Cutler Bay and South Miami are the first of six South Florida cities to be officially “onboard” for a new Property Assessed Clean Energy Act (PACE) program put together by Carbon War Room, a non profit created by British businessman Sir Richard Branson.  Known for founding Virgin Records and Virgin Airways, Branson has brought together five large private businesses through the Carbon War Room to invest $550 Million in green modifications for residential and commercial properties in South Florida.  If the other four cities sign on to the program, Miami-Dade County will officially have a “Green Corridor District” in which the different municipalities work together under the PACE Act to finance the energy-efficient initiatives.

Points to be Considered:

Pros:

• it is a volunteer/opt-in program for property owners
• the cost of upgrades is paid by the program upfront and financed so that homeowners’ energy savings (in theory) cover the costs of the modifications
• quickly addresses the needs for sustainable living of Miami-Dade County on a wide scale
• it will create many jobs in South Florida

Cons:

• the upgrades will be financed as a surcharge on each homeowner’s property tax bill and will be paid over 20 or so years following the modifications and, should the homeowner move, the lien will remain on the property for the new owner to pay
• homeowners, by law, cannot spend more than 10% of what their property is worth on PACE initiatives which means that those in the lower-end market will, in large part, be excluded from this program
• special assessment districts have never been created to pay for individual, opt-in projects and we question whether the cities should be responsible for guaranteeing that the debts to the private companies are paid back
• though the PACE Act has been passed in numerous states, Fannie Mae and Freddie Mac are not supporting it which makes it difficult for some homeowners to take part in PACE projects because they need lender approval (except FL and CA wherein homeowners must only notify the lender, not obtain approval)

 To learn more about this, please see the links below:

http://www.miamiherald.com/2011/10/08/v-fullstory/2445380/program-will-help-homeowners-pay.html#disqus_thread

http://www.cutlerbay-fl.gov/resol/1292344315_Resolution%2010-27%20Establishing%20the%20South%20Dade%20Green%20Corridor%20District.pdf

http://www.cutlerbay-fl.gov/going-green/index.html

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