SB1296 Summary

• Expands Property Assessed Clean Energy (PACE) Act to include residential properties of 4 or fewer units in addition to commercial, industrial, and multi-family properties.

• Requires program administrators and local governments to develop disclosure forms for homeowners detailing all financing terms, payment amounts, annual costs, assessment term length, interest rates, and warnings about utility savings not being guaranteed and potential foreclosure risks.

• Mandates a 3-business-day cancellation right for residential assessment contracts and requires oral confirmation calls with property owners covering key terms before contract execution, with recordings retained for 5 years.

• Prohibits program administrators from making direct or indirect cash payments to contractors or third parties beyond actual improvement costs, providing cash incentives to property owners, or reimbursing contractor advertising unless for bona fide training expenses.

• Requires contractors working on residential PACE projects to maintain proper licensing and insurance, and establishes contractor training requirements covering programs, disclosures, ethics, fraud prevention, nondiscrimination, and senior financial abuse.