Authored by PACENow.org Property Assessed Clean Energy (PACE) is a bipartisan local government initiative that allows property owners to finance energy efficiency and renewable energy projects for their homes and commercial buildings.
Interested property owners opt‐in to receive financing for improvements that is repaid through an assessment on their property taxes for up to 20 years. PACE financing spreads the cost of energy improvements such as weather sealing, insulation, energy efficient boilers and cooling systems, new windows, and solar installations over the expected life of the measures and allows for the repayment obligation to transfer automatically to the next property owner if the property is sold.
PACE is unique because it:
- Creates badly needed local jobs.
- Uses private capital, not taxes or government subsidies.
- Saves money for building owners and increases property values.
- Is voluntary – not a government mandate.
- Promotes energy security without driving up energy costs.
- Avoids the need to build costly new power plants.
- Reduces air pollution.
PACE programs were up and running in several states with 27 others passing enabling legislation, but then the Federal Housing Finance Authority (FHFA) issued a July 6, 2010 statement prohibiting Fannie Mae, Freddie Mac, and other governmental sponsored enterprises that it regulates from buying residential mortgages with PACE assessments.
The United States District Court in Oakland, CA found that FHFA violated the Federal Administrative Procedures ACT when it issued its statement. FHFA Rulemaking is underway with a 60 day Comment Period beginning January 26, 2012 to March 26, 2012.
To learn more about this topic and how to make a comment,