Item 9.4 - Attachment 1

Diagram of the EUA three -way relationship, and the responsibilities of each party


Attachment 1     Page 1:  Diagram of the Three-Way Environmental Upgrade Agreement (EUA), and

                                 Page 2:  Responsibilities of each Party



































Item 9.4 - Attachment 1

Diagram of the EUA three -way relationship, and the responsibilities of each party


As defined under the EUA Legislation the 3 parties (building owner, financial institution and Council) each have the following responsibilities:


A: Financial Institution responsibilities are:

(i)         To confirm it has undertaken appropriate credit assessments of the building owner. 

(ii)        To advance funds to the building owner to finance the environmental upgrade works.

(iii)       To set out a repayment schedule for the term of the loan.


B: Building Owner responsibilities are:

(i)         To use the monies provided to carry out environmental upgrade works. Under the Agreement the building owner warrants that the works are to achieve environmental improvement. It is not the responsibility of Council to verify this.

(ii)         To make repayments to Council in accordance with the repayment schedule. The loan and all obligations related to loan repayments remain between the building owner and the financial Institution. Council is not liable to pay funds to the finance provider should the building owner fail to make repayments.

(iii)        To require lessees to make contributions, where permitted, equal to the energy costs the lessee is saving as a result of the upgrades. Detailed documentation must be provided as to how these costs are calculated.

(iv)        To provide Council with a report on the improvements completed and changes in the buildings environmental performance on an annual basis.

Note:  If building ownership changes hands the new owner agrees to be bound by the Environmental Upgrade Agreement and becomes liable to pay the environmental upgrade charges, unless the current owner repays the total amount outstanding.


C: Council responsibilities are:

(i)          To have passed a resolution confirming that EUA’s may be entered into within its LGA and to adopt the mandatory provisions of the Environmental Upgrade Agreement Template as approved by the Director General.

(ii)         To set and advertise a cost recovery schedule of fees and charges for all up front and ongoing administrative costs. See Attachment 4.

(iii)        To receive and process applications for EUA’s in accordance with the Council EUA Policy. See Attachment 2.

(iv)        Subject to internal approval to enter into an EUA with the other 2 parties.

(v)         To put a charge on the land equal to the value of the loan as security.

(vi)        To collect loan repayments using the Council’s standard rates collection systems. Upon receipt these monies Council must transfer them to the lender within 8 business days. A penalty interest charge will apply for late payments. Both the Rates and Finance Units have confirmed their ability to meet these requirements.

(vii)       Should the building owner cease to make repayments Council is not liable for the repayment of the loan to the finance provider. Council will however be required to exercise its ‘best endeavours’ to recover the debt through Council’s existing debt collection enforcement processes. Attachment 3 sets out the EUA Enforcement Procedure.

(viii)      Receive the annual reporting from the building owner and pass this directly to the Office of Environment and Heritage (OEH).

(ix)        Provide reporting to OEH as defined in the EUA Template.