(a) A governing body of a governmental entity may:(1) By ordinance establish a PACE program within a designated area to make available property assessed capital expenditure financing or refinancing for qualifying improvements to the owner or owners of the eligible property from capital providers; and(2) Exercise all powers granted under this chapter.
(1) By ordinance establish a PACE program within a designated area to make available property assessed capital expenditure financing or refinancing for qualifying improvements to the owner or owners of the eligible property from capital providers; and
(2) Exercise all powers granted under this chapter.
(b) To establish a direct financing PACE program under this section, the governing body of the governmental entity shall adopt an ordinance that includes:(1) A finding that financing or refinancing of qualified improvements, repaid through special assessments on the eligible property benefitted by the qualifying improvement, is a valid public purpose;(2) A statement that the governmental entity acting as a district intends to make special assessments to repay financing or refinancing from capital providers for qualifying improvement projects to voluntary and willing owners of eligible real property;(3) A legal description of the boundaries of the designated area of the PACE program;(4) The incorporation by reference of the program guidebook;(5) A description of the types of qualifying improvements eligible for the PACE program;(6) Authorization of direct financing between an eligible property owner and a capital provider to finance or refinance qualifying improvements;(7) Authorization and direction for a governmental entity official to enter into a special assessment agreement with the owner of eligible property and a capital provider, impose special assessments, and assign the rights to the special assessment liens and payments for special assessments authorized under this chapter to capital providers;(8) (A) Designation of a program administrator.(B) If applicable, the governing body of the governmental entity shall describe any method of procurement that will be used to select and designate a third-party program administrator;(9) A requirement that the interest rate, delinquent interest, penalties, terms of prepayment, and other terms of a PACE program special assessment shall be established by a capital provider in the related special assessment financing agreement for the special assessment; and(10) Direction to the preparer of tax books of the county in which the eligible property is located to include a special assessment imposed under this section on the property tax bill for the eligible property subject to the special assessment financing agreement and to collect the special assessment with real property taxes.
(1) A finding that financing or refinancing of qualified improvements, repaid through special assessments on the eligible property benefitted by the qualifying improvement, is a valid public purpose;
(2) A statement that the governmental entity acting as a district intends to make special assessments to repay financing or refinancing from capital providers for qualifying improvement projects to voluntary and willing owners of eligible real property;
(3) A legal description of the boundaries of the designated area of the PACE program;
(4) The incorporation by reference of the program guidebook;
(5) A description of the types of qualifying improvements eligible for the PACE program;
(6) Authorization of direct financing between an eligible property owner and a capital provider to finance or refinance qualifying improvements;
(7) Authorization and direction for a governmental entity official to enter into a special assessment agreement with the owner of eligible property and a capital provider, impose special assessments, and assign the rights to the special assessment liens and payments for special assessments authorized under this chapter to capital providers;
(8) (A) Designation of a program administrator.(B) If applicable, the governing body of the governmental entity shall describe any method of procurement that will be used to select and designate a third-party program administrator;
(A) Designation of a program administrator.
(B) If applicable, the governing body of the governmental entity shall describe any method of procurement that will be used to select and designate a third-party program administrator;
(9) A requirement that the interest rate, delinquent interest, penalties, terms of prepayment, and other terms of a PACE program special assessment shall be established by a capital provider in the related special assessment financing agreement for the special assessment; and
(10) Direction to the preparer of tax books of the county in which the eligible property is located to include a special assessment imposed under this section on the property tax bill for the eligible property subject to the special assessment financing agreement and to collect the special assessment with real property taxes.
(c) A governmental entity may:(1) Administer a PACE program;(2) Delegate administration of a PACE program to a third party under § 8-15-116 or a governmental entity acting as a district; or(3) Authorize the private collection of PACE program assessments by the third-party program administrator or capital provider under the terms, at times, and through methods described in the financing agreement.
(1) Administer a PACE program;
(2) Delegate administration of a PACE program to a third party under § 8-15-116 or a governmental entity acting as a district; or
(3) Authorize the private collection of PACE program assessments by the third-party program administrator or capital provider under the terms, at times, and through methods described in the financing agreement.
(d) (1) If the PACE program provides for third-party administration, the local government official authorized to enter into a written contract with a property owner under subdivision (b)(7) of this section shall also enter into a written contract with the party that administers the PACE program.(2) The contract shall require the third party to reimburse the local government for costs associated with:(A) Monitoring the PACE program;(B) Imposing the assessment; and(C) Billing and collecting payments.
(1) If the PACE program provides for third-party administration, the local government official authorized to enter into a written contract with a property owner under subdivision (b)(7) of this section shall also enter into a written contract with the party that administers the PACE program.
(2) The contract shall require the third party to reimburse the local government for costs associated with:(A) Monitoring the PACE program;(B) Imposing the assessment; and(C) Billing and collecting payments.
(A) Monitoring the PACE program;
(B) Imposing the assessment; and
(C) Billing and collecting payments.
(e) The financing for special assessments imposed under the PACE program may include without limitation:(1) The cost of materials and labor necessary for the installation or modification of a qualified improvement;(2) Permit fees;(3) Inspection fees;(4) Lender fees;(5) Program application and administrative fees;(6) Project development and engineering fees;(7) Interest reserves;(8) Capitalized interest, in an amount determined by the owner of the commercial property and the third-party providing financing under this chapter; and(9) Other fees or costs incurred by the property owner incidental or ancillary to the installation, modification, or improvement on a specific or pro rata basis, as determined by the local government.
(1) The cost of materials and labor necessary for the installation or modification of a qualified improvement;
(2) Permit fees;
(3) Inspection fees;
(4) Lender fees;
(5) Program application and administrative fees;
(6) Project development and engineering fees;
(7) Interest reserves;
(8) Capitalized interest, in an amount determined by the owner of the commercial property and the third-party providing financing under this chapter; and
(9) Other fees or costs incurred by the property owner incidental or ancillary to the installation, modification, or improvement on a specific or pro rata basis, as determined by the local government.
(f) (1) Notes and other financial instruments issued under this section are:(A) Not general obligations of the governmental entity; and(B) Solely payable from special assessments on eligible property benefitted by the qualifying improvements.(2) (A) The State of Arkansas or a governmental entity shall not use public tax revenue to fund or repay a PACE program assessment.(B) This section does not authorize a governmental entity to pledge, offer, or encumber its full faith and credit, and a governmental entity shall not pledge, offer, or encumber its full faith and credit under this section.
(1) Notes and other financial instruments issued under this section are:(A) Not general obligations of the governmental entity; and(B) Solely payable from special assessments on eligible property benefitted by the qualifying improvements.
(A) Not general obligations of the governmental entity; and
(B) Solely payable from special assessments on eligible property benefitted by the qualifying improvements.
(2) (A) The State of Arkansas or a governmental entity shall not use public tax revenue to fund or repay a PACE program assessment.(B) This section does not authorize a governmental entity to pledge, offer, or encumber its full faith and credit, and a governmental entity shall not pledge, offer, or encumber its full faith and credit under this section.
(A) The State of Arkansas or a governmental entity shall not use public tax revenue to fund or repay a PACE program assessment.
(B) This section does not authorize a governmental entity to pledge, offer, or encumber its full faith and credit, and a governmental entity shall not pledge, offer, or encumber its full faith and credit under this section.
(g) (1) A program administrator or governmental entity may impose a one-time administration fee for approved applications.(2) Fees under subdivision (g)(1) of this section shall be limited to the lessor of:(A) One percent (1%) of the principal amount financed; or(B) Fifty thousand dollars ($50,000).
(1) A program administrator or governmental entity may impose a one-time administration fee for approved applications.
(2) Fees under subdivision (g)(1) of this section shall be limited to the lessor of:(A) One percent (1%) of the principal amount financed; or(B) Fifty thousand dollars ($50,000).
(A) One percent (1%) of the principal amount financed; or
(B) Fifty thousand dollars ($50,000).
(h) The governmental entity shall assign the right to payments from a special assessment from the owner of eligible property with a qualifying improvement to the capital provider who finances the qualifying improvement.
(i) Before entering into a special assessment financing agreement under this section, an owner of eligible property shall submit a PACE project application to the program administrator in a form consistent with the program guidebook, which shall include:(1) Certification that the proposed qualifying improvement meets the guidelines established in the program guidebook;(2) Certification that the owner requesting the proposed qualifying improvement is the owner of record of the property on which the special assessment will be imposed and that there are no delinquent taxes or special assessments on the property; and(3) The name of the capital provider providing the special assessment financing and the proposed terms of the special assessment financing agreement, including:(A) The special assessment financing amount;(B) The interest rate;(C) Any administrative fees paid to the governmental entity or program administrator;(D) A schedule of the installments of the special assessment;(E) The number of years the special assessment shall be imposed on the eligible property;(F) Delinquent interest and penalties; and(G) The conditions by which the owner may prepay and permanently satisfy the debt owed under the special assessment financing agreement and remove the special assessment lien from the property.
(1) Certification that the proposed qualifying improvement meets the guidelines established in the program guidebook;
(2) Certification that the owner requesting the proposed qualifying improvement is the owner of record of the property on which the special assessment will be imposed and that there are no delinquent taxes or special assessments on the property; and
(3) The name of the capital provider providing the special assessment financing and the proposed terms of the special assessment financing agreement, including:(A) The special assessment financing amount;(B) The interest rate;(C) Any administrative fees paid to the governmental entity or program administrator;(D) A schedule of the installments of the special assessment;(E) The number of years the special assessment shall be imposed on the eligible property;(F) Delinquent interest and penalties; and(G) The conditions by which the owner may prepay and permanently satisfy the debt owed under the special assessment financing agreement and remove the special assessment lien from the property.
(A) The special assessment financing amount;
(B) The interest rate;
(C) Any administrative fees paid to the governmental entity or program administrator;
(D) A schedule of the installments of the special assessment;
(E) The number of years the special assessment shall be imposed on the eligible property;
(F) Delinquent interest and penalties; and
(G) The conditions by which the owner may prepay and permanently satisfy the debt owed under the special assessment financing agreement and remove the special assessment lien from the property.
(j) Before entering into a special assessment agreement or imposing a special assessment lien upon an eligible property, the governmental entity shall receive from the program administrator certification that the proposed qualifying improvement, eligible property, and owner qualify for financing under the PACE program.