Ohio Code 5301.93 – Residential PACE lien priority
(A) As used in this section:
Terms Used In Ohio Code 5301.93
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means real and personal property. See Ohio Code 1.59
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(1) “PACE” means property assessed clean energy.
(2) “Qualifying residential real property” means a single family residential dwelling, or other residential dwelling of three or fewer units.
(3) “Residential PACE lien” means the encumbrance on the qualifying residential real property created by the special assessment for a residential PACE loan.
(4) “Residential PACE loan” means the extension of financing that is offered to pay for the installation of cost effective energy improvements on a homeowner’s qualifying residential real property and is repayable by the homeowner through a special assessment under section 717.25 or Chapter 1710 of the Revised Code.
(B) Notwithstanding any provision of law to the contrary, a residential PACE lien shall be all of the following:
(1) Subordinate to all liens on the qualifying residential real property recorded prior to the time the residential PACE lien is recorded;
(2) Subordinate to a first mortgage on the qualifying property recorded after the residential PACE lien is recorded;
(3) Subject to division (B)(2) of this section, superior to any other lien on the qualifying residential real property recorded after the residential PACE lien is recorded.
(C) Notwithstanding any other law to the contrary, in the event of a foreclosure sale of a qualifying residential real property, the holders of any mortgages or other liens, including delinquent special assessments secured by residential PACE liens, shall receive proceeds in accordance with the priorities established under division (B) of this section.
Last updated February 24, 2023 at 1:57 PM