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CC - CONSENT ITEM:  Resolution Authorizing the California Statewide Communities Development Agency (CSCDA) Open Property Assessed Clean Energy (PACE) Program for Residential Properties in the City of Culver City.

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Meeting Date: November 9, 2026

Contact Person/Dept.:                       Diane Glauber, Director of Housing and Human Services/ Housing and Human Services Department

Phone Number:  310-253-5782

Fiscal Impact:  Yes []    No [X]                                          General Fund:  Yes []     No [X]

Attachments:   Yes [X]     No []   

Public Notification:  (E-Mail) Meetings and Agendas - City Council (11/04/2026)

Department Approval: Diane Glauber, Director of Housing and Human Services (10/27/2026)

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RECOMMENDATION

Staff recommends the City Council adopt a resolution authorizing the California Statewide Communities Development Agency (CSCDA) Open Property Assessed Clean Energy (PACE) Program to operate within the City of Culver City, making residential PACE financing available to Culver City homeowners.

BACKGROUND

What is PACE. PACE is a financing mechanism, enabled by the California Legislature in 2008, that allows property owners to finance energy efficiency, renewable energy, and water conservation improvements. PACE financing is repaid as a special assessment on the property’s regular property tax bill, in the same way as other local public benefit assessments, such as neighborhood improvement districts.

Need and benefits. PACE addresses a financial market gap for underserved communities. A larger percentage of PACE customers live in low- and moderate-income communities and have few or no other low-cost financing options due to lower credit (FICO) scores. For homeowners, PACE offers eligibility based on equity in the property and ability to repay rather than on FICO score; no upfront costs ($0 down) for eligible improvements; fixed, fully amortized interest rates; repayment through property taxes; and increased home efficiency, comfort, and resiliency. More than 80 types of improvements are eligible, including HVAC, insulation, roofing, windows and doors, solar panels and batteries, EV charging stations, drought-tolerant landscaping, high-efficiency water fixtures, and drip irrigation.

Consumer protections. California’s residential PACE program has been significantly reformed since 2017. AB 1284 and SB 242 (2017) established the Department of Financial Protection and Innovation (DFPI) as the regulator of PACE administrators, added ability-to-pay and income verification, strengthened underwriting standards and payment history reviews, required comprehensive contractor oversight and training, and required recorded phone calls with consumers to review financing terms. PACE administrators have been licensed by DFPI since 2019. In 2020, AB 1551 and AB 2471 prohibited prepayment penalties and PACE financing on properties with a reverse mortgage and extended the right to cancel from three to five days for homeowners over age 65. DFPI adopted these regulations in 2021.

Additional protections for homeowners include a recorded Confirmation of Terms call; a three-day right of rescission (five days for homeowners age 65 and over); language accessibility services in Spanish; a Certificate of Completion signed by the homeowner; a recorded closing call confirming project completion; and verification of completion through permits, third-party inspection, or TruePic. Contractors are screened for licensing, background, workers’ compensation, and bond and insurance, must complete mandatory training, registration, and a code of conduct agreement, and are subject to marketing guidelines, watch lists, contractor reviews, and ongoing monitoring. Sales Performance Incentive Funds (Spiffs) are not permitted.

Industry results. According to PACENation data through December 11, 2024, residential PACE in California has invested $6,061,763,614 in 238,757 homes, created 70,316 jobs, generated 24,716,516,711 kilowatt-hours of renewable energy, saved 21,829,580,028 gallons of water, produced $7,133,457,416 in utility bill savings, and abated 7,924,240 metric tons of carbon.

Local interest. Home Run Financing has identified more than 90 Culver City properties where a homeowner wanted to use PACE but was unable to because the City has not approved CSCDA’s Open PACE program. In addition, another Culver City resident contacted one of the other CSCDA Open PACE administrators and sent a letter urging the City to approve the program.

Regional approvals. Numerous cities in the region have already approved CSCDA Open PACE, including Agoura Hills, Alhambra, Arcadia, Baldwin Park, Bell, Calabasas, Claremont, Commerce, Covina, Cudahy, Duarte, El Monte, Gardena, Glendale, Glendora, Hawthorne, Inglewood, La Canada Flintridge, La Puente, La Verne, Lancaster, Lawndale, Long Beach, Los Angeles, Lynwood, Montebello, Monterey Park, Norwalk, Palmdale, Paramount, Redondo Beach, Santa Fe Springs, Santa Monica, Torrance, Walnut, West Covina, and West Hollywood.

Please note that Los Angeles County discontinued new residential PACE originations due in part to consumer protection concerns.

CSCDA Open PACE Program. CSCDA’s Open PACE program gives homeowners access to three program administrators. Culver City has been a member of CSCDA since 1999. To make PACE available to Culver City residents, the City Council needs to adopt a resolution authorizing CSCDA’s Open PACE Program.

ENVIRONMENTAL DETERMINATION

Adoption of this Resolution is not a “project” under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4).

FISCAL ANALYSIS

Staff does not anticipate a fiscal impact on the City or the General Fund from adopting the resolution. PACE financing is voluntary for property owners and is repaid by participating property owners through a special assessment on their property tax bill. Culver City has been a member of CSCDA since 1999. The City will not be responsible for the conduct of any assessment proceedings; the levy of assessments; any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of any bonds issued in connection with the PACE Financing.

ATTACHMENTS

1.                     2026-11-04_ATT_Residential PACE Financing Facts Presentation to Culver City (December 2025)

2.                     2026-11-04_ATT_Proposed Resolution Authorizing CSCDA Open PACE Program

recommended action

MOTION

Adopt a resolution authorizing the California Statewide Communities Development Agency (CSCDA) Open PACE Program for residential properties within the City of Culver City.