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.

Economic Stimulus

Lower Utility Bills

New Job Creation

Increased Property Values

Environmental Benefits

Reduced CO2 Emissions

Decreased Energy

Consumption

Substantial Water Savings

Impacts

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)

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

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

Examples of eligible improvements

Types of projects

36%

28%

24%

9%

2% 1%

Most Commonly

Installed Products

Solar PV

HVAC

Windows, Doors, Skylights

Cool Roof

Other

Water Conservation

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

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

Contractors are key…

More than 3,000 participating in the Program

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

Updated consumer protection policy

When an Application is submitted, the system automatically flags the file.

Homeowners required to verbally ‘confirm terms’ before Notice to Proceed is issued. The Confirm Terms call includes additional questions about project scope and financing.

Homeowners are required to verbally ‘confirm work complete’ before project will be funded.

Pricing must be within tighter than normal controls (e.g.,1 std. from the mean).

Consumer Agreement between contractor and homeowner may be required to be submitted to confirm scope of work.

Target Homeowner Groups: Elders (homeowners 64+ or diminished capacity) and Non-English speaking

Protections for the elders and non-English speaking

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

Unincorporated Kerman Kingsburg Parlier Reedley Sanger Selma Imperial County Brawley Calexico Calipatria El Centro Holtville Imperial

Imperial County Unincorporated Kern County Arvin Bakersfield California City Delano Kern County Unincorporated 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 ..Unincorporated Merced County Atwater

Livingston Merced Merced County Unincorporated Mono County Mammoth Lakes Mono County Unincorporated Monterey County Carmel-by-the-Sea Del Rey Oaks Monterey Monterey County Unincorporated Napa County American Canyon Calistoga Napa Napa County Unincorporated 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 …Unincorporated Indio La Quinta Palm Desert Palm Springs Rancho Mirage Sacramento County Citrus Heights Rancho Cordova Sacramento County ….Unincorporated 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 Unincorporated San Marcos Santee Solana Beach Vista San Francisco County San Francisco San Francisco County …Unincorporated 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 Unincorporated South San Francisco Woodside

Santa Barbara County Lompoc Santa Clara County Morgan Hill San Jose Santa Cruz County Scotts Valley Santa Cruz County

Unincorporated Solano County Benicia Dixon Solano County Unincorporated Vacaville Vallejo Sonoma County Sebastopol Sonoma Sonoma County

Unincorporated 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 Unincorporated San Jacinto Temecula Wildomar ________________

HERO Communities as of March 2, 2015

Indicates launched

California HERO - 205 cities and counties and counting

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

Approved Apps: 18

Approved Financing: $844,000+

Projects Completed: 12

Projects Funded: $158,743

Results (ICTC region only) Cities of Brawley, El Centro, and Imperial County

Unincorporated have launched

Cities of Calexico, Calipatria, Holtville, and Imperial will launch later this month

California PACE market place

WRCOG & CA HERO

SANBAG HERO

Sonoma County

CA FIRST Ygrene

Projects funded 20,114 7,082 2,061 140 <100

$ funded (in millions $)

$396.3 $126.6 $58.0 $2.8 <$2.0

Customer satisfaction

Cumulative Property Owner Complaints

Data Analyzed Since May 1, 2013

# Applications since May 1 68,008

Applications with no complaints 67,541 99.31%

of property owners have no complaints

Major Property Owner Complaints 163 0.24%

of property owners voice major complaints

Minor Property Owner Complaints 304 0.45%

of property owners voice minor complaints

Major complaints pending resolution

1 0.0% of property owners have complaints that still need to be resolved

Customer satisfaction

Beginning June 2014, implemented customer survey of all funded projects

1,500 people have completed the survey

Said that they would recommend the HERO Program to a friend or relative.

Said that they would recommend their HERO Registered Contractor to a friend or relative.

97

96

94

Said that HERO Program Representatives are friendly, knowledgeable and professional.

HERO App coming soon

Gain information on:

Applications

Economic impacts

Job creation

And much more!

www.heroprogram.com Contact Information: Rick Bishop, Western Riverside Council of Governments (951) 955-8303 or e-mail bishop@wrcog.cog.ca.us Barbara Spoonhour, Western Riverside Council of Governments (951) 955-8313 or e-mail spoonhour@wrcog.cog.ca.us

Crystal Adams, Western Riverside Council of Governments (951) 955-8312 or e-mail adams@wrcog.cog.ca.us

Questions ?