15.2-958.3 - Financing clean energy programs.
§ 15.2-958.3. Financing clean energy programs.
A. Any locality may, by ordinance, authorize contracts to provide loans forthe initial acquisition and installation of clean energy improvements withfree and willing property owners of both existing properties and newconstruction. Such an ordinance shall include but not be limited to thefollowing:
1. The kinds of distributed generation renewable energy sources or energyefficiency improvements for which loans may be offered;
2. The proposed arrangement for such loan program, including (i) a statementconcerning the source of funding that will be used to pay for work performedpursuant to the contracts; (ii) the interest rate and time period duringwhich contracting property owners would repay the loan; and (iii) the methodof apportioning all or any portion of the costs incidental to financing,administration, and collection of the arrangement among the consentingproperty owners and the locality;
3. A minimum and maximum aggregate dollar amount which may be financed;
4. A method for setting requests from property owners for financing inpriority order in the event that requests appear likely to exceed theauthorization amount of the loan program. Priority shall be given to thoserequests from property owners who meet established income or assessedproperty value eligibility requirements;
5. Identification of a local official authorized to enter into contracts onbehalf of the locality; and
6. A draft contract specifying the terms and conditions proposed by thelocality.
B. The locality may combine the loan payments required by the contracts withbillings for water or sewer charges, real property tax assessments, or otherbillings; in such cases, the locality may establish the order in which loanpayments will be applied to the different charges. The locality may notcombine its billings for loan payments required by a contract authorizedpursuant to this section with billings of another locality or politicalsubdivision, including an authority operating pursuant to Chapter 51 (§15.2-5100 et seq.), unless such locality or political subdivision has givenits consent by duly adopted resolution or ordinance.
C. The locality shall offer private lending institutions the opportunity toparticipate in local loan programs established pursuant to this section.
D. In order to secure the loan authorized pursuant to this section, thelocality shall be authorized to place a lien equal in value to the loanagainst any property where such clean energy systems are being installed. Thelocality may bundle or package said loans for transfer to private lenders insuch a manner that would allow the liens to remain in full force to securethe loans.
E. Prior to the enactment of an ordinance pursuant to this section, a publichearing shall be held at which interested persons may object to or inquireabout the proposed loan program or any of its particulars. The public hearingshall be advertised once a week for two successive weeks in a newspaper ofgeneral circulation in the locality.
(2009, c. 773; 2010, c. 141.)