1. PROGRAM INTRODUCTION
1.1  Program Overview
1.2  California Statewide Communities Development Authority 1.3  Purpose of the Open PACE Program
1.4  About this Handbook
1.5  Potential Implications for Property Sale or Refinancing
1.6  Future Program Changes
1.7  Program Contact Information
Key Terms
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2. PROGRAM ELIGIBILITY REQUIREMENTS
2.1  Property Eligibility
2.2  Property Owner Eligibility
2.3 Product Eligibility
2.4 Contractor Eligibility
3. FINANCIAL TERMS
3.1 PACE Assessment Costs
3.2  Annual Repayment
3.3  Prepayment
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4. PROGRAM PROCESS
4.1  Scope of Project
4.2  Application Submission
4.3  Application Results
4.4  Financing Documents
4.5  Oral Confirmation of Terms Call
4.6  Notice of Right to Cancel
4.7  Notice to Proceed and Installation of Eligible Improvements
4.8  Certificate of Completion
4.9  Completion Call
4.10  Third-Party Physical Inspection
4.11  Disbursement of PACE Financing Proceeds to Eligible Contractor 4.12  Record Assessment Lien on Property
4.13  PACE Assessment Added to Property Taxes
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5. ADDITIONAL PROGRAM TERMS AND DISCLOSURES
5.1  Property Owner Agrees to All Program Terms
5.2  Authority to Install Products
5.3  No Endorsement by FortiFi
5.4  Property Owner is Responsible for Products, Permits and Inspections 5.5  Right to Inspect Installation of Eligible Improvements
5.6  Tax Matters
5.7  Releases and Indemnification‍

This California Statewide Communities Development Authority (“CSCDA”) Open PACEProgram & Procedures Handbook (“Handbook”) outlines FortiFi Financial, Inc.’s(“FortiFi”) policies and procedures for administering the CSCDA Open PACE Program(the “Open PACE Program” or “Program”). The CSCDA has established the Open PACEProgram for the benefit of its county-members (including any incorporated city withinthose counties) and the cities in Los Angeles County that are members of CSCDA. TheProgram offers property owners a financing alternative to make capital improvementswhen installing energy or water efficiency, wildfire safety improvements, seismicstrengthening or electronic vehicle charging infrastructure improvements (“EligibleImprovements”). Participation in the Program is voluntary. Property owners repay thefinancing through semi-annual installments collected through a property tax assessmentlien (“PACE Assessment”), which is added to their property tax bill. The property ownerand the CSCDA enter into a contract for the PACE financing (“Assessment Contract”),pursuant to which disbursement of payment for the installation of the EligibleImprovements will be made directly to the contractor selected by the property owner afterthe property owner confirms to FortiFi that the Eligible Products have been installed to theproperty owner’s satisfaction. Property owners are required to be on the property title andmeet all eligibility requirements to qualify for PACE financing.

PACE is NOT a free government program. PACE offers property owners an alternativemethod to finance Eligible Improvements. Property Owners who choose to financeEligible Improvements with PACE financing will pay the cost of the EligibleImprovements, interest and fees through their annual property tax bill.‍

The CSCDA was created in 1988 under California’s Joint Exercise of Powers Act, toprovide local governments access to low-cost financing for projects that provide atangible public benefit, contribute to social and economic growth, and improve the overallquality of life in local communities. The CSCDA is a statewide joint powers authoritysponsored by the California State Association of Counties and the League of CaliforniaCities. In 2015, the CSCDA launched the Open PACE Program to finance EligibleImprovements as may be authorized by law from time to time that are permanently fixed toreal property through the levy of contractual assessments pursuant to Chapter 29 ofDivision 7 of the Streets and Highways Code and the issuance of improvements bondsunder the Improvement Bond Act of 1915. In 2019, the CDCDA engaged FortiFi, as aprogram administrator, to administer the Open PACE Program.‍

CSCDA is offering the Open PACE Program on a statewide basis to encourage theinstallation of distributed generation renewable energy sources, energy efficiencyimprovements, water efficiency improvements, wildfire safety improvements, seismicstrengthening improvements and electric vehicle charging infrastructure within theexisting residential and non-residential building stock. CSCDA will issue assessment-backed bonds that will allow property owners to access competitive interestrates offered by the capital markets.

With the passage of Assembly Bill 32, the State of California (the “State”) set ambitiousgoals for reducing carbon emissions and building alternative energy use. The CaliforniaPublic Utilities Commission has set a goal of retrofitting over 13 million residences in theState to be at least 30% more energy efficient. Many California cities and counties havealso set their own greenhouse gas reduction targets. Similarly, water conservation efforts,including the promotion of water-related improvements to residential, commercial,industrial, or other real property, are necessary to address the issue of chronic watershortages in the State.

Property owners can help to achieve greenhouse gas reductions and reduce water useand, at the same time, save money by investing in distributed generation renewableenergy sources, energy efficiency, and/or water efficiency improvements. The numberone barrier to achieving these goals is the large upfront cost. Utilities sell power and waterto their customers as a simple pay-as-you-go service. Homes and businesses can beconverted to clean energy and reduce water use quickly, but many believe that it canhappen only if paying for distributed generation renewable energy sources, energyefficiency improvements and water efficiency improvements becomes simple – likepaying a utility bill. The Open PACE Program helps make this happen.

Many cities and counties in the State have begun screening properties in theirjurisdictions for deficient wood frame construction (“Soft Story”) and enacting mandatoryseismic retrofit ordinances to address these problems. The Open PACE Program canprovide property owners with an efficient means to finance these seismic retrofits andcomply with local law.‍

The purpose of this Handbook is to provide the policies and procedures of FortiFi in administering the OPEN PACE Program for residential real property. The Property and all Property Owners¹ on the title must meet all of the eligibility requirements and agree to comply with all of the Program rules for the application and funding processes, installment of Eligible Improvements, and repayment of the Total Assessment Obligations, as outlined in this Handbook. All Program applicants are required to verify that they have access to the Handbook, which describes the legal issues associated with the Program, including the responsibilities and obligations of participating Property Owners, Eligible Contractors, and FortiFi, the Program Administrator. Prior to disbursement of the PACE financing proceeds, Property Owners are required to certify in writing that they have read and complied with the terms of the Handbook.

The CSCDA engages multiple program administrators to independently administer andprovide financing under the Open PACE Program. Separate Program Handbooks provide additional details about how the Open PACE Program operates with respect to aparticular program administrator.

^{1 Unless the context clearly requires otherwise, the capitalized terms used in this Handbook are defined in the KeyTerms section herein.}‍

In May 2010, Fannie Mae and Freddie Mac, government sponsored enterprises that purchase a large segment of conforming single family home mortgages from lending institutions, issued new instructions to lending institutions on how to treat properties with assessments under PACE programs. On August 31, 2010, these agencies issued additional instructions to lenders to the effect that Fannie Mae and Freddie Mac “will not purchase mortgage loans secured by properties with an outstanding PACE obligation.”
These instructions may lead mortgage lenders to conclude the PACE assessment should be paid o􀀁 before a property transfers or is refinanced. In addition, it may lead some lenders to conclude that participating in a PACE program is a violation of typical mortgage terms prohibiting senior liens without lender consent. If a Property Owner is selling the Property, a buyer’s lender may refuse to finance the buyer’s first mortgage loan unless the assessment is paid off. Property Owners are urged to carefully read the disclosure information in the Program Application, review this Handbook, review mortgage documents, evaluate the risks of proceeding with a Program Application at this time, and contact their lender if they have any concerns or for information regarding any other financing options that may be available.
Before entering into an Assessment Contract, the Property Owner should carefully review any mortgage agreement(s) or other security instrument(s) which affect the Property or to which the Property Owner is a party. Entering into an Assessment Contract without the consent of the existing lender(s) could constitute an event of default under such agreements or security instruments. Defaulting under an existing mortgage agreement or security instrument could have serious consequences to the Property Owner, which could include the acceleration of the repayment obligations due under such agreement or security instrument.
If the lender requires an impound for property taxes it is the Property Owner’s responsibility to notify the lender of the Annual Assessment Obligation so the lender can adjust the impound amount.‍

The CSCDA and FortiFi reserve the right to change the Program and its terms at any time. However, any change will not affect a Property Owner’s existing obligation to pay the Total Assessment Obligation agreed to in the Assessment Contract. If any provisions of this Handbook are deemed to be unlawful, void, or for any reason unenforceable, that provision shall be deemed severed from the Handbook and shall not affect the validity and enforceability of any remaining provisions.‍

FortiFi Financial, Inc:
Toll-Free Phone 1-855-500-9505
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Address:
FortiFi Financial, Inc.
200 Spectrum Center Drive
Suite 1470
Irvine, CA 92618

Website: www.fortifi.com

Customer Service: compliance@fortifi.com

Department of Financial Protection and Innovation:
Email: ask.dfpi@dfpi.ca.gov
Website: www.dfpi.ca.gov
Consumer Services Toll-Free Number: (866) 275-2677‍

Below is a reference list of key terms associated with participation in the Program.
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Annual Assessment Obligation: annual amount added to the property tax bill, which is equal to Principal, Interest, and Estimated Administrative Expenses for one tax year.

Annual Financing Installment: the annual Principal and Interest paid for one tax year.
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Application: Program application submitted to the CSCDA and FortiFi by the Property Owner in connection with a request for PACE financing. By submission of the Application, the Property Owner represents and warrants that the information set forth therein, including representations concerning the Property Owner and the Property, are true and correct as of the date made.
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Assessed Value: value of a property that has been determined by the county tax assessor’s office.
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Assessment: also called Principal or Total Financed Amount. This is equal to the sum of the Project Amount and Upfront Costs. The Assessment, and each installment thereof and the interest and penalties, if any, thereon constitute a lien against the Property until fully repaid.
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Assessment Contract: legal financing agreement between Property Owner(s) and the CSCDA.
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Building Permit: formal approval of building plans by the designated government agency as meeting the requirements of prescribed codes. It is an authorization to proceed with the construction or reconfiguration of a specific structure at a particular site, in accordance with the approved drawings and specifications.

California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA): CAEATFA administers a program for the State that protects mortgage holders from losses they may incur due to a foreclosure event initiated by a PACE program for a delinquent PACE assessment.
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California Statewide Communities Development Authority (CSCDA): a joint powers authority representing its California city and county members. The CSCDA established the CSCDA Open PACE Program for the benefit of its members to allow for the financing or refinancing through the levy of contractual assessments to encourage the installation of Eligible Improvements.
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California State Licensing Board (CSLB): State entity that licenses and regulates all contractors.
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Capitalized Interest: Interest on the financed amount for the period prior to the first tax year (or initial tax year) in which payment is made.
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Completion Certificate: a document signed by the Property Owner and the Eligible Contractor certifying, among other things, that the Eligible Improvement(s) listed on the Completion Certificate have been installed and are complete to the Property Owner’s satisfaction and instructing FortiFi to disburse the PACE financing proceeds to the Eligible Contractor.
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Eligible Contractor: person or business entity that contracts with the Property Owner to install Eligible Improvements that has signed a Contractor Program Participation Agreement with the Program Administrator. The Eligible Contractor is selected by the Property Owner. The Eligible Contractor is not the agent, contractor, employee, partner, joint venturer, or franchisee of FortiFi in any respect for any purpose whatsoever. Upon the Property Owner’s execution of the Completion Certificate and oral confirmation that the Project has been completed to the Property Owner’s satisfaction, the PACE financing proceeds will be disbursed to the Eligible Contractor.
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Eligible Improvements: PACE authorized improvements that may be financed through the Program. Eligible Improvements are listed in Appendix A.
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Energy Audit: an evaluation of energy consumption in a home or business to determine ways in which energy can be conserved.
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ENERGY STAR: U.S. Environmental Protection Agency (EPA) approved symbol for products that deliver cost-saving energy e􀀂ciency solutions that protect the climate while improving air quality and protecting public health.
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Estimated Administrative Fee: annual fee to cover the applicable county’s and the CSCDA’s cost of collecting the Assessment on the property tax bill.
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Expiration Date: date that all approved Eligible Improvements must be installed and completed in order for the locked interest rate on the Assessment Contract to remain unchanged (typically 180 days after the Assessment Contract Date, depending on the installed Eligible Improvement).

Financing Documents: the Application, Completion Certificate, Financing Estimate and Disclosure, Assessment Contract and related documents that the Property Owner(s) executes to obtain PACE financing.
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Financing Installment: Principal and Interest component of the Annual Assessment Obligation.
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Funding Date: date for disbursement of payment to the Eligible  Contractor.
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Home Improvement Contract: Contract or agreement between the Property Owner(s) and Eligible Contractor pursuant to which the Eligible Contractor agrees to install Eligible Improvements on the Property and the Property Owner agrees to pay the referenced Project Amount, which will be financed by the PACE Assessment.
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Interest Rate: rate applied to the financed amount. The interest is not compounded.
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Lien Recording Fee: county fee charged for recording notice documents relating to the Assessment on the Property.
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Participating Jurisdiction: area where Program financing is available as identified on FortiFi’s website at www.FortiFi.com/communities.
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Principal: also called Total Financed Amount or Assessment. This is equal to the sum of the Project Amount and Upfront Costs.
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Program: CSCDA Open PACE Program.
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Program Administrator: FortiFi Financial, Inc. (formerly known as Energy E􀀂cient Equity (E3).
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Program-Related Fees: one-time fees incurred at funding. Program-Related Fees include program administration, origination, program sponsor, bond counsel, and tax administration.
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Project: installation of Eligible Improvements on the Property by an Eligible Contractor.
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Project Amount: total amount requested by Property Owner to finance the installation of Eligible Improvements.
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Property: real property where Eligible Improvements will be installed.
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Property Owner: the record owner(s) of the fee title to the Property.
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Property Value: value derived from an automated valuation model, the Assessed Value, or the appraised value.
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Residential: depending on the jurisdiction, single family home with 4 or fewer  residential units.
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Recording Fee: fee paid to the county to record and process the Assessment.
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Term: number of years to pay o􀀁 the Assessment.

Total Financed Amount: also called Principal or Assessment. This is equal to the sum of the Project Amount and Upfront Costs.
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Total Assessment Obligation: total of Principal, Interest and Estimated Administrative Expenses over the Term.
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Total Project Amount: amount to be disbursed to the Eligible Contractor for the costs of the Eligible Improvement(s) installed on the Property.
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Upfront Costs: one-time fees incurred at funding. Upfront Costs include Program-Related Fees, Recording Fee and Capitalized Interest.‍

Before submitting an Application to FortiFi, carefully review this section to determine whether the Property and the Property Owner(s) are eligible for Program financing. The Eligibility requirements listed below are the minimum requirements and may vary depending on the jurisdiction.

In determining whether a Property and an associated Eligible Improvement is eligible for PACE financing, FortiFi complies with all requirements of state law and all CSCDA Open PACE Program rules and consumer protection guidelines. FortiFi’s Property eligibility criteria include the following:

In determining whether a Property and an associated Eligible Improvement is eligible for PACE financing, FortiFi complies with all requirements of state law and all CSCDA Open PACE Program rules and consumer protection guidelines. FortiFi’s Property eligibility criteria include the following:

Residential Property: The following residential properties are approved in all jurisdictions: (i) properties with 1-3 living units (may include single family, condominium, townhome, PUD, duplex, triplex, and 4-plex) and (ii) manufactured homes that have supportive documentation showing they have foundations or are permanently a􀀂xed and taxed as real property as stated in CAEATFA’s Regulations Section 10081 (b) (8). The Property must not be exempt from ad valorem taxes.

Maximum/Minimum Financing: The financing must be for less than 15% of the value of the Property, up to the first seven hundred thousand dollars ($700,000) inclusive of the existing assessments, and for less than 10% of the remaining value of the Property above seven hundred thousand dollars ($700,000). The maximum residential Assessment amount is $200,000, the minimum residential Assessment amount is $2,500.

Debt and Equity: All debt secured by the Property may not exceed 90% of the Property’s fair market value (“FMV”), at the time the Application is submitted. Property Owners shall have a minimum of 10% equity in the Property prior to receiving financing through the Program. The total of all debt secured by the subject Property, the new PACE Assessment and all involuntary liens as described herein may not exceed 97% the Property value.

Mortgage History: The Property Owner must be current on all mortgage debt on the Property and have no more than one late payment during the six months immediately preceding the Application date and the late payment may not exceed 30 days past due. The Property cannot be subject to a reverse mortgage.

Participating Jurisdiction: Property must be located in and pay property taxes to a Participating Jurisdiction, and if within the boundaries of a city, the city must have adopted a resolution to participate in the Program.

Property Taxes: The total amount of any annual property taxes and assessments (including all PACE assessments) shall not exceed five percent (5%) of the Property's FMV. All property taxes for the Property that will be subject to the Assessment must be current and FortiFi must ask the Property Owner whether there has been no more than one late payment of property taxes on the Property for the previous three years or since the Property Owner acquired the Property, whichever is shorter.

Involuntary Liens; Defaults: The Property must not have any involuntary liens with a balance greater than $1,000.00. The Property must not have any notices of default currently recorded that have not been rescinded.

Project Eligibility: The Eligible Improvements to be financed under the Program must be a distributed generation renewable energy source, an energy e􀀂ciency improvement, a water effciency improvement, a seismic strengthening improvement or electric vehicle charging infrastructure that is permanently affxed to residential real property. The improvement may also be a wildfire safety improvement permanently affxed to real where the additional requirements of SB 465 are satisfied.

Determination of Property Value: The market value of the Property will be derived using an automated valuation model provided by a third-party vendor selected by FortiFi, the Assessed Value, or an appraisal conducted within six months of the Application date by a state licensed or state certified real estate appraiser conducted in accordance with applicable laws and regulations.

Number of PACE Assessments: Property Owners may apply for multiple PACE Assessments under the Program for the same Property or another Property, provided that the sum of all PACE Assessments for the particular Property meet all Program guidelines described herein, including but not limited to maximum PACE Assessment amounts.

To be eligible for PACE financing, Property Owners must meet the following criteria:
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Owner of Record: Applicant(s) must be the owner(s) of record according to the Property’s title records recorded with the Participating Jurisdiction.

Properties Held in Trusts and Corporate Entities: If the Property is held in a trust or owned by a legal entity such as a corporation or LLC, the Property may be eligible for Program participation provided that the applicant(s) provide documentation from the legal entity granting the applicant(s) the authority to enter into an Assessment Contract.

Ability to Pay: Property Owners must demonstrate a reasonable ability to pay the Annual Assessment Obligation based on the Property Owners’ income, assets and current debt obligations. Property Owners attest to true and accurate ability to pay information by signing the Application and Disclosures.

Bankruptcy: The Property Owner cannot have been a party to any bankruptcy proceedings within the prior four years, except that the Property Owner may have been party to a bankruptcy proceeding that was discharged or dismissed between two and four years before the Application date and the Property Owner has had no payments more than 30 days past due on any mortgage debt or non mortgage debt, excluding medical debt, during the 12 months immediately preceding the Application date.

The Program offers a way for Property Owners to finance the installation of solar, energy effciency, water effciency, seismic strengthening, electric vehicle charging infrastructure, and wildfire hardening products that will be permanently affixed to property. The PACE Assessment Contract can be used to cover the Project costs of products, materials, professional installation, analysis, design, drafting, engineering, permitting, inspections and fees. PACE financing is not available for labor or material charges that are not directly related to the installation of Eligible Improvements. FortiFi may update the product eligibility guidelines and the list of Eligible Improvements from time to time. The Property Owner is strongly encouraged to get multiple bids to determine an appropriate range of costs for the Project.
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To be eligible the Project must meet the following criteria:

Eligible Improvements: Eligible Improvements must be approved by FortiFi, and meet minimum energy production, energy effciency, water conservation, water effciency, seismic strengthening, fire hardening and/or other requirements. Product guidelines and eligibility criteria are attached as Exhibit A and available on FortiFi’s website at www.fortifi.com.

New Products: Property Owners who would like to install a product that is not on the Eligible Product List can fill out and submit a New Product Application Form. This form is typically filled out by the Eligible Contractor. FortiFi will review the new product request and determine if the product meets necessary energy effciency performance attributes. A decision will be made by and at the sole discretion of the CSCDA to add the new product to the Eligible Improvements and Useful Life Schedule.

No Used Products: All products and materials must be new. Used, refurbished or remanufactured products are not eligible for PACE financing.

Permanently Affixed: Eligible products must be permanently affixed to the subject Property.

Useful Life: The Term of the Assessment Contract may not exceed the estimated useful life of the product to which the greatest portion of funds disbursed under the Assessment Contract is attributable.

Installation: A licensed Eligible Contractor that is approved by FortiFi must complete all installations. No self-installations are permitted. Installation costs may include, but are not limited to, energy/water audit costs, appraisals, labor, design, drafting, engineering, permit fees, and inspection charges.

Emergency or Immediate Necessity Product: In the case of an emergency or immediate necessity to finance an eligible heating, ventilation, air conditioning (HVAC) system, boiler or other system whose primary function is temperature regulation, income verification may waived if automated verification is not available, and the following conditions have been met: 1) automated verification of income is attempted; 2) FortiFi asks the Property Owner open-ended questions during the oral confirmation of key terms call to identify income and sources of income; 3) the Property Owner executes a waiver of their Right to Cancel, and 4) the amount of the Assessment Contract does not exceed $15,000 or a monthly equivalent payment of $125.

Only Eligible Contractors that have enrolled with FortiFi may complete Projects financed by the Program.

PROPERTY OWNERS ARE SOLELY RESPONSIBLE FOR SELECTING AN ELIGIBLE CONTRACTOR. PROPERTY OWNERS ENTER INTO A HOME IMPROVEMENT CONTRACT FOR ELIGIBLE IMPROVEMENTS AT THEIR SOLE DISCRETION. FORTIFI DOES NOT SELECT THE ELIGIBLE CONTRACTOR AND IS NOT A PARTY TO THE HOME IMPROVEMENT CONTRACT.
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ELIGIBLE CONTRACTORS ARE NOT THE AGENTS OF FORTIFI OR THE CSCDA.
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FORTIFI, THE CSCDA AND THEIR OFFICERS, EMPLOYEES, AGENTS AND ASSIGNS DO NOT ENDORSE OR RECOMMEND ELIGIBLE CONTRACTORS WHO INSTALL ELIGIBLE IMPROVEMENTS, NOR DO THEY GUARANTEE, WARRANTY OR IN ANY WAY ENSURE THE COMPLETION, INSTALLATION, DESIGN, ECONOMIC VALUE, ENERGY SAVINGS, SAFETY, DURABILITY OR RELIABILITY OF THE ELIGIBLE IMPROVEMENTS BY THE ELIGIBLE CONTRACTORS.

In addition to meeting FortiFi’s Application requirements, a contractor must meet the following minimum criteria to apply to enroll to as an Eligible Contractor:
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Approval or denial of enrollment as an Eligible Contractor is at the sole discretion of the FortiFi.

Active CSLB License: Contractor must have a license in good standing with the Contractors State License Board (“CSLB”). FortiFi will verify the Contractor’s license is active at the time the Contractor submits an application for enrollment as an Eligible Contractor. Contractor must maintain all licenses, registrations and bonds required by applicable law, including but not limited to the California Business & Professions Code and all applicable CSLB requirements.

Insured and Bonded: Contractor must have general liability and worker’s compensation insurance and carry a bond in the amount required by the CSLB.

Customer Review: Must have favorable consumer reviews, e.g., an average of 3+ stars on Yelp or similar site. Based on reviews and other information, Contractor must not have: a clear pattern of customer complaints regarding dishonesty, misrepresentations or omissions; a high likelihood of soliciting assessment contracts in a manner that does not comply with applicable law; or a clear pattern of failing to timely receive and respond to property owner complaints.

Contractor Agreement: All Contractors must execute FortiFi’s Contractor Program Participation Agreement.

Below are the costs and fees associated with Program financing. Costs and fees associated with a specific Project will be set forth in the Financing Estimate and Disclosure and the Assessment Contract. If the Project is not completed by the Expiration Date indicated on the Financing Documents, FortiFi reserves the right to require the Property Owner to enter into a new Assessment Contract for Program financing which may have different interest rates and costs.
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Interest Rate: The Interest Rate for an Assessment is set at the time the Financing Documents are issued. The Interest Rate for an Assessment is set at the sole discretion of FortiFi. The Interest Rate will remain fixed for the entire term of the PACE Assessment.

Application Fee: There are no costs to apply for the Program.

Bond Related Costs: A deposit for debt servicing related to the cost of issuing the bonds.

Lien Recording Fee: The fee paid to the Property Owner’s County to record and process the Assessment.

Capitalized Interest: The amount of interest that is added to the Assessment amount for the period prior to the first tax year in which payment is made. Capitalized Interest accrues between the date the Property Owner executes the Completion Certificate and September 2 of the tax roll enrollment year.

Annual Administrative Fees: An annual fee for ongoing administrative expenses incurred in connection with the administration and management of the Program.

Property Owners repay the Principal, Interest and Annual Administrative Fees over the financing term as agreed to and specified in the Assessment Contract, any Addendum, and Notice of Assessment. The Assessment will be billed and paid as a line item on the Property Owner’s property tax bill. The payment schedule will be included in the Assessment Contract and Notice of Assessment.

Property Owners repay the Principal, Interest and Annual Administrative Fees over the financing term as agreed to and specified in the Assessment Contract, any Addendum, and Notice of Assessment. The Assessment will be billed and paid as a line item on the Property Owner’s property tax bill. The payment schedule will be included in the Assessment Contract and Notice of Assessment.

This section describes the Program application and funding process for Residential Property Owners and Eligible Contractors.

The Property Owner selects the Eligible Improvements to finance through the Program. The Property Owner selects the Eligible Contractor to install the Eligible Improvements. The Eligible Contractor must submit a Home Improvement Contract executed by the Property Owner and the Eligible Contractor which delineates the Eligible Products(s), quantity and cost for which the Property Owner is applying for PACE financing.

Property Owners must submit an Application, Consent to Electronic Signatures, and make certain Disclosures to apply for PACE financing. Submission of an Application does not guarantee that the Property Owner will be approved for financing. The Eligible Contractor should not begin installation of the Project prior to receiving a Notice to Proceed from FortiFi. As part of the Application, the Property Owner will authorize and permit FortiFi to obtain a credit report for each Property Owner and other consumer reports necessary to verify bankruptcy status and Property debt, obtain Property valuation, verify Property Owner declarations regarding title to the Property and current and historical Property tax status, verify income and employment status, and other records necessary to verify information in the Application or confirm eligibility for the Program.
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Any misrepresentation made in the Application, the Home Improvement Contract or any other document at any time may cause the Property Owner and/or Eligible Contractor to be terminated from the Program, the Application to be denied, FortiFi to decline to finance the Eligible Improvements as ineligible and/or initiation of legal action to recover fraudulently obtained funds.

When an Application is submitted, the following reports are obtained (after obtaining authorization from the Property Owner) and reviewed to determine Property eligibility for PACE financing per the criteria above:

Credit Report: A report provided by Experian, TransUnion or Equifax containing detailed information on an applicant’s credit history, including identifying information, credit accounts and loans, bankruptcies, late payments, and recent inquiries.

Property Profile Report: The Property Profile Report is a comprehensive report that summarizes all the information related to the property, including owner, legal description, location, assessment and tax, property characteristics, market sale and sale history, listing data, mortgage history, foreclosure history, owner transfer, and other features.

Lien Report: The Lien Report shows if the subject property has any of the following involuntary Liens with a balance greater than one thousand dollars: Federal Income Tax, State Income Tax or a Judgment.

Automated Value Model (AVM): The fair market value is provided from a third-party vendor and utilizes at least three AVM’s for each Property. The estimated value for each model shall be the average between the high and low values, if a range is provided. The estimated value with the highest confidence score for a Property will be utilized as the Property value.

Government Issued Identification: A government issued identification card or document is required for all Property Owners of record.

Tax ID: A tax identification number provided by each participating member jurisdiction authorizing the CSCDA to levy Assessments and receive remittances from property tax collections.
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If the information needed to determine an application’s eligibility for financing is not found in the Required Documents, the following supplemental documents may be requested:
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