My Thoughts on The HERO Program

What the HERO Financing Program is

HERO is an energy efficiency financing program that has partnered up with local governments to make energy efficient, water efficient, and renewable energy products more "affordable" (highlighting the quotes) for homeowners.

HERO finances 100% of the cost to purchase and install those products, offering fixed interest rates and payment terms up to 20 years. 

The repayment of HERO Financing is included in the property tax bill. If the property is sold before the HERO Financing is paid in full, the remaining payments will be passed on to the new property owner.

The truth about it

Cities and counties across Southern California are promoting the HERO program with the intent of helping homeowners lower their utility bill and stating that it will increase the value on their homes.  However, that IS NOT always the case.

Here is a real example of the bill that a homeowner in Fontana will have to pay starting 2015 after the installation of new windows on his 963 sqft home:


At the end of the 20 years, this homeowner will be paying almost 3 times the cost of this installation and in reality, his utility bill did not decrease enough to justify the higher tax bill.  You can judge for yourself, is it really worth it?.

Also, it is a proven fact that the property loses desirability if you decided to sell it.  Buyers are VERY reluctant to assuming these type of loans. Plus, at the end of the day, such improvements are not adding any value to the home unless they are completely paid off.

My suggestion is to run the numbers before you agree to anything.  Just make sure that the savings are greater than what you will be paying in property taxes.

If you want to know what renovations add the most value to your home, I'm here to help!