PACE allows property owners to make homes more energy- and water-efficient with tax deductible financing paid through property taxes. HERO financing projected to create 5,200 jobs in L.A. and save homeowners over $1 Billion
Los Angeles, Calif. – The Los Angeles County Board of Supervisors voted today to enable residential Property Assessed Clean Energy (PACE) financing for homeowners residing in cities within the county that have passed resolutions authorizing the mechanism. Forty-two Los Angeles County cities that recently adopted resolutions to make the HERO available to their residents will launch their programs this month.
PACE programs provide financing to make energy- and water-efficiency renovations affordable for homeowners by providing long-term, competitive financing through an assessment on their property tax bill. This financing mechanism relies on a partnership with public agencies and is cost neutral to participating jurisdictions.
“HERO has proved to be a highly-effective tool for jurisdictions throughout California looking not only to encourage investments in water- and energy-efficiency, but also as an engine for creating high-quality local jobs,” said Los Angeles County Supervisor Don Knabe.
Cities under the purview of the San Gabriel Council of Governments and the South Bay Cities Council of Governments will begin offering PACE to residents in May. These jurisdictions will offer financing through the HERO Program, the largest provider of residential PACE financing in both California and the nation. The HERO Program has been adopted by over 147 California cities including 52 of the top 100 cities including Anaheim, Fresno, San Jose, San Diego, Santa Ana, and Riverside.
“After seeing HERO’s strong track record in other cities around the state, we are eager to get the program up and running for our residents,” said James C. Ledford Jr., Mayor of the City of Palmdale. “We anticipate this program will help us to create jobs and to support our efforts to meet mandated greenhouse gas reduction goals.”
As HERO expands in California, evidence is growing that it is generating meaningful economic activity.
“HERO is gaining momentum throughout California, and we’re seeing that it is making a big impact in terms of job creation and economic stimulus,” said Renovate America CEO JP McNeill. “HERO has a strong track record where it is already active, and we’re excited to be providing the program in Los Angeles County.”
A growing number of California jurisdictions are partnering with multiple PACE providers to increase the financing choices available to consumers.
HERO has been financing residential projects in California since 2011. It is the largest PACE program in California, financing 95% of all residential PACE projects in the state with a total of $200 million financed to date.
PACE programs could not have come soon enough for the state’s home improvement industry, which was hit hard in the recent recession and has seen a significant boost in activity directly related to the program. Among the most popular upgrades are whole-home heating and cooling (HVAC), solar power panel installations, energy-saving windows, doors, roofing and insulation. Property owners are able to repay the loan over 5, 10, 15 or 20 years through an assessment on their property tax bill. Interest is also tax deductible.
“This program will help our communities save energy and water, create local jobs, and enjoy immediate improvements in our homes,” said Dan Medina, South Bay Cities Council of Government Chairman and Gardena City Councilman. “It’s one of those rare win-win-win programs; we’re excited to get started with HERO.”
Los Angeles cities set to launch HERO in May 2014 include: Alhambra, Azusa, Baldwin Park, Bellflower, Bradbury, Carson, Claremont, Covina, Diamond Bar, El Monte, El Segundo, Gardena, Glendora, Hawthorne, Hermosa Beach, Industry, Inglewood, Irwindale, La Cañada Flintridge, La Verne, Lawndale, Lomita, Monrovia, Montebello, Monterey Park, Palmdale, Pomona, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Gabriel, San Marino, Santa Monica, South El Monte, South Pasadena, Temple City, Torrance, Walnut and West Covina.
All jurisdictions in California can now offer the HERO Program in their communities simply by adopting a resolution through the city council or board of supervisors. There are no costs to the city or county; HERO provides all funding and administration of the program. Consumers and contractors interested in promoting HERO in their communities can visit http://heroprogram.com/gethero to learn more.
HERO is a private-public partnership enabling any city or county to offer Property Assessed Clean Energy (PACE) financing to property owners in their communities. HERO has been adopted by 147 cities in California, funded more than $200 million in energy- and water-efficiency projects and created more than 2,100 jobs since December 2011. The HERO program has received the Governor’s Environmental and Economic Leadership Award in California, the Urban Land Institute Best of the Best, and the Southern California Association of Governments President’s Award for Excellence. To learn more about HERO, visit www.heroprogram.com or call 855-HERO-411. For media inquiries call 510-336-9566.