Bill > SB448

This bill amends the Property Assessed Capital Expenditure (PACE) Act to establish a comprehensive framework for financing energy efficiency, alternative energy, building resiliency, and water conservation improvements for eligible properties in Arkansas. The bill expands the existing law by broadening the definition of qualifying improvements, establishing detailed guidelines for creating and administering PACE programs, and providing clear mechanisms for financing, assessment, and collection. Key provisions include creating a process for property owners to voluntarily finance improvements through special assessments, requiring mortgage lender consent for PACE projects, establishing program administrator responsibilities, and setting specific underwriting standards such as maintaining a minimum debt service coverage ratio of 1.20:1. The bill allows governmental entities to create PACE program districts that can help property owners finance qualifying improvements, with special assessment liens that run with the land and are collected similarly to property taxes. The financing can cover a wide range of improvement costs, including materials, labor, permits, fees, and other related expenses, while explicitly stating that these are not general obligations of the government and cannot be funded by public tax revenue. The goal is to create economic opportunities, stimulate local economies, improve property values, and promote energy efficiency and conservation.

Business and Industry, Government Affairs

https://arkleg.state.ar.us/Bills/Detail?id=sb448&ddBienniumSession=2025%2F2025R