Florida Program Enhancements 2017

OVERVIEW OF ENHANCEMENTS 2017 Florida Program Enhancements Contractor Participation Agreement YgreneWorks FlexRate Program Origination Fee updates Know Before You Owe consumer disclosure

CONTRACTOR PARTICIPATION AGREEMENT Ygrene has implemented the Contractor Participation Agreement (CPA) to formalize the legal relationship with the contractor, including: Pricing Terms Business Practices Legal Obligations All contractors are required to sign the CPA in order to operate as an active certified Ygrene contractor. The agreement protects the contractor, Ygrene, and property owners.

YGRENEWORKS FLEXRATE PROGRAM Ygrene is introducing a flexible rate program that offers contractors pricing options with a lower interest rate equivalent in exchange for a rate option fee on PACE residential projects. At launch there will be four rate plans - Rate Plan 1, the base rate that is available today, and three other plans If the contractor elects Rate Plan 2 – 4 the rate option fee, also known as sellers points, will be applied to the project cost in exchange for the lower rate. Rate plan selections are submitted and managed by Ygrene’s Contractor Compliance Team. Contractors can select the rate plan that best suits their business model.

YGRENEWORKS FLEXRATE PROGRAM Term Years 5 10 15 20 Rate Plan 1 (Base Rate) Interest Rate 7.35% 7.64% 7.83% 7.96%   Seller Points for calculating the Rate Option Fee Amount 0% Rate Plan 2 6.35% 6.64% 6.83% 6.96% 3.00% Rate Plan 3 5.35% 5.64% 5.83% 5.96% 6.00% 7.00% 8.00% Rate Plan 4 4.35% 4.64% 4.83% 4.96% 9.00% 11.00% 13.00% Commercial 5.99% Sellers points will be disclosed to the property owner in the Eligible Improvements Summary that is part of the Finance Agreement.

ORIGINATION FEE Ygrene’s origination fee will always be included as a Program Fee line item that is used to calculate the total project value for residential and commercial projects. System updates include modifications to the: Application - will always include the fee in the project Proposal Tool – will be included in the contract value Finance Agreement –will include the origination fee in the ‘Program-Related Fees’ Program Handbook - will be updated to reflect this change

ORIGINATION FEE

KNOW BEFORE YOU OWE Ygrene has implemented a Know Before You Owe (KBYO) document that discloses to the property owner everything that will be included in the total project financing, including: Product Costs Upfront Financing Costs Closing Costs Specific Terms and Conditions that apply to the program The KBYO will be sent with the Financing Agreement Property Owners will initial and sign the KBYO document, indicating their understanding