FILE NO. PACE Financing Application Los Angeles County Commercial Property Assessed Program County of Los Angeles and Participating Cities LA County Commercial PACE Program c/o Willdan Financial Services 27368 Via Industria Ste # 110 Temecula, CA 92590 info@lapace.org (877) 785-2237 www.lapace.org
TABLE OF CONTENTS CHECKLIST... 2 INSTRUCTIONS... 3 REQUIRED SUPPLEMENTAL DOCUMENTATION... 4 Lender Consent Form... 4 Investor Commitment Letter... 4 Intercreditor Agreement... 4 Final Scope of Work... 4 SUBMITTAL OF DOCUMENTS AND PREPARATION OF TRANSACTION DOCUMENTS... 5 FEES AND TRANSACTION COSTS... 5 PAYMENT DISBURSEMENT POLICY... 5 DECLARATIONS... 6 Page 1 of 9
CHECKLIST Congratulations! Your PACE Reservation Package has been approved. If you have not already done so, you may begin working with the PACE investor(s) of your choice to negotiate the terms of your PACE financing. A list of PACE investors is available at www.lapace.org, or your mortgage lender may elect to fund the project directly. For your convenience and use, the following checklist will help you track all the necessary forms and documents needed to successfully submit your PACE Financing Application. These supplemental forms will be provided upon approval of your PACE Reservation. Fully Executed Lender Consent Form (if applicable) Fully Executed Investor Commitment Letter Fully Executed Intercreditor Agreement (if applicable) Final Scope of Work (with supplemental bid documentation and invoices) Evidence of authority of signatory to enter into a PACE financing (if applicable) 1 For questions regarding this application process please call 877.785.2237 or send an email to info@lapace.org 1 Needed if an entity such as a corporation or a partnership, rather than an individual, owns the property. Page 2 of 9
INSTRUCTIONS Please complete and sign the attached PACE Financing Application Form. Please type or print neatly in blue or black ink. Please retain copies of your completed PACE Financing Application Form, all receipts, paid invoices, Contractor s contracts, and any supplemental documents submitted. Please refer to the Payment Disbursement Policy on page 4. You may submit your completed PACE Financing Application and all required documentation by mail, fax, or secure file upload: Mail LA County Commercial PACE Program c/o Willdan Financial Services 27368 Via Industria, Ste. 110 Temecula, CA 92590 Fax (888) 326-6864 Attn: LA County Commercial PACE - Program Administrator Secure File Upload Send an email to LA-PACE@energyupgradeca.org and we will send you instructions on how to securely upload your application online. Questions? For questions regarding the status of your PACE Application please contact us: (877) 785-2237 or info@lapace.org Page 3 of 9
REQUIRED SUPPLEMENTAL DOCUMENTATION Lender Consent Form If you have a mortgage or other loans secured by the property, you must obtain written consent to a PACE assessment from each existing lender with an interest in the property before the project is approved. Please include a fully executed Lender Consent Form with your PACE Financing Application. Your lender may express concern about the senior priority status of the PACE assessment, but these concerns can be addressed by presenting a strong business case for how the project may enhance your business cash flow and strengthen the value of your lender s investment. If you determine that the project will be beneficial for you, please contact the Program Administrator for a Sample Mortgagee Presentation, which lays out ideas for how to present the business case to your mortgage holder. The Clinton Climate Initiative is available as a pro bono resource to assist in this process. Please contact the Program Administrator for further information. Investor Commitment Letter The purpose for the Investor Commitment Letter is to assure that the transaction is well advanced in the structuring and credit approval process with the PACE Investor before LA County begins the legal work to document the transaction. The Investor Commitment Letter should set forth the closing conditions to be included in the Transaction Documents and state the specific terms of the financing. Intercreditor Agreement An Intercreditor Agreement is an agreement between creditors that sets forth the various lien positions and describes the rights of each creditor. This may include an agreement whereby the PACE Investor agrees to forbear exercising certain rights for a period of time, or any other such agreements between a mortgage holder and the PACE Investor. Final Scope of Work List and describe each component of the Final Scope of Work, including bid documents, equipment specifications, contractor proposals/quotes, invoices, and/or other documentation that demonstrates that the PACE bond proceeds are being used for an eligible projects as defined by AB 811. Please ensure that each of the following is included in your Final Scope of Work: Appendix A: Pace Financing Table of Proposed measures For each proposed measure, include drawings stamped by a Professional Engineer (PE) Include licensure details for the PE certifying the drawings Include licensure details for all contractors and subcontractors installing the measures Product Specification Sheets for all proposed measures Utility Rebate Application for all eligible measures, including all required supplemental information/documents Page 4 of 9
SUBMITTAL OF DOCUMENTS AND PREPARATION OF TRANSACTION DOCUMENTS Once all parties have executed the Lender Consent Form, the Investor Commitment Letter, and any Intercreditor Agreement, please submit these documents to the Program Administrator for final review, along with the final Scope of Work and supporting documentation. Together with this PACE Financing Application, these documents comprise the PACE Application Package. Once the completed PACE Application Package is approved, LA County will advise you when the process of drafting the Transaction Documents begins. Transaction Documents include: Assessment Contract Indenture Bond Purchase Agreement FEES AND TRANSACTION COSTS Recording Fee - $100: Due at signing of Assessment Contract for recordation of Assessment Lien documents and assessment contract. Legal costs associated with negotiation and drafting of Transaction Documents are the responsibility of the applicant and may be capitalized in the amount financed. These costs include, but may not be limited to: $1,000 for required Notice of Assessment and Assessment Diagram. $600 - $900 for Title Search All projects require proper permits and may incur permit fees. Assessment collection and administrative costs will be added to the annual assessment on property tax bills. Payoff Quote - $250: Due upon request from requesting party. Covers the cost for prepayment quotes of assessment liens and coordination of the Release of Lien of any prepaid assessments. PAYMENT DISBURSEMENT POLICY The construction payment disbursement schedule will be arranged between the PACE Investor, the property owner and the contractor(s), and will be detailed in the Transaction Documents. LA County will release funds upon the property owner s request, pursuant to such schedule and subject to satisfaction of specified requirements. Multiple disbursement fees may apply. LA County or its designated agent will serve as Paying Agent, and will make disbursements pursuant to the Transaction Documents. Property Owner and the Contractor must certify all construction draws. Any intentional misrepresentations will constitute a fraud, and may lead to legal consequences. Page 5 of 9
DECLARATIONS By signing this PACE Financing Application, the undersigned herby declares: 1. Applicant understands that the financing provided pursuant to the Assessment Contract will be payable through a voluntary contractual assessment levied upon the Property of the Applicant. The Assessment Contract will specify the amount of each assessment (consisting of the principal amount of the PACE financing, accrued interest, certain financing costs, and certain annual administrative costs) and the payment schedule applicable to the property tax bill for the Property each year. The assessment and any penalties/fees thereon will constitute a lien against the Property until they are paid. The Applicant, as the fee title owner of the Property, and any successors in interest to fee title in the Property shall be responsible for payment of the assessment and any penalties/fees thereon. Applicant understands that assessment installments will be collected on the Property s tax bill in the same manner and at the same time as property taxes, and will be subject to the same remedies as for property taxes in the event of delinquency. 2. That (i) the information provided in this LA County Commercial PACE Financing Application is true and correct as of the date set forth opposite my/our signature(s) on this PACE Application and (ii) that Applicant understands that any intentional or negligent misrepresentation(s) of the information contained in this PACE Application may result in legal consequences. Applicant warrants that he/she is authorized to sign binding contracts on behalf of his/her organization, without the consent of any third party which has not been previously obtained. 3. In order to measure the impact of the LA County Commercial PACE Program, the Program may seek to track improvements in energy and water efficiency among participating properties. While property data is required for this purpose, this data will not be disclosed in any form that will enable anyone to discern a specific property s energy consumption. Individual property data will be kept anonymous, and presented only as part of an aggregate statistical analysis. By signing this PACE Application Form you indicate that you agree to share pre and post-project energy and water consumption data with the Program following the completion of the improvements to facilitate analysis of the Program s impact. The administrators of LA County Commercial PACE may contact you to request information regarding of your improvements. 4. Applicant agrees that the selection of any product(s) or equipment referenced in this PACE Application (the Improvements ), the selection of any manufacturer(s), dealer(s), supplier(s), contractor(s) and installer(s), and the decision regarding the purchase, installation and ownership/maintenance of the improvements is the Applicant s choice, and that Applicant has not relied upon any representations or recommendations of LA County, the city where property is located, or any of their respective agents, representatives, assignees, or employees, in making such selection or decision, and that any such manufacturer, dealer, supplier, contractor or installer of the improvements is not an agent, employee, assignee or representative of LA County or the city where property is located. Page 6 of 9
DECLARATIONS - continued 5. Applicant understands that LA County and the city where the property is located make no warranty, whether express or implied, with respect to the choice, use or application of the improvements, including without limitation, the implied warranties of merchantability and fitness for any particular purpose, use or application of the Improvements. 6. Applicant agrees that LA County and the city where the property is located has no liability whatsoever concerning (i) the quality or safety of any improvements, including their fitness for any purpose, (ii) the estimated energy savings produced by or performance of the improvements, (iii) the workmanship of any third parties, (iv) the installation or use of the improvements including, but not limited to, any effect on indoor pollutants, or (iv) any other matter with respect to LA County or the city where the property is located. 7. Applicant understands that Applicant must comply with all requirements of the County of Los Angeles and the city where the property is located, in addition to complying with all applicable Federal/State/ County/City laws and any agreement which affects the Property or the use of the Property. Page 7 of 9
DECLARATIONS - continued FILE NO. Signed on this Day of, DATE MONTH YEAR In the City of, State of California. CITY PROPERTY OWNER SIGNATURE PRINTED NAME PROPERTY OWNER SIGNATURE PRINTED NAME PROPERTY OWNER SIGNATURE PRINTED NAME PROPERTY OWNER SIGNATURE PRINTED NAME THE FEDERAL EQUAL CREDIT OPPORTUNITY ACT, WHICH MAY APPLY TO THIS TRANSACTION, PROHIBITS CREDITORS FROM DISCRIMINATING AGAINST CREDIT APPLICATIONS ON THE BASIS OF RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, MARITAL STATUS, AGE (PROVIDED THE APPLICANT HAS THE CAPACITY TO ENTER INTO A BINDING CONTRACT); BECAUSE ALL OR PART OF THE APPLICANT S INCOME DERIVES FROM ANY PUBLIC ASSISTANCE PROGRAM; OR BECAUSE THE APPLICANT HAS IN GOOD FAITH EXERCISED ANY RIGHT UNDER THE CONSUMER CREDIT PROTECTION ACT. THE FEDERAL AGENCY THAT ADMINISTERS COMPLIANCE WITH THIS LAW CONCERNING THIS CREDITOR IS THE FEDERAL TRADE COMMISSION, EQUAL CREDIT OPPORTUNITY, WASHINGTON, DC 20580. Page 8 of 9
Appendix A: Pace Financing Table of Proposed Measures FILE NO. Please complete the table below with information on the proposed project(s) to be financed through PACE and submit along with the Final Scope of Work documents listed below: Description of Proposed Improvements End Use 1 Total Gross Annual Project Est. Savings Total Proposed Project Costs Equipment Installation Other kwh/yr kw Therms/Yr Gallons/Yr TOTAL Cost 2 Cost 3 Costs 4 EUL 5 EXAMPLE: CHILLER REPLACEMENT AC & R 580,000 64.5 N/A N/A $ 900,000 $ 635,000 $ 15,000 $ 1,550,000 25 TOTALS 1. End Use descriptions- L: Lighting, AC&R: Air Conditioning & Refrigeration, SG: Self Generation, ENV: building envelope or roof, or O: Other 2. Equipment Cost - Limited to the Actual Cost of the Equipment: e.g., no labor, taxes, shipping & handling, delivery charges, removal of existing equipment, etc. 3. Installation Cost - Includes items other than the Actual Cost of the Equipment; e.g., labor, taxes, shipping & handling, delivery charges, removal of existing, etc. 4. Other Costs - Examples include the labor and materials required to perform an audit assessment and to estimate and analyze the project s energy savings. 5. EUL - The Effective Useful Life of the equipment. Final Scope of Work For each proposed measure, include drawings stamped by a Professional Engineer (PE) Include licensure details for the PE certifying the drawings Include licensure details for all contractors and subcontractors installing the measures Product Specification Sheets fo rall proposed measures Utility Rebate Application for all eligible measures, including all required supplemental information / documents Page 9 of 9