On March 28, 2014, our own EBOM committee had a special event focused on the PACE program. The EBOM committee focuses primarily on commercial buildings, however, PACE is available to all property owners, including residential. Here is some more info on the program from the SDGBC Residential Committee.
What is the PACE program?
PACE (Property Assessed Clean Energy) gives homeowners the opportunity to lower their utility bills while at the same time helping our shared environment. PACE gives homeowners the opportunity to finance energy efficient improvements like solar, windows, HVAC, roofing and water saving products through an approved provider.
How does the financing work?
This is accomplished by financing up to 100% with the costs paid back over time as a voluntary property tax assessment through the property’s tax bill. The pay back terms are generally 5-20 year periods with the interest paid tax deductible. If the property is sold, the investment will stay with the property.
How do I qualify?
Qualifying is simple with only a few requirements from the program providers, such as:
- No late mortgage payments in last 12 months
- No late payments of property taxes last 12 months
- 10% equity in the property
- No bankruptcies filed in the last 2 years
What can I do?
The program helps California achieve three very important goals:
- Create energy efficiencies
- Renewable energies
- Water conservation.
The main obstacle for the program is lack of marketplace knowledge of product availability. It is important as professionals, either involved in the residential market or interested in helping the community, to pass this information along to as many people as possible. The benefits help everyone.
*The cities currently participating in the County of San Diego are Carlsbad, Oceanside, Vista, San Marcos, Solana Beach, and Lemon Grove.
To get more information and for a list of companies that provide PACE financing go to www.pacenow.org.
About the Author
Daniel Isham has been working in the mortgage industry since 1997. Atlas Crown Financial is a new company founded by Daniel Isham and Luke Schrotberger focused on using financing options to increase the use of energy efficiencies.
Atlas Crown Financial