Number
110139
Version
Substitute 1
Reference
Sponsor
THE CHAIR
Title
A substitute ordinance relating to the non-residential owner-arranged clean energy financing.
Sections
304-26.5 rc
Analysis
This ordinance facilitates owner-arranged financing with a third-party lender for commercial property owners making renovations to improve the energy efficiency of property leased to tenants who pay utilities and taxes on the property, by effectively guaranteeing principal and interest payments for one year.
No city funds will be used to satisfy this guarantee.
Under this ordinance, not more than 12 delinquent loan repayments will be added to the property tax bill as special charges, and the city will make all reasonable and customary efforts to collect these special charges once they are added to the tax roll.
The city will remit full payment to the lender for all delinquent loan repayments added to the tax roll as special charges when they are added, and will simultaneously be reimbursed for this outlay by drawing upon a reserve fund maintained by the city with monies provided by a grant from the U.S. department of energy.
The ordinance provides a mechanism to ensure there will always be sufficient grant cash reserves to reimburse the city if special charges added to the tax roll are not paid.
All payments received for these special charges, after the city has been reimbursed by the reserve fund, will be deposited to replenish the reserve fund, and proceeds resulting from these special charges, if the property is foreclosed upon, will be remitted, less any interest charged or fees assessed, to the reserve fund.
In addition, this ordinance repeals code provisions relating to the city’s energy efficiency improvement loan program ordinance - a program in which the City made loans directly to residential property owners to fund energy efficiency improvements.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Pa...
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