Broward County Commission Regular Meeting
Director's Name: Andrew J. Meyers
Department: County Attorney
Information
Requested Action
title
MOTION TO ENACT Ordinance, the title of which is as follows: (Continued from August 22, 2024 - Item No. 77)
AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF BROWARD COUNTY, FLORIDA, PERTAINING TO THE PROPERTY ASSESSED CLEAN ENERGY (“PACE”) PROGRAM IN BROWARD COUNTY; REPEALING SECTION 20-14 OF THE BROWARD COUNTY CODE OF ORDINANCES (“CODE”); CREATING SECTIONS 20-176.130 THROUGH 20-176.137 TO BE KNOWN AS THE “BROWARD PACE ACT”; PROVIDING FOR DEFINITIONS, INTERLOCAL AGREEMENTS, PROGRAM ADMINISTRATOR REQUIREMENTS, AND DISCLOSURE REQUIREMENTS; AMENDING SECTION 8½-16, CREATING A FEE SCHEDULE FOR VIOLATIONS OF THE BROWARD PACE ACT; AND PROVIDING FOR SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE.
(Sponsored by the Board of County Commissioners)
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Why Action is Necessary
A Resolution directing the County Administrator to publish notice of public hearing to consider enactment of the Ordinance was adopted by the Board of County Commissioners (“Board”) at its meeting of May 21, 2024.
What Action Accomplishes
Allows for the Board’s consideration of the proposed Ordinance.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
Summary Explanation/Background
Broward County launched the Broward Property Assessed Clean Energy (“PACE”) program in June 2016, expanding property owners’ access to energy efficiency, renewable energy, and resiliency improvements financed through non-ad valorem special assessments. At that time, the Board required certain mandatory disclosures for PACE program administrators that financed residential projects.
In the ensuing years, concerns have increased regarding certain predatory practices, inappropriate use of the County logo to imply an affiliation with the County, lack of understanding by residential property owners of the full effect of entering into PACE financing agreements, and the adequacy of disclosures regarding full project cost. In addition, during the 2024 Legislative Session, the Florida Legislature substantially revised the applicable Florida statute; those changes were signed into law by the Governor on June 28, 2024.
The public hearing for this item was originally scheduled to occur on June 18, 2024. At that Board meeting, the County Attorney’s Office (“CAO”) informed the Board that it would work with Resilient Environment Department (“RED”) staff to address comments received from the industry and other stakeholders and submit a revised Ordinance for the Board’s consideration after summer recess. RED staff and the CAO met with industry stakeholders multiple times to understand and discuss their concerns. The revised proposed Ordinance (Exhibit 1) addresses many of the stakeholders’ comments. Exhibit 2 is a redlined version showing the differences between the June 2024 version of the proposed Ordinance and the currently proposed Ordinance. Exhibit 3 outlines open issues raised by either industry stakeholders or the County Auditor. These will be addressed in agenda briefings and any desired amendments can be prepared for the Board’s consideration at the October 8 public hearing. Exhibit 4 includes a resolution of the Climate Change Task Force supporting enactment of the proposed Ordinance; RED staff does not believe the changes in the proposed Ordinance subsequent to that resolution alter this support and will advise the Board if any contrary information is received.
While the CAO understands Exhibits 1 and 3 reflect a general consensus on the top stakeholder issues remaining after continuation of this item from the August 8, 2024, agenda, some stakeholders have not expressed their agreement. The CAO will continue to engage with these stakeholders and will update the Board as to any further proposed changes to the Ordinance.
Exhibit 1 incorporates the 2024 changes to Florida law and strengthens the requirements for PACE programs operating within Broward County, including by:
1) requiring a resolution of the Board and a current, valid interlocal agreement with the County before a PACE program administrator can operate in Broward County (municipalities could omit this requirement in connection with PACE financing within their municipality; three of the four program administrators operating in Broward County have both an authorizing resolution and a current, valid interlocal agreement);
2) requiring additional disclosures and a recorded disclosure interview for PACE financing of improvements to residential property;
3) expressly prohibiting the use of the County logo in PACE marketing material; and
4) expanding the enforcement methods to better ensure compliance with Broward’s PACE program requirements.
Notice of this rescheduled public hearing was published in compliance with the statutory requirements to permit the public hearing on October 8, 2024.
Source of Additional Information
Michael C. Owens, Senior Assistant County Attorney, 954-357-7600
Fiscal Impact
Fiscal Impact/Cost Summary
Per the Office of Management and Budget, the estimated impact on the budget does not exceed the threshold required for a Fiscal Impact Statement.