For Economic Development Committee [November 15, 2017]
TO: Honorable Economic Development Committee Members
APPROVAL: Robb R. Steel, Asst. CA/Director of Dev. Svs.
FROM: John Dutrey, Project Manager
Title
Consider Rialto's Participation in the California Municipal Finance Authority's Open Property Assessed Clean Energy ("PACE") Program. (Economic Development)
Body
BACKGROUND:
The California Municipal Finance Authority ("CMFA") has approached the City to consider adopting a resolution to make its Open Property Assessed Clean Energy ("PACE") Program available for Rialto residential and business property owners.
The CMFA is a Joint Powers Authority formed to assist local governments, non-profit organizations, and businesses by promoting economic, cultural and community development, with the financing of economic development and charitable activities throughout California. To date, over 270 municipalities, including the City of Rialto, have become members of the CMFA.
As part of its economic and community development mission, the CMFA along with its current Program Administrators (Energy Efficient Equity, Inc.; BlueFlame PACE Services LLC; OnPACE Energy Solutions, LLC; Petros PACE Administrator, LLC; Structured Finance Associates, LLC; and Twain Community Partners II LLC) are offering PACE financing for residential and commercial property owners. The CMFA expects to issue limited obligation bonds, notes or other forms of indebtedness to fund the projects.
PACE finances energy, water, and renewable energy upgrades for residential and commercial buildings. Property owners who participate repay the loans through a voluntary contractual assessment collected together with their property taxes. A repayment lien attaches to the property. When the owner sells or refinances the property, the new owner may repay or assume the loan.
ANALYSIS/DISCUSSION:
The benefits to the property owner include:
? Competition: CMFA Open PACE currently provides three options...
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