Under Assembly Bill 811, California property owners in special assessment districts may enter into voluntary contractual assessments against their properties, to finance a range of authorized energy and water efficiency products and improvements. The primary goals of the bill are environmental – to lower green house gas levels and reduce energy and water consumption. However, this financing tool, called Property Assessed Clean Energy (PACE) financing, is also seen by cities and counties as a stimulus program that spurs local economic growth and creates new jobs.
CEDA and Figtree Financing PACE Partnership
In partnership with Figtree Financing, CEDA also offers PACE funding to property owners to amortize payments for eligible improvements for up to 20 years with long term, low interest rate loans and no money down, repaid as a line-item on the property owner’s annual property tax bill. On behalf of Figtree Financing’s clients, CEDA issues multi-jurisdictional bonds that generate private capital for PACE commercial property improvement projects.
The partnership between CEDA and Figtree Financing creates an easy and cost-free path for cities and counties to authorize, for property owners within their jurisdiction, a financing program for energy and water efficiency products. Local municipalities not currently within Figtree Financing’s service area can join with two simple no-cost resolutions, one authorizing them to join CEDA and the other authorizing intent to join the Figtree PACE program as well as allow CEDA to conduct assessment proceedings.
Property owners realize not only improved property values, but they also qualify for large tax incentives, accelerated depreciation and state cash rebates as they slash monthly energy costs and create a hedge against escalating energy prices. PACE imposes no encumbrance on personal or business credit, financing is based on assessed property values, and it is transferrable to subsequent property owners.
Most energy efficiency, renewable energy, and water conservation projects are eligible and include:
- Energy generation & management
- Heating & air conditioning
- Building envelope
- Water heating & efficiency
Specific eligible PACE improvement projects include solar PV and solar hot water systems HVAC, fuel cells, cool roofs, boilers, chillers, elevator upgrades, energy management systems, electric vehicle charging stations, water conservation, xeriscaping and more.