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After extended debate, Kent County adopts intent to create countywide PACE program
Summary
The board approved a resolution of intent to create a countywide Property Assessed Clean Energy (PACE) program after staff and a PACE administrator described lender-consent rules, typical loan terms, eligible measures and the next steps for a public hearing; vote was 18–1.
The Kent County Board of Commissioners adopted a resolution of intent to establish a countywide Property Assessed Clean Energy (PACE) program after an extended presentation and commissioner Q&A.
John Wiley, senior counsel with the PACE administrator, explained how PACE works and answered commissioners’ questions. He said every PACE project in Michigan requires senior-lender consent before closing, and lenders may limit loan amounts and terms: “every project in Michigan has lender consent” (John Wiley). Wiley said program guidelines typically cap PACE loan terms at 25 years for most projects and that interest rates are market-set and have tracked the 10-year Treasury; he noted current market examples around 7.5 percent.
Wiley, county staff and commissioners outlined eligible measures (energy-efficiency upgrades such as windows, HVAC, insulation and lighting; renewable energy including solar and geothermal; and environmental-hazard remediation). Staff emphasized that PACE is often used as an economic-development tool and has been used primarily for commercial, industrial, agricultural and some multifamily projects rather than single-family residential properties in the county’s experience.
Commissioners pressed on homeowner exposure, lien positions and market terms; Wiley confirmed that senior-lender consent is required and that multiple lien holders may need to consent on large projects. Staff described a multi-step adoption process: the board’s resolution of intent triggers publication of a draft program report, a public hearing for comment on program rules, and then a final adoption vote to establish the program.
After discussion, the board approved the resolution of intent by roll-call: 18 yeas, 1 nay. The county’s next steps are publishing the draft program report, scheduling a public hearing and returning for a final adoption vote after public input and program-rule drafting.
