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Resolutions — Consenting to the Inclusion of Santa Ana Properties in the Ygrene Works Financing Programs August 4, 2015 Page 2 improvements that are permanently fixed to real property. The financing for these improvements has come to be known as PACE — Property Assessed Clean Energy. The PACE financing program provides property owners in participating cities and counties with an option to finance approved energy- and water - saving improvements on their property. If a property owner chooses to participate, the installed improvements are financed by the PACE program administrator. The loan is secured by the property itself, with no obligation to the local government or other participating Jurisdictions. Property owners who wish to participate in this voluntary program agree to repay the amount borrowed through an additional annual increment collected via their property tax bills. In most cases, when the property is sold, the financed amount transitions to the new owner; however, applicants are advised to consult their mortgage company for confirmation. PACE financing is available for eligible improvements on both residential and nonresidential properties. In September 2013, City Council adopted a resolution allowing Santa Ana residential property owners to participate in the California Home Energy Renovation Opportunity (California HERO) Program, one of several AS 811 PACE financing providers. To facilitate implementation of the program within the Santa Ana jurisdiction, the Council action included approval of a Joint Powers Authority (JPA) membership in the Western Riverside Council of Governments, In January 2015, City Council approved joint powers agreements with the CalifornisFiRST Program (offered by the California Statewide Communities Development Authority) and the Figtree Program (offered by the California Enterprise Development Authority), Similar to approving the California HERO program, Council action included approval of JPA associate memberships, These agreements have provided Santa Ana residential property owners with additional AB 811 PACE financing options and expanded the opportunity to commercial properties. in late January, shortly after the City Council authorized participation in the CaliforniaFIRST and Figtree programs, CHF and Ygrene announced the availability of Ygrene Works PACE financing through both AB 811 and SB 555 legislative authority, the only PACE program to do so. The advantages of the SB 555 option include additional consumer protections, longer financing terms (up to 30 years with Ygrene), and opportunities for tax advantages not available with AB 811 PACE programs. Approving the Ygrene Works PACE programs through adoption of these AB 811 and SB 555 resolutions, and joining the CHF Joint Powers Authority, will expand the available options for all Santa Ana property owners — residential, commercial (including multi - family), and, for the first time, agricultural, By offering low cost financing at the lowest rates and fees available, these programs will allow construction of eligible projects to proceed and, in the process, stimulate building activity and the overall local economy, reduce peak energy demand, reduce water consumption, Increase property values, and generate savings on utility bills for Santa Ana property owners, S18/A1EGIC eLAN ALIGNMINT Approval of this Item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement 5 Sustainablilty, Objective #2 (expand opportunities for conservation and environmental sustalnability). Approval of this item also supports the City's efforts to meet Goal #3 Economic Development, Objective #5 (leverage private Investment that results In tax base expansion and job creation citywide). 55E -2