Los Angeles County Energy Program/PACE
On September 21, 2015, the Westlake Village City Council approved Resolution No. 1809-15, consenting to include properties within the incorporated area of Westlake Village in the Los Angeles County’s Residential Property Assessed Clean Energy (PACE) Program. This program enables homeowners to install energy efficiency, renewable energy, and water-saving improvements to their property. PACE is a financing tool that allows Los Angeles County to issue a bond to a lender, which secures funding for the installation of energy and water efficiency, and renewable energy projects that are permanently fixed to the property. Homeowners then repay financing annually through an assessment on their property tax bill.
Under the Los Angeles County PACE Program, homeowners have the option to work with one of two County-approved program administrators to finance these home improvements: HERO and California FIRST. Although this is not a City of Westlake Village administered program, the City’s governing body is required to approve participation as it provides benefits to residential property owners within the City limits.
As the program is financed by levying a contractual assessment against the property & placing a lien on the real property, before completing a program application, you should carefully review any mortgage agreement(s) or other security instrument(s) which affects the property or to which you as the property owner are a party. Entering into an assessment contract without the consent of your existing lender(s) could constitute an event of default under such agreements or security instruments. Defaulting under an existing mortgage agreement or security instrument could have serious consequences to you, which could include the acceleration of the repayment obligations due under such agreement or security instrument.
In addition, Fannie Mae and Freddie Mac, the owner of a significant portion of all home mortgages, stated that they would not purchase home loans with assessments such as those offered by the County of Los Angeles. This may mean that property owners who sell or refinance their property may be required to prepay such assessments at the time they close their sale or refinancing.
WHAT DO I DO TO GET STARTED?
- Go to LAPACEorg website
Select the Residential Pace Website
- Review the two approved finance administrators:
California First Website
IS THERE A LIST OF APPROVED CONTRACTORS?
Each administrator has a list of contractors affiliated with their program. As Los Angeles County is constantly monitoring contractor activity and validating contractors that are complying with program requirements, the list is constantly changing. The County of Los Angeles asks residents to check the applicable program administrator website for the most up-to-date list.
ARE THERE OTHER FEES INCLUDED WITHIN THE PACE PROGRAM?
Yes. In addition to the amount to be financed for the selected improvement, the program does include other program associated costs such as program and administration management related fees, closing fees, reserve fund deposit, and loss reserve program fees. Some of these fees are one-time, while others are annual. The additional fees will be identified in the assessment contract forms participants will eventually sign.