Board hears presentation on commercial PACE financing; staff and county attorney asked to review ordinance template

Abby Johnson, representing a statewide nonprofit administrator of property‑assessed financing programs, briefed the Madison County Board of Supervisors on an economic development financing tool commonly called C‑PACE (commercial property‑assessed clean energy) that attaches voluntary repayment as a special assessment to a property to secure long‑term, fixed‑rate financing for building improvements.

Johnson described the program as a voluntary, property‑based financing mechanism that can cover energy efficiency, renewable energy, stormwater and resiliency measures, and certain building upgrades. She said participating localities adopt an ordinance enabling placement of voluntary special assessments on private property; the program administrator then underwrites projects and private lenders provide capital. The presenter said localities that adopt the enabling ordinance do not take on debt or liability and that participating projects remain privately negotiated.

Board members asked whether the program had seen defaults and how repayment and tax/assessment priority would interact with existing mortgages. Johnson said defaults were rare in the program’s experience and that the loans are typically serviced by private lenders that specialize in the product; she said projects are underwritten and that the lien is recorded against the property. Several board members, including the county attorney, requested more legal review. One supervisor asked the county attorney to vet the documents for liability and precedent.

No ordinance was adopted at the meeting. Staff and the county attorney were asked to review the draft ordinance and program documents and report back; the board signaled interest in returning for a potential public hearing if staff and counsel find the documents acceptable.