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In order to participate in the Program, a property owner must meet and/or complete the following requirements and steps:
a. The property to be improved with the Authorized Improvements (the “subject property”) should be located in a municipality that is part of the Lone Star PACE Program (“Program”) and must be eligible to pay property taxes. (Note: If the property is not located in a participating municipality Lone Star PACE will approach the municipality to join the Program to the best of its ability.)
b. The subject property must be non-residential property as defined as (i) a property the primary use of which is not residential or (ii) a property used for multi-family housing with five or more units.
c. The property owner must provide written notice of the proposed senior lien to any and all mortgage holders with existing liens on the subject property, and must obtain the written consent of existing mortgage holders; the Program will provide templates and assistance for this purpose but it is primarily the property owner’s responsibility to obtain the acknowledgement of all mortgage holders. It is recommended that owner submit a copy of the mortgage holder’s written acknowledgment with the Application.
d. All owners of the fee simple title to the subject property or their legally authorized representatives must sign the Program Documents.
e. The property owner must have a professional energy audit conducted on the property that corresponds to the type of Authorized Improvements the owner is seeking to finance, and those Authorized Improvements must appear as identified opportunities or recommendations within the resulting audit report. The Program reserves the right on a case-by-case basis to review and approve Improvements that do not appear as an identified opportunity or recommendation within the audit report.
f. The property owner will be encouraged or required (as described below) to participate in appropriate state and City incentive programs to the extent the subject property is eligible for such programs at the time of application. See Chap. 6 “Participation in Rebate/Incentive Programs” below.
g. The property owners must agree to provide the Municipality with access to the property’s utility usage information to enable the Program to monitor energy savings. The owner must further agree to participate in any surveys and Program evaluations directed by the Municipality or Lone Star PACE.
h. The property owner must certify that it (and its corporate parent if the property owner is a single-purpose entity) is solvent and that no proceedings are pending or threatened in which the property owner (or the corporate parent, as applicable) may be adjudicated as bankrupt or become the debtor in a bankruptcy proceeding, or discharged from all of the property owner’s (or corporate parent’s, as applicable) debts or obligations, or granted an extension of time to pay the property owner’s (and the corporate parent’s, as applicable) debts or subjected to a reorganization or readjustment of the property owner’s (and the corporate parent’s, as applicable) debts. The property owner must also certify that the property owner (or any corporate parent if the property owner is a single-purpose entity) has not filed for or been subject to bankruptcy protection in the past three years.
i. The property owner must be current on the payment of all obligations secured by the subject property, including property taxes, assessments, and tax liens, within the past 3 years (or since taking title to the subject property if it has been less than 3 years). Properties that are currently appealing a property tax assessment will be reviewed and eligibility will be determined on a case-by-case basis.
j. There must be no notices of default or foreclosure, whether in effect or released, due to non-payment of property taxes or loan payments filed against the subject property within the last 5 years (or since ownership, if less than 5 years). Exceptions may be granted on a case-by-case basis.
k. The property owner must not have any involuntary liens, defaults or judgments applicable to the subject property. A property owner with an involuntary lien(s) may be allowed to participate in the Program if it can demonstrate an acceptable reason for the lien, default or judgment and a path for resolution along with supporting documentation. A property with an involuntary tenant’s lien will be reviewed and eligibility will be determined on a case-by-case basis.
l. The value of the property (based on current assessed value, appraised value determined by a Municipality -approved appraiser within 90 days of Program application, or market value calculated according to a method identified by the Municipality) plus the value of the Authorized Improvements financed by the Program must be equal to or greater than the sum of (i) the total private property debt including mortgages and equity lines of credit secured by the property, (ii) the principal amount of any Program indebtedness attributable to the property, and (iii) the aggregate principal amount of any fixed assessment liens or other special tax debt on the property.
m. The property owner must certify that the property owner is not party to any litigation or administrative proceeding of any nature in which the property owner has been served, or is pending or threatened which, if successful, would materially adversely affect the property owner’s ability to operate its business or pay the special taxes when due, or which challenges or questions the validity or enforceability of the Unanimous Approval or any other documents executed by property owner in connection with the Program.