HERO stands for Home Energy Renovation Opportunity.
The HERO Program offers a unique financing option, repaid through your property taxes, for upgrades that increase energy efficiency, comfort and savings. Water-saving upgrades are also available in drought-impacted areas, such as California, and hurricane protection upgrades are eligible in Florida.
Any property owner who lives in a city or county where HERO has been approved by the local government can apply for HERO financing. To find out if HERO is available in your community, please check our communities list.Apply Now
The interest rates for HERO are dependent on the financing term. HERO offers flexible terms of 5-25 years, depending on the useful life of the improvements and the state in which they are financed. HERO financing is paid through an assessment on the homeowner's property tax bill, and the interest may be tax deductible. Please consult a tax advisor regarding the deductibility of interest, as PACE financing interest rates vary.
Property owners will see a line item titled “HERO FINANCING” on their property tax bill. The payment will be due in accordance with their property taxes, which can vary by state or region. If a property owner makes property tax payments through an impound escrow account, their lender will increase their monthly payment to include the amount due for HERO financing. For the first year, once payments start, that amount may be higher while their mortgage servicer pays prior amounts due and escrows the next tax payment. If you have any questions or for more information, please give us a call Monday – Friday, 8am to 5pm PST at 855-225-HERO (855-225-4376).
HERO is a PACE (Property Assessed Clean Energy) program that provides financing for energy-efficient, water-conserving, renewable energy and hurricane protection home improvements. Types of products that are eligible for HERO vary by state, depending on local legislation. HERO offers consumers access to these products because the HERO financing program is repaid as an assessment on your property taxes. The interest on these payments may be tax deductible*, and high efficiency or performance ratings mean installed products may lower utility or insurance bills. Approval for HERO financing is primarily based on the equity in the property owner's home and their debt payment history, rather than their credit score. HERO finances 100% of the cost to purchase and install eligible products, with fixed rates and flexible terms of 5-25 years, depending on the useful life of the improvements and the state in which they are financed. Should the homeowner decide to sell their property before their HERO assessment is paid in full, the responsibility for any remaining balance may be able to transfer to a new property owner (please see Selling and Refinancing for more details). *Property owners should consult their tax advisor regarding potential tax benefits.
The interest on HERO payments may be tax deductible. Property owners should consult a tax advisor regarding potential tax benefits. The IRS has offered specific guidance on Topic 503.
Yes, homeowners can still receive any rebate or tax credit that is offered by their local utility, city, county or the federal government. The HERO Program does not affect the rebate process in any way.
Yes, homes with HERO assessments can be sold or refinanced at any point, and unlike many other forms of financing, the assessment may be able to remain on the property, in which case the buyer would assume the remaining assessment payments. The seller should contact HERO Property Advisors as soon as possible for guidance on your options. The FHA and VA have issued clear guidance in support of PACE assessments remaining on the property when a home is sold and a FHA- or VA-secured mortgage is used by the purchaser. Subordination of the HERO assessment, if required by a lender, may also be available. HERO Property Advisors is available at 855-225-HERO (855-225-4376) or by visiting hpa.heroprogram.com.