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To further safeguard consumer interests, ABAG also developed the Regional Collaborative Services Agreement which establishes the terms, conditions, and roles each residential PACE provider (RPP) will follow when operating in ABAG territory. (RCSAs do not apply to commercial PACE programs.) The City can execute an ABAG Member Acknowledgement Form for the terms of the RCSA to apply to PACE activities in Pleasanton. Features of the RCSA include: • Designating ABAG as the liaison to the RPPs locally; • Requiring all RPPs to have clearly visible disclosures regarding the FHFA's policies on residential PACE programs; • Requiring all RPPs to participate in the state's PLLR; • Limiting claims that RPPs (or their designated contractors) can make to applicants regarding the tax deductibility of PACE assessments; • Requiring data sharing between the RPPs and participating entities (e.g., City of Pleasanton) to monitor program performance locally; and • Requiring RPPs to accept responsibility for negligence in administering PACE programs. To date, residential PACE providers that have signed an RCSA with ABAG include: California HERO Program; Ygrene PACE Program; Energy Efficient Equity (CMFA Open PACE); AllianceNRG Program (CSCDA Open PACE); PACE Funding Group (CSCDA Open PACE); and Figtree PACE Program. Staff recommends the RCSA apply to all of these administrators in Pleasanton. PACE offers an alternative to traditional means of financing property improvements such as paying cash, taking on a home equity line of credit (HELOC), or using a credit card. PACE financing eligibility is primarily based on property equity rather than the credit worthiness of the applicant. PACE loans have fixed long-term interest rates with terms generally longer than those of other private loans, but typically equal to the • average useful life of the improvement being undertaken. Because a PACE assessment is filed as a lien on the property, it can transfer with the property upon sale, potentially removing a barrier to making long-term investments in one's property. Some other advantages of PACE financing include 100% financing for eligible improvements and the reliability of pre-approved contractors. As with other forms of private lending, participation in PACE financing is voluntary. Because the capital for PACE financing is from private sources and the transactions are between program administrators and building owners, the City will incur no cost or risk associated with program activities. The City will provide no administrative support or marketing for the programs, which are conducted by the program administrators. The City is not obligated to repay bonds issued by the JPA or assessments levied on the participating properties. Page 4 of 7