notice of the record owner's intent to enter
into an assessment | 21 | | contract with the governmental local unit of government , | 22 | | together with the maximum principal amount to be financed or | 23 | | refinanced and the
maximum annual assessment necessary to repay | 24 | | that amount, along
with an additional a request that the | 25 | | mortgage lenders holding holders or loan servicers of any | 26 | | existing
mortgages consent to the record owner subjecting the |
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| 1 | | property to the
program. The governmental unit shall be | 2 | | provided with a A verified copy or other proof of those notices | 3 | | and the written
consent of the existing mortgage lender holder | 4 | | for the record owner to enter
into the assessment contract | 5 | | which acknowledges and acknowledging that (i) the existing | 6 | | mortgage or mortgages for which the consent was received will | 7 | | be subordinate to the financing and assessment contract and the | 8 | | lien created thereby and (ii) the governmental
agreement and | 9 | | that the local unit of government or its permitted assignee can | 10 | | foreclose the
property if the assessments are assessment is not | 11 | | paid shall be provided to the local
unit of government . | 12 | | (e) (Blank). A provision in any agreement between a local | 13 | | unit of
government and a public or private power or energy | 14 | | provider or other
utility provider is not enforceable to limit | 15 | | or prohibit any local unit of
government from exercising its | 16 | | authority under this Section. | 17 | | (f) If the The record owner has signed a certification that | 18 | | the governmental local unit of government has complied with the | 19 | | provisions of this Section, then this which shall be conclusive | 20 | | evidence as to compliance with these provisions, but shall not | 21 | | relieve any contractor , or the governmental local unit of | 22 | | government, from any potential liability. | 23 | | (g) (Blank). This Section is additional and supplemental to | 24 | | county and
municipal home rule authority and not in derogation | 25 | | of such authority
or limitation upon such authority.
| 26 | | (h) The imposition of any assessment pursuant to this Act |
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| 1 | | shall be exempt from any
other statutory procedures or | 2 | | requirements that condition the imposition of assessments or | 3 | | other
taxes against a property, except as specifically set | 4 | | forth in this Act. | 5 | | (Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19 .) | 6 | | (50 ILCS 50/30) | 7 | | Sec. 30. Assessments constitute a lien; billing and | 8 | | collecting . | 9 | | (a) An assessment contract shall be recorded with the | 10 | | county in which the PACE area is located. An assessment imposed | 11 | | under a property assessed clean energy
program pursuant to an | 12 | | assessment contract, including any interest on the assessment | 13 | | and any penalty, shall, upon recording of the assessment | 14 | | contract in the county in which the PACE area is located, | 15 | | constitute a lien
against the property on which the assessment | 16 | | is imposed until the assessment, including any
interest or | 17 | | penalty, is paid in full. The lien of the assessment contract | 18 | | shall run with the
property until the assessment is paid in | 19 | | full and a satisfaction or release for the same has been | 20 | | recorded by the governmental unit or its program administrator | 21 | | or program administrators with the local unit of government and | 22 | | shall have the same lien priority and status as other property | 23 | | tax and special assessment liens as provided in the Property | 24 | | Tax Code . The governmental
local unit of government (or any | 25 | | permitted assignee) shall have all rights and remedies in the |
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| 1 | | case of default or
delinquency in the payment of an assessment | 2 | | as it does with respect to delinquent property
taxes and other | 3 | | delinquent special assessments as set forth in Article 9 of the | 4 | | Illinois Municipal Code, including the lien, sale, and | 5 | | foreclosure remedies described in that Article . When the | 6 | | assessment, including any interest and penalty, is paid, the | 7 | | lien shall be
removed and released from the property. | 8 | | (a-5) The assessment shall be imposed by the governmental | 9 | | local unit of government
against each lot, block, tract, track | 10 | | and parcel of land set forth in within the assessment contract | 11 | | PACE area to be assessed in accordance with an
assessment roll | 12 | | setting forth: (i) a description of the method of spreading the | 13 | | assessment; (ii) a
list of lots, blocks, tracts and parcels of | 14 | | land in the PACE area; and (iii) the amount assessed on
each | 15 | | parcel. The assessment roll shall be filed with the county | 16 | | clerk of the county in which the PACE area is
located for use | 17 | | in establishing the lien and collecting the assessment . | 18 | | (b) (Blank). Installments of assessments due under a | 19 | | program may be included in
each tax bill issued under the | 20 | | Property Tax Code and may be collected at the
same time and in | 21 | | the same manner as taxes collected under the Property Tax Code. | 22 | | Alternatively, installments may be billed and collected as | 23 | | provided in a special assessment
ordinance of general | 24 | | applicability adopted by the local unit of government pursuant | 25 | | to State
law or local charter. In no event will partial payment | 26 | | of an assessment be allowed.
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| 1 | | (b-5) Assessments created under this Act may be billed and | 2 | | collected as follows: | 3 | | (1) A county which has established a program may | 4 | | include assessments in the regular property tax bills. | 5 | | Pursuant to the Illinois constitutional or statutory | 6 | | provisions relating to intergovernmental cooperation, the | 7 | | county collector of the county in which a PACE area is | 8 | | located may bill and collect assessments with the regular | 9 | | property tax bills of the county if requested by a | 10 | | municipality within its jurisdiction. If the county | 11 | | collector agrees to bill and collect assessments with the | 12 | | regular property tax bills of the county, then the | 13 | | applicable assessment contract shall be filed with the | 14 | | county collector and the annual amount due as set forth in | 15 | | an assessment contract shall become due in installments at | 16 | | the times property taxes shall become due in accordance | 17 | | with each regular property tax bill payable during the year | 18 | | in which such assessment comes due. If the county collector | 19 | | agrees to bill and collect assessments on behalf of a | 20 | | governmental unit, the county collector may charge a flat | 21 | | dollar fee for such services to be paid from the assessment | 22 | | being billed and the fee is a cost of billing and | 23 | | collecting the assessment provided for in this Act. The | 24 | | flat dollar fee shall be fixed upon recording of the | 25 | | assessment contract, shall be consistent for all | 26 | | assessment contracts in the applicable PACE area, and shall |
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| 1 | | be as agreed to with the applicable governmental unit or | 2 | | its program administrator or program administrators. | 3 | | Commencing on the anniversary date of the recording of the | 4 | | assessment contract, the fee may be increased annually by | 5 | | no more than 3% of the fee paid during the preceding year. | 6 | | (2) If the county collector does not agree to bill and | 7 | | collect assessments with the regular property tax bills of | 8 | | the county or the governmental unit in which the PACE area | 9 | | is located declines to request the county collector to do | 10 | | so, then the governmental unit shall bill and collect the | 11 | | assessments, either directly or as permitted in paragraph | 12 | | (3) of this subsection, and the annual amount due as set | 13 | | forth in an assessment contract shall become due in | 14 | | installments on or about the times property taxes would | 15 | | otherwise become due in accordance with each regular | 16 | | property tax bill payable during the year in which such | 17 | | assessment comes due. Additionally, if the governmental | 18 | | unit is billing and collecting assessments, it may charge a | 19 | | flat dollar fee for such services to be paid from the | 20 | | assessment being billed and the fee is a cost of billing | 21 | | and collecting the assessment provided for in this Act. The | 22 | | flat dollar fee shall be fixed upon recording of the | 23 | | assessment contract, shall be consistent for all | 24 | | assessment contracts in the applicable PACE area, and shall | 25 | | be as agreed to with its applicable program administrator | 26 | | or program administrators, provided that commencing on the |
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| 1 | | anniversary date of the recording of the assessment | 2 | | contract, such fee may be increased annually by no more | 3 | | than 3% of the fee paid during the preceding year. | 4 | | (3) If a governmental unit is billing and collecting | 5 | | assessments pursuant to paragraph (2) of this subsection, | 6 | | assessment installments may be billed and collected by the | 7 | | governmental unit's program administrator or program | 8 | | administrators or another third party. | 9 | | The assessment installments for assessments billed as | 10 | | provided for under any paragraph of this subsection shall be | 11 | | payable at the times and in the manner as set forth in the | 12 | | applicable bill. | 13 | | (c) If a governmental unit, a program administrator, or | 14 | | another third party is billing and collecting assessments | 15 | | pursuant to subsection (b-5), and the applicable assessment | 16 | | becomes delinquent, then the applicable collector shall, on or | 17 | | before the 15th day of August next following the delinquency, | 18 | | make a report in writing to the general office of the county in | 19 | | which the applicable property subject to the assessment is | 20 | | situated and authorized by the general revenue laws of this | 21 | | State to apply for judgment and sell lands for taxes due the | 22 | | county and the State, of the assessments or installments | 23 | | thereof the applicable collector has billed for and not | 24 | | received as required under the applicable bill, including any | 25 | | interest or penalties that may be due as set forth in the | 26 | | applicable assessment contract. This report shall be certified |
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| 1 | | by the applicable collector and shall include statements that | 2 | | (i) the report contains true and correct list of delinquent | 3 | | assessments that the collector has not received as required by | 4 | | the applicable bill and (ii) an itemization of the amount of | 5 | | the delinquent assessment, including interest and penalties, | 6 | | if applicable. The report of the applicable collector, when so | 7 | | made, shall be prima facie evidence that all requirements of | 8 | | the law in relation to making the report have been complied | 9 | | with and that the assessments or the matured installments | 10 | | thereof, and the interest thereon, and the interest accrued on | 11 | | installments not yet matured, mentioned in the report, are due | 12 | | and unpaid. Upon proper filing of the report, the county | 13 | | collector shall enforce the collection of the assessments in | 14 | | the manner provided by law. | 15 | | (d) Payment received by mail and postmarked on or before | 16 | | the required due date is not delinquent. From and after the due | 17 | | date of any installment of an assessment, an additional rate of | 18 | | interest of 1 1/2% per month may be imposed with respect to the | 19 | | delinquent amount of such installment, which shall be payable | 20 | | to the applicable governmental unit or other permitted assignee | 21 | | as set forth in the applicable bill. | 22 | | (e) By entering into the assessment contract, the record | 23 | | owner shall be held to have waived every and all objections to | 24 | | the assessment related to its assessment contract. | 25 | | (Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19; | 26 | | revised 9-28-18.) |
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| 1 | | (50 ILCS 50/35) | 2 | | Sec. 35. Issuance of PACE bonds Bonds . | 3 | | (a) Except as provided for in subsection (j), a | 4 | | governmental unit shall A local unit of government may issue | 5 | | PACE bonds under this Act or the Special Assessment | 6 | | Supplemental Bond and Procedures Act , or the Authority shall | 7 | | may issue PACE bonds in accordance with this Act and pursuant | 8 | | to under subsection (d) of Section 825-65 of the Illinois | 9 | | Finance Authority Act upon assignment of the assessment | 10 | | contracts securing
such bonds by the local unit of government | 11 | | to the Authority , in either case to finance or refinance energy | 12 | | projects
under a property assessed clean energy program. | 13 | | Interim financing prior to the issuance of bonds authorized by | 14 | | this Section may be provided only by a warehouse fund, except | 15 | | that warehouse funds established by a warehouse lender may only | 16 | | hold assessment contracts for 36 months or less. | 17 | | (b) PACE bonds issued under this Act or in accordance with | 18 | | this Act and pursuant to subsection (d) of Section 825-65 of | 19 | | the Illinois Finance Authority Act: Bonds issued under | 20 | | subsection (a) shall | 21 | | (1) are not be general obligations of the governmental
| 22 | | local unit of government or the Authority, as applicable, | 23 | | but shall be secured by the following as provided
by the | 24 | | governing body in the resolution or ordinance approving the | 25 | | bonds : |
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| 1 | | (A) (1) payments under one or more assessment | 2 | | contracts of assessments on benefited property or | 3 | | properties within the
PACE area or PACE areas | 4 | | specified; and | 5 | | (B) if applicable, municipal bond insurance, | 6 | | letters of credit, or public or private guarantees or | 7 | | sureties; and | 8 | | (C) (2) if applicable, revenue sources or reserves | 9 | | established by the governmental local unit of | 10 | | government or the Authority from bond
proceeds or other | 11 | | lawfully available funds ; . | 12 | | (2) may be secured on a parity basis with PACE bonds of | 13 | | another series or subseries issued by the governmental unit | 14 | | or the Authority pursuant to the terms of a master | 15 | | indenture entered into as authorized by an ordinance or | 16 | | resolution adopted by the governing body or the Authority, | 17 | | as applicable; | 18 | | (3) may bear interest at any rate or rates not to | 19 | | exceed such rate or rates as the governing body or the | 20 | | Authority shall determine by ordinance or resolution; | 21 | | (4) may pay interest upon the date or dates described | 22 | | in such PACE bonds; | 23 | | (5) shall have a maturity no more than 40 years from | 24 | | the date of issuance; | 25 | | (6) may be subject to redemption with or without | 26 | | premium upon such terms and provisions as may be provided |
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| 1 | | under the terms of a master indenture entered into as | 2 | | authorized by an ordinance or resolution adopted by the | 3 | | governing body or the Authority, as applicable, including, | 4 | | without limitation, terms as to the order of redemption | 5 | | (numerical, pro rata, by series, subseries, or otherwise) | 6 | | and as to the timing thereof; | 7 | | (7) shall be negotiable instruments under Illinois law | 8 | | and be subject to the Registered Bond Act; and | 9 | | (8) may be payable either serially or at term, or any | 10 | | combination thereof, in such order of preference, | 11 | | priority, lien position, or rank (including, without | 12 | | limitation, numerical, pro rata, by series, subseries, or | 13 | | otherwise) as the governing body or Authority may provide. | 14 | | (c) A pledge of assessments, funds, or contractual rights | 15 | | made by a governmental unit or the Authority
governing body in | 16 | | connection with the issuance of PACE bonds by a local unit of | 17 | | government under
this Act or in accordance with this Act and | 18 | | pursuant to Section 825-65 of the Illinois Finance Authority | 19 | | Act constitutes a statutory lien on the assessments, funds, or | 20 | | contractual rights so pledged in
favor of the person or persons | 21 | | to whom the pledge is given, without further action taken by a | 22 | | governmental unit or the Authority, as applicable by the
| 23 | | governing body . The statutory lien is valid and binding against | 24 | | all other persons, with or
without notice. | 25 | | (d) (Blank). Bonds of one series issued under this Act may | 26 | | be secured on a parity with
bonds of another series issued by |
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| 1 | | the local unit of government or the Authority pursuant to the | 2 | | terms of a master indenture or master resolution entered into | 3 | | or adopted by the governing body of the
local unit of | 4 | | government or the Authority. | 5 | | (d-5) The State pledges to and agrees with the holders of | 6 | | any PACE bonds issued under this Act or in accordance with the | 7 | | Act and pursuant to Section 825-65 of the Illinois Finance | 8 | | Authority Act that the State will not limit or alter the rights | 9 | | and powers vested in governmental units by this Act or in the | 10 | | Authority in accordance with this Act and pursuant to Section | 11 | | 825-65 of the Illinois Finance Authority Act so as to impair | 12 | | the terms of any contract made by a governmental unit or by the | 13 | | Authority with those bondholders or in any way to impair the | 14 | | rights or remedies of those bondholders until the PACE bonds, | 15 | | together with the interest thereon, and all costs and expenses | 16 | | in connection with any actions or proceedings by or on behalf | 17 | | of those bondholders are fully met and discharged. | 18 | | (e) (Blank). Bonds issued under this Act are subject to the | 19 | | Bond Authorization Act and the Registered Bond Act. | 20 | | (f) PACE bonds Bonds issued under this Act or in accordance | 21 | | with this Act and pursuant to Section 825-65 of the Illinois | 22 | | Finance Authority Act further essential public and | 23 | | governmental purposes, including, but not limited to, reduced | 24 | | energy costs and , reduced greenhouse gas emissions, enhanced | 25 | | water quality and conservation,
economic stimulation and | 26 | | development, improved property resiliency and valuation, and |
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| 1 | | increased
employment. | 2 | | (g) A capital provider program administrator can assign its | 3 | | rights to purchase PACE the bonds issued by the governmental | 4 | | unit or the Authority to a designated transferee to a third | 5 | | party . | 6 | | (h) A law firm shall be retained to give a written bond | 7 | | opinion in connection with any PACE bond issued under this Act | 8 | | or in accordance with this Act and pursuant to Section 825-65 | 9 | | of the Illinois Finance Authority Act .
| 10 | | (i) PACE bonds Bonds issued by the Authority in accordance | 11 | | with under this Act and pursuant to subsection (d) of Section | 12 | | 825-65 of
the Illinois Finance Authority Act shall not be | 13 | | entitled to the benefits of Section 825-75 of the
Illinois | 14 | | Finance Authority Act. | 15 | | (j) PACE bonds issued by a governmental unit may otherwise | 16 | | have any attributes permitted to bonds under the Local | 17 | | Government Debt Reform Act, as the governing body may provide. | 18 | | (k) Interim financing prior to the issuance of PACE bonds | 19 | | authorized by this Section may be provided only by a warehouse | 20 | | fund, except that warehouse funds established by capital | 21 | | providers shall only interim finance energy projects secured by | 22 | | one or more assessment contracts for 36 months or less from the | 23 | | date of recording of the applicable assessment contract. | 24 | | (Source: P.A. 100-77, eff. 8-11-17; 100-980, eff. 1-1-19 .) | 25 | | (50 ILCS 50/42 new) |
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| 1 | | Sec. 42. Supplemental powers. | 2 | | (a) The provisions of this Act are intended to be | 3 | | supplemental and in addition to all other powers or authorities | 4 | | granted to any governmental unit, shall be construed liberally, | 5 | | and shall not be construed as a limitation of any power or | 6 | | authority otherwise granted. | 7 | | (b) A governmental unit may use the provisions of this Act | 8 | | by referencing this Act in the resolution or ordinance | 9 | | described in Section 15. | 10 | | (50 ILCS 50/45 new) | 11 | | Sec. 45. Recital. PACE bonds that are issued under this Act | 12 | | or in accordance with this Act and pursuant to Section 825-65 | 13 | | of the Illinois Finance Authority Act may contain a recital to | 14 | | that effect and any such recital shall be conclusive as against | 15 | | the issuer thereof and any other person as to the validity of | 16 | | the PACE bonds and as to their compliance with the provisions | 17 | | of this Act and, as applicable, the provisions of Section | 18 | | 825-65 of the Illinois Finance Authority Act. | 19 | | (50 ILCS 50/50 new) | 20 | | Sec. 50. Validation. All actions taken by the Authority or | 21 | | any governmental unit under this Act prior to the effective | 22 | | date of this amendatory Act of the 101st General Assembly, | 23 | | including, without limitation, creation of a property assessed | 24 | | clean energy program under Section 10 and Section 15, |
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| 1 | | preparation and approval of a report on the proposed program | 2 | | under Section 20, entering into assessment contracts under | 3 | | Section 25, and issuance of bonds, notes, and other evidences | 4 | | of indebtedness under Section 35 shall be unaffected by the | 5 | | enactment of this amendatory Act of the 101st General Assembly | 6 | | and shall continue to be legal, valid, and in full force and | 7 | | effect, notwithstanding any lack of compliance with the | 8 | | requirements of this amendatory Act of the 101st General | 9 | | Assembly. | 10 | | (50 ILCS 50/40 rep.) | 11 | | Section 10. The Property Assessed Clean Energy Act is | 12 | | amended by repealing Section 40.
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.".
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