Part of the City’s five-year goal to cut energy usage by 30 percent, the Palm Desert Energy Independence Program offers home and business owners affordable financing for major energy-saving property improvements, such as high-efficiency air conditioners, dual-pane windows and solar panels. Long term payback of the improvements is linked to the owner’s property taxes.
Since its launch in August 2008, the Energy Independence Program has made $5 million in loans, funded with $2.5 million each from the city’s general fund and Redevelopment Agency. In February 2010, the City announced the release of $6 million in new funding for the program. Half of the new funds will be dedicated to loans for energy efficiency improvements with the other half reserved for loans for solar projects.
NOTICE - In May 2010, Fannie Mae and Freddie Mac issued new instruction letters to banks and credit unions on how to treat assessments under programs such as the Palm Desert Energy Independence Program (EIP). These letters implied that energy improvement assessments should be classified as “loans” instead of “assessments.”
On Friday, July 2, 2010, the Department of Energy and the White House withdrew their support for property assessed clean energy (PACE) programs like the EIP. On July 6, 2010, FHFA issued a guidance statement to lenders. That statement offers protection for EIP participants with assessments established and liens placed before July 6, 2010, but also includes new restrictions that could affect lending standards applied to all residents of Palm Desert if the EIP program continues.
In an effort to protect our participants, the Palm Desert Energy Independence Program is temporarily suspending the processing of all residential applications and will not be accepting new residential applications or signing new contracts pending direction from the City Council. Businesses are still eligible to apply.
We remain hopeful and will continue our endeavors toward a positive resolution that will allow the EIP to again offer financing to all segments of the community.
Click below to view additional correspondence on this topic:
FHFA Statement on Certain Energy Retrofit Loan Programs
FHFA Letter to California Attorney General
California Governor's Press Release Regarding FHFA Response
For up-to-date information, please regularly check this page, contact the Office of Energy Management at 760-837-0287 or click here.