Application Components

All application components are reviewed as they are submitted and will be reviewed by the City of Milwaukee's Environmental Collaboration Office (ECO) within 5 days of submission

Interest Form

The Interest Form allows property owners to express their interest in pursuing a project that utilizes PACE financing, help connect them to Program Lenders, and makes sure the property owner understands how the program works. The form will also help will help the property owner to develop a project that fits their needs and ensure that the project falls within the parameters of the program.

ECO reviews the Interest Form to determine if the initial eligibility requirements are met and will advise the property owner on the next steps for continuing the development of an eligible project. ECO will submit the interest form to the Participating Lenders for whom the project meets minimum thresholds so that they may reach out to the property owner to discuss the project in more detail.

Forms

Interest Form

 

Project Application

The Project Application is the formal beginning of the process for eligible projects to receive PACE financing. It provides basic project information and includes a checklist of all of the required forms for an application to be considered complete. The form must be signed for the application process to begin and it is suggested that this be the first form that is turned in.

Forms

Project Application

 

Signed Contractor Bid

Each contractor that is performing work on the PACE project must provide a signed bid of the work that they will complete. ECO reviews the bids to make sure that all of work is eligible to be covered by PACE financing.

 

Property Appraisal (if needed)

A Property Appraisal is only needed if a building wishes to use a property value higher than the City's property assessment. The Property Appraisal must be completed 1 year or less prior to the beginning of application for PACE financing. The City will accept At Completion values from the Property Appraisal, but will not permit any removeable items in the Property Appraisal to count toward the property value.

To see a building's assessed value, please reference the City of Milwaukee's Property Database, My Milwaukee Home.

 

Title Report

ECO will run a Title Report on the property as soon as the Project Application is submitted and reviewed, as that is the official documentation of the property's tax key. ECO will provide the Title Report to the project as requested. The Title Report includes a letter report and any other documentation provided by the title report company.

 

Energy Savings Analysis

This document should show projected energy, water, maintenance, and operational savings from the proposed improvements.

 

Detailed Cost Breakout

Amortization Schedule

Mortgage Lender Consent

Lender consent is required from any mortgage lender or other lien holder listed on the property's title report. If there will be additional lenders listed on the title report as part of the project or shortly after the project begins, it is best practice to make them aware of the PACE agreement and provide consent forms from them as well. Lender consent must be gained prior to conditional approval of the project from the City and the closing of the PACE loan.

Property owners should send a Notice of Proposed Contractual PACE Special Charge to their existing lender(s) to

  • Provide notice of the proposed participation of the property in the PACE program
  • Request confirmation from the lender that the levy of the Contractual PACE Special Charge pursuant to the Assessment Agreement will not trigger an event of default or the exercise of any remedies under the loan documents
  • Provide notice that the Contractual PACE Special Charge will be collected in installments on the property tax bill in the same manner as and subject to the same penalties, remedies, and lien priorities as real property taxes
  • Declare the property owner's agreement to pay on a timely basis both the existing obligations secured by the property (including the loan) and the proposed contractual PACE special charge
  • Obtain the consent of the lender for the property owner to particpate in the program, including but not limited to the placement of a Contractual PACE Special Charge on the tax bill for the property

Tips for Gaining Lender Consent

In seeking lender consent, it may be helpful to inform primary mortgage holders of the following:

  • In the event of loan default and tax foreclosure, the total value of remaining principal on the PACE loan is not accelerated and collected - the City will only collect delinquent payments on the loan, including delinquent payments that accrue during the tax foreclosure process.
  • The PACE-financed project may increase the property value and hence property equity.

Forms

Notice of Proposed Contractual PACE Special Charge

Lender Consent to Contractual PACE Special Charge

 

Residents' Preference Program (RPP) Plan

Under Common Council File #131139, the PACE financing program participates in the City's Residents' Preference Program (RPP). Through this program, the City of Milwaukee endeavors to help under- and unemployed residents of the City gain access to employment opportunities. The RPP certification is designed to promote the use of city residents as part of contractor and developer workforces. Projects typically include a 40% RPP requirement.

In order to help PACE projects plan for RPP labor, the RPP plan form below must be submitted as part of the PACE application.

Forms

RPP Plan

 

Better Buildings Challenge Pledge

The Better Buildings Challenge is a national initiative that seeks to reduce energy use in buildings 20% over 10 years.

The program pledge asks buildings to

  • Select a property to participate in the Better Buildings Challenge - Milwaukee program
  • Track and share energy consumption data with the City of Milwaukee and the U.S. Department of Energy Better Buildings Challenge through ENERGY STAR Portfolio Manager
  • Identify an energy reduction goal and a building energy-saving project (current or planned)
  • Develop a plan and schedule for energy efficiency based building upgrades

Due to the nature of PACE projects and participation in the BBC program, the first three items are automatically met. The City of Milwaukee asks PACE program participants to further support this initiative by pursuing the last item listed above and encourages them to publicly advocate for city-wide energy efficiency awareness. The pledge may be submitted electronically or via paper, either mailed or scanned and emailed.

Forms

Online Better Buildings Challenge Pledge

Better Buildings Challenge Pledge

 

Energy Data Shared via ENERGY STAR Portfolio Manager

All properties utilizing PACE financing must share their ENERGY STAR Portfolio Manager account for the PACE property with the program and the U.S. Department of Energy. Sharing this information allows the building to be benchmarked against similar buildings across the country and gives the program visibility into the building's performance in order to provide recognition for reduced energy use and other accomplishments. This account must be updated at least once per year and the program will communicate any deadlines to be recognized for successes.

As part of the Better Buildings Challenge, there are limited resources to help buildings set up a Portfolio Manager account (if needed) and populate the account with data.

Forms

ENERGY STAR Portfolio Manager Account Set Up

 

Utility Release (if needed)

Providing a utility release allows the Better Buildings Challenge program and any outside parties that will be helping upkeep the ENERGY STAR Portfolio Manager account gain access to the utility accounts associated with the property in order to help with data entry. If data entry will be handled in-house, this document is not necessary for conditional approval of the PACE project.

Forms

Utility Release

 

Performance Guarantee (if needed)

State law requires that PACE projects that cost $250,000 or more obtain a written guarantee from the contractor or project engineer that the project will achieve a savings-to-investment ratio (SIR) of greater than 1.0 and that the contractor or engineer will annually pay the owner any shortfall in savings below this level. The guarantee should include annual estimates of savings so that its accuracy can be evaluated annually. The written guarantee of savings must cover a minimum period of three years following the installation of PACE-financed equipment.

Savings include

  • Energy cost savings
  • Water cost savings
  • Maintenance cost savings
  • Other documentable operational savings

Investment includes

  • Project cost quoted by the contractor (as shown in Signed Contractor Bid)

Investment does not include

  • Capitalized interest
  • Municipal administrative fees

 

 

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