Frequently Asked Questions

Pace Avenue is a company that educates homeowners on the benefits of the PACE program and clean energy improvements for their homes, then connects them with licensed PACE Financing partners and local, bonded and insured contractors to upgrade their homes.

PACE Financing is made available by your municipality in an effort to reduce energy and water consumption, improve property values and create local construction jobs. PACE stands for Property Assessed Clean Energy and is a program that local governments implement to allow homeowners to payback the upfront costs of renewable energy, energy efficiency and water efficiency improvements through assessments added to their property tax bill, instead of a taking out a costly private loan. In most cases, municipalities enroll with 3rd party companies, called PACE Administrators, to manage and finance their local PACE program.

Pace Avenue, Inc. was co-founded by three solar financing entrepreneurs who initially got to know each other through the Stanford Graduate School of Business where they completed their Master’s Degrees. As the founders behind Clean Power Finance (now Spruce) and SRECTrade, Micah Myers, Gary Kremen and Brad Bowery have spent much of the last decade trying to help homeowners finance solar installations that have very high upfront costs. These financing solutions typically utilized solar leases and solar renewable energy credits to defray the required upfront investment. Neither option was truly homeowner-friendly, a frustration shared by all three entrepreneurs when PACE programs began to spread across California and the rest of the country.

Micah immediately recognized the need to work with financing partners and municipalities to educate homeowners and contractors about the benefits of PACE and he recruited Gary and Brad to co-found the company in 2016. They are building Pace Avenue with the firm belief that PACE Financing is the best way to finance any renewable energy, energy-efficiency or water-efficiency home improvement. With the continued success of PACE programs across the country, they hope to build an organization that democratizes clean energy, while improving the lives of their customers and creating valuable local construction jobs in communities across America.

Our efforts were recognized by the U.S. Government when, in 2017, Pace Avenue was awarded a $1.5M U.S. Department of Energy Sunshot Grant to continue developing technology to drive adoption of solar and energy-efficiency in under-served communities.

Ygrene, HERO and CalFirst are PACE Administrators. They are contracted by municipalities to implement and administer local PACE programs. They work with private lenders to disburse the funds for your projects and collect payments through Special Assessments added to the municipality’s property tax bills.

Pace Avenue partners with PACE Administrators to help drive adoption of the programs in the municipalities that they serve. Pace Avenue qualifies and educates homeowners; helping them enroll in the program and connecting them with a PACE-approved contractor for their home improvement projects, serving as a one-stop shop for homeowners.

No, Pace Avenue is not a government organization affiliated with your city. We operate there because your city has adopted a PACE Program and enlisted one of the PACE Administrators that we partner with to manage the program. Pace Avenue educates homeowners about the benefits of this program and how they can use it to make clean energy improvements to their homes. We also will set you up with bonded, pre-vetted and insured contractors who can do the installations and refer you to various PACE Administrators who can lend for PACE eligible home improvements.

Although we are not a government organization, our efforts to drive adoption of solar and home energy-efficiency in under-served communities were recognized by the U.S. Government when we were awarded a Department of Energy Sunshot Grant in 2017.

Pace Avenue collects data on homes from a variety of public databases that might include property owner names, property value and construction dates. Additional eligibility information for each property is made available through records collected by our PACE Administrator partners.

No, Pace Avenue does not lend money. We are independent of lenders and are able to help you find the best personalized solution. Pace Avenue is, however, licensed under the California Financial Lenders Law (“CFLL”).

Yes. Our in-home sales consultants have all undergone background checks, including being fingerprinted. Additionally they are licensed (Home Improvement Salespersons (“HIS”) with the California Contractors State License Board (“CSLB”). Pace Avenue itself, while not a lender, also carries various insurance bonds, financial licenses, and other licenses based on local requirements. Pace Avenue is licensed under the California Financial Lenders Law (“CFLL”).

No. While we specialize in helping homeowners find the best financing partner for their projects, homeowners are welcome to pay with cash or provide their own form of financing. At Pace Avenue our mission is to help homeowners reduce their energy and water consumption through environmentally friendly home improvements. PACE Financing is just one mechanism for enabling us to achieve our mission.

Customers can pay cash or utilize outside financing options for any home improvement project with Pace Avenue. However, at this time, we specifically only provide PACE as part of our overall offering because we believe this program is currently the best way to finance a home improvement.

Office Locations: Our corporate offices are located in Oakland at 2201 Broadway Ave, Suite 300 and San Jose at 505 South Market Street.

Canvassing Operations: We currently have field operations in the San Francisco Bay Area. In the East Bay, our canvassing operations are active in Concord, Martinez, Antioch and Hayward. Our South Bay canvassing operations are active in Santa Clara County, including San Jose, and Santa Cruz County, including Watsonville. We will be quickly expanding to other cities in California throughout 2017.

We can also serve customers anywhere in the California where PACE Financing is available. Please call us at 866.722.3415 to find out more.

Pace Avenue is a one-stop shop for homeowners looking to improve their home. We operate in partnership with, but independently from, financing companies and contractors, acting as an advocate for the consumer.

Our approach to helping homeowners get the improvements they need is to guide them through the entire process and arrange all of the construction and financing. When a homeowner chooses to work with Pace Avenue, we will first talk them through the various project options in order to establish a scope. Our experienced and friendly home improvement consultants will assess the homeowner’s needs and work with one of our pre-approved contractors to develop a proposal. We only work with select contractors in order to ensure an extremely positive homeowner experience and uncompromising project quality.

In addition to identifying an appropriate home improvement, we also will work closely with our PACE Administrator partners to develop financing plans that offer low costs and high flexibility. We offer terms than range from 5 to 30 years, zero down financing, and low, tax-deductible interest rates.

No, there is no application fee to finance your home improvements with Pace Avenue.

Once you’ve spoken to one of our home improvement advisors and decided on an improvement to make, Pace Avenue will facilitate all the paperwork needed to complete the financing requirements, finalize the scope of work, begin the installation and ensure payment for the services. Pace Avenue walks homeowners through:

• Narrowing down project interests and selecting the best improvement for their home
• Sourcing a reliable, insured, bonded, pre-vetted qualified contractor
• Getting quotes and estimates for desired projects
• Completing all PACE Financing documentation for both homeowner and contractor
• Managing the fulfillment of projects

Ready to start your home improvement project? Simply submit an application, contact us, or give us a call at 866.722.3415 and we’ll help you get started financing your next project with PACE.

Getting started is as easy as:

1. Fill out the Get Started form, or call us at 866.722.3415. We will then set you up with one of our friendly and knowledgeable Home . Improvement Consultants to review your needs.
2. Decide which smart home improvement project best suites your needs and goals, get matched with a contractor and choose the financing option that is best for you.
3. Complete all the construction and financing contracts, schedule the installation and see your dream project become a reality!

Property Assessed Clean Energy (PACE) is a means of financing energy efficiency upgrades or renewable energy installations for buildings through an assessment that is added to the tax bill of the property.

Homeowners benefit because credit requirements are reasonable, the assessment is not categorized as a personal loan on their credit report, and the funds pay for an improvement that increases the value of the property.

Municipalities benefit because PACE encourages homeowners to convert to renewable energy, reduce their energy usage and reduce their water consumption, PACE home improvements will likely increase property values and PACE creates crucial jobs for local contractors in neighborhoods that traditionally have not been able to finance these improvements.

Finally, lenders benefit and are able to provide better terms because the loan is attached to the property, not to the homeowner, reducing the long-term risk of the loan.

Property owners complete an application for PACE Financing that will include a construction contract describing the energy and/or water saving improvement(s) they wish to make. If approved, the PACE Administrator executes an assessment contract, between the property owner and the lender, that is administered through the municipality. The municipality then adds a special assessment to the property tax bill, and the property owner repays the lender for the improvements on his/her property tax bill over the financing period of 5 to 30 years.

Any property owners who live in a city or county where one of the PACE programs has been approved to operate by the local government is eligible.

The only way to know for sure if you are qualified is to fill out a PACE Financing application.

Eligibility requirements are based on a number of factors that primarily include:

1. Amount of equity held in home
2. Recent bankruptcy history
3. Property tax payment history
4. Project eligibility

PACE programs are administered at the local level and requirements may vary city-by-city or county-by-county. Credit score is not a factor, but the credit history of all homeowners on property title are thoroughly reviewed. Here are some general eligibility guidelines:

• No current involuntary liens and/or judgments totaling more than $1,000
• Must be current on their property taxes for the prior 12 months
• No default or foreclosure notices filed on the property in the last two years
• No bankruptcies (business or personal) in the last two years
• The property must not be an asset in a bankruptcy proceeding
• You must have the ability to repay
• Projects must include the installation of new, permanently fixed products that are for the purpose of energy efficiency, renewable energy or water saving
• Projects must be installed by an approved contractor
• Minimum financing amount is $5,000
• Maximum amount financed is the lesser of $200,000 or 15% of the value of the property plus the combined amount financed under the program; mortgage-related debt cannot exceed 100% of the value of the property
• Property owners should participate in available state and federal incentive and rebate programs and must declare any rebates received for the project

Contact us if you have questions about your eligibility!

Any homeowner applying for PACE Financing will have to go through a thorough application process that ensures that the funds are appropriately disbursed and for a project that meets the requirements of the program. Pace Avenue works primarily with pre-qualified customers that have met certain minimum requirements based on publicly available information. From there, we will guide our homeowners through every step of the process, including:

• Initial Credit Application and Immediate Response
• Initial Project Documentation
• Property Owner Identification Verification
• Project Scope Verification
• Completed Financing Agreements
• Additional Required Information such as Mortgage Statements

If you are talking to us based on our pre-screening, you probably have already passed many of the required checks.

Please note: A hard credit check is required during the application process even though your credit score does not factor into your eligibility for PACE Financing. This is because a full credit report with payment history must still be reviewed during the underwriting process in order to approve your application.

At Pace Avenue, we find you the best deal from the PACE programs that cover your city. Our current financing partners have fixed interest rates that do not change for the entire time of the loan. PACE interest rates are as low as 4.99%. However, in effect, the rate can be lower when compared to loans because the interest you pay may be eligible for a tax deduction (consult your tax advisor). Competitive interest rates are one of the great strengths of PACE programs.

No income requirement or minimum credit score is necessary, but you do need to be current on your mortgage and property tax bills and demonstrate an ability to pay the assessment added to your property tax bill.

Using PACE Financing can get you a superior interest rate for a number of reasons.

• If you have imperfect credit, there is no way to receive financing that will provide you with a better interest rate than PACE. Any other lender would not be willing to offer you a competitive rate without a high FICO score.
• Home equity provides lenders with security and gives them the flexibility to offer lower rates
• The interest portion of all your payments is tax deductible. This means that you can subtract your tax rate from your interest payments to get your true interest rates.

In addition to competitive interest rates, the financing terms are flexible. There is no down payment and you can defer payments for up to 18 months! You can also choose a payment term as low as 5 and as high as 30 years to best suit your financial needs.

Since PACE is a special assessment on your property tax bill, it is not a personal loan and does not impact your personal credit once an improvement has been funded. However, a hard credit check is done during the application process in order to review your financial history and ensure your eligibility. Hard credit checks are common whenever you apply for a loan or a credit card and are factored into your overall credit score.

Repayment periods can vary from 5 to 30 years depending on the scope of the project and the homeowner’s preference. Different repayment periods offer different advantages to homeowners. Shorter terms allow homeowners to pay lower interest rates and leads to less total interest being paid. A longer term means lower monthly payments, but a slightly higher interest rate. Program fees remain constant regardless of the period of the loan. Homeowners can also defer the initial payment for up to 18 months.

PACE Financing is paid as property tax assessment and not a personal loan. This has a number of advantages that you may want to consider:

• Easy and simple to qualify – no minimum credit scores
• Financing is not based on the owner’s annual income
• Since PACE is an assessment on your property tax bill, it does not show up on your personal credit report and does not affect your ability to borrow in the future for other needs that may arise
• For financial reporting, these transactions would be treated the same as other assessments on your property
• Assessments may be passed to subsequent property owners, if your buyer’s new lender agrees
• Most loans require monthly payments, but PACE assessments are only due when your property taxes are due, meaning less frequent payments and more financial flexibility
• The interest paid on your PACE assessments can be tax deductible

If you choose PACE Financing for your next project, you can expect:

• Longer repayment terms, lower monthly payments
• Lower interest rates than traditional unsecured debt
• Tax advantages that can further reduce your interest rates
• Zero money down

All these are great reasons that traditional financing methods don’t provide. We work with our PACE Administrator partners to develop financing plans that offer low costs and high flexibility. We offer terms than range from 5 to 30 years, $0 down financing and low tax-deductible interest rates.

If you have even more questions related to how PACE Financing works and how the payments on the property taxes work don’t hesitate to give us a call at 866.722.3415 or contact us. We look forward to helping you with your environment and money saving project!

PACE assessments are financed through long-term bonds that do carry a standard prepayment penalty. However, homeowners can opt-out of the prepayment penalty during the application process at the price of a slightly higher interest rate. The prepayment penalty is typically 5% of the outstanding loan balance. The optimal choice will vary from homeowner to homeowner and our Home Improvement Consultants are trained to help you understand your options during this financing process.

Unlike other forms of financing, PACE assessments can be transferred from homeowner to homeowner during a sale. However, the mortgage industry is still adjusting to the advent of PACE assessments in real estate transactions and some mortgage lenders may require that a PACE assessment be paid off prior to completing a transaction. The good news is that, as of 2016, the Federal Housing Administration (FHA) has charted a path forward for the mortgage industry by putting forth guidance stating that properties with subordinated PACE loans can be purchased and refinanced with an FHA-insured mortgage. As PACE assessments become more and more common, we expect the mortgage industry to adapt as PACE improvements on homes become the norm. Until then, this is something a homeowner should consider, when evaluating PACE Financing, if they intend to sell their home in the near future.

PACE Financing is available in many states. PACE Nation has a thorough list. Legislation that enables PACE programs has been passed in 33 states plus D.C.; PACE is available and operating in 19 states plus D.C. California, Florida, and Missouri are the only states currently offering PACE to homeowners. Because PACE offers great benefits to homeowners, commercial property owners, local economies, and the environment, more states and municipalities are working to pass enabling legislation. The number of states and municipalities where PACE is available is set to grow in the coming months.

Though PACE has been enabled in California, PACE programs do not yet cover 100% of the state. Energycenter.org has an interactive map that lets you see which municipalities are currently covered by PACE.

PACE programs are administered at the local level and requirements may vary city-by-city or county-by-county. Credit score is not a factor, but the credit history of all homeowners on property title are thoroughly reviewed. Here are some general eligibility guidelines:

• No current involuntary liens and/or judgments totaling more than $1,000
• Must be current on their property taxes for the prior 12 months
• No default or foreclosure notices filed on the property in the last two years
• No bankruptcies (business or personal) in the last two years
• The property must not be an asset in a bankruptcy proceeding
• You must have the ability to repay

PACE Financing is a great option for homeowners who are able to pay but don’t qualify for home equity loans for various reasons including retirement or under-employment. Pace Avenue can help with everything from securing financing to sourcing the contractors needed to get your project up and running.

Give us a call at 866.722.3415 or fill out our form to get started today!

Pace Avenue works with properties in trusts all the time. Property owners must supply documentation that the party(ies) signing the documents are authorized to sign legal documents on behalf of the trust.

Sadly, no. Emerging Federal guidelines for PACE programs require that we consider the amount of debt on a property relative to the market value of the property. In order to be eligible for PACE Financing, the sum of all liens against the subject property cannot exceed 100% of the market value of the property. If your debt exceeds this limit, you may resubmit your application with a recent appraisal by a California licensed appraiser certifying a property value that will achieve the 100% limit calculation. We regret that this restriction may prevent or delay some very worthwhile projects from obtaining PACE Financing, and we would encourage property owners to re-apply when the real estate market recovers some of its value.

Yes. However, because taxes are calculated twice a year, there will be a component of interest that will initially be added to your principal (“capitalized interest”). Capitalized interest is calculated from the day your payment is funded (the bond date) through the date your first tax payment is due. Simple interest is then charged on this new principal amount for the duration of the assessment.

Tax credits that may eventually be available to a property owner and would vary based on applicable tax brackets are not taken into account in determining the PACE Financing amount. Rebates that are contingent on performance or that are not available to the property owner shortly after completion of the project also do not affect the amount of PACE Financing. However, rebates or other incentives that are received at the time of project completion or shortly thereafter (by either the property owner or the contractor), so as to reduce the costs of a project at the outset, will not be included in the financing amount. For example, if the total cost of an HVAC system is $50,000 and the owner is entitled to an immediate rebate of $10,000, financing will be limited to $40,000. Alternatively, if the total cost of a solar system is $50,000 and the owner is potentially eligible for a $15,000 tax credit in the future, the financing will still be $50,000.

This can be a complicated issue, but the short answer is generally no, as many projects are exempt. Applicants are encouraged to contact us for clarification.

Yes, however you need to advise your lender of the assessment on the property, so that the proper amount can be set aside for both your existing taxes and the PACE assessment.

Failure to pay the PACE assessment would be just like failing to pay your property taxes. Penalties and interest charges would apply until the assessment is paid. The county would, ultimately, have the right to foreclose on your property. PACE Financing makes these costly home improvements affordable for many homeowners, however, Just like with any other form of borrowing, it is critical that you are able to keep up with your payments. At Pace Avenue, we are committed to responsible business practices. We view our responsibility to our customer first, ensuring that they fully understand how the program works and what their obligations will be upon committing to a project. We will turn away customers if we have reason to believe that they will not be able to afford their payments.

An energy audit is not required to participate in the PACE Financing programs.

However, in general it might not be a bad idea to get an energy audit. A PACE energy audit is an inspection, survey and analysis of energy flows, for energy conservation in a building, process or system to reduce the amount of energy input into the system without negatively affecting the output(s). You can find out more details here.

Note: A small number of jurisdictions may require an energy audit to assess the expected energy cost savings of the improvements over their useful life before approving the improvement. We will notify you during the in-home consultation if that is the case. In the unlikely event, the audit cost can be covered by PACE funding following project approval.

Once your eligibility has been determined you can request funding towards any project that:

• Creates renewable energy (i.e. solar panels)
• Conserves water (i.e. drought resistant landscaping)
• Saves energy through improved efficiency (i.e. double pane windows, insulated roofing, modern heating and air-conditioning systems)

These funds are available for use by residential property owners towards any of the eligible products & projects.

If you know a great contractor and are working with them already, we have no problem also working with them closely, if:

• They have been approved by the PACE Financing partner
• Have insurance
• Are bonded
• Are vetted by our quality control team

From your contractor’s perspective, we can help them with all the financing paperwork, get them paid quickly and keep them focused on the job – something they will love!

Our contractors must comply with the following rules to be sure they are reputable:

• A satisfactory rating of “B” or better with the Better Business Bureau or other online review sites like Yelp and Angie’s List
• A valid business license for any jurisdiction where they will be performing work under the program
• In business for at least one year installing the equipment, products or materials indicated on their contractor’s license
• An active license in good standing with the California Contractors State License Board (CSLB)
• The required CSLB bonding and workers compensation insurance and general liability coverage

The selection of a registered contractor and acceptance of the materials used and the work performed represents an agreement between the homeowner and the contractor. We thoroughly vet our partners and ensure that all the requirements are met to qualify for PACE Financing, but do not endorse any other entity or person involved with the projects, products or design of the products, or warrant the economic value, energy savings, safety, durability or reliability of the solutions you install.

To meet PACE eligibility, contractors are limited to technologies that demonstrate energy and water savings. These are modern, high quality home upgrades that may come at a premium over older, inefficient budget technologies. Our financing partners have specific pricing guidelines for every type of project to ensure that fair rates are being offered to all homeowners under the PACE program. This is especially important to the municipalities that have adopted the program. The products offered by Pace Avenue fall well-within the requirements of the PACE program.

No. Pace Avenue will only work with contractors and installers with licensing in good standing as shown on the CSLB website. Contractor licensing provides us with information about the reliability and legitimacy of a potential partner. We have set a high standard for our contractors and will not accept the liability of working with unlicensed contractors. Contractors must also have required CSLB bonding, workers compensation insurance and general liability coverage.

Current licensing only provides a minimum standard that guarantees that the contractor is established and legitimate. Every contractor is also vetted by each of our financing partners. We also use online resources and other methods to ensure we are only working with the best contractors in the area. They must have a clean Better Business Bureau record as well as a preponderance of good Yelp reviews.

We do everything we can to ensure that our customers have the best experience with our contractors. It is vital to us that contractors provide customers with quality projects, good communication, and a pleasant experience. Effective contractors are a vital cornerstone of our business and we would not be successful if we weren’t working exclusively with the best.

Improvements must be permanently affixed to the property and reduce the overall energy and water consumption of the property. In general, the type of improvements funded by PACE Financing would include:

• High efficiency windows and doors
• Solar and/or tankless water heaters
• Solar photovoltaic panels
• Upgraded wall and roof insulation
• “Smart” irrigation controllers
• High efficiency HVAC systems
• Cool roof
• Multiple improvements for deep energy savings
• Drought tolerant landscaping

Owners may also propose improvements that are not on the list as “custom” applications. These will be reviewed on a case-by-case basis, with the ultimate goal of increasing energy and water efficiency.

State law limits PACE Financing to energy and water efficiency improvements. Repairs and/or new construction outside of energy and water efficiency improvements do not qualify. Therefore, if certain repairs need to be done before, during, or after the improvement project takes place, you must bear the cost of those repairs outside of the PACE assessment.

The program cannot finance the construction of the new addition however, you can apply for PACE Financing to cover the energy upgrade portion of the addition.

Yes. Call us to learn more.

Some local jurisdictions grant PACE eligibility for greywater systems, however, Pace Avenue does not offer these improvements at this time.

It depends on the project that you are doing. For example, HVAC usually does not require a permit, but a solar installation will.

The contractor is responsible for obtaining all permits and completing any inspections required by your city or county. Speak with your contractor to obtain further information regarding your specific project.

While commercial properties can be eligible for the PACE program, Pace Avenue focuses solely on helping residential property owners make clean energy improvements.

If you’re interested in using the PACE program for commercial sites we recommend you reach out to the PACE Program administrators such as Ygrene, Renew Financial, the Hero Program / Renovate America, or Spruce.

As of now almost all residential properties are eligible. While this includes single family homes and multi- family residential properties, buildings like mobile/manufactured homes and condominiums have special criteria they must meet before being granted eligibility.

For condominiums, eligibility depends not only on the physical restrictions of the physical property but on the covenants, conditions and restrictions associated with the complex as well. Prior to applying for PACE Financing it is recommended that you obtain written authorization allowing for the installation of eligible projects from the management team of the condominium.

For mobile and manufactured homes; they are eligible only if they pay legitimate property taxes and are attached permanently to the property. In addition the owner of the mobile home must also own the property underlying the home and often a current appraisal will be needed to determine the debt-to value and eligible cost calculations.

Unfortunately at this time facilities that are not on property tax rolls (i.e. government buildings, schools, etc.) are not eligible to participate.

Check out our Eligible Projects & Products page for the full list of improvements you can make through Pace Avenue!

In some cases prepaid leases and prepaid PPA’s can be financed through PACE. Monthly PPAs and other non prepaidleases are not financeable at this time.

Funds are available if a property owner chooses to make energy/water efficient improvements to the property before it is put on the market; however, all work must be completed and the final disbursement must take place prior to listing the property for sale. Please note that the PACE assessment is transferable to the new property owner, but some mortgage lenders may require that the assessment be paid in full prior to the transaction.

Yes, expenses for evaluations, audits, real estate appraisals and engineering are all recoverable.