California Law Creates Industry Framework for PACE Financing
Renovate America, Renew Financial welcome consumer protections in new law
SAN DIEGO/OAKLAND, Calif. — Renovate America and Renew Financial, two of the nation’s leading Property Assessed Clean Energy (PACE) financing providers, welcomed a new California law that will provide an industry-wide framework for PACE financing. The PACE program provides financing for home energy efficiency improvements, including high-efficiency HVAC, to save homeowners money on their utility bills, reduce greenhouse gas emissions, and create clean energy jobs.
Gov. Jerry Brown signed into law Assembly Bill 2693, which builds on the existing consumer protections provided by PACE financing. AB 2693, authored by Assembly member Matt Dababneh (D-Encino), codifies these protections for all PACE providers, including requiring a new disclosure modeled after the federal mortgage Know-Before-You-Owe disclosure form so that customers can easily understand all of the terms associated with PACE financing.
“PACE is an innovation that was designed to solve a marketplace failure, and Governor Brown and the California legislature are making that solution more robust for homeowners who choose to make their homes more energy and water efficient and capture the power of the sun,” said Ari Matusiak, Renovate America executive vice president of market development and external affairs.
“Governor Brown has long championed PACE, and because of his ongoing leadership it is now becoming available to homeowners across the country,” Matusiak added. “We thank Chairman Dababneh for hearing all voices in the legislative process and thank all the legislators and advocates who worked to make this legislation a success for consumers and the environment alike.”
Cisco DeVries, CEO of Oakland-based Renew Financial, said, “PACE has already allowed more than 100,000 California homeowners to make home improvements that save energy and water — and repay for those improvements on their property tax bills. AB 2693 puts into law important disclosures that help homeowners understand the terms of their financing. As PACE has grown dramatically in the last several years, these types of protections are important so that all consumers will get the same information, regardless who provides their PACE financing.”
The companies are instituting the new disclosures and the law takes effect Jan. 1.
For more information about Renovate America, visit www.renovateamerica.com.
For more information about Renew Financial, visit https://renewfinancial.com.
Publication date: 10/18/2016