(a) The terms and conditions of Qualified Loans, including interest rates, fees and other conditions, shall be determined solely by agreement of the Participating Financial Institution and the Borrower.
(b) A Participating Financial Institution shall be authorized to enroll under the Program all or a part of any Qualified Loan by notifying the Authority in writing, within fifteen (15) business days after it receives a signed Certificate of Completion from the Qualified Contractor and/or Borrower certifying that the project is complete and has satisfied all Program requirements, that it is enrolling a Qualified Loan. For Qualified Loans involving multiple Certificates of Completion from Qualified Contractors, the fifteen (15)-business-day period shall start upon the date of receipt by the Participating Financial Institution of the last required Certificate of Completion.
(c) In order to enroll a Qualified Loan, a Participating Financial Institution must submit the following documents:
(1) Loan Enrollment Application.
(2) Certificate of Completion.
(3) A copy of the Pre-Project Assessment.
(4) A copy of the Post-Project Assessment, including, if applicable:
(A) If the Post-Project Assessment is conducted in accordance with the requirements of Section 10051(a)(2)(B) or (C), a copy of the utility's post-retrofit approval notification from the utility in whose service area the project is located.
(B) If the Eligible Improvements include a distributed generation renewable energy source, a letter permitting the interconnection of the distributed generation renewable energy source from the utility servicing the Eligible Property.
(C) If the project does not include energy efficiency improvements because the loading order requirement has been met through Section 10051(a)(4)(A)(2) or (3), the foregoing letter permitting interconnection shall be in lieu of the Post-Project Assessment.
(5) The Participating Financial Institution shall redact Borrower name, street address and any other personal identifying information from the copies of all documents prior to submission to the Authority.
(d) The Loan Enrollment Application to the Authority shall include the following, based in part on information provided by the Borrower and the Qualified Contractor:
(1) Participating Financial Institution name and Program-assigned identification number.
(2) Loan officer name, telephone number and email.
(3) Participating Financial Institution loan identification number that does not convey any personal identifying information about the Borrower.
(4) Borrower's FICO score and debt-to-income ratio.
(5) City, county and zip code where the project is located.
(6) Brief summary of the Eligible Improvements and the intended use of the proceeds of the Qualified Loan.
(7) Indication whether the Qualified Loan being enrolled is in the first $250,000 of Program Qualified Loans enrolled by the Participating Financial Institution.
(8) Amount of the Qualified Loan being enrolled (and indication if less than the full amount of the Qualified Loan is being enrolled).
(9) Type of the Qualified Loan (e.g., home equity loan, term loan, second mortgage), and whether the loan is secured.
(10) Date the Certificate of Completion is received by the Participating Financial Institution.
(11) Term and maturity date of the Qualified Loan.
(12) Interest rate applicable to the Qualified Loan and whether it is fixed or variable.
(13) The interest rate the Qualified Loan would have received had the loan not been enrolled in this Program.
(14) Estimated savings to the Borrower in the form of lower cost financing over the term of the loan.
(15) The Participating Financial Institution's estimate of the Authority's Loss Reserve Contribution to the Loss Reserve Account.
(16) Certification that the loan is a Qualified Loan, and that the Borrower receiving the Qualified Loan meets the Minimum Underwriting Criteria set forth in this Article.
(17) Certification that the total outstanding principal balance of all enrolled Qualified Loans specific to the Borrower does not exceed ten percent (10%) of the value of the Eligible Property as determined by the Participating Financial Institution.
(18) Notification if the Participating Financial Institution has enrolled or will enroll the same loan or a portion thereof in any government program substantially similar to the Program including, but not limited to, other loan loss reserve or loan guarantee programs.
(e) The Certificate of Completion shall be in a form specified by the Authority and shall include the following information (the Participating Financial Institution shall redact any Borrower personal identifying information prior to submission to the Authority). The Certificate of Completion shall be signed and completed for each Eligible Property and shall be signed and completed by the primary Qualified Contractor who performed the energy efficiency and/or distributed generation energy sources work:
(1) Information provided by the Qualified Contractor who performs the work:
(A) Qualified Contractor's name.
(B) Qualified Contractor's license number.
(C) Qualified Contractor's certification type(s) and certification number(s).
(D) If the Post-Project Assessment is conducted in accordance with Section 10051(a)(2)(A), the name and appropriate qualifying certification number of the Independent Third-Party Inspector.
(E) City and zip code where the project is located.
(2) The Qualified Contractor must also sign and date certain certifications, including:
(A) Certification that he or she is licensed to perform the work for which the Qualified Loan is made.
(B) If performing energy efficiency improvements, certification that he or she is a BPI Certified Professional or a contractor approved for participation in the CPUC-approved residential whole-house energy efficiency retrofit programs.
(C) If performing distributed generation renewable energy source improvements, certification that he or she holds a valid A, B, C-4, C-10, C-36 or C-46 license from the California Contractors State License Board.
(D) Certification that all of the Eligible Improvements installed are energy saving home improvements recommended in the Pre-Project Assessment, or Eligible Improvements selected in accordance with a CPUC-approved residential whole-house energy efficiency retrofit program.
(E) Certification that the installation complies with all applicable California building standards (all sections of Title 24), local electricity utility interconnection requirements, and any additional laws, ordinances, regulations and standards applicable in the jurisdiction where the installation occurred.
(F) Certification that all permits and approvals required to install the Eligible Improvements have been secured.
(G) Certification of the quality assurance standard under which the Post-Project Assessment requirement was met in accordance with Section 10051(a)(2).
(H) If the Eligible Improvements include distributed generation renewable energy sources, certification of the method by which the Program's loading order requirement was met.
(3) The Borrower must sign and date certain certifications, including:
(A) Certification that the Eligible Improvements have been completed to their satisfaction.
(B) Certification of understanding that the Authority and its directors, officers, and agents do not guarantee the performance, quality, or workmanship of the Eligible Improvements.
(C) Certification that the loan proceeds were used to pay for the Eligible Improvements.
(D) Acknowledgement that the Authority, to the extent allowed by these regulations, including its officers, directors, employees, agents, or designees, has received and will receive information related to the project. The Authority may use this information for program management and evaluation and shall treat the information as confidential unless otherwise required by law.
(E) Authorization for the Qualified Contractor and Participating Financial Institution to share information with the Authority, except as required by these regulations, including contract information, data on work performed and Eligible Improvements installed, information regarding the Qualified Loan, and other information relating to or arising from participation in the Program.
(F) Certification that all permits and approvals required to install the Eligible Improvements have been secured.
(f) The Participating Financial Institution shall be authorized to base the information requested in subdivision (e) above upon representations made to it by the Borrower and/or the Qualified Contractor, provided that no such representation may be relied upon if it is known to be false by the lending officers at the Participating Financial Institution who are directly involved in the negotiation of the Qualified Loan.
(g) If a Borrower seeking a Qualified Loan from a Participating Financial Institution is an employee, member, director, officer, principle shareholder, or affiliate of the Participating Financial Institution, the terms and the conditions of the Qualified Loan and the internal procedures used to approve the Qualified Loan must comply with the following requirements:
(1) If the Participating Financial Institution is a federal-chartered bank, the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Sections 371c, 371c-1, 375a, and 375b of Title 12 of the United States Code, and Sections 215.4 of Title 12 of the Code of Federal Regulations.
(2) If the Participating Financial Institution is a state-chartered bank, the Qualified Loan must be made in accordance with all applicable state banking laws that regulate conflicts of interests and insider transactions.
(3) If the Participating Financial Institution is a federal-chartered savings association, the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Section 1468 of Title 12 of the United States Code.
(4) If the Participating Financial Institution is a state-chartered savings association, the Qualified Loan must be made in accordance with all applicable state banking laws that regulate conflicts of interests and insider transactions and Sections 6503 and 6529 of the Financial Code.
(5) If the Participating Financial Institution is a federal-chartered credit union, the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Sections 1757 and 1761c of Title 12 of the United States Code and Section 701.21(d) of Title 12 of the Code of Federal Regulations.
(6) If the Participating Financial Institution is a state-chartered credit union, the Qualified Loan must be made in accordance with all applicable state banking laws that regulate conflicts of interests and insider transactions and Section 15050 of the Financial Code.
(7) If the Participating Financial Institution is a certified community development financial institution (CDFI), the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Sections 1805.807 of Title 12 of the Code of Federal Regulations.
(h) The Authority shall, upon receipt of documentation as required under Section 10054 from the Participating Financial Institution, enroll the Qualified Loan if the Executive Director determines that the Qualified Loan meets the requirements of this Article. The Executive Director shall notify the Participating Financial Institution of enrollment within fifteen (15) business days after receipt by the Authority of all documentation required by this Article. The Executive Director's determination whether a Qualified Loan shall be enrolled in the Program shall be final.
(i) Upon enrollment of a Qualified Loan, the Loss Reserve Contribution shall be transferred for deposit into the Loss Reserve Account held on behalf of the Participating Financial Institution by the Program Trustee. The Participating Financial Institution will be notified of the transfer.
(j) Without regard to the term and maturity date of the Qualified Loan, the term of enrollment in the Program shall not exceed ten (10) years.
Credits
Note: Authority cited: Section 26071, Public Resources Code. Reference: Sections 26073 and 26074, Public Resources Code.
History
1. New section filed 5-4-2012 as an emergency; operative 5-4-2012 (Register 2012, No. 18). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 10-31-2012 or emergency language will be repealed by operation of law on the following day.
2. Amendment filed 7-16-2012 as an emergency; operative 7-16-2012 (Register 2012, No. 29). Pursuant to Public Resources Code section 26131 this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-14-2013 or emergency language will be repealed by operation of law on the following day.
3. New section, including 7-16-2012 amendments, refiled 10-29-2012 as an emergency; operative 10-29-2012 (Register 2012, No. 44). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.
4. New section, including 7-16-2012 amendments, refiled 1-28-2013 as an emergency, with additional amendments to Note; operative 1-28-2013 (Register 2013, No. 5). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 4-29-2013 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 1-28-2013 order, including further amendments, transmitted to OAL 4-23-2013 and filed 5-22-2013; amendments operative 5-27-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 21).
This database is current through 5/10/24 Register 2024, No. 19.
