HB-5663 Summary

• Authorizes local units of government to establish property assessed clean energy (PACE) programs and create districts to finance renewable energy systems and energy efficiency improvements on private property.

• Allows local governments to enter into contracts with property owners to finance improvements through voluntary property assessments that are repaid via property tax bills or special assessment billing.

• Permits local governments to issue bonds and notes to finance PACE programs, with repayment secured by assessment payments, reserves, municipal bond insurance, or other lawfully available funds rather than general obligations.

• Requires proposed PACE programs to include a public hearing, detailed report with contract forms, eligibility requirements, interest rate methods, and capital raising plans before adoption by governing body resolution.

• Establishes that PACE assessments constitute liens on property with the same priority as property tax liens, with collections handled through existing property tax or special assessment processes.