26120-26124
PUBLIC RESOURCES CODE
SECTION 26120-26124
26120. The authority shall develop and administer a PACE Reserve
program to reduce overall costs to the property owners of PACE bonds
issued by an applicant by providing a reserve of no more than 10
percent of the initial principal amount of the PACE bond.
26121. To qualify for assistance pursuant to this division, the
PACE program shall require all of the following:
(a) The interest rate on the PACE bond does not exceed a
percentage as determined by the authority to be appropriate.
(b) Minimum legal loan structure and credit underwriting criteria
as determined by the authority are met.
(c) Proceeds of the PACE bonds are used to finance qualified
energy and water efficiency, electric vehicle charging
infrastructure, and clean energy improvements.
(d) The improvement financed is for a residential project of three
units or fewer, or a commercial project that costs less than
twenty-five thousand dollars ($25,000) in total.
26122. An applicant shall submit to the authority an application
providing a detailed description of the PACE program, a detailed
description of the transactional activities associated with the PACE
bond issuance, including all transactional costs, and other
information deemed necessary by the authority.
26123. (a) In evaluating eligibility, the authority shall consider
whether the applicant's PACE program includes the following
conditions:
(1) Loan recipients are legal owners of underlying property.
(2) Loan recipients are current on mortgage and property tax
payments.
(3) Loan recipients are not in default or in bankruptcy
proceedings.
(4) Loans are for less than 10 percent of the value of the
property.
(5) The property is within the geographical boundaries of the PACE
program.
(6) The program offers financing for energy efficiency
improvements or electric vehicle charging infrastructure.
(7) Improvements financed by the program follow applicable
standards of energy efficiency retrofit work, including any
guidelines adopted by the State Resources Conservation and
Development Commission.
(b) In evaluating an application, the authority shall consider all
of the following factors:
(1) The use by the PACE program of best practices, adopted by the
authority, to qualify eligible properties for participation in
underwriting the PACE program.
(2) The cost efficiency of the applicant's PACE program, including
bond issuance.
(3) The projected number of jobs created by the PACE program.
(4) The applicant's PACE program requirements for quality
assurance and consumer protection as related to achieving efficiency
and clean energy production.
(5) The mechanisms by which savings produced by this program are
passed on to the property owners.
(6) Any other factors deemed appropriate by the authority.
26124. The authority shall review the applicant's PACE bond
issuance, including, but not limited to, indenture, trust agreement,
and fiscal agent agreement ("the bond documents") and, when the
authority is satisfied that the bond documents are consistent with
the requirements of the PACE Reserve program established pursuant to
this chapter, the authority shall advance to the applicant or the
applicant's bond trustee, at the closing of the applicant's PACE
bonds, the amount made available from the Renewable Resource Trust
Fund and approved by the authority for use in the PACE bond's reserve
fund under the bond documents. Prior to the disbursement of moneys
pursuant to this section into a reserve fund, the authority shall
enter into an agreement with the applicant regarding the creation and
operation of the reserve fund, including the manner in which the
authority will be repaid for any moneys disbursed to the reserve
fund.