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Council hears presentation on PACE financing; staff says consumer protections have strengthened since early program abuses
Summary
City staff and a California Statewide Communities Development Authority (CSCDA) representative briefed the council on the PACE program, which lets homeowners finance energy and water improvements via a property-tax assessment; staff said recent state laws and DFPI oversight strengthen consumer protections compared with earlier versions of the program.
City staff and a representative from the California Statewide Communities Development Authority (CSCDA) described the Property Assessed Clean Energy (PACE) program to the council, explaining how the tool allows property owners to finance energy- and water-efficiency improvements through an assessment added to property tax bills.
Gabe, a CSCDA representative, said state legislative changes in recent years have tightened consumer protections and placed PACE under the Department of Financial Protection and Innovation (DFPI). He referenced AB 1284 (2017) and subsequent bills, saying the statute created DFPI oversight and added mandatory reporting, audits and registration requirements for solicitors; PACE solicitors must complete required training and underwriting must include the homeowner’s ability to repay.
Staff told the council Lincoln has been a member of CSCDA since the early 1990s and that allowing qualified PACE providers to operate in the city would give residents an option to finance solar, HVAC and other improvements through the property-tax assessment mechanism. Council members asked whether a PACE assessment affects credit scores; Gabe said it does not and that underwriting focuses on equity in the home rather than a credit-score threshold.
No public controversy was raised at the meeting; staff said many earlier abuses that generated negative press have been addressed through state regulation. Council discussion focused on consumer protection and program oversight; staff said most program rules are implemented and audited at the state or program level, with local jurisdictions primarily finishing an authorizing resolution to allow providers to operate.
Staff invited PACE representatives to answer follow-up questions and will place the authorization on a future consent calendar for formal council action.
