Project Title:

Energy Efficiency Improvement Project

Future Hearing Dates:

June 2010

Contact: Maureen Tamuri, Community Development Director, at (818) 224-1701 or email

The MUNICIPAL FINANCING PROGRAM (AB 811-TYPE PROGRAMS) CONCEPT California Streets and Highways Code Sections 5898.20 - 5898.32 (enacted by Assembly Bill (AB) 811, Statutes of 2008) allows the legislative bodies of cities, and counties in California to create a municipal financing program in which property owners may enter into contractual assessments to finance the installation of energy efficiency or distributed renewable energy generation improvements that are permanently fixed to residential (including multi-family), commercial, industrial, or other real property. Under these municipal financing programs, property owners repay the assessments with their property taxes, and the liens associated with the assessments are given priority over previously-recorded private liens (such as a mortgage).

These municipal financing programs are an important tool in the State and City’s goal to increase energy efficiency and renewable energy generation in California, as they decrease costs and increase an owner’s eligibility to finance such improvements.

The City Council first considered this proposal at the October 14, 2009, City Council meeting, where it was favorably received.  Staff was directed to continue research on the program and return with additional information. 

Staff returned to the Council on January 27, 2010 to seek additional guidance regarding program development. At that time, the Council directed staff to pursue joining the county's program. For current status of the county's program, please go to


Cities are free to consider a variety of financing options associated with these programs.  Some issue bonds to cover loan costs, while others contract for loans through a private third party.  As a result, interest costs will vary from program to program, but are usually the lowest when the agency issues bonds.  An additional cost incorporated into the tax assessment is the cost to administer the program itself.  Again, these costs will vary depending on the extent of the program and associated overhead expenses.



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