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News & Press: Sacramento Report

Legislature Passes Trio of PACE Bills

Tuesday, September 18, 2018  
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The Legislature sent three bills dealing with the Property Assessed Clean Energy (PACE) program to Governor Brown’s desk in the final week of session.

Two of the bills, AB 2063 (Aguiar-Curry) and SB 1087 (Roth), would enact reforms of the PACE program related to underwriting, regulatory, and reporting guidelines. The two bills, which were supported by CLTA and a coalition of consumer and real estate industry trade groups, are the latest in a series of proposals intended to address reports of unscrupulous sale and lending practices on the part of PACE program administrators. Notably, AB 2063 would require that borrowers’ ability-to-repay would be verified prior to execution of an assessment contract, while SB 1087 would modify and clean-up aspects of the Department of Business Oversight’s regulatory processes as instituted by last year’s AB 1284 (Dababneh).

The third bill, SB 465 (Jackson), seeks to expand the availability of PACE to homes in areas designated as “Very High Fire Hazard Severity Zones” for the purpose of installing improvements related to wildfire resistance. The additional improvements allowed under the bill include, among other things, roofs, vents, windows, and access roads. A coalition of industry groups, including CLTA, opposed the bill over concerns that there has been insufficient time to determine if current and pending PACE reforms have actually had a positive effect on consumer protections, and that more consumer-friendly financing options are available to homeowners today for putting in place wildfire resistant property improvements.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
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