BORROWER
The person, as defined in Code of Virginia § 1-230,
who owns or leases an eligible property and voluntarily applies for
and obtains a C-PACE loan, or that person's successor in title.
BORROWER CERTIFICATE
A notarized certificate from the borrower, certifying that:
A.
The borrower is:
(1)
Current on payments on all loans secured by a mortgage or deed
of trust lien on the property;
(2)
Current on real and personal property tax payments;
(3)
Current on all federal, state, and local taxes and that there
is no federal income tax lien, judgment lien, or other involuntary
lien against the property; and
(4)
Not insolvent or in bankruptcy proceedings; and
B.
That the title of the benefitted property is not in dispute
as evidenced by a title report or title insurance commitment from
a title insurance company acceptable to the capital provider and the
City.
C-PACE MEMORANDUM
A memorandum of C-PACE assessment lien, which shall:
A.
Be executed by the borrower, capital provider, and the City;
B.
Include the Amortization Schedule; and
C.
Be recorded in the Clerk's office against the property at closing
to evidence the C-PACE voluntary special assessment lien and to secure
the repayment of the C-PACE financing to the capital provider.
CAPITAL PROVIDER
The private lending institution that originates a C-PACE
loan, or its successors or assigns in interest; or, if City Council
appropriates funds for this purpose and, if applicable, the City.
The capital provider is the source of funding for, or the current
holder of, C-PACE loans.
COST
As applied to qualifying improvements shall include the cost
of all:
B.
Materials, machinery and equipment;
C.
Architectural, engineering, consulting (such as energy audits
and assessments, feasibility studies and reports, and financial projections),
financial and legal services;
D.
Plans, specifications and studies;
E.
Physical and building condition surveys;
H.
Energy savings or performance guaranty or insurance;
I.
Post-installation evaluation, measurement and verification,
and building accreditation;
K.
Due diligence, financing, and closing costs for the C-PACE loan,
including administrative and capital provider fees that are directly
attributable to a qualifying improvement; and
L.
Reserves for construction period interest.
PROGRAM
The Commercial Property Assessed Clean Energy Financing Program
created by this article.
PROGRAM ADMINISTRATOR
A.
An independent third party whose services are procured by the
City; or
B.
The City Manager or his or her designee.
PROGRAM GUIDELINES
Those procedures, rules, disclosures, and restrictions promulgated,
imposed and enforced by the program administrator for the administration
of the program.
PROJECT
The development of qualifying improvements on an eligible
property.
PROPERTY
An "eligible property" as defined in §
38-503 located within the City of Fredericksburg, for which a program loan is applied for or received.
The cost of the following types of qualifying improvements to
existing buildings and structures, or new construction, on eligible
property, may be financed through C-PACE:
A. Renewable energy production and distribution facilities, including,
but not limited to, solar photovoltaic, solar thermal, geothermal,
wind, fuel cells, biomass systems, biogas or methane recovery systems.
B. Energy usage efficiency systems reasonably expected to reduce the
energy usage of the eligible property, including but not limited to,
high-efficiency lighting and building systems, heating, ventilation
and air-conditioning (HVAC) upgrades, air duct sealing, high-efficiency
boilers and furnaces, high-efficiency hot-water heating systems, combustion
and burner upgrades, fuel switching, heat recovery and steam traps,
cogeneration systems, building shell or envelope improvements, reflective
roof, cool roof or green roof systems, weather-stripping, fenestration
and door improvements and modifications, insulation (both in walls,
roofs, floors and foundations and in HVAC systems' radiant barriers),
building energy management systems, process equipment upgrades, and
other forms of conservation; provided, that for qualifying improvements
that are part of a new building or structure, such qualifying improvements
shall exceed the minimum energy efficiency requirements of then-applicable
law, ordinance, regulation or code.
C. Water usage efficiency improvements, such as recovery, purification,
recycling and other forms of water conservation. For new construction,
these improvements qualify for C-PACE financing only if they exceed
the minimum water usage efficiency requirements of then-applicable
law, ordinance, regulation, or code.
D. Construction, renovation or retrofitting of eligible property directly related to the accomplishment of any purpose listed in Subsection
A,
B or
C, above, whether such qualifying improvement was erected or installed in or on a building or on the ground, it being the express intention of the City to allow qualifying improvements that constitute, or are part of, the construction of a new structure or building to be financed with a C-PACE loan.
E. Any other category of improvement approved by the City Manager as
qualifying for financing under C-PACE, with the concurring written
opinion of either the City Attorney or other legal counsel engaged
to serve as counsel for C-PACE that such improvement is authorized
by or consistent with the commonwealth's authorizing legislation for
C-PACE programs.
F. The sample list of eligible improvements published by the Mid-Atlantic
PACE Alliance dated June 2018 is nonexhaustive and may be used as
a guide in determining which proposed improvements qualify for C-PACE
funding.
Borrowers and capital providers participate in C-PACE at their
own risk. The City makes no representation or warranty as to the validity,
enforceability, priority, or any other character of any C-PACE loan
agreement or voluntary special assessment lien, and borrowers and
capital providers agree to release and hold the City of Fredericksburg
harmless from and against any and all liabilities, claims, suits,
liens, judgments, damages, losses and expenses, including, without
limitation, reasonable legal fees and costs arising in whole or in
part from acts, omissions, breach or default of borrowers or capital
providers in relation to or under the performance of any C-PACE loan
agreement.