Resolution 2010 - 13 Suport of Property Assessed Clean Energy (PACE) program

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Benefits to Municipalities Local Job Growth - PACE has the ability to stimulate local job creation through the installation of efficiency and energy improvements. It is estimated that for every $1mm spent on clean energy improvements, 10 jobs are created. For every 100,000 homes that are retrofitted, with an average expenditure of $10,000, more than 10.000 jobs would be created. No Credit or General Obligation Risk - PACE bonds are typically not'general obligation or appropriation bonds, so the municipality's credit is not placed on the line. The obligation resides exclusively with the property owner. Opt-in Assessments - The assessments are only placed on those properties where the owner voluntarily "opts-in" to the financing pro gram. Meet Carbon Reduction Goals - Counties, Cities, Towns and Villages can use this tool to move quickly toward achieving their carbon reduction and energy independence goals. Benefits to Existing Lenders Lower Default Risk- Owner's cash flow position is improved as PACE programs are designed to have annual energy savings exceed the annual PACE assessment payments. Owner is now in a better position to make mortgage payments. Better Loan-to-Value Ratio - Since PACE improvements have a positive net present value, they increase the lender's collateral which improves the loan-to-value ratio. Best Practice Framework Adopted - The White House PACE Best Practice Framework is now being incorporated into PACE programs nationwide to help ensure that PACE programs benefit existing lenders. PACE Senior lien status is immaterial (less than $200 per home) & more than offset by value enhancement- PACE assessments are treated as senior liens which is critical for the success of the programs but the seniority a mount is immaterial due to the per property size limits of PACE finance and other best practice measures (PACE Lien Immateriality). For more information visit www.pacenow.org