1. Property Assessed Clean Energy (PACE): Overview & Tax Assessments
CALSACA – Property Tax Managers’ Subcommittee
Property Assessed Clean Energy (PACE): Overview & Tax Assessments
Crystal Crawford, Ygrene Energy Fund
Sacramento, CA 10/4/16

2. Presentation Overview
PACE – How does it work?
Consumer Protections
PACE Funding Process, Payment and Repayment, Coordination with County Auditor-Controllers and Property Tax Managers
Questions?

3. Comprehensive Program
RESIDENTIAL
MULTI-FAMILY &
COMMERCIAL
Use Financing to
Pay for Upgrades
Consumer
Protections
Certified Contractors,
Local Permits and
Customer Approval
are Required
JPA
Forms PACE
Program
LOCAL
GOVERNMENTS
Authorize Program
CERTIFIED
CONTRACTORS
Utilize Financing to Market
Building Upgrades

4. ADVANTAGES FOR PROPERTY OWNERS
100% financing – no out-of- pocket costs
Low Rates & long terms
Eligibility based on mortgage and tax pay history, not credit score
Designed to stay with property upon sale
Off balance sheet treatment
Non-recourse financing
Low rates & long terms
100% financing – blended debt + equity
NNN pass-through to tenants addresses the ‘split incentive’ challenge
Ygrene Confidential

5. OPERATIONAL SIMPLICITY
Approval and finance documents issued in 15 minutes or less
Monthly Call Center Metrics
10,000-15,000 new applications this year
Ygrene Confidential

6. CONSUMER PROTECTION GSFA & Ygrene have adopted an enhanced
Contractor Quality Assurance
CSLB, bond, insurance screening
Training and certification
Watch lists, annual audits, ongoing skills assessment and monitoring
Program Quality Assurance
Monthly audit of PACE assets to validate accuracy and integrity of system, contract, underwriting, financing, processes and data
Lending Practices
Eligible measures & pricing review
Underwriting
Key disclosures
Identify verification
Right to cancel
Settlement statement
Approvals & Payment Protection
Payment protection via property owner and contractor authorizations
Permit verification & third-party inspections
Privacy & Data Security
Protection and controls safe-guard sensitive consumer information
Cyber-security standards protect points of vulnerability
Dispute Resolution
Staff trained to receive, manage, track, report and resolve complaints quickly
Protected Classes
Verification by phone with elder customers (age 64+)
Spanish/bilingual CSRs on staff
GSFA & Ygrene have
adopted an enhanced
PACE Nation Consumer
Protection Policy

7. Fee Schedule, Terms & Rates

8. PROJECT FUNDING FLOW

9. Payment & Repayment Processes
COUNTY TREASURER-TAX COLLECTOR
Auditor-Controller adds per parcel and/or per district fee
Treasurer-Tax Collector adds per parcel and/or per district fee
COUNTY AUDITOR-CONTROLLER
Willdan prepares tax roll in County-specific format
WILLDAN TAX ADMINISTRATION
WILLDAN, INSURANCE, SERVICES PMT/FEE
Property Owner pays PACE tax payment
District assigns PACE assessment on property
Fees
PROPERTY OWNER
Cash for cost of EE/RE Improvement
Payment to Ygrene for Ygrene position
TRUSTEE
Cash payment to Ygrene to fund project
Assignment of right to banks to receive tax revenue stream
Tax revenue stream to bank partners
Transfer of right to receive tax revenue
SECURITIZED POOL
FINANCIAL PARTNERS
$150M
credit
facility
$20M
revolving
facility
Additional Financial Partners, Etc.
Cash to purchase instruments
Cash purchase of interest
Yearly payments fully amortized for yrs
INVESTORS

10. Tax Administration Process - California
Willdan Submits Information for Each County’s Tax Roll

11. District Development & Government Affairs
Questions?
Crystal Crawford
Senior Director
District Development & Government Affairs
Direct