§ 36-305. C-PACE assessment, C-PACE loan and C-PACE lien.

(a)

Each C-PACE loan shall be secured by a C-PACE lien, and the C-PACE lien shall be evidenced by the recordation of a C-PACE certificate in the clerk's office. Program manager, on behalf of the city, is hereby authorized to execute the C-PACE certificate prior to recordation. Upon complete execution of the C-PACE documents and funding of the C-PACE loan, capital provider shall record the C-PACE certificate in the clerk's office.

(b)

The C-PACE lien shall have equal priority with the city real estate tax lien, and the C-PACE lien shall have priority over any previously recorded lien only if, in connection with the C-PACE loan closing, (i) a lender consent is recorded in the clerk's office, and (ii) borrower has executed the C-PACE certificate (containing a borrower certification).

(c)

In connection with the C-PACE loan closing, capital provider shall deliver a copy of the recorded C-PACE certificate to the city, evidencing the levy of the C-PACE assessment on the property benefitting from the eligible improvements. The C-PACE loan will be repaid by borrower through C-PACE payments over a period of years, in such amounts and at such times as set forth in the amortization schedule and the C-PACE documents. Capital provider shall be responsible for servicing the C-PACE loan (including billing and collection of C-PACE payments), subject to and in accordance with the provisions of the C-PACE documents.

(d)

The C-PACE lien shall run with the land. The portion of the C-PACE loan that has not yet become due shall not be eliminated by foreclosure of a real estate tax lien. Delinquent C-PACE payments shall be subject to all fees and collection methods permitted under the laws of Virginia for the collection of delinquent real estate taxes.

(e)

Only the current C-PACE payment and any delinquent C-PACE payments shall constitute a first lien on the property (having equal priority with the city real estate taxes). Delinquent C-PACE payments shall (i) accrue penalties and interest (including default interest) in accordance with the C-PACE agreement, and (ii) be enforced in accordance with the C-PACE documents, any applicable city ordinances, including chapter 36 of City Code, and Title 58.1, Chapters 32 and 39 of State Code, which enforcement action may include conducting a tax foreclosure sale of the property by public auction.

(f)

C-PACE payments and delinquent C-PACE payments shall be levied and enforced by the city in the same manner as delinquent real estate taxes are levied and enforced. The city shall be entitled to (i) recover its costs and expenses, including reasonable attorneys' fees and costs, in the same manner as in a suit to collect delinquent real estate taxes, (ii) charge interest and penalties for delinquent C-PACE payments in the same manner as delinquent real estate taxes, and (iii) utilize any administrative remedies provided by Virginia law. All collection and enforcement costs, expenses, interest and penalties incurred by capital provider and the city shall (a) be added to the delinquent C-PACE Payments being collected, (b) become part of the aggregate amount sued for and collected, (c) be added to the C-PACE loan amount, and (d) be secured by the C-PACE lien. The costs and expenses recovered by the city shall be in addition to any costs, expenses, interest, or other amounts due and owing to capital provider. Pursuant to section 58.1-3965.1 of the State Code, for purposes of enforcing a C-PACE lien, a property that has a delinquent C-PACE payment shall be enforceable after June 30 following the first anniversary of either the real estate tax or the C-PACE payment having become due.

(g)

The owner of a property subject to a C-PACE lien shall assume the obligation to repay all remaining, unpaid C-PACE payments due on the C-PACE loan (in accordance with the amortization schedule), whether the transfer of ownership was voluntary or involuntary. Only the current C-PACE payment and any delinquent C-PACE payments, together with any costs of collection, shall be payable at the settlement of a C-PACE property sale, unless otherwise agreed by the parties.

(h)

C-PACE loans may be transferred, assigned or sold by a capital provider to another capital provider at any time during the C-PACE loan term without consent from borrower, the city or any other party, provided that capital provider shall (i) record a C-PACE assignment in the clerk's office, and (ii) deliver a copy of the recorded C-PACE assignment to borrower, the city and program administrator. Recordation of the C-PACE assignment shall constitute an assumption by the new capital provider of the C-PACE rights and obligations contained in the C-PACE documents.

(i)

After the recordation of the C-PACE certificate, capital provider may amend the C-PACE loan and C-PACE lien from time to time without consent from borrower, the city or any other party, as permitted in the C-PACE documents; provided however, in each instance, capital provider shall record a C-PACE amendment in the clerk's office and deliver a copy of the recorded C-PACE amendment to borrower, the city and program administrator.

( Ord. No. O-19-047 , § 1, 12-10-19)

( Ord. No. O-19-047 , § 1, 12-10-19)