Jesse Arreguín

Existing law authorizes a public agency to establish a contractual assessment program, under which public agency officials and individual property owners may enter into voluntary contractual assessments to finance certain improvements to real property, as specified. To finance those improvements, existing law authorizes a public agency to issue bonds, or to advance its own funds and later sell bonds to reimburse itself for those advances. Under the program, those bonds or advances would be repaid through the voluntary contractual assessments, which constitute a lien against the lots and parcels land, as specified. To establish a contractual assessment program, existing law requires the legislative body of the public agency to adopt a resolution that, among other things, provides certain details of the program, including the kinds of projects and the geographic area within which properties would be eligible for financing under the program.

Existing law authorizes a public agency to establish a contractual assessment program to finance certain kinds of improvements that are attached to real property, including energy or water efficiency improvements. This contractual assessment program is commonly known as a Property Assessed Clean Energy (PACE) program. The California Financing Law requires the Commissioner of Financial Protection and Innovation to license and regulate persons who administer a contractual assessment program on behalf of a public agency, as specified.

Existing law, the Wildfire Safety Finance Act (act) , authorizes the legislative body of any public agency that has accepted the designation of Very High Fire Hazard Severity Zone to create a voluntary contractual assessment program to finance wildfire safety improvements, as specified. The act defines "wildfire safety improvements" as, among other things, permanent wildfire resilience and safety improvements fixed to existing real property. The act prohibits a wildfire safety improvement financed under the act from being used as a part of a project to construct a new home or to rebuild or reconstruct a home that was destroyed or damaged in a fire. Existing law repeals the Wildfire Safety Finance Act on January 1, 2029.

This bill would indefinitely extend the operation of certain provisions of the Wildfire Safety Finance Act and would revise the requirements on a legislative body of a public agency to establish a voluntary contractual assessment program under the act. In this regard, the bill would eliminate the requirements that the legislative body accept a designation of Very High Fire Hazard Severity Zone. The bill would instead authorize any public agency that has established a PACE program or established a special tax relating to a specified community facilities district to enter into voluntary contractual assessments with property owners to finance the installation of wildfire safety improvements, as defined.

The bill would, until January 1, 2035, modify the projects eligible for financing under the act to, among other things, include wildfire safety improvements consisting of Class A fire-rated roofs, enclosed eaves, fire-resistant vents, multipane windows, and other wildfire safety improvements identified in regulations adopted by the Department of Insurance, as specified. The bill would also, until January 1, 2035, include improvements that contribute to the defensible space Zones 1 and 2 of a property, which includes the space between 0 and 100 feet from each side and from the front and rear of the structures that can be fixed to a building or structure, as specified.

The bill, until January 1, 2035, would require a program administrator providing wildfire safety improvements to have a hardship program that includes a process for requesting that a program administrator remove a lien if a wildfire destroys the property or improvements.

Existing law requires a program administrator to submit, for each PACE program it administers, a biannual report to the public agency that includes certain information, including the number of PACE assessments funded, by city, county, and ZIP Code.

This bill would require that report to include the total number of wildfire safety improvements, including the average cost of each product type. The bill would also require the report to include the estimated total amount of savings produced by the wildfire safety improvements installed in the calendar year by city, county, and ZIP Code.

The bill would require a program administrator providing wildfire improvements to file a report to the appropriate policy committees of the Legislature by January 1, 2030, that includes the information included in the above-described report provided to the public agency, information relating to complaints regarding the wildfire safety improvements, and a description of the above-described hardship program, as specified.