Laxson Associates l Desert Communities

Recently the State of California passed the Assembly Bill 811, which offers California cities a new way to help citizens finance energy improvements. Residents of Palm Desert, after today's vote, will be able to borrow money through the City and pay it back, over time, through a property tax assessment. If approved, the Energy Independence Program will be the first in the State to be established under Assembly Bill 811, which Gov. Arnold Schwarzenegger signed into law last month.

Financing is available for new energy efficiency improvements to existing structures, not for new construction. It is also for new installations only; existing installations cannot be refinanced by this program. Eligible improvements will include a variety of energy-saving upgrades including:

• Solar Systems
• Air Conditioners - High Efficiency
• Dual Glazed Windows, Skylights & Door Replacements
• Insulation
• Pool Pumps
• Reflective Roofs & Coatings

Solar systems are one of the most popular measures because the program will allow residents to "go solar" with the least possible upfront cost, locking in the cost of their new clean energy, and paying for it over 20 years. Improvements covered by the program will be Energy Star-rated efficiency measures that stay with the property.

The City is currently finalizing the exact terms and conditions of the loans including minimum and maximum loan amounts, interest rates, and procedures for advancing the payments to the property owners and contractors. City officials are currently reviewing the program with a 7% interest rate for the loans with a maximum term of 20 years. However, these details will be presented and voted upon by the City Council at its meeting today, August 28.

The anticipated advantages of using an Energy Independence Program loan include:

• Immediate savings on utility bills
• Ability to transfer whatever balance remains on the loan to the new owner when the property is sold
• A higher tax payment but one that is offset in part, or completely, by utility bill savings
• Ability to borrow without impacting personal credit

Other loan program details include:

• The city will advance the program $2.5 million to start, with $1.25 million reserved for residential loans.
• To be eligible, applicants must be the title owners of their properties and current with property tax payments.

The minimum loan will be $5,000, with loans more than $60,000 approved by the City Manager and loans more than $200,000 approved by the City Council. One potential drawback for contractors is that loans will only be paid after energy-efficient equipment is installed and inspected, with a two-week to four-week turnaround on checks.

Here's How it Works:

Under Assembly Bill 811, cities can finance low-interest loans to residents for energy-efficient upgrades to their homes. The loans could be used only for improvements such as solar panels or air conditioners that stay with the house.

Here is a hypothetical case provided by EcoMotion, the consultants helping Palm Desert set up its Energy Independence Program:

A resident with a 2,000-square-foot home wants to replace a low-efficiency, SEER 6 air conditioner with a high-efficiency SEER 17 unit, which costs around $12,000.

The resident can get a $1,000 rebate from Southern California Edison under Palm Desert's Set to Save Program and gets a $11,000 loan from the city's Energy Independence Program. The term on the loan is 7 percent for 10 years.

Loan repayments are $766 every six months, or about $127 per month, but projected savings on electric bills are about $187 per month - a net saving of $60 per month.

Once the loan is paid back, savings on energy bills in a 15-year period are estimated at $40,000 to $50,000.

Palm Desert City Council meeting is scheduled for today at 4 pm at the Civic Center Council Chamber located at 73-510 Fred Waring Drive.

INDIAN WELLS is only minutes from Palm Springs and in Indian Wells, California you will find stunning mountain vistas and majestic palm trees line the roads to some of the world's finest resorts and spas, golf, tennis, shopping and several year-round recreational activities.

If you are interested in learning more about Indian Wells and surrounding communities, the current housing market, or if we can assist you in the purchase or sale of a home, please contact us by phone or text at (760) 567-9100. SEARCH MLS INDIAN WELLS HOMES VALUE YOUR HOME CONTACT US Copyright © 2008 Susan Laxson. All Rights Reserved. "Indian Wells Area Information"

INFORMATION ABOUT DESERT HOT SPRINGS IN COACHELLA VALLEY:

If you are interested in learning more about Desert Hot Springs and surrounding communities, the current housing market, or if we can assist you in the purchase or sale of a home, please contact us by phone or text at (760) 567-9100. SEARCH MLS DESERT HOT SPRINGS HOMES VALUE YOUR HOME CONTACT US All content copyright © 2008 Susan Laxson

Below is information about the City of Coachella in the Coachella Valley:

COACHELLA is a city in Riverside County, California and is the most eastern city in the region collectively known as the Coachella Valley (or the Palm Springs area). Coachella is considered to be one of the fastest growing cities in Southern California and enjoys a reputation of being a family oriented city with a rich cultural heritage. Also called the "City of Eternal Sunshine", Coachella's annual events include a Cinco de Mayo Fiesta which thousands attend, 16th of September Fiesta with food booths, Mariachi and Ballet Folklorico dancers, and the Coachella Christmas Parade held the 2nd Saturday in December. Coachella is largely a rural, agricultural, family-oriented community in the desert and one of the state's fastest growing cities in the late 20th century. When it first incorporated back in 1946, it had 1,000 residents but has grown 50 times to nearly 50,000 residents by the year 2006.

Coachella's population is approximately 40,000 making it one of the highest population growth rates in the state. With a population density of 15,500 per square mile, this predominantly agricultural city has one of the highest in California outside of an urban area.

The eastern half of the Coachella valley is below sea level, and the area's average elevation is 68 feet (35 m) below sea level. The Salton Sea, a saltwater lake located about 10 miles (6 km) South of Coachella, lies 227 feet (69 m) below sea level.

The city also lends its name to the Coachella grapefruit; the town's stretch of State Route 111 is named Grapefruit Boulevard in its honor. Harrison Street or State Route 86 is declared historic U.S. Route 99, the major throughfare that connects with Interstate 10 a few miles north of town.

If you are interested in learning more about the City of Coachella and surrounding communities, the current housing market, or if we can assist you in the purchase or sale of a home, please contact us by phone or text at (760) 567-9100. SEARCH MLS COACHELLA HOMES VALUE YOUR HOME CONTACT US All content copyright © 2008 Susan Laxson

Below is information about the Coachella Valley city of Cathedral City:

CATHEDRAL CITY AREA INFORMATION

If you are interested in learning more about Cathedral City and surrounding communities, the current housing market, or if we can assist you in the purchase or sale of a home, please contact us by phone or text at (760) 567-9100. SEARCH MLS CATHEDRAL CITY HOMES VALUE YOUR HOME CONTACT US All content copyright © 2008 Susan Laxson