Senator Dave Min Releases Statement on PACE Reform Bill, Commits to Continuing the Fight for Consumer Protections

Senator Dave Min Releases Statement on PACE Reform Bill, Commits to Continuing the Fight for Consumer Protections

PACE program plagued by corrupt practices

SACRAMENTO, CA — Senator Dave Min (D-Irvine) released the following statement after the hearing of his PACE reform bill, Senate Bill (SB) 476 in the Assembly Local Government committee. The bill enjoyed widespread, bipartisan support in the State Senate but failed to advance out of its first Assembly policy committee yesterday after Senator Min declined to accept major changes that would have removed a suitability audit requirement, one of the key protections that would have been created by the bill.

“Unfortunately, my bill to reform PACE did not pass its most recent hurdle,” Min said. “The bill would have required a suitability audit to determine whether projects being financed by PACE were actually appropriate for the homeowner, as well as other measures that would have meaningfully protected consumers. The PACE program has been marred by widespread fraud since its inception, with predatory practices targeting the most vulnerable homeowners, including seniors, minorities and non-native English speakers. Many victims have lost their homes, and many more have been forced to pay outrageous amounts for uncompleted or unnecessary home improvements that are typically grossly inflated. 

“The changes sought by the PACE industry, which would have likely allowed SB 476 to advance out of the Assembly, would have rendered the bill toothless and done little to protect homeowners from the rampant fraud that is occurring in this industry. I could not in good conscience author a bill that essentially did nothing other than further entrench the status quo, a status quo that I find unacceptable. I am disappointed that SB 476 did not advance out of the Assembly, but I will continue fighting for consumers next year and beyond.”

PACE (Property Assessed Clean Energy) is a public lending program in which low-income homeowners can borrow money at low rates for energy-saving home improvements. PACE contractors — who generally have no financial training — pitch homeowners a complicated financial product and often manipulate consumers. If there are no reforms to PACE, the program would come to an end. Already, counties across California terminated PACE, citing lack of consumer protections.

Earlier this week, on his show “Last Week Tonight,” comedian John Oliver focused on PACE and its abuses.

“If you live in a county that is thinking of implementing a PACE program with for-profit administrators, do whatever you can to stop it,” Oliver said on his segment. “Because the fact is, this business model is fundamentally flawed.”

SB 476 received three aye votes and two no votes but did not receive enough aye votes to move out of the Assembly Local Government Committee.