Sandpoint adopts commercial PACE program, adds $500 application fee

Sandpoint— The Sandpoint City Council on Feb. 4 adopted a resolution formally establishing the citycommercial property assessed clean energy (CPACE) program and added a $500 application fee to the fee schedule.

Jason Welker, planning and community development director, said the program allows commercial property owners to finance green and energy-efficiency investments through assessments that are collected through property tax mechanisms. Welker emphasized the municipalityrole is limited under state law to accepting applications and conducting administrative completeness checks; lenders and program administrators handle underwriting, loan servicing and borrower protections.

Councilors questioned possible consumer and market risks after one councilor cited a Consumer Financial Protection Bureau (CFPB) report on residential PACE programs that found higher tax payments, elevated interest rates and some evidence of problematic sales practices. Welker said the CFPB findings were for residential PACE and that the city has no direct authority to set lender fees; Idaho statute sets the $500 application fee and a 1% administration fee.

With no public testimony offered during the hearing, Council member Deb Rule moved to adopt the resolution; the motion carried after roll-call vote and the mayor declared adoption. The resolution and guidebook will be published and the city will begin accepting CPACE applications under the new fee schedule.

What happens next: The city will implement the program per state statute, accept applications and rely on the designated program administrator and participating lenders for underwriting, insurance and borrower protections. Councilors asked staff to monitor outcomes and report back if consumer-protection issues arise.