Why PACE Financing Was Invented

PACE is the acronym for Property Assessed Clean Energy. Contrary to public belief, the PACE financing program is not new, the program has existed for over a decade. PACE has enabled local governments and communities across the U.S. to use private financing to make crucial residential and commercial property upgrades. PACE was named one of the top 20 “world-changing” ideas by Scientific American magazine.1

Cisco DeVries was a vital contributor in leading the development of the first PACE program. Cisco spent 15 years in politics and policy in several public and private sector roles – including as an aide to the U.S. Secretary of Energy during the Clinton Administration. Cisco did not think that it was fair or right that only those homeowners that had a lot of money in the bank could put improvements on their home that made them safer, and that saved energy.2

Cisco envisioned bringing to market an affordable home improvement financing option that allowed all homeowners, even those who did not fit in the box for traditional financing options such as a cash-out refinance; Home Equity Line of Credit (“HELOC”); Home Equity Loan; Personal Loan; or a low interest rate credit card, to have access to the funds they needed to make their eligible home improvement projects a reality.

The first PACE financing company is founded In 2008, Cisco cofounded Renew Financial (“Renew”) – one of the nation’s leading and most experienced PACE financing companies to date. Renew specializes in PACE financing to provide homeowners the financing means they need to cover 100% of the costs of their eligible home improvement projects or products at competitive low fixed interest rates, flexible repayment terms, and generally has more flexible qualification requirements compared to those in traditional financing options. Renew currently serves communities in Florida and California, under the program name RenewPACE and CaliforniaFirst. Cisco served as Renew’s president and CEO until 2018. Many other companies have been created and entered the PACE financing space since Renew was founded. Some of these companies include: Ygrene, PACEFunding, Renovate America, E3, Florida PACE Funding Agency, and Counterpointe Energy Solutions to mention a few. Each of these companies use a unique naming convention for the PACE program to differentiate themselves in the market. For example, Renovate America’s PACE program goes by the name of Home Energy Renovation Opportunity (“HERO” program), and Counterpointe’s goes by The Alliance NRG Program. PACE financing is not a traditional home improvement loan PACE financing is not classified as a loan as the amount financed is secured by the property itself via a voluntary tax assessment which appears on the property tax bill as a separate line item. For many decades homeowners have been paying non-voluntary assessments through their local property taxes for projects that benefited individuals and their communities, such as sewer systems, streetlights, and utility lines. These assessments are known as the “land- secured financing district” financing model, PACE financing is an extension of this financing model. With PACE financing homeowners can make eligible home improvements – such as the installation of attic insulation, solar panels, solar water heaters, energy efficient and hurricane-resistant windows and doors, a new HVAC system, and roofing replacement – without any upfront cash. The program offers flexible repayment terms based on the expected useful life of the product(s) being installed, starting as low as 5 years and up to 30 years. Home improvements help families and communities PACE was created to address important disincentives to investing in energy and safety projects. As housing becomes more energy efficient, there is less need to build new power plants and there will be less pollution caused by power generation. Homes that are better able to withstand severe weather reduce the demands on governments to provide disaster relief. When there is less damage to housing, areas can also recover more quickly from severe weather. Next Steps Find out today if your property and home improvement project are eligible for PACE financing. Click here to get started or call 866-891-6879 to contact an authorized PACE provider in your area. An expert PACE financing adviser will answer all of your questions and provide you with a FREE and No-Obligation quote.

Important Information:

PACE financing is subject to credit approval. Underwriting requirements may vary and are subject to change. Additional underwriting requirements and restrictions apply. PACE financing may be required to be repaid upon refinance or sale. Homeowners should perform due diligence before selecting a home improvement contractor. PACE financing is private financing that must be repaid in full. PACE financing is not a government subsidy.

Article Sources:

  1. Scientific American. World Changing Ideas: 20 Ways to Build a Cleaner, Healthier, Smarter World.https://www.scientificamerican.com/article/world-changing-ideas/

  2. ciscodevries.com Meet Cisco  <http://ciscodevries.com/meet-cisco/
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