Nation’s Leading Residential PACE Program Enables Homeowners to Reduce Energy Bills by Upgrading HVAC, Windows and Doors, Going Solar, and More
KANSAS CITY, Missouri, November 30, 2016 – The HERO Property Assessed Clean Energy (PACE) Program is now available to homeowners in the Clay County and Platte County portions of Kansas City, as well as in the City of North Kansas City. HERO financing enables homeowners to make energy improvements and to pay for them over time through their property tax bill. HERO financing payments may have tax benefits, and many homeowners see immediate savings on energy bills by investing in efficiency or renewable energy upgrades.
HERO, which stands for Home Energy Renovation Opportunity, is the largest residential PACE program in the United States and has already helped tens of thousands of homeowners lower utility bills by replacing HVAC systems, upgrading windows and doors, adding insulation, going solar, and more.
By stimulating home renovation activity, the HERO Program increases demand for contractor services, creates clean-energy jobs and local economic growth. Since the program first launched in Jackson County in September, it has financed more than $1 million in energy and efficiency improvements across over 70 homes.
“Kansas City is at the forefront of Missouri’s clean-energy economy,” said Kansas City Councilman and Mayor Pro Tem Scott Wagner. “As the HERO Program expands in our region, many more homeowners have an opportunity to increase the comfort of their homes and lower their energy bills. In the process, they give a boost to their city’s economic prosperity.”
A New Form of Financing For Home Improvements
The HERO Program, which is available to Missouri communities that join the Missouri Clean Energy District (MCED), addresses a problem conventional financing products have not solved. Each year, one in six homeowners replaces a system in the home that affects energy consumption. Most of the time, they choose a less efficient option based on upfront sticker price, instead of factoring in the total cost of owning and maintaining the product or system over the course of its useful life.
“HERO overcomes challenges that have slowed the adoption of energy efficiency and related technologies in our state,” said David Pickerill, executive director of MCED. “By financing only efficient solutions, HERO creates a golden opportunity to upgrade Missouri’s housing stock.”
HERO funds up to 100 percent of the home improvement, and HERO interest rates are fixed and competitive with other options. The term of the financing is based on the useful life of the product, up to 20 years, which spreads out the cost over time. Interest on HERO payments may be tax-deductible, and a recent study showed homes with PACE assessments recovered 100% or more of the investment at time of resale.
Highest Level of Consumer Protections in Home Improvement Industry
The HERO Program is run by Renovate America and MCED, which work in close partnership with cities and counties. Because of the nature of the public-private partnership, HERO financing includes additional requirements to protect consumers not found in other payment options like credit cards or home equity loans. For example, HERO will only pay a contractor after the homeowner signs off that the job has been completed to their satisfaction. Contractors must have a good track record, products and labor must meet competitive pricing standards, and homeowners select from products that meet government efficiency standards.
HERO was the first PACE program to introduce written disclosures modeled after the new federal Know-Before-You-Owe mortgage disclosure that clearly identify the financing terms to the property owner. Additionally, HERO is the only consumer finance offering in the country to require homeowners to confirm with the Program in a live, recorded call their understanding of the key financing terms before moving forward with the obligation.
Finally, HERO also provides post-funding support no other financing options would, including dispute resolution between homeowners and contractors and additional assistance when it comes time to sell or refinance a home with a HERO assessment.
Homeowners interested in applying for HERO financing or who wish to learn more should visitwww.heroprogram.com. Contractors interested in offering HERO financing can register at https://register.renovateamerica.com/.
Benjamin Peters was a reporter for The Missouri Times and Missouri Times Magazine and also produced the #MoLeg Podcast. He joined The Missouri Times in 2016 after working as a sports editor and TV news producer in mid-Missouri. Benjamin is a graduate of Missouri State University in Springfield.
