| Implementing Sector: | Local |
| Category: | Financial Incentive |
| State: | California |
| Incentive Type: | PACE Financing |
| Web Site: | Program Details |
| Counties: | Los Angeles, Orange, Ventura, San Bernardino, Riverside, San Diego, Imperial, Santa Barbara, Tulare, Kings, Kern, Fresno, Monterey, Mono, Madera, Merced, San Mateo, Santa Clara, San Francisco, Sacramento, Alameda, Napa, Contra Costa, Solano, Sonoma, Santa Cruz, San Joaquin, Stanislaus, Humboldt, Yolo, El Dorado, Riverside |
| Eligible Renewable/Other Technologies: | Solar Water Heat, Solar Photovoltaics, Wind (All), Geothermal Heat Pumps, Wind (Small) |
| Eligible Efficiency Technologies: | Lighting, Furnaces, Boilers, Heat pumps, Air conditioners, Programmable Thermostats, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Roofs, Custom/Others pending approval, Other EE, LED Lighting |
| Applicable Sectors: | Residential |
| Terms: | Eligible products can be financed for up to 25 years, depending on the useful life of the eligible product. Minimum financing: $5,000. Financing may not exceed 15% of the market value of the property up to $700,000, and 10% of the remaining value above $700,000 minus any PACE assessment. The total of any annual property taxes and assessments shall not exceed 5% of the property's fair market value at the time financing is approved. |
Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA’s concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing and a comprehensive list of all PACE programs across the country.
Western Riverside Council of Governments (WRCOG) is offering homeowners in WRCOG participating jurisdictions an opportunity to finance energy and water efficiency projects in their homes. The Home Energy Renovation Opportunity (HERO) Program is a Property Assessed Clean Energy (PACE) financing program. PACE programs allow homeowners to finance energy improvements, and to repay the financing through special assessments on their property taxes. In most cases the property tax assessment will stay with the property if it is sold, though the buyer’s lender may impose restrictions on the transfer.
A wide variety of energy and water efficiency products permanently affixed to the property can qualify for this program. Light bulbs, appliances, and other products not permanently affixed to the property are ineligible for this program. Only contractors registered with the program or a property owner who has signed a Self-Install Agreement may install the financed equipment.
See the web site above for complete details.
