There is little or no up-front cost to the property owner, and if the property is sold before the end of the repayment period, the new owner inherits both the repayment obligation and the financed improvements. Over two decades, the special assessment would be the same or less than what property owners would save on their electric bill. The property owner would remain eligible for federal and state credits for installing these green technologies.When setting up our own Property Assessed Clean Energy (PACE) program, we must be careful not to place the lien in a superior position to the mortgage on the property. The Federal Housing Finance Authority prevents us from doing so. We must also resolve the legality of the special assessment against our new constitutionally imposed property tax caps.
The program once launched is self sustaining, and no city revenue would be lost in the long run. We’d be helping out the environment as well as our pocket books!
Be sure to check out UC Berkeley’s Guide to Energy Efficiency & Renewable Energy Financing Districts For Local Governments.