HVCC Homestead Valley Community Council supports AB 811

In July 2008, California passed Assembly Bill 811. This

legislation allows municipal authorities to provide

low interest loans to home and business owners for

energy efficiency improvements. These loans will

fund air conditioning replacement, better doors and

windows, and even rooftop solar panels. The law

further allows local governments to be paid back for

their loans through the property tax collection system.

The loan would be a lien on the property, eliminating

lengthy qualification processes, and be transferable if

the property ownership is transferred.

One of the biggest misconceptions about AB 811 is that it is funded by taxpayer dollars, making it another costly

government program. THIS IS FALSE! Loans through AB 811 are usually funded through investment bonds,

improvement bonds, development bonds, or bank loans. The interest rates are generally around 7%, and the local

governments offering the loans usually provide assistance in finding the best prices for the energy efficiency

improvements being applied for. Local governments can charge a small administration fee, which is included in

the 7%. No taxpayer or ratepayer funds are required, and the home or business owners see an immediate increase

in their property value - without a reassessment! In fact, in most cases, the per month savings in energy costs

outweigh the monthly loan repayments. In other words, you can actually save money by participating in AB 811

programs.

On May 11, 2009, the Homestead Value Community Council sent a letter of support to the County of San

Bernardino for AB 811 loan programs available to rural communities like ours, that do not have a local

government to fund these loans. We are very optimistic SB County will soon unveil such a plan. We will post

updates on this very important issue!