Frequently Asked Questions

What is the PACEfunding Program?

PACEfunding is a leading energy efficiency financing program in the United States. PACEfunding partners with local governments to make energy efficient, water efficient and renewable energy projects more affordable for homeowners.

 

Am I required to get an energy audit for my property?

No but it is recommended in certain cases particularly when you are looking to do whole home improvements for the purpose of maximizing your energy and water cost savings.

Do I need to obtain a building permit?

PACEfunding requires that you and your contractor comply with the building permit requirements for your city or county, whichever has jurisdiction over your property. If required, you (and your contractors) are responsible for obtaining permits and completing inspections, including final inspection sign-off, from the appropriate City or County building department. Speak with your contractor for further information.

Can PACEfunding be used for more than one project?

Yes, a property owner can finance multiple projects. However, all projects must be approved in order to make sure they meet efficiency standards.

Can I finance Eligible Products that are already installed?

No. Products that have already been installed are not eligible for PACEfunding.

Who may install PACEfunding Financed products?

Only contractors registered with and approved by PACEfunding. Contractors can apply at www.PACEfunding.com as long as they have a valid California State Business License.

Can a property owner install their own Eligible Products?

No. PACEfunding is available only if installation is done by an Approved Contractor.

Can I sell or refinance a property that has an outstanding PACEfunding assessment?

In most cases. Homeowners should be aware that lending criteria can change and vary between banks. Some banks and/or purchasers require the outstanding assessment balance to be paid off when a homeowner refinances or sells a home.

Does a home with a PACEfunding assessment affect the buying or selling process?

The PACEfunding Program does not affect the process but does entail providing certain disclosures when selling a property. Real estate agents should disclose that there is an additional tax assessment on the property tax bill, similar to that of a Mello-Roos or Community Facilities District assessment.

If a homeowner decides to pay off the PACEfunding assessment at close of escrow, are there fees to consider?

There are no prepayment fees or premiums associated with the PACEfunding Program, regardless of the PACEfunding assessment date. The homeowner will have to pay interest through the next bond payment date.

Is a homeowner required to pay off a PACEfunding assessment at the close of escrow?

PACEfunding assessments are transferable to the new owner upon buyer and lender approval. The homeowner has the option, but is not required, to pay off the assessment, and can do so without a prepayment penalty.

If I have a client considering purchasing a home with a PACEfunding assessment, do they need to qualify or reapply for PACEfunding?

No. PACEfunding is tied to the property and the tax assessment is automatically transferred with the sale of the property.

Are there any fees to consider in the transfer of a PACEfunding assessment on a listing?

There are no fees associated with the transfer of a PACEfunding assessment for the homeowner, buyer, or agent.

How do I get PACEfunding?

PACEfunding is a simple 4 step process:

1. Apply -Find out how much your home is approved for through one of our approved contractors.

2. Select – Choose the eligible products through one of our approved contractors.

3. Sign – Sign your financing documents through one of our approved contractors.

4. Complete – Approved contractor completes the installation.

For more information on the PACEfunding process please visit www.PACEfunding.com.

Can rebates be used with PACEfunding?

Yes, homeowners can still receive any rebate that is offered by their local utility, city, county, etc. PACEfunding does not affect the rebate process in any way.

What interest rates does PACEfunding offer?

The interest rate for PACEfunding varies depending upon the term. Terms can range from 5 – 25 years and will affect your rate. The interest may be tax deductible, which can lower the effective interest rate and homeowners are encouraged to seek the advice of an expert regarding tax matters related to the Program.

How is PACEfunding different than other forms of financing?

PACEfunding is unique in that it provides financing for approved energy efficient, water efficient, and renewable energy products projects. PACEfunding offers 100% financing of the cost to purchase and install eligible products. PACEfunding offers low-fixed interest rates, flexible payment terms including 5, 10, 15, 20 and 25 years for most products, and repayments are made through your property taxes. Additionally, if the property is sold before the PACEfunding is paid in full, the remaining payments can be passed on to a new property owner.

How is PACEfunding paid through my property taxes?

The repayment of PACEfunding is included in your property tax bill, which is delivered and collected by the County. You will see a line item titled PACEfunding on your property tax bill. If you make property tax payments through an impound escrow account, your lender will adjust your monthly payment to include the amount due for PACEfunding.

Who can apply for PACEfunding?

PACEfunding is available to residential property owners in many cities and counties across the State of California. To find out if PACEfunding is available in your community please visit www.PACEfunding.com/community/ or call 1-844-USE-PACE

Are all contractors qualified to install eligible PACEfunding products?

No. Contractors must be registered with and approved by PACEfunding to install PACE Funding eligible upgrades. To register with the PACEfunding Program contractors must be properly licensed and bonded with the Contractors State License Board.

To find a registered PACEfunding Contractor please go to www.PACEfunding.com/homeowner and please input your zip code in the Contact Us section and we will refer your inquiry to our Approved local contractors in your community. Property owners are responsible for the selection of the contractor(s) and product(s) necessary to complete their project.

What happens if a property is sold?

Property taxes typically stay with the property when it is sold. Under the PACEfunding Program, when you sell or refinance your property, your remaining payments may stay with the property. However, your lender may require you to pay off the remaining balance when you refinance or sell your home.

What are the eligibility criteria for PACEfunding?

Homeowners who meet the minimum criteria below are eligible for PACEfunding.
Specific eligibility requirements for residential properties include the following:

All mortgage-related debt must not exceed 90% of the value of the property.

Mortgage payments must be current at the time of application, and property owner(s) must not have had more than (1) 30-day mortgage late payment over the past twelve months.

Property taxes must be current and there must be no more than one late payment in the past three years.

No outstanding involuntary liens, such as tax liens or mechanic’s liens.

Property owner(s) must not have had any active bankruptcies within the last seven years, and the Property must not be an asset in an active bankruptcy. However, if a bankruptcy was discharged between two and seven years prior, and the property owner(s) have not had any additional late payments more than 60 days past due in the last 24 months, the property owner may be approved.

Mobile homes must be permanently attached to the property and the owner of the underlying property must be the applicant and be subject to real property taxes.

For more information, please visit the Eligible Projects PDF.

What products are eligible for PACEfunding?

There are many products that are eligible for PACEfunding, especially energy efficiency and water conservation products and renewable energy systems. Please explore the list of Eligible Products for more information.

If I owe more on my house than its market value, am I still eligible for PACEfunding?

No. Total mortgage liens on the property cannot not exceed 90% of the value of the property.

Can a mobile home/manufactured home qualify for PACEfunding?

Mobile homes (and manufactured homes) are eligible if they are permanently attached to the real property and pay real property taxes (not DMV fees). The mobile home owner must also be the owner of the underlying land. Since an AVM value is often not available for mobile or manufactured homes, the tax assessed value or recent appraisal value may need to be used for the debt-to-value and Eligible Product costs calculations.

Does a condominium qualify for PACEfunding?

Condominiums may be eligible depending on the Covenants, Conditions and Restrictions (CC&R’s) of the complex as well as the physical design of the unit. Condominium owners who apply for PACEfunding may need to obtain written authorization from condominium management stating that the property owner is allowed to install the proposed Eligible Products.

Can a property placed in a trust qualify for PACEfunding?

Yes. Trust property is eligible for PACEfunding if adequate documentation of the Trust, and the applicants’ authority under the Trust, are provided with the application. All Trustees must sign all PACEfunding Program documents.

Are there application fees?

There are no fees to apply for PACEfunding.

Is there any additional or specific paperwork required for a home with a PACEfunding assessment that should be considered in the buying/selling process?

There is no additional or specific paperwork required in order to facilitate the buying or selling of a home with a PACEfunding assessment.

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