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PACE Program Information
PACE - Property Assessed Clean Energy - Programs are also known as AB811 programs in California, after the authorizing California legislation.
The intent of a PACE program is to allow property owners (residential and commercial) to finance energy efficiency improvements and energy generation (such as solar or wind) with loans that are repaid via property tax assessments. Municipalities – cities or counties – set up a program to administer the operational details.
Each municipality can design its program as it wishes. California communities that have programs already in place include:
•
City of Berkeley
City of Berkeley•City of Palm Desert
City of Palm Desert•Sonoma County
Sonoma County•Placer County
Placer County•San Francisco
San Francisco•Los Angeles County
Los Angeles County•City of San Diego
City of San Diego•CaliforniaFIRST Statewide Program (14 counties)
CaliforniaFIRST Statewide Program (14 counties)Over 20 states have started a PACE program. Check out www.renewfund.com for an interactive map identifying where PACE programs exist.
Programs generally allow for financing of improvements such as:
•High efficiency heating/air conditioning units
High efficiency heating/air conditioning units•Energy efficient windows and doors
Energy efficient windows and doors•Insulation
Insulation •PV solar, wind, or biofuel generation
PV solar, wind, or biofuel generation•Cool roofs
Cool roofs•Solar hot water generation
Solar hot water generation Update 7/16/10
Freddie Mac and Fannie Mae (the federal mortgage agencies) announced that communities that offered PACE programs are now required to have more stringent lending rules for mortgages sold to either Freddy Mac or Fannie Mae. The tighter lending rules applies to all mortgages in the community offering PACE program, regardless if the mortgage sold has a PACE loan or not.
California Attorney General Jerry Brown filed suit against the two agencies, asking the court to require the agencies to recognize the PACE assessments. The agencies claim that their liens are usurped by a PACE assessment and in turn reducing their collateral value of the mortgage. With so many mortgages defaulting in recent years, Freddie Mac and Fannie Mae view their financial position is weakened should a default occur in the future on the mortgage with a PACE assessment.
Sonoma County is continuing with their program, while Placer County has placed their program on hold. Other counties that are in the process of implementation, are taking caution steps forward, but mostly likely will not introduce their plans until resolution is reached.
California Update 10/15/10
California Energy Commission's attempt to work around the pending stimulus funds that had been originally earmarked for PACE programs is stalled with by a lawsuit filed by the Western Riverside Council of Governments.
Details at this artilce in the Press Enterprise
