There are no credit checks although property ownership must be in good standing. Generally, financing approval is subject to the following:
- Applicants must be the legal owner of the property
- Property must be developed and located in Placer County or the City of Folsom (new construction is not currently eligible)
- Property owner must be current on property tax payments and has not been in default for the past three years
- Property owner must be current on mortgages with no notice of default for the last five years
- Property owner must not have a record of bankruptcy for at least seven years prior to application
- Property cannot be subject to bankruptcy
- Property cannot have any involuntary liens
- For non-residential properties lender acknowledgement of the proposed assessment lien is required (program staff will work with you and your lender to obtain the necessary form)
- In most cases the financed amount cannot exceed 10% of property value plus improvements and cannot exceed the property equity. (Financing Amount Example)
- The minimum amount that can be financed is $2,500
- The financing can be repaid over 5, 10, 15, or 20 years or less and is based on the useful life of the improvement(s). Multiple improvements may have varied payback periods – blended/step-down payback periods
- Current interest rate is 6% (simple interest) and the financed amount is amortized.
- A prepayment premium applies. (Prepayment Premium Schedule)
- Lien may stay with property after sale to any subsequent owner
Here’s what you will need to submit a complete application:
- Organizational documents if the property owner is not on title as an individual, i.e., Trust Documents showing the ‘powers of the trustee’ to encumber the property.
- Current mortgage statements or other evidence that mortgages or any other loans secured by the property are current, including equity loans and open equity lines of credit even if balance is zero or line of credit is unused.
- Your contractor’s estimate.
- Previous twelve months of energy use
- Energy audit report for non-residential properties
- Attend a Property Owner Seminar to learn about our MPOWER financing
- For non-residential properties documentation from your energy auditor or contractor showing that the installation of the financed improvement will generate a net positive cash-flow.
- The property value must demonstrate a 10% equity prior to the assessment financing.
- A net positive cash-flow must be demonstrated in order to qualify for financing for on‐site renewable energy projects such as solar, some exceptions may apply.
Cost Covered by MPOWER financing
- Energy Audits
- Program related costs
- Design, drafting and engineering
- Permit and inspection fees
*Terms and conditions are subject to change without notice. Rates and prepayment premiums will not increase after application has been accepted.
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