Title
Receive an update on the California Statewide Communities Development Authority ("CSCDA") sponsored CaliforniaFIRST Property Assessed Clean Energy ("PACE") residential program and approve the launch of the program in the unincorporated portion of Monterey County.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Receive an update on the California Statewide Communities Development Authority ("CSCDA") sponsored CaliforniaFIRST Property Assessed Clean Energy ("PACE") residential program and approve the launch of the program in the unincorporated portion of Monterey County.
SUMMARY AND DISCUSSION:
This Board approved participation in the CaliforniaFIRST PACE program in 2010. Shortly thereafter, the Federal Housing Finance Administration issued a guidance letter stating that PACE violates mortgage contracts, tightened underwriting requirements in PACE communities, and required larger down payments for all mortgages issued in communities that offer PACE financing. CSCDA discontinued the CaliforniaFIRST program based on that letter.
In response, Governor Brown and the California legislature set aside $10 million for a PACE reserve fund to make mortgage holders whole in the event of forclosure. The California Alternative Energy And Advanced Transportation Financing Authority ("CAEATFA"), a division under the State Treasurer, voted unanimously on February 18, 2014 to approve the PACE reserve regulations, which became operational the 2nd week of March. CSCDA voted March 6 to re-launch residential PACE.
On May 13, 2014, this Board approved the Figtree and HERO PACE programs, subject to receiving update, prior to program launch, on the status of the FHFA position letter, details of the projects that can be financed through the PACE program, details of fees and interest rates to be charged, and details as to program administration. In addition, it was requested by this Board that approval be obtained prior to any resident...
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