What is Property Assessed Clean Energy financing?
Property assessed clean energy, or PACE, financing allows property owners to fund energy efficiency, water efficiency and renewable energy projects with little or no upfront costs. With PACE, residential and commercial property owners living within a participating district can finance up to 100% of their project and pay it back over time as a voluntary property tax assessment through their existing property tax bill.
Why use PACE financing?
First, by offering up to 100% financing on qualifying improvements, PACE can eliminate the need to pay out of pocket for your project.
Second, depending upon the type of improvements installed, repayment may be amortized for a period of up to 20 years, keeping your monthly payments low enough that your utility savings may exceed your payment, creating a net positive cash flow.
Third, the interest may be tax deductible.
Finally, because PACE ties the loan to the property and not an individual, the loan may transfer upon sale or refinancing of the property. In other words, you may not need to be concerned about recouping the cost of your improvements if you decide to sell the property before the loan is repaid.
Who can take advantage of PACE?
PACE financing is only available to property owners in certain cities or counties that have adopted a program. In general, PACE programs offer competitive financing terms to property owners with at least some equity in their home or business and have not been delinquent on their property tax or mortgage payments. For further details concerning property eligibility (residential, commercial and municipal) and financing terms, contact the individual PACE provider in your area.
Which property types can access PACE?
PACE financing can be used for residential, commercial or municipal properties, depending on what has been authorized by the local jurisdiction. Publicly owned or non-profit property owners should contact the local commercial PACE provider in your area.
List of PACE Programs: http://www.pacenow.org/resources/all-programs/
What does the name "HERO" stand for?
HERO is an acronym that stands for: Home Energy Renovation Opportunity
What is the HERO Financing Program?
HERO is the #1 energy efficiency financing program in the United States. HERO partners with local governments to make energy efficient, water efficient, and renewable energy products more affordable for homeowners.
How is HERO Financing different than other forms of financing?
HERO provides financing for eligible energy efficient, water efficient, and renewable energy products. HERO finances 100% of the cost to purchase and install eligible products. HERO offers low, fixed interest rates with amortization periods of 5, 10, 15, or 20 years and, unlike other financing options, there are no credit score requirements and repayments are made through your property taxes, with the interest being tax deductible.
How is HERO Financing paid through my property taxes?
The repayment of HERO Financing is included in your property tax bill, which is delivered and collected by the County. You will see a line item titled HERO Financing on your property tax bill. If you make property tax payments through an impound escrow account, your lender will adjust your monthly payment to include the amount due for HERO Financing.
Who can apply for HERO Financing?
HERO Financing is available to commercial and residential property owners in many cities and counties across the State of California. To find out if HERO is available in your community please enter your zip code at www.heroprogram.com or call 1-855-HERO-411 (1-855-437-6411).
Are commercial properties eligible for HERO Financing?
Yes. Commercial properties are eligible for HERO Financing. Please go to www.herocommercial.com for more information about commercial financing.
Can rebates be used with HERO Financing?
Yes, homeowners can still receive any rebate that is offered by their local utility, city, county, etc. HERO Financing does not affect the rebate process in any way.
How do I get HERO Financing?
HERO Financing is a simple 4 step process:
1. Apply - Find out how much your home is approved for.
2. Select - Choose the eligible products and select the contractor for your job.
3. Sign - Sign your financing documents.
4. Complete – Finish the installation. For more information on the HERO Financing process please visit www.heroprogram.com.