PACE: An Innovative Property Financing Alternative
Need to upgrade your home or business? Looking for an alternative to traditional property improvement financing? Here you can learn about Property Assessed Clean Energy (PACE) Financing. PACE is a simple and effective way to finance energy efficiency, renewable energy, water conservation, and seismic upgrades to buildings.
Property owners across the US are using PACE because it saves them money and makes their buildings more valuable. PACE financing enables individuals and businesses to defer the upfront costs of eligible improvements, which is a common barrier to energy efficiency, renewable energy, and seismic measures. PACE pays for 100% of a project’s costs and is repaid over a long period of time (up to 20 years on average) with an assessment added to the property’s tax bill. When the owner sells the property, the loan may be paid off during the sale or stay with the property and be paid off by the new owner, who also benefits from the upgrades that were completed. Certain mortgage providers will, however, require the assessment be paid at the time the property is refinanced or sold.
Eligible Project Types:
Most products that can be permanently affixed to a property and reduce on-site electric, gas or water consumption (or increase seismic strength) will be considered eligible. Examples include energy efficient HVAC system replacement, elevator modernization, roof/window replacement, roof/wall insulation, LED lighting and control installation, solar panel installation, smart irrigation system improvements, low-flow water fixture installation, seismic reinforcement, infrastructure upgrades for electric vehicle charging, and much more. Project eligibility varies depending on the PACE provider.
How PACE is administered:
The program is administered through local contractors that are vetted, trained and monitored by the PACE provider. Even your preferred contractor can be certified to provide PACE financing. PACE providers generally offer the same upgrades, but may differ in terms of program requirements, processes, marketing, fee terms, and financing criteria. This comparative matrix offers a snapshot of the terms and conditions of PACE providers operating in West Hollywood.
Program providers must be authorized locally by municipalities or joint-powers authority agencies. The following PACE providers or provider networks are authorized to operate within West Hollywood city limits:
Contact one or several of the PACE providers above to determine what terms and conditions best meet your needs.
Items of Note:
West Hollywood strongly encourages interested property owners to conduct thorough due diligence when comparing and selecting a PACE provider for desired property upgrades. For general information about PACE, please visit Pace Nation, a national non-profit advocate for PACE financing.