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Palmetto Bay votes to enter green corridor initiative

Palmetto Bay took another step toward a green future when its council unanimously voted to join sister cities Cutler Bay, South Miami and Pinecrest in forming a green corridor with an international consortium of five private businesses.

The cities and companies would help qualifying property owners receive low-interest financing to install energy-saving equipment such as solar panels, more efficient air conditioners, hurricane-resistant shutters or windows or other improvements.

“We have an opportunity to provide alternative energy that’s non-nuke threatening and lessen and decrease power bills,” said Palmetto Bay Mayor Shelley Stanczyk after the Monday council vote.

The South Miami-Dade village has held four public hearings and a town-hall meeting to discuss the green corridor initiative, which is a voluntary program that will pose no cost to Palmetto Bay or residents who opt not to make the revisions to their homes. Those who can’t qualify will also not face costs.

To opt in, a resident’s energy savings must be equal or greater than the cost of the upgrades, up to a 20-year period. The residents must also have at least 25-percent equity in their homes, which could initially limit the number of participants as property values remain low.

By law, residential properties can spend only 10 percent of their home’s market value on energy upgrades through the Property Assessed Clean Energy (PACE) program. The average home value in the proposed green corridor district is about $238,000 so the average homeowner would have $23,800 available for upgrades.

Those who do volunteer for the upgrades and who qualify for the financing arrangement would repay the money each year as a surcharge on their local tax bill. The loans would carry an interest rate of around 6 percent.

Participating in the PACE program would not impact a homeowner’s ability to seek additional loans to make other home improvements beyond energy-related fixes, Stanczyk said.

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