First, let's explain PACE - Property Assessed Clean Energy programs allow owners to finance energy efficiency and renewable energy projects through property assessments that last the functional life of a project, typically around five to twenty years. An example would be solar panels that you finance through a PACE program. A lien is placed on the home and must be paid off at the time of property transfer. This means either seller pays it off or buyer agrees to assume the payments.
In recent years, the Legislature has tried to increase consumer protections for PACE financing programs. There is still room for improvement. AB 1551 will require a paper copy of the PACE disclosure be given to potential customers. Also, the bill seeks to prohibit prepayment penalties for those who wish to pay off their assessment and prohibits PACE assessments when a reverse mortgage is in place.
Source: C.A.R. Weekly Update of State Legislation 8/10/2020
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