Consumers First: Senate Supports PACE Measure

(SACRAMENTO) – Today, the California State Senate voted in unanimous support of Senator Richard D. Roth’s consumer protection bill, SB 1087. This measure demands greater accountability and transparency of Property Assessed Clean Energy (PACE) lenders to cut out abusive practices.

“PACE programs can be a useful financing tool,” said Senator Richard D. Roth (D-Riverside). “However, it is incumbent upon us to guarantee that we are protecting homeowners who are seeking PACE loans to better their homes. We must ensure that the practice of misrepresentation and duping Californians is eradicated.”

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

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.

Senator Roth continued: “I recognize value in the PACE program, but I cannot ignore the fact that too many people are unwittingly 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.