Frequently Asked Questions

What is this Program? The goal of the Program is to offer low interest loans to approximately 13,500 homes and businesses in Western Riverside County for the purchase and installation of energy efficiency and water conservation improvements. Loans to property owners would be repaid over a period of years through voluntary annual assessments.

Why will a loan Program work? Many homeowners and businesses desire to retrofit older buildings in order to achieve energy efficiencies and lower related energy costs. Unfortunately, the up-front, one-time costs for installing these kinds of improvements are often an impediment to energy efficient retrofitting. This loan Program will remove this funding impediment, and allow for thousands of properties in one of the fastest growing areas in the United States to reduce energy use, improve home values, and create jobs.

Who will implement the Program? The Program will be administered by the Western Riverside Council of Governments (WRCOG). WRCOG is a joint powers authority consisting of each of the 16 cities in Western Riverside County, the County of Riverside, the Eastern Municipal Water District, and Western Municipal Water District. A regional approach to program implementation through WRCOG will provide for a consistent approach throughout Western Riverside County and achieve significant economies of scale as they relate to costs for staffing. As part of its responsibilities, WRCOG will develop the Program implementation/administration parameters, conduct energy and water surveys, develop Program outreach materials and campaign, develop and conduct training workshops, initiate loans and develop tracking and reporting mechanisms.

How will the Program work? This is a voluntary program. Willing property owners will apply for Program coverage, and describe the energy and/or water saving improvement(s) desired to be purchased and installed. If approved, WRCOG and the property owner will enter into an assessment contract, through which WRCOG will pay the up-front costs of the energy efficient improvements. WRCOG will place an assessment lien on the property, and the property owner will repay WRCOG for the improvements as part of an annual assessment on the property tax bill over a specified period of time.

What kinds of improvements qualify? WRCOG will work with member jurisdictions, water districts, and utilities to develop a listing of eligible projects that the loans will cover. Generally, these are improvements that would be considered as permanent fixtures to a property. These include, but are not limited to solar panels, heating and air conditioning systems, pool filtration equipment, windows and doors, and other investments that will significantly reduce energy use and, in many instances, pay for themselves over time through reduced utility bills.

Who qualifies to participate? Property owners may be individuals, associations, business entities, cooperatives, and virtually any owner paying real property taxes. Any residential, commercial, or industrial property owner in participating jurisdictions can participate in the program. In order to qualify, the property owner must: 1) Have clear title to the property; 2) Be current on property taxes; 3) Be current on mortgage payments; and 4) Request improvements that are reasonable both in cost, and in relation to the property value. Properties built prior to 2000 would most likely receive a larger return on energy efficient retrofit investments. In Western Riverside County, there are approximately 189,000 residential properties and 7,000 commercial properties that were constructed prior to 2000.

What are the economic impacts? Using methodological information from the Obama Administration, it is estimated that implementing a $300 million Program would create or retain an estimated 3,200 jobs in Western Riverside County.

What are the benefits to Western Riverside County? In addition to significant jobs creation, the Program will also:

• Reduce/delay the need for costly infrastructure investments related to additional energy generation and transmission facilities;
• Reduce utility bills for thousands of property owners;
• Improve home and property values by upgrading buildings with energy efficient improvements;
• Position Western Riverside County as a leader in improving air quality and reducing greenhouse gas emissions via a coordinated, large-scale effort supported by jurisdictions in one of the fastest-growing regions in the United States.

What are the Program benefits to property owners?

• Provides no-money-down means of financing energy efficiency and conservation improvements;
• Provides a fixed-rate financing over a number of years;
• Provides financing without requiring a property appraisal;
• Provides an easy-to-understand and straightforward financing process;
• Provides residents and businesses access to financing that might not readily be available through traditional means, such as home equity loans;
• Removes the initial up-front costs from being a detriment to energy efficient retrofitting.

What would an average loan amount be? WRCOG estimates that average residential property loan will be $17,500, and average commercial property loan will be approximately $30,000.

What happens if a participant sells their property? The tax obligation will remain an obligation of the property when it is sold. If a participant sells a property prior to the end of the contract tax period, the new owner will assume the obligation as part of the annual tax obligation on that property. The energy systems are part of the property and ownership of the energy system will transfer to the new owner at the close of the real estate sale.

What are the loan terms? The loan terms can run 5, 10, 15, and 20 years. The terms will be based on the type and cost of improvements.

What is the interest rate? The interest rate for the Program will be determined once funding for the Program has been secured.

Does the Property still qualify for rebates or tax credits? Yes, rebates or other incentives that are received at the time of project completion or shortly thereafter (by either the property owner or the contractor) so as to reduce the costs of a project at the outset will not be included in the financing amount. Tax credits that may eventually be available to a property owner and would vary based on applicable tax brackets are not taken into account in determining the financing amount.