Senator Roth Fights to Ensure PACE Consumer Protection

(SACRAMENTO) – Today, Senator Richard D. Roth stood up for thousands of California homeowners and demanded PACE lenders offer greater accountability, consumer protection, and transparency. SB 1087 received bipartisan support and was unanimously approved by the Senate Banking and Financial Institutions Committee.

“SB 1087 is a critically needed consumer protection measure that safeguards California homeowners,” said Senator Richard D. Roth (D-Riverside). “It is simply wrong that a person can sign up for PACE financing they can’t actually afford. Better transparency can mean the difference between a home or heartache for thousands of Californians.”

According to a 2017 investigation by the Wall Street Journal entitled "More Borrowers Are Defaulting on Their Green PACE Loans,” tax data analysis from 40 California counties found the number of PACE assessment delinquencies has grown by nearly 450 percent in the last year. Additionally, roughly 1,100 California borrowers with PACE assessments missed two consecutive payments through the tax year that ended June 30, 2017, compared with 245 the previous year.  Moreover, a 2017 Los Angeles Times article reports the Federal Bureau of Investigation is inquiring about the operations of San Diego-based Renovate America, which is the largest lender of PACE loans.

SB 1087 makes crucial changes to the PACE program: cementing into law that a person being clearly told what they can afford before signing a PACE contract and demanding that bad actors be identified on a publicly accessible list.

Senator Roth continued: “I recognize the value in the PACE program, but I cannot ignore the fact that too many people are obligating themselves to financing they cannot afford. We must protect California homeowners. I believe SB 1087 strikes the correct balance. ”

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Senator Richard D. Roth represents the 31st State Senate District, which includes the communities of Corona, Eastvale, Jurupa Valley, March Air Reserve Base, Moreno Valley, Norco, Perris and Riverside. Prior to his election, he served for 32 years in the United States Air Force, retiring in 2007 in the grade of Major General.