At its March 7, 2011 meeting, the Ann Arbor city council voted to set up a $432,800 loan loss reserve fund to support the city’s planned Property Assessed Clean Energy (PACE) program. The money for the fund comes from an Energy Efficiency and Conservation Block Grant (EECBG) awarded to the city by the U.S. Department of Energy (DOE).
Through its PACE program, which is still under development by the city, Ann Arbor will help property owners finance energy improvements through voluntary special assessments. By establishing a loan loss pool, the city can reduce interest rates for participating property owners by covering a portion of delinquent or defaulted payments. [Some previous Chronicle coverage of PACE: "Special District Might Fund Energy Program"]
This brief was filed from the boardroom in the Washtenaw County administration building, where the council is meeting due to renovations in the city hall building. A more detailed report will follow: [link]