Council approves HERO to
finance energy efficient, water wise upgrades
September 03, 2014
By Peggy Kelly
Santa Paula News
A wallet friendly program to allow energy-efficient and water-wise upgrades to property was approved by the City Council although one councilman expressed concerns that the HERO program (Home Energy Renovation Opportunity) might not save the day for everyone.
The council heard about the program at the August 18 meeting from Assistant to the City Manager Elisabeth Paniagua who noted the HERO program is similar to another environmental improvement program known as Figtree. Such programs fund upgrades with low interest loans tied to property tax bills.
Payments are made through the property tax bill for up to 20 years, and interest is tax-deductible.
“I want to make sure of a couple of things, I have a concern or two,” said Councilman Martin Hernandez, who noted the city already belongs to the similar California First program and the Central Coast Coalition is also examining such an offering.
Hernandez said some such programs are frowned upon by mortgage lenders that could create a prepay penalty for those selling property with such a debt.
After a burst of activity about four or five years ago, Paniagua said California First has just been reenergized.
After more discussion Councilman Jim Tovias noted the HERO program as well as others are “optional... “
Hernandez agreed but said that should not preclude education about the different programs as well as the advantages and potential risks.
Dustin Reilich, HERO community development manager, told the council the program offers an affordable way to make home improvements designed to increase energy efficiency and water conservation.
Although there were concerns related to mortgage holders Reilich said state funding is being put aside against losses; his experience has shown that out of thousands of property sales that were enrolled in the program about 97 percent were transferred to new owners without seller payoff for the improvements.
Hernandez repeated that a number of clean-energy loan programs are becoming available, and Paniagua said the city will provide a link on its website to optional plans.
Santa Paula joins Fillmore and Ojai in signing up for the program; cities of Ventura and Thousand Oaks, along with Ventura County, are waiting for more information on optional plans before signing up.
