The State has created a $10 million reserve fund to reimburse mortgage lenders. The fund would repay the lenders if people who finance clean energy projects through property tax payments default on their loans.
Evan Westrup with Governor Jerry Brown's office says the Federal Housing Finance Agency prohibited mortgage lenders Freddie Mac and Fannie Mae from accepting additional liens for homeowners who wished to finance PACE projects.
"The main concern of the Federal Government was around the financial liability and potential cost if these properties fell into foreclosure," says Westrup.
Jonathan Gemma is with Aztec Solar in Sacramento. He says solar companies have lost business because mortgage lenders wouldn't agree to additional liens to repay clean energy projects.
"Now if there is this reserve fund in place was able to ease concerns of that mortgage lender that there is some backing to this," he says, "they would allow the PACE financing to go and this opens up the opportunity to more people to be able to finance energy efficient equipment."
Besides solar panels, eligible equipment under the PACE program includes low-flow toilets, insulation, and energy-efficient light fixtures.
The mortgage loss reserve program will be run by the California Alternative Energy and Advanced Transportation Financing Authority.
Recent storms in northern California eased the effects of the drought, but not as much as you might have hoped.
The watch continues to see if El Niño conditions will develop to help ease California's drought. But so far, only a weak El Niño is expected.
(AP) -- California officials say they've found a way to pay for building the twin tunnels that would send water around the Sacramento-San Joaquin Delta.
The City of Sacramento is moving closer to meeting a mandate for water meters at the city's 136,000 residences.
A coalition of California environmental, labor and business groups, and local government officials launched a campaign Thursday to fight an effort to overturn the statewide ban on single-use plastic grocery bags.