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2010. However CaliforniaFirst’s residential PACE program has been stalled since this <br />time by Federal regulatory hurdles related to the Federal Home Financing Agency’s <br />(FHFA) determination that PACE senior position liens could put Fannie Mae and <br />Freddie Mac mortgages at risk in the event of a default. In an attempt to address FHFA <br />concerns and ensure the success of PACE programs in California, the Governor <br />established a loss reserve fund. <br /> <br />Following the State’s actions to support PACE in California, CaliforniaFirst announced <br />that it will re-launch its residential PACE program in 2014. Since Redwood City is <br />already a participant in the program, no action is required for the re-launch. However, <br />the City has the option to make other, existing PACE programs administered by joint <br />powers authorities available to property owners at the same time that CaliforniaFirst is <br />re-introduced with little additional staff work. <br /> <br />ANALYSIS <br /> <br />Environmental Initiatives Committee Review <br />Staff assessed the possibility of expanding the number of PACE programs in Redwood <br />City and brought the item to the Council’s Environmental Initiatives Committee, <br />comprised of Councilmembers Bain and Pierce on August 22, 2014 for consideration. <br />Staff provided the Committee with an overview of the process for establishing additional <br />PACE programs through HERO and Figtree and the issues associated with the FHFA’s <br />stance on PACE (described below). In addition, the Committee discussed the benefits <br />to the community of having more PACE program options in Redwood City. <br /> <br />The WRCOG and CEDA JPAs’ success with PACE in other parts of the state gives <br />Redwood City an expedient opportunity to make additional financing options available to <br />our businesses and residents. These programs reduce the barriers to implementing <br />renewable energy and energy and water efficiency projects with long-term paybacks but <br />immediate environmental benefits. This would support the achievement of several <br />Climate Action Plan measures related to residential and commercial energy efficiency <br />and the promotion of renewable energy projects. <br /> <br />Participation in any PACE program is voluntary. The City’s intent in authorizing multiple <br />PACE programs within Redwood City would be to provide a range of options for <br />residential and commercial property owners to explore and compare with other <br />traditional financing mechanisms that may be available to them so that they may choose <br />their best course of action. <br /> <br />Based on the interest in achieving the City’s environmental goals and limited staff <br />resources to establish a stand-alone, self-operated PACE program, the Environmental <br />Initiatives Committee recommends proceeding with HERO and Figtree as additional <br />third party-administered PACE programs in Redwood City. <br /> <br />PACE Program Overview <br />9.B. - Page 2