The PACE Program Disclosures
Property Owners are encouraged to consult with legal counsel or a tax professional of their choice before entering into an Assessment Contract.
Property Owners should consult their tax advisor regarding potential tax credits, credits and deductions, tax deductibility, and other tax benefits available for The PACE Program, the HERO Program, or any other PACE provider programs. Making an appropriate application for the benefit is the Property Owners’ responsibility.
The The PACE Program of California is a financing program administered by PACE Consulting Agency Inc. that operates in a public-private partnership to offer financing for eligible home improvements in cities and counties throughout California but is not sponsored or endorsed by any city or county.
Property Owners may be required to pay off the remaining balance of a PACE assessment obligation by the mortgage lender refinancing the home. If the home is sold, the buyer or their mortgage lender may require Property Owner to pay off the balance of this obligation as a condition of sale.
PROPERTY OWNERS ARE SOLELY RESPONSIBLE FOR AND MUST INDEPENDENTLY CHOOSE AND CONTRACT WITH THE CONTRACTORS TO WORK ON THE INSTALLATION OF THEIR ELIGIBLE PRODUCTS. THE PACE PROGRAM AND EACH OF THE PARTICIPATING ENTITIES, THEIR RESPECTIVE OFFICERS, EMPLOYEES, AGENT AND ASSIGNS NEITHER ENDORSE NOR RECOMMEND CONTRACTORS WHO REGISTER WITH THE PROGRAM, NOR DO THEY GUARANTEE, WARRANTY OR OTHERWISE INSURE THE COMPLETION OF THE INSTALLATION OF THE ELIGIBLE PRODUCTS OR THE OPERATION OF THE ELIGIBLE PRODUCTS, ANY OTHER PERSON INVOLVED WITH THE INSTALLED PRODUCTS, OR THE DESIGN OF SUCH PRODUCTS, OR WARRANT THE ECONOMIC VALUE, ENERGY SAVINGS, SAFETY, DURABILITY OR RELIABILITY OF THE ELIGIBLE PRODUCTS.
Property Owners are responsible for the review of the proposed products, the determination that such products are eligible products and authorization for The PACE Program funding of the installation of such products recommended by The PACE Program or its agents and shall not be construed as a confirmation or endorsement of the qualifications, efficiency or performance of such products, the contractors that installed such products, the manufacturer of or any other person involved with the products; or the design of the products; or a warranty or guaranty the performance, economic value, energy savings, safety, durability or reliability of such products.
Property Owner Is Responsible for Products, Permits and Inspections. The Property Owner is solely responsible for all products installed on the property, including the selection of any contractor(s), energy auditor(s), or equipment, including manufacturers. Any performance related issues are the responsibility of the property owner and the property owner’s contractor(s). Neither The PACE Program nor its agents are responsible for the performance of the products or the contractors.
Estimated Cost Savings
Any utility bill savings a property owner might experience as a result of any installed product(s) financed through The PACE Program will depend on usage, utility rates, and the efficiency of such product(s). Any estimated savings are not guaranteed and will not reduce assessment payments or total assessment amount.
The PACE Program financing provided pursuant to an Assessment Contract will be repayable through an assessment levied against the property, and that an assessment lien will be recorded against the property in the office of the County Recorder of the County where the property sits upon execution of the Assessment Contract. The property tax bill (which will include the assessment payments) for the property will increase by the amount of these assessment installment payments. The Assessment Contract will specify the amount of the assessment, the assessment installments and the interest on the assessment to be collected on the property tax bill for the property each year during the term specified in the Assessment Contract. The assessment and the interest and any penalties thereon will constitute a lien against the Property until they are paid. As with all tax and assessment liens, this lien will be senior to all existing and future private liens against the property, including mortgages, deeds of trust and other security instruments.
BEFORE COMPLETING A PROGRAM APPLICATION, YOU SHOULD CAREFULLY REVIEW ANY MORTGAGE AGREEMENT(S) OR OTHER SECURITY INSTRUMENT(S) WHICH AFFECT THE PROPERTY OR TO WHICH YOU AS THE PROPERTY OWNER ARE A PARTY. ENTERING INTO A PROGRAM ASSESSMENT CONTRACT WITHOUT THE CONSENT OF YOUR EXISTING LENDER(S) COULD CONSTITUTE AN EVENT OF DEFAULT UNDER SUCH AGREEMENTS OR SECURITY INSTRUMENTS. DEFAULTING UNDER AN EXISTING MORTGAGE AGREEMENT OR SECURITY INSTRUMENT COULD HAVE SERIOUS CONSEQUENCES TO YOU, WHICH COULD INCLUDE THE ACCELERATION OF THE REPAYMENT OBLIGATIONS DUE UNDER SUCH AGREEMENT OR SECURITY INSTRUMENT. IN ADDITION, FANNIE MAE AND FREDDIE MAC, THE OWNER OF A SIGNIFICANT PORTION OF ALL HOME MORTGAGES, STATED THAT THEY WOULD NOT PURCHASE HOME LOANS WITH ASSESSMENTS SUCH AS THOSE OFFERED BY PACE ISSUERS. THIS MAY MEAN THAT PROPERTY OWNERS WHO SELL OR REFINANCE THEIR PROPERTY MAY BE REQUIRED TO PREPAY SUCH ASSESSMENTS AT THE TIME THEY CLOSE THEIR SALE OR REFINANCING.