Property Assessed Clean Energy (PACE) Loss Reserve Program
Background and History
About PACE Financing
Property Assessed Clean Energy (PACE) is a method of financing energy efficiency, water efficiency, or renewable energy retrofits or electric vehicle charging stations for residential and commercial properties. CAEATFA itself does not administer PACE financing. However, PACE financing is available in specific jurisdictions, or PACE districts, in which the local governments have authorized special taxes or contractual assessments for these improvements. Property owners in a PACE district can use PACE financing to make the above improvements to their homes or businesses with no down payment and repay as an assessment through their local property tax bill. PACE assessments are associated with the property, not the property owner, and therefore may transfer to the new owner upon the sale of the property. Because PACE assessments are collected through property taxes, they have priority over other property-based debts in a foreclosure
Creation of the PACE Loss Reserve Program
In September of 2013, Governor Jerry Brown signed Senate Bill 96 into law, authorizing CAEATFA to establish a PACE Loss Reserve Program to support residential PACE financing programs and to protect first mortgage lenders from losses attributable to PACE liens.
Various PACE administrators have enrolled in the PACE Loss Reserve Program and offer residential PACE financing in many areas of California.
For more information on CAEATFA’s PACE Loss Reserve Program call (916) 651-8157.