Frequently Asked Questions
What is the California Enterprise Development Authority (CEDA) and why must we join?
The California Enterprise Development Authority (CEDA) is a joint powers authority with a current membership of 28 cities and 14 counties. CEDA is the issuing agency that will be forming the assessment districts for the California PACE™ financing program. Municipal agencies that pass resolution(s) to be part of the assessment district make it possible for property owners to apply for California PACE™ financing. CEDA acts as the issuer of the municipal bonds which finance California PACE™.
What's the financial and legal risk to my city or county?
As property owner participation is completely voluntary and all projects are privately funded, participating municipalities bear no obligation to repay bonds issued in connection with California PACE™.
Will PACE raise taxes for residents of our city?
No. Only the voluntary participants will incur charges for the program. Unlike other assessments, PACE assessments serve a public purpose but provide direct benefits to the voluntary participants. Therefore, only participating property owners will be charged for the improvements.
As an assessment program, what public purpose is served by PACE?
PACE promotes energy independence, creates jobs, avoids costly new power plants and transmission lines, and contributes to improving air and water quality. The more individuals that participate, the greater the public benefits.
What is the extent of my city or county's involvement in program administration?
California PACE™ was designed to require very little city staff time. Figtree and its strategic partners will manage all program components from development through ongoing management of the bonds issued in connection with California PACE™. Some cities and counties take an active role in promoting California PACE™; costs of time and materials that the city may incur can be recovered through an administrative component to each assessment.
The program doesn't cost the city anything now; will it cost later?
California PACE™ was designed to be self-sustaining. Administrative costs are considered in the financings to cover the cost of program implementation. Participating cities and counties will not be asked to pay program set up or maintenance costs now, or later.
Why is PACE better than other methods of energy finance?
PACE simplifies borrowing requirements for property owners and attracts private capital through its unique lien priority. Investment security and project volume has been the biggest hurdle to energy-efficiency financing. With energy rates and environmental impact penalties increasing, more property owners than ever need energy upgrades. Now, the PACE financing structure gives practically all property owners access to financing, gives investors confidence, and attracts adequate capital to meet the growing demand for energy efficiency improvements. In contrast, publically funded programs can be effective, but funds are typically limited and often highly restricted.
What projects are eligible for financing through California PACE™?
A wide and growing range of energy-efficiency, water-efficiency, and renewable energy improvements are all eligible for California PACE™ financing. Eligible efficiency projects include building weatherization, upgrading heating and air-conditioning systems, high-efficiency lighting upgrades, and much more. Water efficiency upgrades such as installing low-flow plumbing fixtures and efficient pool pumps are also great ways to save. California PACE™ makes renewable energy generators such as solar photovoltaic systems and fuel cells more accessible for property owners. For a detailed list of eligible improvements, please visit the property owner pages on www.figtreecompany.com.
Can participating property owners use any contractor?
Yes, provided the contractor has applied and been approved to join the Figtree Independent Contractor Network. The simple but necessary application process contributes to consistency and quality of improvements financed under California PACE™. Contractors may apply to the Figtree Independent Contractor Network at any time by submitting the application form available on the Figtree website under the section "Partner with Figtree." Property owners may access a list of current Independent Contractors at any time by visiting www.figtreecompany.com.
What is "lender consent" and why may Figtree contact my mortgage lender?
The term "lender consent" refers to a Figtree process conducted on the property owner's behalf to protect the property owner from breaching default or acceleration clauses that may be in his or her mortgage contract. Figtree may contact the mortgage lender to obtain consent to the California PACE™ assessment as a precaution against such default or acceleration clauses. Figtree values the confidentiality of each property owner's personal information and does not share property owners' mortgage information. Figtree will work closely with the mortgage provider to obtain consent and maintain the owner's privacy.
Why are energy audits/energy evaluations optional for participating property owners?
Figtree highly recommends an energy audit to determine the improvements that will provide the greatest energy and monetary savings for each building. However, Figtree recognizes that many properties have apparent inefficiencies that can be addressed directly. Figtree encourages property owners considering comprehensive energy upgrades to consult a professional energy analyst.
