Levy of assessment; recordation; priority; amendment; enforcement and collection costs.

Richmond, Va., City Code § 11-195

in effect

Sec. 11-195. - Levy of assessment; recordation; priority; amendment; enforcement and collection costs. (a) Levy of voluntary special assessment lien. Each C-PACE loan made under the C-PACE program shall be secured by a voluntary special assessment lien (i.e., a C-PACE lien) levied by the City against each property benefitting from the eligible improvements financed by such C-PACE loan. Each C-PACE lien shall be evidenced by a C-PACE lien certificate in the loan amount, but the lien certificate shall secure and ensure repayment of not only the principal of the C-PACE loan, but also any delinquent and accrued interest, late fees, penalties, program fees, and collection costs (including reasonable attorney's fees and costs not to exceed 20 percent of the amount of the unpaid delinquent payments,) payable in connection therewith. (b) Recordation of C-PACE lien certificate. Each C-PACE lien certificate shall have a copy of the assessment payment schedule attached thereto as an exhibit. The Program Manager is hereby authorized to, and shall promptly, execute the C-PACE lien certificate on behalf of the City and deliver it to the capital provider, without any further action by the City Council. Upon the full execution of the C-PACE documents and funding of the C-PACE loan, the capital provider shall cause the recordation of the C-PACE lien certificate in the land records. (c) Priority. The C-PACE lien shall have the same priority as a real property tax lien against real property, except that it shall have priority over any previously recorded mortgage or deed of trust lien on the property only if, prior to the recording of the C-PACE lien, the property owner has obtained a written lender consent, in a form and substance acceptable to the holder of such prior mortgage or deed of trust in its sole and exclusive discretion, executed by such lienholder and recorded with the C-PACE lien certificate in the land records; and prior to the recording of the C-PACE lien certificate, the property owner has delivered an executed property owner Certification to the City in connection with the C-PACE loan closing. Only the current C-PACE Payment and any delinquent payments shall constitute a first lien on the property. The C-PACE lien shall run with the land and that portion of the C-PACE lien under the C-PACE program agreement that has not yet become due shall not be eliminated by foreclosure of a real property tax lien. (d) Amendment of lien. Upon written request by a capital provider in accordance with the program guidelines, the Program Manager, without any further action by the City Council, shall join with the capital provider and the property owner in executing a C-PACE Amendment of the C-PACE loan and the C-PACE lien after the closing of a C-PACE loan. The C-PACE Amendment shall be recorded in the land records. (e) Enforcement and collection costs. In the event of property owner's default under the terms of the C-PACE documents, the City, acting by and through the Director of Finance, may enforce the C-PACE lien for the amount of the delinquent payments, late fees, penalties, interest, reasonable attorneys' fees and costs not to exceed 20 percent of the amount of the unpaid delinquent payments, and any other costs or expenses of collection, in the same manner that a delinquent tax may be pursued by action at law under the provisions of Code of Virginia, §§ 58.1-3953—58.1-3856, or in like manner as the enforcement of a property tax lien against real property under the provisions of Code of Virginia, Title 58.1, Ch. 39, Art. IV (Code of Virginia, § 58.1-3965 et seq.). If the City elects not to enforce the C-PACE lien, which election shall be made within 30 days of receipt by the City from the capital provider of notice of the property owner's default under the terms of the C-PACE documents, then the City shall, within 15 days of the City's determination not to enforce the C-PACE lien, assign the right to enforce the C-PACE lien in accordance with the terms of the C-PACE documents to the capital provider by executing a C-PACE Assignment (locality) and delivering such instrument to the capital provider for recordation in the land records. The preceding sentence notwithstanding, a C-PACE Assignment (locality) may be executed and recorded at any time during the term of the C-PACE loan, including at the C-PACE loans closing, regardless of whether the C-PACE loan is then in default. Upon such assignment and recordation, the capital provider is authorized to, and shall, enforce the C-PACE lien according to the terms of the C-PACE documents, in the same manner that a property tax lien against real estate property may be enforced under Title 58.1, Chapter 39 of the Code of Virginia (1950), as amended, including the institution of suit in the name of the City and its Director of Finance, and this right to enforce expressly includes authorization for the capital provider to engage legal counsel to advise the capital provider and conduct all aspects of such enforcement; provided, that prior to conducting any aspect of enforcement such legal counsel shall apply to the City Attorney for appointment as special counsel to the City pursuant to section 4.17 of the Charter of the City of Richmond (2020), as amended. Such legal counsel shall, upon appointment by the City Attorney, have the status of "Special Counsel to the City and its Director of Finance" and possess all the rights and powers of an attorney employed under Code of Virginia, §§ 58.1-3966 and 58.1-3969, as amended, with the express authority to exercise for the benefit of the capital provider every power granted to the City or its Director of Finance or its or their attorneys for the enforcement of a property tax lien under, or in connection with, any provision contained in Title 58.1, Chapter 39, Article 4 of the Code of Virginia (1950), as amended. All collection and enforcement costs and expenses (including legal fees and costs), interest, late fees, other types of fees, and penalties charged by the City or the capital provider, as applicable and consistent with the C-PACE Act and the Virginia Code, as amended, shall be added to the delinquent payments being collected, become part of the aggregate amount for sued and collected, be added to the C-PACE loan, and be secured by the C-PACE lien. Nothing herein shall prevent the capital provider to which the C-PACE lien has been assigned from enforcing the C-PACE lien to the fullest extent permitted by the C-PACE documents, the C-PACE Act, or general law. The property owner of a property being sold to pay delinquent payments, or other interested party, may redeem the property at any time prior to the property's sale, in accordance with Code of Virgnia, §§ 58.1-3974 and 58.1-3975 and any other right of redemption available to the property owner under Virginia law. (Code 2020, § 11-195.1; Ord. No. 2023-152, § 2, 9-11-2023)

Source: City of Richmond, Virginia, Code (2026 recodification) and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/va/richmond/codes/code_of_ordinances?nodeId=PTIICICO_CH11EN_ARTVIIICOPRASCLENFIPR_S11-195LEASREPRAMENCOCOFetched: 11/8/2026