Realtors question HERO’s lack of proper disclosure

BY

By Gene Wunderlich

SRCAR VP of Government Affairs

The Southwest Riverside County Association of Realtors (SRCAR) supports voluntary, incentive-based programs that encourage owners to make their homes more energy efficient and/or reduce water consumption. However, this must be balanced with the safety and soundness of the mortgage financing system and secondary mortgage markets as well as the integrity of the program marketed to home owners and protection of consumer.

The HERO Program (Home Energy Renovation Opportunity) and/or the manner in which it is being marketed and implemented in California, has resulted in significant problems for property owners due to its structure as a “super-priority lien” and lack of appropriate disclosure/disclaimer.

In response to the ongoing and escalating problems experienced by homeowners throughout our region and the inadequate pace of reforms thus far implemented by the program, SRCAR has adopted a policy OPPOSING the HERO Program unless and until such time as specified issues are addressed.

We have joined in this position statement with both the Inland Valley AOR (Greater Riverside area) and the Inland Gateway AOR (Corona/Norco area). Together our membership covers the majority of Realtors® working in Riverside County, members who are increasingly faced with transaction issues resulting from the HERO Program. Understand we are not “bashing” the HERO Program, rather the manner in which it has been implemented, the lack of appropriate and full disclosure of known existing problems and the inadequate response to ongoing consumer issues.

We look forward to working more closely with local governments to increase disclosure, enhance consumer protection and improve access to what is otherwise a great option for consumers to finance home energy retrofits. As you have questions, please don’t hesitate to contact me.