Los Angeles PACE renovations $12M class action settlement

Los Angeles County and Renew Financial agreed to a $12 million Property Assessed Clean Energy (PACE) program settlement to resolve claims that they took advantage of homeowners by violating renovation contracts.

The settlement benefits homeowners who entered into a Renew Financial Assessment Contract or Renovate America Assessment Contract with Los Angeles County between March 1, 2015, and March 31, 2018, and whose assessment contracts the county recorded as liens against the property. 

The Level 1 subclass includes all class members.

The Level 2 subclass includes class members who had a debt-to-income ratio of greater than 50% at the time the county entered the PACE assessment.

The Level 3 subclass includes class members who had a debt-to-income ratio of greater than 50% at the time the county entered the PACE assessment, were age 65 years or older or had limited English proficiency and only received PACE documents in English.

The Level Four subclass includes class members who had a debt-to-income ratio of greater than 100% at the time the county entered the PACE assessment.

According to the class action lawsuit, Los Angeles County, Renovate America and Renew Financial took advantage of older homeowners and others to trap them in unfair PACE agreements. Plaintiffs also claim the trio illegally recorded PACE assessment contracts as liens against their properties.

Los Angeles County launched its PACE program in 2015 to help homeowners make clean energy improvements. The county shut down the program in 2020 after facing public scrutiny and legal action.

Los Angeles County and Renew Financial haven’t admitted any wrongdoing but agreed to pay $12 million to resolve the PACE class action lawsuit.

Under the terms of the PACE settlement, class members can receive cash payments based on their level. Level 1 class members can receive a pro rata share of a $500,000 fund. Level 2, 3 and 4 class members can receive payments based on their existing PACE assessments, with Level 4 class members receiving the largest shares from the settlement.

The deadline for exclusion and objection is June 13, 2024.

The final approval hearing for the settlement is scheduled for Aug. 9, 2024.

To receive a PACE settlement payment, class members must submit a valid claim form by June 13, 2024.

Who’s Eligible

Homeowners who entered into a Renew Financial Assessment Contract or Renovate America Assessment Contract with Los Angeles County between March 1, 2015, and March 31, 2018, and whose assessment contracts the county recorded as liens against the property

• Level 1 subclass includes all class members
• Level 2 subclass includes class members who had a debt-to-income ratio of greater than 50% at the time the county entered the PACE assessment
• Level 3 subclass includes class members who had a debt-to-income ratio of greater than 50% at the time the county entered the PACE assessment, were age 65 years or older or had limited English proficiency and only received PACE documents in English
• Level 4 subclass includes class members who had a debt-to-income ratio of greater than 100% at the time the county entered the PACE assessment

Potential Award

Varies

Proof of Purchase

Address associated with PACE lien and other PACE-related information

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

06/13/2024

Case Name

Nemore, et al. v. Renovate America Inc., Case No. BC701810, and Ocana, et al. v. Renew Financial Holdings Inc., et al., Case No. BC701809, both in the Los Angeles Superior Court

Final Hearing

08/09/2024

Settlement Website

PACELASettlement.com

Claims Administrator

PACE L.A. Settlement
c/o JND Legal Administration
P.O. Box 91201
Seattle, WA 98111
888-825-1218

Class Counsel

Jeffery Webb
BET TZEDEK LEGAL SERVICES

Stephanie Carroll
PUBLIC COUNSEL

Michael M Maddigan
HOGAN LOVELLS US LLP

Defense Counsel

Clark A Donat
REED SMITH LLP

Fredrick S Levin
ORRICK HERRINGTON & SUTCLIFFE LLP