Clean Energy Green Corridor

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1 Page 1 of What type of program is this? 2. Who administers this program? 3. Who is the point of contact for your organization? Property Assessed Clean Energy Program (PACE) Community Development Financial Institution (CDFI) Other (please specify response limited to 100 characters) We are predominantly a commercial PACE program together with CDFI and other lowinterest loan options for residential. We are also partners with the Solar and Energy Loan, a CDFI lender in our program A thirdparty administrator A notforprofit organization A financial institution A municipal government Other or multiple check marks (please specify response limited to 200 characters) Our program is sponsored by the Florida Green Finance Authority, an interlocal municipal partnership, and is administered by a team led by EcoCity Partners, L3C. SAIC is the 3rd party administrator that administers the program on behalf of the. The administration and financial services were intentionally separated to ensure accountability. Name: Dan Schaefer Michael Wallander Jonathan Schaefer Doug Coward Title: SVP, Energy Districts Principal Program Manager Executive Director Company/Organization: Ygrene Energy Florida EcoCity Partners, L3C Florida PACE Street Address: 400 N Tampa Street, Suite A Burns Road 1000 Legion Place, Suite Rhode Island Ave. City, State, Zip code Tampa, FL Palm Beach Gardens, FL Orlando, FL Fort Pierce, FL Phone #: (813) (855) (407) (772) dan@ygrene.us michael@ecocitypartners.com schaeferj@floridapace.gov dougc@solarenergyloanfund. org

2 Page 2 of Survey Certification 5. What year was this program created? 6. Under what authority was it created? 7. What was the initial cost of setting up the framework and basic administration of the Floridabased program? The abovelisted point of contact certifies that, to the best of their knowledge, the information on their program provided in this survey is true and complete Florida Statute U.S. Department of Treasury Other Additional comments if other please specify (response limited to 300 characters) $0$9,999 $10,000 $49,999 $50,000 $99,999 $100,000 $250,000 More than $250,000 The underpinnings of this program are found in s ; however, the was formed through the Inter local cooperation Act found in S.163.1(7)g whereby Flagler county and the City of Kissimmee created the as a public service to offer the PACE program statewide with uniform standards. Other SELF has since obtained certification as a Community Development Financial Institution (CDFI) as per the U.S. Department of the Treasury.

3 Page 3 of What was the initial cost of setting up the framework and basic administration of the Floridabased program (cont)? Additional Comments (response limited to 300 characters) The has retained the services of BMO, PFM, First Southwest, Southeast Investment Securities and SAIC to work at risk in the setup and deployment of its PACE program. Some of the initial setup costs will be repaid as if and when funds are available for such repayment. However, please note that comparable programs can be established without having to create new CDFIs. Startup costs can be minimized if an existing CDFI is willing to undertake this mission. 8. Who provided the funding to set up the framework and basic administration of the program? Private funding Municipal general funds State grant funds Federal grant funds Other created to avoid substantial costs to local gov ts in establishing local PACE programs. Please name the specific source(s) of funding and the estimated dollar amounts to establish the program administration (response is limited to 500 characters). Ygrene Florida has paid all costs associated with district framework and administration, including local Energy Center construction, software development, legal fees and prelaunch marketing activities. Ygrene's investment in the Green District and the local MiamiDade community has significantly exceeded the $250k mark. Initial program design was funded with a federal grant funded through the Florida Energy Office. $100,000 has been deposited with the Florida Green Finance Authority to cover program administrative costs for fiscal years and The provides a statewide program for local gov t benefit. Bryant Olive Miller legal; SAIC administration; SAMAS Capital financial services; PFM, First Southwest and Southeastern Investment Securities financial advice; and Deutsche Banktrustee. Startup work is a public service to the. If program is successful, startup costs will be reimbursed w/o subsidy from local gov ts. St. Lucie County was 1 of 20 local programs in America selected by the USDOE through the highlycompetitive EECBG (option 2) program.

4 Page 4 of Who were the initial municipal/county partners in development of the funding district? 10. What municipal/county partners have joined since the initial district was created? Municipality #1 City of Coral Gables Town of Lantana (Palm Beach County) Flagler County St. Lucie County Municipality #2 Town of Cutler Bay Town of Mangonia Park (Palm Beach County) City of Kissimmee Port St. Lucie Municipality #3 City of Miami Fort Pierce Municipality #4 Village of Miami Shores Municipality #5 Village of Palmetto Bay Municipality #6 Village of Pinecrest Municipality #7 City of South Miami Municipality #8 Municipality #1 City of Boynton Beach (Palm Beach County) Flagler County Martin County Municipality #2 City of Delray Beach (Palm Beach County) Nassau County Indian River County Municipality #3 City of Fellsmere (Indian River County) Okeechobee County Municipality #4 City of Gulfport (Pinellas County) City of Stuart Municipality #5 City of Lake Worth (Palm Beach County) City of Sebastian Municipality #6 City of Sebastian (Indian River County) City of Fellsmere Municipality #7 City of Stuart (Martin County) Brevard County Municipality #8 City of West Palm Beach and Village of Tequesta (Palm Beach County)

5 Page 5 of Do you have other municipal/county partners with whom agreements are currently being negotiated, under development, or in process? 12. Can Broward County or any other municipality "join" the existing program/district? 13. What instrument is used to allow local governments to join established districts? Yes, we have agreements pending. No, not at this time. We would prefer not to comment on pending agreements. List of Pending Municipal Partners As a matter of policy, Ygrene Florida does not list pending agreements, but has won every competitive bidding process in which it has been a candidate. Yes No Ygrene is currently developing two Interlocal Districts in MiamiDade County with which Broward County could join. A Other or additional custom, oneoff approach If approved by the SELF Board explanation (response limited delivers a more local and of Directors to 300 characters) customized program, but Ygrene allows the flexibility for either program development method. Subscription Agreement Interlocal Agreement Negotiated Contract Other (please specify response limited to 100 characters)

6 Page 6 of Would Broward County be obligated to the program guidelines of the district as currently written or is there some flexibility to designate local governmentspecific parameters? For example, if the District is set up to serve residential and commercial customers, could Broward designate that it would initially offer the program only for commercial? Local governments that opt into an existing district accept the existing guidelines of the program. Local governments that opt into an existing district have some flexibility in designing a program that fits the needs of their community. Local governments that opt into an existing district have total flexibility in designing a program that fits the needs of their community. Other (please specify) or Comments (response limited to 300 characteristics). Each municipality within a Clean Energy District has the ability to define their individual program scope to best serve their community. Changes to these parameters can be changed instantly through Ygrene s program management system in response to community demand and program performance. offers statewide prgm to benefit property owners, boost local economy & allow local businesses to use std rules. doesn t use districts. Upon subscription, works within local gov t limits using uniform stds. The will limit its prgm to residential or commercial on request. 15. What administrative costs could apply if the local government joined an existing program? An Optin Fee An Annual Administrative Fee An OptOut (program agreement termination) Fee Other Fees

7 Page 7 of 41 What administrative costs could apply if the local government joined an existing program? 16. What administrative costs could apply if the local government established a new district with your organization as the administrator? Please elaborate on fees charged to the local government (response limited to 300 characters) Optout fees only apply if Broward County leaves the program in the first two years. The optout fee during year 1 is $22,500; during year 2 this declines to $11,250; after year 2 this declines to $0. There are no participation or administrative fees for Counties to participate. SELF would seek assistance for a local office, marketing and community outreach, and a loan officer. An initial startup fee for establishing program guidelines. District Filing fee. Additional administrative fees. No additional cost to the local government to set up a new district under our program. Our program would not allow/support the creation of a new district.

8 Page 8 of What administrative costs could apply if the local government established a new district with your organization as the administrator (cont)? Please elaborate (response limited to 500 characters) Ygrene Florida pays all costs associated with program administration and has a cost recovery and compensation mechanism in place to help reimburse the County for staff time dedicated to the program's efforts. If Broward County prefers to establish its own district, the State of Florida charges a $175 district filing fee. We further estimate initial annual administrative costs of $20,000 $30,000 for managing district meetings, legal advertising, insurance and district legal counsel. These costs can likely be born internally. In the future, the County can expect higher costs associated with preparation of the assessment roll, audit fees and any costs associated with bond counsel and any necessary financial consultants. The s program does not require districts to be set up but conveniently operates with the County s jurisdictional boundaries and no fees apply. Should Broward County choose to set up their own district, depending on the level of customization of the program, some or all of the above costs may apply. 17. What are the annual administrative costs charged to the participating local government? 0 None. None. There is no set amount. Each jurisdiction is unique. SELF tries to maximize inkind support and secure grants as well.

9 18. Does the subscription, interlocal or negotiated agreement provide specific benefits to the District Administrator, Program or participating financial institutions such as (check all that apply): Option to retain carbon credits Community redevelopment credits Other (please specify response is limited to 300 characters) The Interlocal Agreement is silent, however, these options are available and provided for in the PACE financing agreements as between the Authority, the project participant and the capital provider. The believes there is not any significant value to Property Owners to maintain carbon credits. In addition, there is no current or anticipated market for carbon credits in Florida. Exhibit 1 Page 9 of 41 Financial Institutions investing in SELF receive Community Reinvestment Act (CRA) credits.

10 Page 10 of Briefly describe the anticipated role and responsibility of Broward County staff if the County entered into a partnership with your program. The roles and responsibilities of Broward County staff can be determined during the program development process. The minimum level of involvement necessary is the provision of a designated representative to sign financing agreements with property owners. If a more expansive role by County staff is desired, Ygrene can accommodate as necessary. All municipalities are afforded direct oversight into the program through access to Ygrene's funding management system and realtime program dashboard. We would not impose any particular role or responsibility on Broward County, however, we do execute standard agreements with county property appraisers and tax collectors to establish the PACE district and facilitate the levy and collection process. We have already developed such agreements with other Florida counties and would be pleased to work with Broward County in this regard. Beyond that, Broward County can be as involved, or uninvolved, as the County desires. In other communities where we operate, it has been our practice to provide orientation to various departments (e.g., Planning; Engineering; Permitting; Finance; Economic Development; etc.) so that government staff members are able to provide helpful information about the program to the public at key moments in time, such as when submitting development plans or seeking permits. Minimal staff time would be involved in the subscription process. Once the county subscribes, required interaction would be with the Property Appraiser and Property Tax Collector offices. They will be reimbursed for necessary administrative costs per FL Statues (2). Also, the building department will be processing additional permits and will be paid for those services. If the county wishes to participate in marketing the program, they may do so; however, it is not required. We have no plans to expand into Broward County at this time. SELF is generally looking for support from local governments with community outreach programs.

11 Page 11 of Does the program require property owners to use contractors registered with the financing program? No Property owners can contract with a vendor of their choice to perform the energy retrofit. Yes Property owners must choose a vendor who has taken training required by our program. Yes Property owners must choose a vendor registered with our program. Comment on your contractor requirements (response limited to 500 characters) Through a free, oneday Contractor Certification Program, Ygrene creates a local sales force that is educated about program requirements, skilled in the use of our project management system and can confidently answer questions and assess properties with appropriate recommendations for energy savings projects. As the initial contact point for your Clean Energy District, Ygrene Certified Contractors are equipped to serve the best interests of the program and your community. Registration for contractors is free. We collect basic information about state licenses to ensure the contractors are properly licensed for the work they seek to perform with program funding. Authorized contractors must be licensed in their offered trade and understand the features and benefits of the FPFA program to ensure proper and accurate property owner marketing. Contractors are not required to learn or use an administrative or project tracking system other than what they use in their normal course of business. SELF requires contractors to have proper permits, licenses, and insurance as well as a good track record. SELF also provides additional training to our approved contractors. As SELF expands into new jurisdictions, we bring in local contractors in the process.

12 Page 12 of How many contractors were registered in your system as of May 15, 2013? 22. What fees are charged to the contractors registered in your financing program? 0 The program does not require contractor registration or training More than 250 Other comments related to contractors associated with the program (responses limited to 300 characters) Program Fee for receiving training to use our software Program Fee for registering in our program Program Fee for each job financed under the program No Program Fees are charged to contractors Other Program Fees Note that we have already have relationships with Broward County contractors not reflected in the above, including the Broward County Minority Builders Coalition, to quickly expand contractor participation in Broward County. The intentionally refrained from registering contractors into the program until financing was completed to avoid frustration and manage expectations.

13 Page 13 of What fees are charged to the contractors registered in your financing program? 24. Does the property undergo an energy use audit as part of the application process? 25. If an energy audit is required, who performs it? Other (response limited to 300 characters) Certified contractors are charged a 3.0% project oversight fee in order to reimburse the Program for training, lead generation, marketing services, and Energy Center services. Rather than charging for these services upfront, this ensures that contractors only pay when they have work coming in. $50 onetime application fee. Contractors' qualifications are verified several times during the process: 1.Upon application. 2. When selected by the property owner to work on the project. 3. Prior to final payment. Contractors pay a 2% fee based upon the project cost financed to the. New fees will likely be implemented in the Fall of Yes No May depend on the energy retrofit Energy audits are required for As a practical matter, we Energy assessments (i.e. surveys, all energyrelated require energy audits because audits, ratings) are strongly improvements in order to our capital providers require encouraged in identifying ensure the monetary benefits them in order to underwrite potential improvements and Please comment on your exceed project cost over the project financing. Please note savings, but are not required. process (response limited to lifespan of the improvement. An that we are taking steps to Requested assessments will be 300 characters) audit is not required for streamline the audit process conducted at no charge. If tier 2 hurricane protection measures, and to minimize audit costs, financing is used, a building which have inherent public particularly for small and simulation and lender consent is safety benefits that exceed any medium commercial buildings. required. monetary savings. Property Owner arranges for a contractor to perform the energy audit. Property Owner choses a contractor from a list of those registered with the program.

14 Page 14 of If an energy audit is required, who performs it (cont)? 26. If an energy audit is required, who pays for it? An energy auditor is assigned by the program administrators. No energy audit is required. Other (response limited to 300 characters) Property Owner pays the energy audit contractor directly. Property Owner is charged with a specific energy audit fee as part of the application process. Property Owner pays indirectly through a general fee charged in the application process. No energy audit is required. The contractor performing the energy audit does not need to be Ygrene Certified if they are working under a general contractor who has achieved Ygrene Certification. Energy assessments (i.e. surveys, audits, ratings) are strongly encouraged in identifying potential improvements and savings, but are not required. Requested assessments will be conducted at no charge. If tier 2 financing is used, a building simulation and lender consent is required. SELF did an RFP statewide and secured several statecertified energy raters.

15 Page 15 of If an energy audit is required, who pays for it (cont)? 27. If a currentvalue property appraisal is required, who performs it? Other (response limited to 300 characters) The cost of the energy audit can either be paid directly to the contractor performing the audit or rolled into the financing as a construction cost. Please note that the cost of the energy audit (which is generally 12% of the total cost of a project), may be included in the PACE financing amount. Energy assessments (i.e. surveys, audits, ratings) are strongly encouraged in identifying potential improvements and savings, but are not required. Requested assessments will be conducted at no charge. If tier 2 financing is used, a building simulation and lender consent is required. Each jurisdiction is different depending on local programs and utilities. Generally, the cost of the energy audit is rolled into the loan to minimize upfront costs to the client. Property Owner arranges for the appraisal. Property Owner choses a real estate appraiser from a list of those registered with the program. An appraiser is assigned by the program administrators. No appraisal is required. Other (response limited to 300 characters) As per Florida Statute , the property value used in Ygrene's underwriting process is Just Value as determined by the County Tax Assessor. Ygrene's funding management system provides this uptodate value instantly in response to a property search. Our program relies upon the property appraisers' assessed value, but we provide the option to property owners to request a separate appraisal, which is ordered by the program as specified by the capital provider. The property s value is determined by the Property Appraiser and listed on the tax roll as Just Market Value. SELF references the Property Appraiser data but does not require a separate appraisal.

16 28. If an appraisal is required, who pays for it? Property Owner pays the appraiser directly. Property Owner is charged with a specific appraisal fee as part of the application process. Property Owner pays indirectly through a general fee charged in the application process. No appraisal is required. Exhibit 1 Page 16 of 41 Other (response limited to 300 characters) If an appraisal is requested by a property owner, the owner pays the cost of the appraisal. This cost may be included in the PACE financing amount. 29. Please provide the following information on the cost of a $10,000 residential loan with a twentyyear term? Interest Rate charged as of May 15, 2013 (%): 6.95% Annual payment ($): $ Varies by capital provider (market price) Depends on interest rate and timing (e.g., at 6% the annual payment may be $957.39) Total amount of additional fees not included in the assessment/loan payment ($): $0 None. 6.94% 59% $ TBD Annual fees charged by Property Tax Collector and Property Appraiser added to the annual assessment

17 Page 17 of 41 30a. How does your program recover administrative and financing costs? Fees charged which are financed. Application Processing Fee Origination Fee Energy Audit Real Estate Appraisal Fee Title Search Technical Project Review Jurisdiction Set up/cost Recovery Fee Recording Fee Preinstall Site Inspection Postinstall Site Inspection Filing fees Financed Bond Counsel Legal Fees Progress Payment Request Contractor/Vendor Project Fee Annual Collection Fee Debt Service Reserve PACE District Admin. Fee PACE District Legal Fee Government Property Appraiser Tax Collector Closing fee

18 Page 18 of 41 Application Processing Fee Origination Fee Energy Audit Real Estate Appraisal Fee Title Search Technical Project Review Jurisdiction Set up/cost Recovery Fee Recording Fee 30b. How does your program recover administrative and financing costs? Preinstall Site Inspection Postinstall Site Inspection Filing fees Financed Bond Counsel Legal Fees Fees charged which are not financed. Progress Payment Request Contractor/Vendor Project Fee Annual Collection Fee Debt Service Reserve PACE District Admin. Fee PACE District Legal Fee Government Property Appraiser Tax Collector Closing fee

19 Page 19 of 41 30c. How does your program recover administrative and financing costs? Fees which are not applicable to this program. Application Processing Fee Origination Fee Energy Audit Real Estate Appraisal Fee Title Search Technical Project Review Jurisdiction Set up/cost Recovery Fee Recording Fee Preinstall Site Inspection Postinstall Site Inspection Filing fees Financed Bond Counsel Legal Fees Progress Payment Request Contractor/Vendor Project Fee Annual Collection Fee Debt Service Reserve PACE District Admin. Fee PACE District Legal Fee Government Property Appraiser Tax Collector Closing fee

20 Page 20 of 41 30d. How does your program recover administrative and financing costs? Other (please specify other fees charged to the property owner that are not listed above response limited to 300 characters) The only fees charged and earned by the administrator is a onetime 2.5% origination fee and a PACE District Admin. Fee of 0.5% and Legal Fee of 0.5% of the annual assessment amount (by comparison, the Broward County Tax Collector likely charges 2% of the annual assessment amount). Other fees listed above are either set by statute, passthrough or are optional. Most importantly, our Program does not charge any additional interest rate spread on the financing, which may otherwise add costs to a project not reflected or captured in the above fee schedule. Financial Advisors fees are financed.

21 31. Please provide the fee cost of a $10,000 residential loan with a twentyyear term? Type in NA if the fee is not applicable to your program. Application Processing Fee $50.00 $0.00 $25.00 Origination Fee $250 (payable to EcoCity Partners) $ Energy Audit $0 (we assume a free FPL audit) Real Estate Appraisal Fee 0 Title Search $150 (payable to First American Title Company) NA pays Technical Project Review 0 Jurisdiction Set up/cost Recovery Fee $ $0.00 Recording Fee $ $250 (payable to Broward County Clerk s Office) NA subscription agreement recorded paid by Preinstall Site Inspection $0.00 Postinstall Site Inspection $0.00 Filing fees $ $0.00 $48.50 to be paid to the Clerk of Courts for filing all documents over the term of the assessment. Bond Counsel Legal Fees $0.00 $52.14 Progress Payment Request $0.00 Contractor/Vendor Project Fee $0.00 $ Annual Collection Fee $0.00 $9.80 Debt Service Reserve $0.00 CDFI Admin. Fee $0.00 CDFI Legal Fee $0.00 PACE District Admin. Fee $4.64 NA no districts PACE District Legal Fee $4.64 NA no districts Government Property Appraiser $0.00 Tax Collector $9.29 TBD by county per Florida Statute Exhibit 1 Page 21 of 41

22 32. Please provide the fee cost of a $10,000 residential loan with a twentyyear term? 33. Please provide the following information on the cost of a $50,000 commercial loan with a twentyyear term? 34. Please provide the fee cost of a $50,000 commercial loan with a twentyyear term? Type in NA if the fee is not applicable to your program. Closing fee $0.00 $91.77 Interest payment Interest Rate charged as of May 15, 2013 (%): 6.95% Annual payment ($): $4, Total amount of additional fees not included in the assessment/loan payment ($): We do not charge an interest payment above what the lender charges the borrower. Varies by capital provider (market price) Depends on interest rate and timing (e.g., at 6% the annual payment may be $4,661.11) $0.00 $0.00 $9, over the term of the assessment plus $32.16 capitalized interest if funded on May 15, % $4, TBD Annual fees charged by Property Tax Collector and Property Appraiser added to the annual assessment Application Processing Fee $ $0.00 $50.00 Origination Fee $1, $1, Energy Audit Real Estate Appraisal Fee Title Search Technical Project Review Jurisdiction Set up/cost Recovery Fee $200 (assumes $0.02/sq. ft. for a 10,000 sq. ft. building) $0.00 $ NA paid by $0.00 $ $0.00 Recording Fee $ $ Preinstall Site Inspection Postinstall Site Inspection NA recording of subscription agreement paid by the $0.00 $0.00 Exhibit 1 Page 22 of 41 59% depending on creditworthiness

23 34. Please provide the fee cost of a $50,000 commercial loan with a twentyyear term? Type in NA if the fee is not applicable to your program (cont). Filing fees $ $0.00 Bond Counsel Legal Fees Progress Payment Request Contractor/Vendor Project Fee Annual Collection Fee Debt Service Reserve CDFI Admin. Fee CDFI Legal Fee PACE District Admin. Fee PACE District Legal Fee Government Property Appraiser Tax Collector Closing fee Interest payment $48.50 to be paid to the Clerk of courts for filing all documents over the term of the assessment. $0.00 $ $0.00 $0.00 $1, $0.00 $49.04 $0.00 $0.00 $0.00 $22.61 NA no districts $22.61 NA no districts $0.00 $45.21 TBD by county per Florida Statute $0.00 $ We do not charge an interest payment above what the lender charges the borrower. $45, over the term of the assessment plus $$ of capitalized interest if funded on May 15, 2013 Exhibit 1 Page 23 of 41

24 Page 24 of What services do you offer or make available to property owners applying to your program? Electronic application management system Arranging of a property appraisal Arranging of a baseline energy audits Database of participating contractors Database of participating finance institutions Financing/loans Processing of assessments Web or electronicbased program marketing and outreach Traditional media (newspaper, TV, radio) program marketing and outreach Information on qualifying rebates and related incentives Customer service phone lines Store front location

25 Page 25 of What services do you offer or make available to property owners applying to your program (cont)? Other (please specify response limited to 700 characters) Ygrene s Energy Centers educate and assist property owners in understanding the financial benefits of energy conservation and the value of improvements to their commercial, industrial or residential properties. Energy Centers will provide facetoface customer service, contractor and community education and comprehensive information on sustainability projects and financing. In addition, Ygrene is dedicated to partnering with local businesses to support and promote energy efficiency marketplace. Ygrene offers showroom exhibit space in the Energy Center for local businesses to promote their products and services. We facilitate competitive interest rates from participating capital providers. We also assist in structuring financing for complex commercial projects where landlordtenant issues may otherwise complicate the project. We offer green business certification and marketing opportunities for business owners. Finally, we offer benchmarking through EPA's Portfolio Manager. Property appraisals are not required to be conducted for participation in the FPFA program. Baseline audits will be conducted from contractor gathered property data when requested by property owners at no charge to either contractor or property owner. Store fronts will cause Property Owner costs to increase. We will have regional offices set up judiciously to effectively respond to needs and regional concerns. 36. What energy efficiency or cost metrics does your program track to demonstrate the performance of the program? estimated energy saved actual energy saved solar capacity installed square footage improved estimated cost savings actual cost savings Other

26 Page 26 of What energy efficiency or cost metrics does your program track to demonstrate the performance of the program (cont)? Other metrics tracked (please specify response limited to 300 characters) Select projects are tracked for actual energy and cost savings but postproject measurement and verification is not required. In addition to the metrics above, CO2 emission reduction, property searches, applications received and total projects financed are tracked and available in realtime. We also track greenhouse gas emissions (GHG) avoided. Addtl metrics tracked by total program, county, zip code, class of improvement and property class type: greenhouse gas emission reductions; energy unit/cost savings; property owner participation; estimate of jobs and economic stimulus created; fees paid; assessments collected; assessment defaults. 37. Is there a penalty to the property owner for early repayment of the loan/assessment? 38. What financial model does your program use? Yes No If Yes, what is the penalty? 5.00% of the remaining balance is charged upon early repayment Per our form financing agreement, we charge a prepayment fee equal to 5% of that year's annual payment amount. Repayment must be made in full. We do not currently accept partial payments or pay downs. The property owner arranges their own financing. The program supports creating the assessment. The program has funding available to the applicant. We provide both the financing and the arrangement of the assessment. The program has funding to finance loans to the applicant.

27 Page 27 of What financial model does your program use (cont)? Provide additional comment if necessary To date, over $80M has been funded through PACE Districts operating under the fully funded model. Only one project, in the City of San Francisco, has been funded through an ownerarranged program despite the model's widespread use. Financing is available from our multiple capital providers, which includes established national and local providers. Property owners choose their capital provider. 39. If your program uses the warehouse financing model (pool of funds available from multiple sources/banks), can a property owner bring their own financing to the table? This program does not use the warehouse model. No Applicants must use program financing for assessments or loans. Yes Applicants can bring in their own funding and we will help arrange for the assessment. 40. If your program uses the ownerarranged financing model, will your program work with the owner to find financing? This program does not use the ownerarranged model. No Applicants must arrange their own financing for assessments or loans. Yes The program has relationships with financial institutions available to help gain financing for the project.

28 Page 28 of If your program uses the ownerarranged financing model, will your program work with the owner to find financing (cont)? 41. What is the interest rate for financing charged by your program as of May 15, 2013? If yes, does the program exact an additional fee and how competitive is the arranged financing? (response limited to 300 characters) 5.25% (5year), 6.25% (10 year), 6.95% (20year) All fees are as disclosed above (there are no additional fees or interest charges). The financing rates will depend on the particular project and parameters. For instance, our capital providers have provided a range of estimates on interest rates from 4.5% 7% and terms ranging from 3 20 years. Our capital providers have provided a range of estimates on interest rates from 4.5% 7% and terms ranging from 3 20 years. 6.94% for 20 yr assessments, 6.7% for 15 yrs, 6.05% for 10 yrs and 5.45% for 5 years 59% depending on creditworthiness 42. Are the interest rates adjustable or fixed? 43. What are the available loan/assessment terms? Adjustable Fixed Negotiable 1 year increments depending on the estimated cost savings 1 year increments depending on the property owners desired payback term Minimum 5 year term up to 20 years Minimum 10 year term up to 20 years Other (please specify Consideration is being given to response limited to 150 extend to a maximum of year terms characters) years.

29 Page 29 of What is the existing program requirement for "lender consent" versus "lender notice" for RESIDENTIAL properties? 45. What is the existing program requirement for "lender consent" versus "lender notice" for COMMERCIAL properties? Applicant must gain consent from the existing residential mortgage holder(s). The financing program works to gain consent from the existing residential mortgage holder(s). Applicant must provide notice to the existing residential mortgage holder(s). The financing program provides notice to the existing residential mortgage holder(s). Provide additional comments as necessary (response limited to 300 characters) Applicant must gain consent from the existing commercial mortgage holder(s). The financing program works to gain consent from the existing commercial mortgage holder(s). Applicant must provide notice to the existing commercial mortgage holder(s). The nature of a PACE program requires lender consent where there are existing financial covenants in place between a property owner and bank. Ygrene will provide the support necessary for lender consent requirements and has funded PACE projects using both lender consent and lender notice. We do not offer a residential PACE program at this time. As a practical matter, it is difficult or impossible to obtain consent from the vast majority of residential mortgage holders (e.g., the Fannie Mae and Freddie Mac litigation concerned their refusal to provide consent to residential PACE projects). When signing the Application Affidavit, the Property Owner gives consent for the to contact the mortgage holder(s) on their behalf. Currently, only offering the program to residential with nonconforming loans or unencumbered properties. CDFI loans are unsecured and are not tied to the mortgage.

30 45. What is the existing program requirement for "lender consent" versus "lender notice" for COMMERCIAL properties (cont)? 46. Can the local government stipulate their requirements for lender consent versus notice upon joining the program? 47. Does your program have a loan reserve fund? The financing program provides notice to the existing commercial mortgage holder(s). Provide additional comments as necessary See response to Question 44. (The nature of a PACE program requires lender consent where there are existing financial covenants in place between a property owner and bank. Ygrene will provide the support necessary for lender consent requirements and has funded PACE projects using both lender consent and lender notice.) We have always believed that lender consent is critical to commercial PACE projects given the terms and conditions of most commercial mortgage agreements and have already cultivated relationships with leading mortgage lenders, including Wells Fargo and others, in order to gain their consent for prudent PACE projects. When signing the Application Affidavit, the Property Owner gives consent for the to contact the mortgage holder(s) on their behalf. Lender notice required by statute for financing of costbeneficial energy efficiency improvements over 20% of assessed value. Yes No Other Other Yes No To protect our program against legal challenges, we require lender consent. If a local government disagrees with this position, we would want to discuss and understand the local government's rationale. The follows the guidelines proscribed by state law regarding lender notice without consent. Exhibit 1 Page 30 of 41 CDFI loans are unsecured and are not tied to the mortgage. CDFI loans are unsecured and are not tied to the mortgage.

31 Page 31 of Does your program have a loan reserve fund (cont)? 48. Who provided the dollars for your loan reserve fund? 49. Is the issuance of government bonds by the local government required to start a new district? 50. For programs that provide financing of loans/assessments, what is the source(s) of your capital? Additional information (response limited to 500 characters) Ygrene's underwriting standards and substantial financial commitments eliminate the need for a loan loss reserve fund to satisfy the needs of the secondary market. Our program does not currently have a loan loss reserve fund; however, we have built in the necessary flexibility to accommodate a loan loss reserve fund if it proves to be beneficial in the future. If your program does not have a loan reserve fund. Municipal s (%) Government Bonds (%) Private s (%) State Grant s (%) Federal Grant s (%) 100 Other (%) Yes No Maybe The validation process ensures Please explain your answer the longterm viability of the (response limited to 150 District and provides necessary characters) legal protection to Broward County. This program does not provide financing. Municipal s Government Bonds Private Bonds Local Banking Institutions National Banking Institutions State Grant s

32 Page 32 of 41 Federal Grant s Other 50. For programs that provide financing of loans/assessments, what is the source(s) of your capital (cont)? Additional information (response limited to 300 characters) Ygrene, through partnerships with a variety of national and regional banks, provides warehouse financing sufficient to aggregate assessments to offer securitization packages. Once the assessments are funded and aggregated, Ygrene will issue investment grade bonds to offer longterm investors. Additionally, we offer traditional as well as thirdparty ownership (e.g., lease or PPA) financing through specialty finance companies. Taxable revenue bonds issued by the Florida PACE to institutional investors Faithbased organizations, Impact Investors, Foundations, and more $0 This program does not provide financing. $1M$2M 51. How much in capital funds are currently secured and available for program loans/assessments? $2.1$5M More than $5M Provide additional relevant information (response limited to 300 characters) ing secured up to $500M SELF has secured 3 new nongovernmental investments totaling approx. half a million dollars, which supplements the original $1.65 million loan pool provided by DOE. There are also multiple additional opportunities pending to raise additional capital.

33 Page 33 of 41 All single family residential Single family residential non FHFA mortgage 52. Does your existing program allow for loans/assessments to the following property owners? Residential no mortgage Multifamily residential (5 or more units) Commercial Other Please note that PACE financing Determination of eligible is limited to nonresidential properties is left to the County. Other Options or comments properties (defined as more Other Churches, Industrial, Ygrene can accommodate (please specify response than 4 units); we allow for agricultural, taxable healthcare residential, commercial, limited to 150 characters) loans, including CDFI loans, for and privately owned educational industrial and agricultural single family residential properties. properties.

34 Page 34 of What indemnification language, if any, do you include in the final loan/grant agreement related to risks borne by the property owner associated with the FHFA rulings? In accordance with Florida law, the lien securing the obligation to pay the special assessments will be senior to all private liens, including existing mortgage(s). Many mortgage and loan documents limit the ability of a property owner to place senior liens on property without the consent of the lender, or authorize the lender to obligate borrowers to prepay the senior obligation. Recently, the Federal Housing Finance (FHFA) issued policy guidelines that question the validity and lien status of PACE assessments. Property owners should confirm with their lender(s) that participation in the PACE program does not adversely impact their rights under any existing loan documents. Property owners are required to notify their lenders prior to submitting a Program funding request and to provide the District with a copy of the notification letter and proof of mailing. The District will supply the property owner with a form letter that can then be sent to mortgage holders. We do not provide PACE financing for residential properties, accordingly, we do include any indemnification language. The Florida PACE is currently not accepting applications from Property Owners with conforming FHFA loans. The program is intended to be a statewide program and as such represents the best platform for a single and substantial voice in opposition to the FHFA rulings. SELF is not a PACE program and is therefore unaffected by the FHFA objections to PACE.

35 Page 35 of Rank the methods of marketing the program that your program uses. A rank of 1 indicates the marketing methods used the most. 1 Contractorbased marketing Contractorbased marketing Contractorbased marketing Other 2 Website Financialinstitutionbased marketing Website Word of mouth 3 Word of mouth Other Flyers Website 4 Flyers Website Word of mouth Radio or TV advertising 5 Financialinstitutionbased Newspaper or related print Newspaper or related print Flyers marketing advertising advertising 6 Newspaper or related print advertising Word of mouth Radio or TV advertising Flyers 7 Radio or TV advertising Newspaper or related print advertising Other Contractorbased marketing 8 Other Radio or TV advertising Financialinstitutionbased Financialinstitutionbased marketing marketing Website to customer services Phone numbers 55. In what ways can a property owner access information about the financing program? Come to an office and see a customer service representative Visit a storefront Other (please specifyresponse limited to 100 characters) Active marketing and education by locallybased Ygrene representatives As we are based here in South Florida, we frequently perform site visits to our customers' offices.

36 Page 36 of Comment on the benefits of your marketing program It is essential that the local community be educated about the program, understand the benefits and be able to easily access information via the web or facetoface interaction with local Ygrene representatives. While many programs fail to deliver robust and localized marketing because of staffing and administrative constraints, Ygrene s strategy delivers branding, materials, advertising and a streamlined user experience that translates into more projects delivered to the community. We obtain marketing benefits of our "open market" approach by leveraging the combined marketing capabilities of contractors as well as financial institutions that can participate in completing and funding projects. Additionally, we have found that local government personnel involved in sustainability and economic development have been instrumental in marketing our program to property owners at the ideal time when they are considering projects (i.e., at time of permitting or plan submittal). We also employ a full range of social media, print media and word of mouth here within the South Florida community where we are located and have been members of the community for many years. Streamlining the process throughout the state, contractors, will take the lead in marketing directly to the Property Owners with a consistent message for all counties participating. Our websites and 800# are tools for counties, property owners and contractors to access details/inquire about the program. We will attend any HBA, BOMA, green council and chamber of commerce meetings. In addition, local utilities distribute information to any receiving energy audits.

37 Page 37 of 41 Property owner completes a paper application Property owner completes an online application Property owner works with the contractor to complete an application Property owner works with a customer service representative to complete the application Property owner completes a paper application Property owner completes an online application Property owner completes an online application Property owner works with the contractor to complete an application 57. How does the average property owner apply for a loan/assessment? Other Describe your process (response limited to 500 characters) While the most common method for a property owner to apply has been through Ygrene's online property search and application, large portions of the community have shown a preference for either paper submittal or inperson application with either a contractor or a Ygrene staff member in one of our local offices. Ygrene's flexible program, and the physical presence of a local Energy Center, allows for the necessary flexibility to best serve the entire community..property owner has the option to complete a paper or online application. staff is available for questions regarding the application process. An Application Affidavit must be signed and notarized. They must acknowledge the terms of the financing agreement. Property owners selected contractor will prepare a bid summary on their behalf. Underwriting will confirm contractors licensure still valid, review bid summary and Property Owners quals for compliance with statutory regs. 58. What is the average time from application to approval? 12 weeks 12 months 36 months More than 6 months

38 Page 38 of What is the average time from application to approval (cont)? Comments (response limited to 150 characters) Prequalification, which checks a property's just value, existing loans and tax currency, is available instantly. Full approval takes approx. 2 weeks. Note, this is an average time, which depends primarily on the owner's selection of project scope. Due to 30 day lender notice, anticipated time from application until completion of work and contractor payment estimated to be 4560 days. 59. How many applications for funding have you received through May 15, 2013? 60. Comments on the current application status of your program (response limited to 500 characters) Total Number of Residential Applications Total Requested Residential ing ($) Total Number of Commercial Applications Total Requested Commercial ing ($) COUNTY STAFF ANALYSIS $1,363,458 $0 $ $7,404,444 $1,010,300 $0 $194,780/ home $370,222/commercial property In anticipation of its July launch, is currently accepting applications from Certified Contractors in an effort to start with a prebuilt pipeline. The dollar figures above represent eligible funding for the approved properties. In addition to project applications, local contractors have prequalified 2,792 properties through our funding management system representing $135M in eligible funding. $112,256/commercial property Given the population size of our current program footprint, we are currently on track to scale the program in a manner similar to how the leading PACE program had scaled in its first two years (i.e., Sonoma County, which completed 69 projects totaling $8.2 million over its first two years). We are not accepting Property Owner application until our funding is finalized which is anticipated by mid June. ing has been secured up to $500M through SAMAS Capital, LLC.