Public Resources Code §§26052, 26055, 26060, 26061, 26062 and 26063
Amended by A.B. 2597
Effective date: January 1, 2015
The Property Assessed Clean Energy (PACE) program allows local jurisdictions to finance the installation of renewable energy sources, and energy and water efficiency improvements on residential properties. When evaluating an applicant’s eligibility for PACE financing, the following limitations are to be considered:
- financing is to be less than 15% (increased from 10%) of up to the first $700,000 of the value of the property, and less than 10% of the remaining value above $700,000; and
- the total mortgage-related debt and PACE financing may not exceed the value of the property.
Editor’s note — With PACE financing, property owners enter into assessment agreements with the local agency to repay the financing through an assessment on their property tax bill. Increasing the financing limit encourages renewable energy source installation and makes PACE financing available to more homeowners. Additionally, these provisions address the Federal Housing Finance Agency’s concerns that homeowners were increasing the risk of default on their mortgages by over-encumbering properties with PACE financing.
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