(1) The governmental entity or the board of directors of a district, together with any third-party administrator it may select, shall determine the guidelines of the PACE program, as outlined in the program guidebook, including without limitation:(1) A statement outlining what constitutes a qualifying improvement and that any certification requirements for the qualifying improvement shall be completed by a certified and qualified professional;(2) A requirement that the installation of a qualifying improvement shall be performed by qualified and certified contractors;(3) A requirement that certification of qualifying improvement installation shall be submitted to the program administrator after the work is completed; (4) The applicable underwriting standards for the participants in the PACE program;(5) The mechanisms by which the governmental entity or district will remit the received special assessment payments and any cost reimbursement;(6) Forms for the uniform PACE program documents, including without limitation:(A) A form for an assessment contract between the governmental entity and the property owner specifying:(i) The terms of assessment under the PACE program financing provided by a third party; and(ii) Remedies for default or foreclosure;(B) A form for a governmental entity notice of assessment and PACE program special assessment lien;(C) A form for a notice of assignment of assessment and PACE program special assessment lien between a local government and a capital provider;(D) A form of consent to a PACE program special assessment by the holder of a mortgage or deed of trust; and(E) A form of project application with checklist requirements and corresponding documentation that will be required by the program administrator to approve a project application;(7) A statement that the term of the special assessment financing agreement will not exceed the average useful life of the longest-lived qualifying improvement;(8) A requirement that the debt service coverage ratio of the secured property participating in a PACE program, including without limitation PACE program special assessments from the PACE program, shall have a minimum average ratio over the term of the PACE program financing of 1.20:1, with the debt coverage ratio formula calculated by taking the net operating income of the property participating in the PACE program and dividing it by total debt service plus PACE program special assessments;(9) A requirement that the aggregate of any mortgages and assessments taken under a PACE program shall not exceed the supervisory loan-to-value guidelines established in 12 C.F.R Part 34, Subpart D, as it existed on January 1, 2025;(10) A statement explaining the mortgage lien holder consent requirement under § 8-15-121; and(11) Any other matters necessary to implement and administer the PACE program.
(1) A statement outlining what constitutes a qualifying improvement and that any certification requirements for the qualifying improvement shall be completed by a certified and qualified professional;
(2) A requirement that the installation of a qualifying improvement shall be performed by qualified and certified contractors;
(3) A requirement that certification of qualifying improvement installation shall be submitted to the program administrator after the work is completed;
(4) The applicable underwriting standards for the participants in the PACE program;
(5) The mechanisms by which the governmental entity or district will remit the received special assessment payments and any cost reimbursement;
(6) Forms for the uniform PACE program documents, including without limitation:(A) A form for an assessment contract between the governmental entity and the property owner specifying:(i) The terms of assessment under the PACE program financing provided by a third party; and(ii) Remedies for default or foreclosure;(B) A form for a governmental entity notice of assessment and PACE program special assessment lien;(C) A form for a notice of assignment of assessment and PACE program special assessment lien between a local government and a capital provider;(D) A form of consent to a PACE program special assessment by the holder of a mortgage or deed of trust; and(E) A form of project application with checklist requirements and corresponding documentation that will be required by the program administrator to approve a project application;
(A) A form for an assessment contract between the governmental entity and the property owner specifying:(i) The terms of assessment under the PACE program financing provided by a third party; and(ii) Remedies for default or foreclosure;
(i) The terms of assessment under the PACE program financing provided by a third party; and
(ii) Remedies for default or foreclosure;
(B) A form for a governmental entity notice of assessment and PACE program special assessment lien;
(C) A form for a notice of assignment of assessment and PACE program special assessment lien between a local government and a capital provider;
(D) A form of consent to a PACE program special assessment by the holder of a mortgage or deed of trust; and
(E) A form of project application with checklist requirements and corresponding documentation that will be required by the program administrator to approve a project application;
(7) A statement that the term of the special assessment financing agreement will not exceed the average useful life of the longest-lived qualifying improvement;
(8) A requirement that the debt service coverage ratio of the secured property participating in a PACE program, including without limitation PACE program special assessments from the PACE program, shall have a minimum average ratio over the term of the PACE program financing of 1.20:1, with the debt coverage ratio formula calculated by taking the net operating income of the property participating in the PACE program and dividing it by total debt service plus PACE program special assessments;
(9) A requirement that the aggregate of any mortgages and assessments taken under a PACE program shall not exceed the supervisory loan-to-value guidelines established in 12 C.F.R Part 34, Subpart D, as it existed on January 1, 2025;
(10) A statement explaining the mortgage lien holder consent requirement under § 8-15-121; and
(11) Any other matters necessary to implement and administer the PACE program.