Home Energy Renovation Opportunity (HERO) – Residential
Full Name
Home Energy Renovation Opportunity (HERO) – Residential
Tax Bill Abbreviation
WRCOG CA HERO-RESI
Type
Special Assessment
Contact Information
DTA (Formerly David Taussig & Associates, Inc.)
(949) 955-1500
Description
These charges are for a residential Property Assessed Clean Energy (PACE) program.
Property Assessed Clean Energy (PACE) Program allows eligible property owners in the unincorporated areas of San Luis Obispo County to improve the energy and water efficiency of their commercial and residential properties by financing qualifying improvements through an assessment lien or special tax lien where the annual repayment amount is added to the annual property tax bill.
The San Luis Obispo County Board of Supervisors, the City of Arroyo Grande, The City of Atascadero, the City of Grover Beach, the City of Morro Bay, the City of Paso Robles, the City of Pismo Beach, and the City of San Luis Obispo approved resolutions that make PACE available to eligible property owners in the unincorporated and incorporated areas of the county. PACE programs are not operated by the County or Cities. They are operated by authorized outside entities located outside of the county.
If you live within the city limits, check with your city regarding available PACE programs.
PACE may provide financing to eligible residential, commercial, industrial and agricultural property owners who voluntarily enter into financing agreements for a wide range of eligible property improvements, such as energy efficiency projects, water conservation improvements, electric vehicle charging stations and renewable electricity generation installations. The loan repayment is made through an assessment or special tax that is added to an owner's annual property tax bill with repayment terms typically ranging from 5 to 20 years.
Sellers must deliver a disclosure notice regarding the lien to the prospective buyer (Civil Code §1102.6(b); Government code §§53340.2/53341.5/53754).
Risk Considerations for Participating Property Owners: The PACE program allows for property owners to freely and willingly enter into contractual agreements with contractors and PACE financing providers for clean energy improvements. As with any contractual agreement, the borrower/property owner enters at their own risk. PACE improvements are loans, which have inherent risks that should be considered by all applicants. The Federal Housing Finance Agency (FHFA) has expressed concerns regarding the PACE program. According to FHFA, the central risk is that these loans create an additional potential for the loss of a property through a tax sale or foreclosure if the owner cannot meet the extra debt burden. Some lenders may not purchase mortgages with existing PACE liens. Property owners may be required to pay off the PACE assessment balance at the time of refinance or sale. All PACE programs now include disclosures regarding FHFA's position regarding PACE programs in applications, financing documents, and closing statements.
Western Riverside Council of Governments (WRCOG) offers homeowners an opportunity to finance energy and water efficiency projects in their homes through the HERO Program or Home Energy Renovation Opportunity.