In part one of our blog on PACE programs, we discussed what PACE is and how it works for property owners who finance energy-saving improvement projects. There are a variety of private lending organizations that work with cities and states across the country. One of the most influential is known as the HERO Program, providing upfront financing for a variety of energy-saving home and business improvements like solar panels, roofing, insulation, and more.
What About PACE Lenders like the HERO Program?
There are a number of lenders who have stepped in to provide upfront financing. One of the most popular is the HERO Program. HERO stands for “Home Energy Renovation Opportunity”. HERO has partnered with local governments and contractors to offer competitive financing for energy-efficient property improvement projects. This serves to make such projects more affordable and more desirable than ever before.
The HERO Program offers several benefits that property owners can enjoy, including:
- Easy application and approval based on a property’s equity
- Flexible repayment terms from five to 25 years
- Tax-deductible HERO interest payments
- All upfront costs are covered – even fees and labor associated with the improvement project
If HERO Program financing has been approved by local governments, any property owner covered by that government is eligible to apply.
HERO also helps property owners find participating contractors. The organization has developed a network of experienced building contractors in many communities; each contractor in the network adheres to stringent consumer safety guidelines and maintains good standing with the HERO Program.
In certain states like California that experience devastating droughts, the HERO Program may also cover upgrades that save water. Hurricane protection upgrades in roofing security and framing upgrades are also covered in Florida.
PACE financing and the HERO lending program have made it easier than ever for property owners to make energy-saving improvements to their properties. With competitive interest rates and many benefits, property owners can pay for these upgrades over time without any upfront expenses.