TITLE
Adopt resolution authorizing the City to join the Ygrene Program; consenting to inclusion of residential properties within the City’s jurisdiction in the Golden State Finance Authority Clean Energy Program to finance renewable energy generation, energy and water efficiency improvements, electric vehicle charging infrastructure, and other authorized improvements; and
DISCUSSION
Property Assessed Clean Energy (PACE) is a way to finance energy efficiency, renewable energy, and water conservation upgrades to buildings. PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, among other things.
The PACE financing mechanism addresses some of the barriers that may prevent property owners from implementing a greater number of energy efficiency, water efficiency, and renewable energy projects. First, it eliminates the need for property owners to pay out-of-pocket, up-front costs for improvements. Second, it establishes a lien obligation that is attached to the property and not the individual borrower. Property owner participation in PACE programs is completely voluntary. Participating property owners repay the cost of the improvements through an assessment levied against their property, payable in semi-annual installments on property tax bills, with a lien filed against the property as security. In turn, government jurisdictions such as cities, counties, or joint powers authorities issue municipal bonds backed by the assessments. This financing method places the repayment of the loan in first position ahead of repayment of a mortgage, as it is part of the property tax bills. Interest rates and APR tend to be significantly higher than for more traditional forms of home improvement loans. Sample interest rates for Residential PACE providers are provided in Attachment A. For example, one of the companies charges up to 12.3% APR for a five year loan when fees are financed as part of a 8.2 % interest rate. St...
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