Residential Pace Program
Upgrading properties for energy-efficiency and environmental responsibility is desired by a lot of property owners. However, many of them are prevented from carrying out these desired improvements due to financial constraints.
If financing is the issue, there are solutions available, and among them is the Residential PACE Program. Walnut Creek homeowners who wish to elevate the value of their property through smart energy and environmentally conscientious improvements can benefit greatly from PACE.
What is the PACE program and does it make sense for me?
The property-assessed clean energy or PACE program is an innovative approach to financing energy efficiency and renewable energy upgrades on private properties.
Through PACE programs, state and local governments, as well as other inter-jurisdictional authorities, when permitted by state law, can fund the up-front cost of energy improvements on both commercial and residential properties.
Property owners (homeowners, especially) can benefit from the program because they can pay for the improvements carried out over a long period of time (typically from 10 to 20 years), providing them financial convenience.
Residential property owners participating in a PACE program repay their improvement costs via property assessments. These are secured by the property itself and paid as an addition to the owners’ property tax bills.
It’s important to mention as well that this financial accountability can be “transferred.” If property owners decide to sell in the future, way before the end of established period of repayment by the PACE program, the new legal owners of the property will then have to shoulder the remaining cost.
All that is because a PACE assessment is a “debt of property,” which basically means that the debt or financial accountability is tied to the property and not the property owner. Therefore, if ownership is transferred along the way, the new owner assumes the PACE obligation.
This also implies that property owners who are debating whether or not to make improvements to their property purely because of their uncertainly of how low they will reside in the property can just go right ahead with the upgrade.