Funding is paid back through property taxes over time. WRCOG initiated the HERO Program in December 2011 for its members.

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2 Background The HERO Program provides financing to property owners to improve their homes and businesses with energy efficient, renewable energy, and water conserving improvements. Funding is paid back through property taxes over time. State legislation (AB 811) enables this Program. WRCOG initiated the HERO Program in December 2011 for its members. WRCOG expanded its Program (called California HERO) to allow other cities and counties in the State to participate.

3 Impacts Economic Stimulus Lower Utility Bills New Job Creation Increased Property Values Environmental Benefits Reduced CO2 Emissions Decreased Energy Consumption Substantial Water Savings

4 Who qualifies to participate? Property owners may be individuals, associations, business entities, cooperatives, or non-profits Bottom line: Any qualifying owner paying property taxes have clear title to property be current on property taxes be current on mortgage payments have some equity in the property no bankruptcies lender consent (commercial only)

5 How does it work for the property owner? It s a voluntary program Property owners apply for Program coverage and select improvements desired If approved, property owner enters into contract with administrator; all up-front costs are paid and assessment lien is placed on property Property owner / subsequent property owner repays through property tax assessment over a period of years

6 Examples of eligible improvements Heating and air conditioning Cool roofs Natural gas storage water heater Tankless water heater Windows and glass doors Outside irrigation Insulation Window filming Home sealing Lighting control systems Solar thermal systems (hot water) Solar thermal systems for pool heating Photovoltaic systems Low flush toilets

7 Types of projects 2% 1% 9% Solar PV 24% Most Commonly Installed Products 36% HVAC Windows, Doors, Skylights Cool Roof Other 28% Water Conservation

8 Program costs One-time Administration Fee: 6.95% (Similar to closing costs) Annual Administrative Fee: $35 Residential and $385 Commercial Terms: 5, 10, 15, 20, 25 years Interest rates: 5.95%, 7.95%, 8.75%, and 8.95% - Residential 5.95% to 6.85% - Commercial Minimum assessment amount: $5,000 Residential maximum is 15% of property value up to $700k, 10% after Commercial maximum is 20% of property value No prepayment penalties for residential

9 Contractors are key More than 3,000 participating in the Program Must have an active California State License Board (CSLB) license Must meet CSLB s bond and workers compensation insurance requirements Must provide evidence of jurisdictional business license if no jurisdictional permit is required for project Must register and be trained on the Program

10 Updated consumer protection policy Registered Contractors CSLB Confirmation, Insured, Bonded Contractor Training Identity Verification In Good Standing Product Eligibility Check Fair Pricing Permits Required Terms Confirmation Paid Upon Job Completion Dispute Resolution

11 Protections for the elders and non-english speaking Target Homeowner Groups: Elders (homeowners 64+ or diminished capacity) and Non-English speaking When an Application is submitted, the system automatically flags the file. Pricing must be within tighter than normal controls (e.g.,1 std. from the mean). Homeowners required to verbally confirm terms before Notice to Proceed is issued. The Confirm Terms call includes additional questions about project scope and financing. Consumer Agreement between contractor and homeowner may be required to be submitted to confirm scope of work. Homeowners are required to verbally confirm work complete before project will be funded.

12 California HERO cities and counties and counting Alameda County Albany Berkeley Contra Costa Antioch Concord Lafayette Martinez Oakley Pleasant Hill Pittsburg Richmond San Pablo San Ramon Walnut Creek El Dorado County South Lake Tahoe Fresno County Clovis Fresno Fresno County Kerman Kingsburg Parlier Reedley Sanger Selma Imperial County Brawley Calexico Calipatria El Centro Holtville Imperial Imperial County Kern County Arvin Bakersfield California City Delano Kern County McFarland Ridgecrest Shafter Taft Tehachapi Wasco Kings County Lemoore Los Angeles County Alhambra Arcadia Avalon Azusa Baldwin Park Bellflower Bradbury Brentwood Carson Claremont Commerce Covina Diamond Bar El Monte El Segundo Gardena Glendora Hawthorne Hermosa Beach Industry Inglewood Irwindale La Cañada Flintridge Lancaster La Verne Lawndale Lomita Malibu Monrovia Montebello Monterey Park Palmdale Pomona Rancho Palos Verdes Redondo Beach Rolling Hills Rolling Hills Estates Rosemead San Dimas San Fernando San Gabriel San Marino Santa Monica Sierra Madre South El Monte South Pasadena Temple City Torrance Walnut West Covina Madera County Madera County.. Merced County Atwater Livingston Merced Merced County Mono County Mammoth Lakes Mono County Monterey County Carmel-by-the-Sea Del Rey Oaks Monterey Monterey County Napa County American Canyon Calistoga Napa Napa County St. Helena Yountville Orange County Aliso Viejo Anaheim Brea Buena Park Costa Mesa Cypress Fountain Valley Garden Grove Huntington Beach La Habra La Palma Lake Forest Laguna Hills Newport Beach Placentia Rancho Santa Margarita San Clemente Santa Ana Stanton Tustin Westminster Yorba Linda Riverside County Beaumont Cathedral City Coachella Desert Hot Springs E. Riverside County Indio La Quinta Palm Desert Palm Springs Rancho Mirage Sacramento County Citrus Heights Rancho Cordova Sacramento County. San Diego County Carlsbad Coronado Del Mar El Cajon Encinitas Escondido Imperial Beach La Mesa Lemon Grove National City Oceanside Poway San Diego San Diego County San Marcos Santee Solana Beach Vista San Francisco County San Francisco San Francisco County San Joaquin County Lodi Manteca Ripon Stockton Tracy San Mateo County Daly City Foster City Menlo Park Redwood City San Bruno San Mateo San Mateo County South San Francisco Woodside Santa Barbara County Lompoc Santa Clara County Morgan Hill San Jose Santa Cruz County Scotts Valley Santa Cruz County Solano County Benicia Dixon Solano County Vacaville Vallejo Sonoma County Sebastopol Sonoma Sonoma County Stanislaus County Hughson Modesto Newman Oakdale Riverbank Turlock Waterford Tulare County Tulare Visalia Ventura County Fillmore Ojai Oxnard Port Hueneme Santa Paula Simi Valley WRCOG Banning Calimesa Canyon Lake Corona Eastvale Hemet Jurupa Valley Lake Elsinore Menifee Moreno Valley Murrieta Norco Perris Riverside Riverside County San Jacinto Temecula Wildomar HERO Communities as of March 2, 2015 Indicates launched

13 Program results 205 cities and counties have joined WRCOG s California HERO Program Represents 6+ million households $396+ million for 20,000+ completed projects have been funded: $246 million in Riverside County $150 million in California HERO 25,000+ applications approved $1.9 billion in approved applications

14 Results (ICTC region only) Cities of Brawley, El Centro, and Imperial County have launched Cities of Calexico, Calipatria, Holtville, and Imperial will launch later this month Approved Apps: 18 Approved Financing: $844,000+ Projects Completed: 12 Projects Funded: $158,743

15 California PACE market place WRCOG & CA HERO SANBAG HERO Sonoma County CA FIRST Ygrene Projects funded 20,114 7,082 2, <100 $ funded (in millions $) $396.3 $126.6 $58.0 $2.8 <$2.0

16 Customer satisfaction Cumulative Property Owner Complaints Data Analyzed Since May 1, 2013 # Applications since May 1 Applications with no complaints Major Property Owner Complaints Minor Property Owner Complaints Major complaints pending resolution 68,008 67, % % % 1 0.0% of property owners have no complaints of property owners voice major complaints of property owners voice minor complaints of property owners have complaints that still need to be resolved

17 Customer satisfaction Beginning June 2014, implemented customer survey of all funded projects 1,500 people have completed the survey 97 Said that HERO Program Representatives are friendly, knowledgeable and professional. 96 Said that they would recommend the HERO Program to a friend or relative. 94 Said that they would recommend their HERO Registered Contractor to a friend or relative.

18 HERO App coming soon Gain information on: Applications Economic impacts Job creation And much more!

19 Questions? Contact Information: Rick Bishop, Western Riverside Council of Governments (951) or Barbara Spoonhour, Western Riverside Council of Governments (951) or Crystal Adams, Western Riverside Council of Governments (951) or

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