Los Angeles County - Commercial PACE

September 14, 2021

Summary

LA County has decided to end its PACE program. The program, and others like it throughout the State, have been subject to increasing criticism and concern. The State passed additional legislation to enhance oversight to address these concerns and the County went even further — enhancing its own PACE consumer protection protocols and establishing a call center to confirm consumer's acceptance of the terms. Despite these efforts and the implementation of stronger consumer protection practices, the County cannot be certain these measures will provide sufficient protection for all consumers. The County continues to service existing PACE program participants.

The County's contracts with Renovate America and Renew Financial expired on April 3, 2020. The County stopped approving new assessment contracts through PACE Funding Group on May 13, 2020. 

Businesses in Los Angeles County may be eligible for the county's Property Assessed Clean Energy (PACE) program. PACE programs allow businesses to finance energy and water efficiency projects which are repaid through a special assessment on the business's property taxes. The property must be located within Los Angeles County, and within the boundaries of a city that has adopted a resolution to join the County-wide PACE district. As of January 2016, 85 of 88 cities in Los Angeles County have passed resolutions opting into the LA County PACE Program. 

The technologies listed above are examples of eligible improvements, but other technologies that are permanently affixed to the property, and have proven energy or water savings, may be eligible on a case-by-case basis. The LA County Commercial PACE Program utilizes an “open market” approach, where property owners may negotiate project-specific terms with the PACE investor of their choice, including banks that holds the first mortgages.