Property Assessed Clean Energy Programs

The City of Kerman is a member of the Figtree PACE (Property Assessed Clean Energy) Program. Figtree PACE program provides financing to help commercial property owners improve their properties and lower their utility bills with energy efficiency, renewable energy, and water conservation upgrades.

From replacing light fixtures to adding energy producing solar panels, Figtree can finance your energy efficient improvements for your commercial property. Figtree provides financing for a wide range of energy upgrades including solar panels, cool roofs, windows, heating and cooling equipment, lighting, and water efficient plumbing. Most energy efficiency, renewable energy, and water conservation projects are eligible.

Click to find a Figtree Financing registered contractor for the City of Kerman or contact Figtree PACE Financing at (877) 577-7373.

Figtree PACE Commercial Financing

Figtree PACE Financing allows up to 20% of a property’s value to be financed for energy efficiency, renewable energy, or water conservation upgrades. The financing creates an assessment lien on the property and is repaid as semi-annual installments on the property tax bill.

Figtree PACE Financing is no money down, long term (up to 20 years), with fixed low interest rates.

Why Energy Upgrades with PACE?

Updating your property with energy efficiency, renewable energy, or water conservation projects raises property values and generates income. Selling prices of green buildings have been shown to be higher by 16%. In addition, with immediate energy savings, rebates, and tax incentives, energy projects with PACE can be cash flow positive in year one. The updated buildings rents are also higher by about 6% further boosting the ROI.

Property and Project Eligibility

Qualifying for PACE financing is based on the property not business credit. All commercial property types are eligible including office, industrial, agriculture, retail, hotel, and multi-family. Non-profits and houses of worship are also eligible.

Most energy efficiency, renewable energy, and water conservation projects are eligible including solar, HVAC, boilers & chillers, lighting, building controls, windows, cool roofing, water-efficient plumbing, and more. The minimum project size is $5,000. Click here to see a sample list of qualifying improvements.

To be eligible the property must be located in a participating area. Please click here to see an online map for the latest list of cities and counties that have made the Figtree OnDemandPACE™ Program available to their property owners

Getting Started and Process

Step 1 – Find out how much financing your property is eligible for by completing the online property check.

Step 2 – Find a contractor that knows PACE and can help you scope your project or you can use your own contractor. They can join the program by registering here.

Step 3 – Develop a project scope of work for your building improvements.

Step 4 – Use the online calculator to estimate your PACE payment amount. Plug that annual payment number into your energy payback or contact Figtree and request a proposal.They will create a cash flow with PACE and will need to know the cost, energy savings, and rebates and incentives for the project.

Step 5 – Apply for the financing online.

The Benefits of PACE Financing and Energy Upgrades

Preserve Cash: Upgrade your property while preserving traditional bank credit and cash for other projects.

Low Annual Payments: Long term PACE financing results in low annual payments allowing energy savings to offset PACE payments.

Get Tax Incentives and Rebates: With PACE financing the property owner owns the system so they keep all rebates and tax incentives for the improvement.

Transfer Lien with Property: PACE lien is attached to the property and can transfer to next owner on sale of the property.

Off Balance Sheet: PACE financing is potentially off balance sheet. Consult your accountant for guidance.

HERO Logo_Tagline1_Size1

The City of Kerman entered into a partnership with the HERO program.  Implementation is now complete and Kerman residents can apply for energy upgrades. Click here to see how HERO can help you.

HERO offers affordable ways to make energy efficient, water efficient, and renewable energy upgrades to your home. HERO offers low-fixed interest rates and flexible payment terms of up to 20 years, with repayments made through your property taxes. You can use HERO to finance energy efficient projects that can increase your property value, lower your monthly utility bills, make you more comfortable in your home and contribute to making your community more energy independent.

To find a HERO registered contractor for the City of Kerman, call the HERO Hotline at 855-HERO-411 (855-437-6411) or on the HERO website.

Financing

HERO finances 100% of the cost to purchase and install eligible energy efficient, water efficient and renewable energy products. HERO offers low-fixed interest rates, flexible payment terms including 5/10/15/20 years for most products, and repayments are made through annual property taxes. Additionally, if the property is sold before the HERO Financing is paid in full, the remaining payments can be passed on to a new property owner.

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Eligible Improvements

Some of the eligible energy efficient, water efficient and renewable energy improvements include:

• Roofing
• Insulation
• Solar PV Panels
• Pool Pumps
• Solar Water Heaters
• Charging Stations
• Efficient Windows
• Sprinklers
• Heating
• Artificial Turf
• Air Conditioning
• Water Savings

For a complete list of projects heroprogram.com

Repayment

The repayment of HERO Financing is included in a homeowner’s property tax bill, which is delivered and collected by the County. Homeowner’s will see a line item titled HERO Financing on their property tax bill. If a homeowner makes property tax payments through an impound escrow account, their lender will adjust their monthly payment to include the amount due for HERO Financing. HERO is different from traditional consumer financing because it is based primarily on the equity a property owner has and because HERO does not base decisions on household income or FICO scores.

HERO Program Fact Sheet

What does the name “HERO” stand for?

HERO is an acronym that stands for: Home Energy Renovation Opportunity.

What is the HERO Financing Program?

HERO is the No. 1 energy efficiency financing program in the United States. HERO partners with local governments to make energy efficient, water efficient and renewable energy products more affordable for homeowners.

How is HERO Financing different from other forms of financing?

HERO is unique in that it provides financing for approved energy efficient, water efficient and renewable energy products. HERO finances 100% of the cost to purchase and install eligible products. HERO offers low-fixed interest rates, flexible payment terms including 5/10/15/20 years for most products, and repayments are made through your property taxes. Additionally, if the property is sold before the HERO Financing is paid in full, the remaining payments can be passed on to a new property owner.

How is HERO Financing paid through my property taxes?

The repayment of HERO Financing is included in your property tax bill, which is delivered and collected by the County. You will see a line item titled HERO Financing on your property tax bill. If you make property tax payments through an impound escrow account, your lender will adjust your monthly payment to include the amount due for HERO Financing.

Who can apply for HERO Financing?

HERO Financing is available to commercial and residential property owners in many cities and counties across the State of California.

Are all contractors qualified to install eligible HERO products?

No. Contractors must be registered with the HERO Program in order to be qualified to install HERO eligible upgrades. To register with the HERO Program contractors must be properly licensed and bonded with the Contractors State License Board. To find a registered HERO Contractor in your community click here heroprogram.com. Property owners are responsible for the selection of the contractor(s) and product(s) necessary to complete their project.

What happens if a property is sold?

Property taxes typically stay with the property when it is sold. Under the HERO Program, when you sell or refinance your property, your remaining payments may stay with the property. However, your lender may require you to pay off the remaining balance when you refinance or sell your home.

What are the eligibility criteria for HERO Financing?

Homeowners who meet the minimum criteria below are eligible for HERO Financing. Specific eligibility requirements for residential properties include the following:

  1. All mortgage-related debt must not exceed 90% of the value of the property.
  2. Mortgage payments must be current at the time of application, and property owner(s) must not have had more than (1) 30-day mortgage late payment over the past twelve months.
  3. Property taxes must be current and there must be no more than one late payment in the past three years.
  4. No outstanding involuntary liens, such as tax liens or mechanic’s liens.
  5. Property owner(s) must not have had any active bankruptcies within the last seven years, and the Property must not be an asset in an active bankruptcy. However, if a bankruptcy was discharged between two and seven years prior, and the property owner(s) have not had any additional late payments more than 60 days past due in the last 24 months, the property owner may be approved.
  6. Mobile homes must be permanently attached to the property and the owner of the underlying property must be the applicant and be subject to real property taxes.

What products are eligible for HERO Financing?

There are more than 900,000 products that are eligible for HERO Financing. Generally, energy and water efficient products and renewable energy systems are eligible.

If I owe more on my house than its market value, am I still eligible for HERO Financing?

No. Total mortgage liens on the property cannot exceed 90% of the value of the property.

Can a mobile home/manufactured home quality for HERO Financing?

Mobile homes (and manufactured homes) are eligible if they are permanently attached to the real property and pay real property taxes (not DMV fees). The mobile home owner must also be the owner of the underlying land. Since an AVM value is often not available for mobile or manufactured homes, the tax assessed value or recent appraisal value may need to be used for the debt-to-value and Eligible Product costs calculations.

Who may install HERO Financed products?

Only contractors registered with the HERO Program or a property owner who has signed a Self-Install Agreement may install HERO Financed Eligible Products.

Are commercial properties eligible for HERO Financing?

Yes. Commercial properties are eligible for HERO Financing. Please go to wrcog.herocommercial.com for more information about commercial financing.

Are there application fees?

There are no fees to apply for HERO Financing.

What interest rates does HERO offer?

The interest rate for HERO Financing varies depending upon the term. Terms can range from 5 – 20 years and will affect your rate. HERO payments may be tax deductible, which can lower the effective interest rate.

Can rebates be used with HERO Financing?

Yes, homeowners can still receive any rebate that is offered by their local utility, city, county, etc. HERO Financing does not affect the rebate process in any way.

How do I get HERO Financing?

HERO Financing is a simple 4 step process:
1. Apply – Find out how much your home is approved for.
2. Select – Choose the eligible products and select the contractor for your job.
3. Sign – Sign your financing documents.
4. Complete – Finish the installation.

Am I required to get an energy audit for my property?

While a residential energy/water audit is not required to participate in the HERO Program, it is recommended in certain cases particularly when you are looking to do whole home improvements for the purpose of maximizing your energy and water cost savings. An energy audit by a certified auditor may be the best way for you to determine which Eligible Products are needed in a home. In addition, the cost of the audit is eligible for HERO Financing along with the Eligible Products themselves.

Can HERO Financing be used for more than one project?

Yes, a property owner can finance multiple projects. However, all projects must be approved in order to make sure.

Can a property owner install their own Eligible Products?

Yes, however, the property owner will not be paid for their own labor and must sign a Self-Install Agreement. If the property owner is also a contractor who has registered with the Program and are installing products on their own house, they may be reimbursed for the labor costs of their work crew, but not for their own personal time and labor.

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