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California Assembly Bill 811

ryan-frank | Jan 28, 2010 |

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In July 21, 2008 the state of California passed Assembly Bill 811 (commonly known as AB 811). It was signed by Governor Arnold Schwarzenegger and made into law. The bill was designed to encourage property owners to upgrade their properties so they are more energy efficient and environmentally friendly.

Basic Details of AB 811
AB 811 allows California cities and counties to designate areas where willing property owners can enter a contractual assessment to help finance the installation of energy saving upgrades to their homes. AB 811 gives owners low interest loans to help finance the upgrades. The loans are then repaid through the owner's property tax bill. AB 811 was implemented as part of the Global Warming Solutions Act of 2006.

Financial Details
Interest rates for AB 811 loans start at a 7% rate with a 20 year amortization period. Payments are made bi-annually along with the owner's county property taxes. According to http://www.ab811.org, these loans are available exclusively for the installation of "energy efficiencies and renewable energies available to the public".

No credit check is required to qualify for the AB 811 program. Furthermore, payments stay with the property. When the owner sells the house, the charges are transferred to the new owner along with the title transfer at escrow. Palm Desert is the first city in the country where property owners can take advantage of the financing provided by AB 811.

Benefits to Property Owners
AB 811 allows home owners to make energy efficiency upgrades to their home and start benefiting from the electricity savings without having to foot the upfront costs. The payments of the loan get transferred along with the title, but rather than making the house harder to sell, the environmentally friendly upgrades add value to it and make it easier to sell. The minimum size of the assembly bill 811 loans is $5000 and there is no maximum limit. Your credit is not affected when you take out an AB 811 loan. Some of the upgrades you can use the loan for include energy-efficient windows, doors and skylights, air conditioning and ventilation systems, tank-less water heating equipment, pool pumps, solar panel systems and natural gas fuel cells.