Placement: New Business
Action Requested: Discussion
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Florida PACE Funding Agency, Request for City Council Direction
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Submitted By: James D. Stokes, City Attorney
Strategic Plan Link: The City’s Mission to be responsive to our community.
Executive Summary (General Business): It has recently come to the City Attorney’s attention that Florida PACE Funding Agency (“Florida PACE”) is providing financing for certain home improvements to residential property owners within St. Lucie County, with the majority being within the City. While PACE programs are generally authorized by Florida Statute, Florida PACE is not following statutory requirements for PACE programs. It is Florida PACE’s position that it has independent authority to provide PACE financing statewide and Assess properties, without receiving approval from the local city or county. While Florida Statute requires any PACE entity to seek a Resolution of the local government in order to authorize an assessment on the property, it is Florida PACE’s position that IT IS a “local government” entity, so no involvement of the city or county is necessary.
Presentation Information: Staff will be available for discussion.
Staff Recommendation: Request that the Council authorize the City Attorney’s office to address this situation through one or more methods: (1) the City could send a cease-and-desist letter to Florida PACE; (2) the City could enact a Consumer Protection Ordinance regarding PACE financing; (3) the City could file a lawsuit, including a request for injunctive relief, against Florida PACE; (4) the City could join the County’s lawsuit that it is preparing against Florida PACE; (5) the City can seek legislative intervention, an Attorney General’s investigation, or other means which can be more fully discussed.
Background: The St. Lucie County Tax Collector and his general counsel indicated last week that approximately 130 properties countywide received financing from Florida PACE (in the total amount of $3,120,081.98), with nearly 85% being in our city limits. At the County Commission meeting on July 18, 2023, the number of homes Florida PACE was seeking to assess had risen to over 150 homes countywide. This is a continuing and growing problem.
At that County Commission meeting, the Commissioners directed the County Attorney to send a cease-and-desist letter to Florida PACE and to prepare a lawsuit seeking injunctive relief. The Board also instructed the County Attorney to prepare a Consumer Protection Ordinance.
Special Consideration: The Board of the St. Lucie County Commissioners will be holding a special informal meeting in the near future to further discuss Florida PACE.
Location of Project: Citywide
Attachments:
1. Letter from the City Attorney to the Board of the St. Lucie County Commissioners
2. The Agenda Packet from the July 18th meeting of the Board of the St. Lucie County Commissioners regarding Florida PACE
3. Palm Beach County’s Property Assessed Clean Energy (PACE) Program Ordinance
4. Pinellas County’s Property Assessed Clean Energy (PACE) Program Ordinance
5. Interlocal Agreement between Flagler County and the City of Kissimmee, which purports to create the Florida PACE Funding Agency
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 23194-02
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.