October 26 2022 Akron, OH – Summit County Executive, Ilene Shapiro, recently announced the creation of a new energy efficiency revolving loan fund (RLF), which will be managed by the Development Finance Authority of Summit County (DFA).
The RLF is a Property Assessed Clean Energy (PACE) energy loan program. An Energy Special Improvement District (the “ESID”) has been created within Summit County encompassing 21 member communities. Property owners within the ESID communities have the ability to voluntarily assess property to pay for the cost of energy efficiency improvements. The PACE program creates a payment obligation or security mechanism for DFA to make property improvement loans without necessitating a mortgage. This financing mechanism levies a semi-annual “special assessment tax” against the property, thus the financing is not a loan and does not become debt for the end user.
A professional engineer or architect must provide confirmation of the useful life of the financed energy improvement resulting in reduced energy consumption or reduced energy demand prior to DFA approval to finance the project.
Loan terms may be up to 20 years with fixed interest rates competitive with market rates. Eligible borrowers include any non-profit or for-profit entity that can demonstrate the funded project is saving energy, has the ability to repay the PACE assessment, and is located in an ESID community. Eligible properties include commercial, office, industrial, retail, senior living, hospitality and multi-family housing with a loan amount per property of not less than $250,000 and no more than $1,000,000.
Generally, eligible energy improvements must be permanently attached to the participating property and reduce the net energy requirements of the participating property. Improvements can be building insulation, installation of new efficient HVAC system, water heating system, windows, doors, roofing, skylights, lighting, solar, building controls, and elevator systems. Eligible improvements must be installed by licensed contractors normally employed in the business of designing and installing heating, weatherization and energy efficient (or renewable) improvements.