Recently, several changes were made to the California Finance Lenders Law with various effective dates. Effective immediately, the California Finance Lenders Law has been renamed the "California Financing Law."

In addition, definitions have been added, including, but not limited to:

• "Assessment contract" means an agreement entered into between all property owners of record on real property and a public agency in which, for voluntary contractual assessments imposed on the real property, the public agency provides a PACE assessment for the installation of one or more efficiency improvements on the real property in accordance with a PACE program.
• The "PACE program" refers to a program where the financing is provided for the installation of efficiency improvements on real property and funded through the use of property assessments, as well as other program components, established under certain sections of the Streets and Highways Code, Mello-Roos Community Facilities Act, or a charter city's constitutional authority.
• "PACE solicitor" means a person authorized by a program administrator to solicit a property owner to enter into an assessment contract.
• "PACE solicitor agent" means an individual who is employed or retained by, and acts on behalf of, a PACE solicitor to solicit a property owner to enter into an assessment contract.
• A "program administrator" refers to a person administering a PACE program on behalf of, and with the written consent of, a public agency. It does not include a person who meets both of the conditions that: (1) the person does not administer a PACE program that provides financing for the installation of efficiency improvements on residential property with four or fewer units; and (2) the person does not administer a PACE program that provides financing for the installation of efficiency improvements on real property with a market value of less than $1 million.

Starting on April 1, 2018, a program administrator cannot approve an assessment contract for funding and recording by a public agency unless the program administrator can make a reasonable, good-faith determination that the property owner has an ability to pay the PACE assessments. Certain criteria must be met and verified relating to the property, property owner, financing terms, and assessment contract terms. In addition, program administrators must comply with the requirements of the California Financial Information Privacy Act.

Effective January 1, 2019, program administrators must be licensed under the California Financing Law. As such, program administrators would have to comply with similar requirements imposed upon licensed finance lenders and brokers. For instance, a program administrator must conduct his or her business in a similar fashion, display his or her license, maintain records, file an annual report under oath, and refrain from making false or misleading statements and representations. Program administrators would be subject to examinations made by the commissioner and if applicable, disciplinary actions. Additionally, program administrators must establish and maintain a process for the enrollment of PACE solicitors and PACE solicitor agents and the compliance of PACE solicitors and PACE solicitor agents with the requirements of applicable law.

More information can be found here.