On July 21, 2008 the California legislature amended Chapter 29 of Part 3 of Division 7 of the Highway Code and enacted AB 811. Under this new law local governments have the ability to create a Benefit Assessment District and a corresponding loan pool enhancing property owner’s financial options for installing energy efficient improvements, including solar photovoltaic cells. Participants borrow funding from a loan pool and repay it through additional assessments on their property taxes. In doing so, property owners minimize the upfront costs and may have longer repayment periods than with conventional financing. Loans are entered into voluntarily and transfer to the subsequent owner upon sale and have superior lien status above one’s primary mortgage.
CaliforniaFIRST Program
The CaliforniaFIRST AB 811 Program is being instituted by California Communities, a joint powers authority sponsored by California State Association of Counties and the League of California Cities.
Under the CaliforniaFIRST program, all property owners within Ventura County are able to finance renewable energy, energy efficiency, and water efficiency improvements on their property. If a property owner chooses to participate, the improvements would be financed by the issuance of bonds by California Communities who then levies contractual assessments on the owner’s property to repay the loan they issue to finance those improvements.
Why Participate in CaliforniaFIRST
Participating in the CaliforniaFIRST program gives the County a unique opportunity to help both our community and the environment. With rising prices in electricity, gas, and water, this program will allow property owners who may otherwise not have the opportunity, to access investments in technologies that will likely protect them against rising utility costs. This program will also stimulate private business. Not only is the program run primarily by private corporations, it will also generate green jobs among our local businesses. At the same time, this program requires energy efficiency and conservation before addition of solar panels.
Benefits to the property owner include:
Only property owners who choose to participate in the program will have assessments imposed on their property.
In today’s economic environment, there may not be attractive private enterprise alternatives for property owners to finance renewable energy/energy efficiency/water efficiency improvements.
Even if there were private enterprise alternatives, most private loans are due on sale of the benefited property, which makes it difficult for property owners to match the life of the repayment obligation with the useful life of the financed improvements. Under the CaliforniaFIRST Program, the assessment obligation will transfer with the property upon sale.
The property owner may choose to pay off the assessments at any time after paying an administrative fee to do so.
Actions Taken By Board of Supervisors
9-9-2008 - Board Directed County Executive Office (CEO) to look into developing an AB811 Program
8-11-2009 - Report Back to Board on Possible AB811 Program
12-8-2009 - CEO Recommends CaliforniaFIRST Program
1-12-2010 - Board Adopts Resolution to Join California First
