55C - RESO CLEAN ENERGY FIN PROG

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Resolution — Consenting to the Inclusion of Santa Ana Properties in the California Municipal Finance Authority Open PACE Financing Program February 6, 2018 Page 2 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. 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 AB 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 CaliforniaFIRST 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 August 2015, City Council approved Associate Membership in the California Home Finance Joint Exercise of Powers Authority and Ygrene Energy Fund LLC (Ygrene) which made Ygrene Works PACE financing available to property owners in Santa Ana. Adoption of this resolution will expand the available financing options for all Santa Ana property owners. By offering low cost, competitive financing and fees, 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. This action will make the CMFA, California Property Assessed Clean Energy (PACE) financing available to property owners in Santa Ana. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability, Engagement & Sustainability, Objective #2 (expand opportunities for conservation and environmental sustainability). Approval of this item also supports the City's efforts to meet Goal 55C-2