Local Governments

Property Assessed Clean Energy, or PACE, is a long-term financing tool facilitated through local governments, allowing commercial property owners in Michigan to undertake energy efficiency, water efficiency, and renewable energy upgrades. Property owners receive 100% upfront funding for these upgrades on their facilities. Local governments facilitate PACE financing by allowing commercial property owners to repay private lenders via a voluntary special assessment. To take advantage of PACE financing, the property owner signs an agreement with a private lender and the local government, and the loan repayment is repaid directly from the property owner to the lender. Using such a tool, local governments can help reduce property owners’ operating expenses, drive economic development and increase property values.

Lean & Green Michigan allows local governments to create a PACE district at no cost, with no need for new government staff.  To create a PACE district with Lean & Green Michigan, the governing body engages in a three step process:

1. Vote on a resolution of intent which releases a draft program report to the public.
2. Schedule and hold a public hearing.
3. Vote on a resolution to establish which officially adopts the program.

Lean & Green Michigan represents the best kind of “shared services” by establishing templates for all documents as well as processes for PACE loans that adhere strictly to the state statute.