San Diego-based Renovate America, a provider of Residential Property Assessed Clean Energy (PACE) financing in the U.S., announced the completion of its third securitization of PACE Bonds by issuing $240.1 million in Class A Notes rated AA by Kroll.
According to Renovate, the company, in partnership with 400 Capital, completed the first two securitizations of PACE Bonds last year.
Renovate America partners with local municipalities to provide the HERO program (Home Energy Renovation Opportunity) to property owners, who in turn use the program to finance a wide variety of products to conserve water and save energy including: solar power; energy efficient HVAC, windows, roofing; water capture systems and artificial turf, Renovate said.
“Investors are able to achieve their financial objectives while at the same time provide capital needed to fund improvements which create jobs and conserve resources,” said J.P. McNeill, CEO of Renovate America. “It's a great investment on multiple levels.”
The HERO program provides 100 percent financing for energy and water-saving products for up to 20 years with fixed interest rates. Property owners make payments along with their property taxes, and in the event the property is sold, in many cases the remaining balance can legally transfer to the new owner.
“The HERO program is empowering homeowners and communities across California to conserve both financial and natural resources while spurring job growth,” McNeill said. “Drought over much of the West and Southwest has intensified. California recently mandated a 25 percent reduction in water consumption. HERO is helping homeowners and communities move forward with improvements which support the state’s mandates.”