2023-31 Ordinance Creating PACE Area and Establishing Illinois Finance Authority Program Administrator and Bond Issuer

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Credit Enhancement Bonds and notes issued by the Authority to fund PACE Projects shall never be general obligations of the Governmental Unit, the State, or the Authority but shall be secured by the payments under one or more assessment contracts on the respective, benefited properties located within the PACE Area and, if applicable, revenue sources or reserves established by the Authority (at the request of PACE Project Administrators) from proceeds of bonds or notes or other lawfully available funds. In addition, bonds or notes issued by the Authority may be secured by municipal bond insurance, letters of credit,or public or private guarantees or sureties as may be arranged from time to time by a PACE Project Administrator. Program Application Process For any record owner located in the PACE Area to obtain financing or refinancing, or interim financing, of a PACE Project,the IFA PACE Program requires a property valuation, an executed term sheet,an application that has been approved by the Authority,and a Compliance Certificate from the PACE Project Administrator. The PACE Act further requires an energy audit in certain circumstances. Energy Audit An evaluation of the existing water or energy use and a modeling of expected monetary savings are required for any proposed energy efficiency improvement, renewable energy improvement, or water use improvement, unless the water use improvement is undertaken to improve water quality. Record owners may work with PACE Project Administrators to satisfy this statutory requirement. Smart Energy Design Assistance Center,an applied research program at the University of Illinois at Urbana-Champaign ("SEDAC"), provides technical assistance to help building managers, owners, and administrators make their facilities more energy efficient. SEDAC's mission is to decrease the energy footprint of the state of Illinois and beyond. Record owners and PACE Project Administrators may select SEDAC to complete the evaluation and modeling of their respective PACE Project. More information is posted on the following website: www.srnarteiier(.,vJ 11 iiiois.edu. Property Valuation Each record owner must demonstrate the value of the applicable property for any prospective financing or refinancing, or interim financing, of a PACE Project. Such value may be determined by the greater of the following: • the value of the property as determined by the office of the county assessor;or • the value of the property as estimated in an appraisal report prepared or co-signed by a general real estate appraiser certified by the State. Values determined by township assessors, multi-township assessors, county supervisors of assessments, boards of review, and boards of appeals are not specifically enumerated in the PACE Act as acceptable for any prospective financing or refinancing, or interim financing, of a 10