July 22, 2008

Solar Loan Law Passes While Loan Bailout Debate Continues

California enacted a homeowner loan law this week, but it is not a loan bailout for homeowners upside down on their mortgages or behind in their payments. Proposals in these areas are going to have to clear many hurdles and are encountering a lot of opposition and resentment, concentrated in forums like stopthehousingbailout.com.

The new law described in the Los Angeles Times Greenspace blog allows cities and counties to make low-interest loans to homeowners for installation of solar panels and other energy efficiency improvements. Homeowners pass along the loan to a new owner if they sell, reducing their investment risk.

I’ve wondered when considering solar panels: how sustainable and environmentally friendly are the materials used to make them? A Pasadena Pundit post titled Solar Power is a Net Energy Sink, Not a Source, has an answer to that question from someone in Tasmania of all places (and you have to scroll down past the San Francisco Homeless post to find it).

What’s involved in installation? One blogger provided this detailed introduction, also mentioning she was employed by a commercial roofing corporation that can install solar panels along with other roof components.

What incentives do cities currently offer homeowners for installing solar systems? For Pasadena homeowners, they are listed here, along with links to more detailed information.

In Pasadena’s sunny Historic Highlands, there are many Craftsman-style homes with low-pitched roofs. I’m not a handyman or contractor, so I can’t say how easy solar retrofitting would be on any of these residences. Here are some sales and listing data from Redfin:

Sales data show 17 homes sold during the past three months in the immediate neighborhood at an average of $396 per sq.ft. This home, which sold for $520,000 and closest to the average on July 2, has 3 beds, 2 baths, and 1,293 square feet. The tax records show an assessment of $678 for the 2007 tax year, so it hadn’t changed owners in decades.

Active listings:

1255 E. Lexington Street
$755,000
3 bed/1.75 bath
2,136 sq.ft.
$363 per sq.ft.
On Redfin 44 days
This is a two-story bungalow built in 1913 with several recent upgrades.

1385 N. Hill Avenue
$625,000
5 bed/3 bath
2,176 sq.ft.
$276 per sq.ft.
On Redfin 102 days
This home was built in 1890 and sits on a large lot.

1100 E. New York Drive
$2,985,000
3 bed/3.5 bath
4,960 sq.ft.
$602 per sq.ft.
New Listing: on Redfin 1 day
This three-story 1905 Craftsman home last sold for $1,780,000 in 2006.

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