Frequently Asked Questions
How does FIGTREE PACE work?
FIGTREE PACE financing is similar in nature to municipal financings for public improvements that are paid through assessment charges on property tax bills. Certain cities and counties have authorized the FIGTREE PACE program and have formed special assessment districts to enable on-tax-bill financing. FIGTREE PACE gives local property owners access to affordable financing for energy- and water-efficient improvements that can reduce overall utility expenses. The amount of financing available to each property owner is determined by the property's assessed value and requires no money down and no credit check. The financing is paid back annually over a period up to 20 years and is transferrable if the property is sold or transferred.
What are the benefits of FIGTREE PACE financing?
FIGTREE PACE offers property owners flexible financing that is specifically designed to meet the needs of energy efficiency and renewable energy upgrade projects. Benefits include:
- Simpler qualifications
- Doesn’t encumber personal credit
- Longer payback terms (up to 20 years)
- Transferable lien (if property is sold before pay-off)
- Competitive interest rates
- Positive cash flow opportunities
- Enables eligibility for rebates and incentives
How is FIGTREE PACE different from traditional financing?
FIGTREE PACE financing does not require many of the qualifications required by traditional sources of project capital. This unique financing mechanism is based on the value of your property, not your personal credit. FIGTREE PACE is paid back at the same time and in the same manner as your regular property taxes, giving you the flexibility to pay semi-annually.
Can FIGTREE PACE finance solar leases or PPAs (Power Purchase Agreements)?
Yes. FIGTREE can develop a custom solar lease or PPA for your project.
Can I keep the rebates associated with my project?
Yes! FIGTREE does not require rebate funds to be applied to reduction of project costs.
How do I know if I qualify for PACE financing?
FIGTREE offers a self-qualification tool at the preliminary step of the application process. Please visit our application form on this website.
How long can I finance my improvement project?
FIGTREE PACE financings can be structured from 5 to 20 years. The length of your repayment period will depend on the useful life of the equipment upgrades you choose. Of note, solar and many other renewable generation products can be financed at the full 20 years.
Must I have an energy audit of my property?
FIGTREE does not require an energy audit or “test in, test out” procedures. FIGTREE recommends engaging a knowledgeable contractor or energy specialist to design your project to ensure proper functionality and safety.
What does the application fee cover?
The application fee is “all inclusive” of a title report and recordation of your closing documents. The application fee can be rolled into your financing and reimbursed upon closing.
Once I submit my application, how long does it take to be approved?
FIGTREE will typically approve your application to participate in the PACE program within a week of receiving it. Approval to participate means that your property meets eligibility requirements. If your property is mortgaged, FIGTREE must obtain the consent of your mortgage lender before funds are approved.
Once my application is approved, when can my contractor commence to install the new equipment?
FIGTREE will issue you and your contractor a Notice to Proceed when your project is eligible to commence. Purchase, construction, and/or installation of improvements before receiving a Notice to Proceed may not be funded.
What is lender consent?
PACE liens to secure the financing are at parity with general property taxes and, therefore, senior to mortgage liens. FIGTREE obtains lender consent to ensure that property owners are not in violation of existing mortgage covenants.
Can I keep the rebates associated with my project?
Yes! FIGTREE does not require rebate funds to be applied to reduction of project costs.
How long does the lender consent process take?
Typically, obtaining lender consent will take 2 to 5 weeks.
When do I make my first annual assessment payment?
Your first annual assessment payment will be made in the first tax year following levying of the assessment lien. If funding is before June 30, the assessment will appear on the December tax bill of the same calendar year. If the funding is after June 30, it will appear on the December tax bill of the next calendar year.
Can I pay off my PACE assessment early?
Yes. A prepayment fee will apply as detailed in the application form. Participating property owners should contact FIGTREE for a payoff amount.
If I want to use FIGTREE PACE financing but my city is not currently participating in the program, what should I do?
FIGTREE PACE is available to all cities and counties in California. Please contact a FIGTREE representative if you would like to learn about how to bring FIGTREE PACE to your community. We may ask you to submit the details of your project to determine the best approach.
