Contra Costa and CaliforniaFIRST PACE Financing for Home Energy
and Water Upgrades October 8, 2014Jonathan Kevles
Slide 2
Agenda Why PACE Overview of CaliforniaFIRST Qualifying for
Financing w/CAFIRST Projected Benefits in Contra Costa County
Status of CAFIRST: Contra Costa Countys Local Governments Role of
Local Governments in the CAFIRST Program
Slide 3
Why PACE? The Challenge: Homes use more energy and water than
necessary. Investments to reduce energy and water use are worth the
money... over the long-term Solar is now economical for
homeowners... over the long- term But, these investments come with
a high price tag Many homeowners dont have the cash lying around,
or cant borrow under terms that make sense Terms that are too short
Interest rates that are too high The utility bill savings might
take more years to recoup the investment than the homeowner will
stay in the home
Slide 4
Why PACE? The Opportunity: PACE provides capital with no
upfront cost to the homeowner PACE provides financing terms of up
to 20 years CaliforniaFIRST interest rates From 6.75% (5 years) to
8.75% (20 years) Interest portion of payments are typically tax
deductible for homeowners, lowering the effective interest rate
PACE repayment obligations, being on property tax bill, can stay
with the property, transferring from one owner to the next PACE can
fund: Water conservation Energy efficiency Renewable energy And
improvements to a home necessary to accommodate these improvements
(such as an energy panel upgrade)
Slide 5
CaliforniaFIRST: Team Structure CaliforniaFIRST Program Sponsor
and Bond Issuer: CSCDA Program Administrator: Renewable Funding LLC
Originator: Renewable Funding/ EGIA Bond Counsel: Jones Hall
Trustee: Wilmington Trust Tax Administrator: David Taussig &
Associates
Slide 6
6 Components of CaliforniaFIRST Operations 1. Contractor
Management Recruitment Enrollment & Training On-Going
Management Dispute Resolution 2. Application Processing Consumer
Marketing Call Center Property & Project Underwriting Document
Generation 3. Project Installation to Lien Recordation Completion
Certificate & Project Validation Lien Recordation &
Validation 4. Bond Issuance to Funding Document Generation
Approvals & Signatures Bond IssuedFunds Disbursed 5. Repayment
Placement on Tax Roll Assessment Repayment Delinquency
Management
Slide 7
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Slide 8
8 Qualifying for Financing No minimum credit score required No
recent missed mortgage or property tax payments Homeowner must have
at least 10% equity in the home Project cost may not exceed 10% of
the estimated market value of the home (or $200,000, whichever is
less) Minimum project cost: $5,000 Products to be installed must
meet minimum efficiency and performance standards Benefits Same day
approval Project financing does not hit homeowners debt-to-income
ratio Up to 20 year repayment terms Tax deductibility of interest
portion of lien payments
Slide 9
9 Potential Benefits in Contra Costa County Projected Impacts
From One Year of Activity 2% of Detached, Single Family, Owner
Occupied Homes4,000 Megawatt Hours of Solar-Generated
Electricity10,600 MWHs of Saved Electricity4,100 Therms of Saved
Natural Gas276,000 Gallons/Acre-Feet of Saved Water92,000,000 / 283
Tons of GHG Emission Reductions9,900 (or 2,100 cars) Jobs Generated
(direct, indirect, and induced)750 Property Value Increases$164
million Gross Reduction in Utility Bills$2.7 million
Slide 10
10 Status of CaliforniaFIRST in Contra Costa County Cities and
County Status By Late 2014, 40%+ of DSF O-O Homes Will Be CAFIRST
Eligible AntiochOakley BrentwoodOrinda ClaytonPinole
ConcordPittsburgOpted-In DanvillePleasant Hill El
CerritoRichmondOpted-In HerculesSan Pablo LafayetteOpted-InSan
Ramon MartinezOpted-InWalnut CreekOpted-In MoragaUnincorporated
CCCOpted-In To be eligible for CAFIRST financing, a homeowners
local government must Opt-In to the CAFIRST Program Once the
Statewide Validation is complete (late 2014), all cities will be
active that a) have already Opted-In, or b) subsequently choose to
do so
Slide 11
11 Role of Local Governments in the CAFIRST Program
CaliforniaFIRST is a program of CSCDA and exclusively administered
by Renewable Funding & its team Requires no actions once
CAFIRST Opt-In resolution is passed (or re-affirmed) And CSCDA
membership resolution, if necessary Local governments elected and
appointed officials and staff are invited to help in
promotion/marketing CaliforniaFIRST recognizes local government as
a partner Strong working relationship, understanding of local
government perspective Job creation, reduce economic leakage
Climate Change Action Planning for Mitigation and Adaptation, AB
32-related compliance
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