Broward County Commission Regular Meeting
Director's Name: Robert McKinzie
Department: County Commission
Information
Requested Action
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MOTION TO DIRECT County Attorney’s Office to draft appropriate agenda items, including the necessary Ordinance and Resolution, for the Board’s future consideration to repeal the Broward Property Assessed Clean Energy (PACE) Act, to terminate all existing interlocal agreements with PACE program administrators, and to effectively deauthorize PACE administrators from operating in Broward County except where expressly authorized by the applicable municipality. (Commissioner McKinzie)
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Why Action is Necessary
Necessary to permit Board direction to the County Attorney’s Office to prepare the referenced items.
What Action Accomplishes
Provides the required Board direction to the County Attorney’s Office.
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Previous Action Taken
Summary Explanation/Background
Since 2015 Broward County has permitted PACE administrators, subject to certain limitations and disclosure obligations, to offer local property owners non-ad valorem financing of qualifying improvements to their property.
Based upon the available data for 2023, County staff calculated a 1.5% overall delinquency rate for all Broward County residential property tax accounts, compared to an 8% delinquency rate for Broward County residential property tax accounts with PACE loans. Of the PACE loans on residential property in Broward County, the available data indicates almost two-thirds are in Districts 1, 7, 8 and 9, with more than 400 such loans in each of the four Districts.
Under the County’s current PACE requirements, municipalities may “opt out” of the County’s PACE interlocal agreements with PACE program administrators. Based on information provided by staff, four municipalities have elected to opt out of the County’s PACE interlocal agreements to date. Unless the municipality takes affirmative action to opt out, the approval by Broward County permits PACE program administrators to market and sell PACE financing to the residents of that municipality.
This item would direct the County Attorney’s Office to prepare the necessary documents, including any necessary Ordinance and Resolution, for the Board’s future consideration to terminate existing PACE interlocal agreements and to repeal the County’s authorization for PACE program administrators to operate in Broward County unless and except to the extent the municipality at issue authorizes the PACE program administrator to operate. These changes would permit each municipality to determine whether PACE financing is appropriate within their community and to either permit or prohibit PACE financing. These changes would also allow Broward County to make the same determinations for the Broward Municipal Services District.
Source of Additional Information
Dennis Walker, County Commission Aide, District 8, 954-357-7008
Fiscal Impact
Fiscal Impact/Cost Summary
To be determined by the Office of Management and Budget upon presentation of a proposed Ordinance.