On Wednesday afternoon, the Illinois Senate unanimously approved House Bill 2831, the Property Assessed Clean Energy (PACE) bill. The bill will now be sent to the Gov. Bruce Rauner for his consideration/signature.
The legislation creates the Property Assessed Clean Energy (PACE) Act to provide for this innovative financing mechanism for specified energy efficiency improvements on commercial and industrial properties. A city or county may establish a clean energy program and create a PACE area by entering into a voluntary assessment contract with the property owner to finance or refinance energy projects.
The repayment of the costs of the energy project are through assessments on the property. Key safeguards include:
- recording of the voluntary contract,
- requirement that there be written consent of the existing mortgage holder,
- contractors agree to adhere to terms and conditions established by the unit of local government,
- property has no delinquencies,
- owner is current on all mortgage debt, and
- amount of the assessment in relation to the greater of the assessed value of the property or the appraised value cannot exceed 25 percent.