FIGTREE ENERGY RESOURCE COMPANY

There are numerous community benefits that can be realized through energy efficiency property improvements financed through the FIGTREE PACE Program, as detailed below. Of note, there is no cost to implement FIGTREE PACE but there are substantial costs for not adopting this program: fewer clean energy improvements funded; fewer jobs created; no hedge against rising utility bills; fewer options for property owners to afford improvements to wasteful, outmoded building stock; and, ultimately, a less sustainable future for your community.

• Stimulates your local economy. $4M invested in energy retrofits can create $10M in gross economic output and $1M in combined federal, state and local tax revenues.
• Creates local jobs. $4M invested in energy retrofits can create 60 jobs in your community.
• Reduces greenhouse gas emissions. FIGTREE PACE enables GHG-reducing building improvements and supports the efforts identified in your Climate Action Plan.

FIGTREE 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. Even though there is no cost, your city/county will benefit from local contractors put to work, building permit fees, and AB32 goals being fulfilled.

As property owner participation is completely voluntary and all projects are funded through the California Enterprise Development Authority (CEDA), participating municipalities bear no obligation to repay bonds issued in connection with FIGTREE PACE. The City/County does not pledge any money or its’ credit for the financing. In addition, CEDA has retained FIGTREE Energy Financing to manage and administer the Program. The City/County will not be required to allocate any manpower or resources to support it.

In addition, for the benefit of each city/county, FIGTREE provides each city/county with indemnification through the three-party participation agreement with CEDA.

A number of judicial validations have confirmed that AB 811 assessments are valid voluntary assessments not subject to the requirements or processes of Proposition 218 or other constitutional provisions.

CEDA authorized and filed a statewide judicial validation complaint for its Commercial PACE Program on September 13, 2012 in the Superior Court of the State of California, County of Sacramento. The period for response ended in December, 2012 without comment. CEDA has requested the Court to issue a default judgment for its validation action which shall be forthcoming soon.

CEDA authorized and filed a statewide judicial validation complaint for its Residential PACE Program on October 25, 2012 in the Superior Court of the State of California, County of Sacramento. The Court issued the Notice for Publications on January 28, 2013 which CEDA has complied with. CEDA expects to complete the action by May 15, 2013.

The California Enterprise Development Authority (CEDA) will form the assessment district as well as issue the bonds. Your city/county will not be responsible for forming the assessment district or any of the related costs in implementing the FIGTREE PACE Program.

If your city/county already has a PACE Program through another provider, you can still adopt the FIGTREE PACE Program. FIGTREE PACE does not require any type of exclusive arrangement meaning you can have FIGTREE PACE and any other PACE Program now or in the future. Competition makes all PACE Programs better and provides property owners more choices. Not all PACE Programs are created equal. Click the following link for some important differences: View PACE Comparison Chart.

Taxes will not be raised on your residents. Only the property owners that voluntarily apply for financing will be assessed. Although PACE assessments serve a public purpose, only the property owners that receive financing will be required to repay through property tax assessments. However, everyone in the community will also benefit from reduced GHG levels and spurring the local economy.

FIGTREE PACE was designed to require no city/county staff time for ongoing administration. FIGTREE and its strategic partners will manage all program components from development through ongoing management of the bonds issued in connection with FIGTREE PACE. Some cities and counties take an active role in promoting FIGTREE PACE.

A wide and growing range of energy-efficiency, water-efficiency, and renewable energy improvements are all eligible for FIGTREE 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. FIGTREE 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.

Most mortgage contracts contain default or acceleration provisions that prevent the property owner from voluntarily placing a lien in a higher priority position than their current mortgage lien. This is often referred to as a “Due on Encumbrance” clause. Since a PACE lien will be treated as pari passu with other property taxes and therefore take priority over existing mortgages, the mortgage lender must provide a written acknowledgement that the property owner will not be in default by participating in the PACE Program. FIGTREE Energy Financing engages the mortgage lender directly and obtains this written acknowledgement on behalf of the property owner. This process is referred to as the “Lender Consent” process. By obtaining lender consent, all parties involved in the transaction are protected, especially the property owners. FIGTREE has been successful in obtaining lender consent from national, regional and local mortgage lenders.