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GENERAL
PROJECT INFORMATION |
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Project Title: |
Energy
Efficiency Improvement Project |
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Future Hearing
Dates: |
June 2010 |
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Contact: |
Maureen Tamuri, Community Development
Director, at (818) 224-1701 or email
mtamuri@cityofcalabasas.com. |
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
www.lacountyenergyprogram.org
FINANCING
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.
USEFUL LINKS
http://en.wikipedia.org/wiki/AB81
http://green.lacounty.gov |
