New! FHFA Rulemaking Begins New!
60 Day Comment Period started on January 26, 2012
The United States District Court in Oakland, CA found that FHFA violated the federal Administrative Procedures Act when it issued its July 6, 2010 statement that prohibits Fannie Mae, Freddie Mac, and other government sponsored enterprises that it regulates from buying residential mortgages with PACE assessments.
You can provide comment on the broad public policy objectives that PACE furthers, the extensive public support for PACE programs, the FHFA’s stated objections to PACE, and suggest a rule to allow residential PACE programs to proceed – for example, FHFA support for The PACE Protection Act (HR 2599) would allow us to benefit from the tremendous promise of PACE, while protecting the interests of state and local governments, mortgage lenders, and consumers.
Federal Register Notice is……here…
Ways to enter comment are explained….here….
Talking points to help frame your comments can be found….here (soon)
Comments already submitted can be seen….here….
This is an important opportunity to challenge the FHFA’s ban on PACE. The FHFA is required to evaluate all comment and may not capriciously disregard valid comments. The FHFA has posed a series of specific questions that you may answer specifically, but you are also free to provide a narrative that addresses issues raised in the FHFA’s questions. Comments may be entered until March 26, 2012. Check the Rulemaking page above for more resources.
New! PACENow New!
and
Sonoma County Energy Independence Program
Monthly PACE Webinar Series
Register here
February 15, 2012 – Sonoma County’s Commercial PACE Story
PACENow and the Sonoma County Energy Independence Program (SCEIP) are pleased to announce their jointly sponsored monthly webinar series focusing on topics of interest in the PACE market. Each month, webinar registrants will be updated on the latest news on PACE and and guest speakers will present a particular topic of interest. Registration information will be posted soon.
Strong Bipartisan Support Continues for HR 2599
House Scorecard – 51 Sponsors
Act Now! Take Action to Save Residential PACE Programs
One thing Republicans and Democrats continue to agree on is the PACE Assessment Protection Act of 2011 – HR 2599. Introduced to strong bipartisan support in July, the Bill now has 40 sponsors, a nearly even mix of Republicans and Democrats. It’s more important now than ever to urge your House Representative to co-sponsor this bill and urge leadership to get on board.
Thanks for all who participated in our Webinar on July 14th. For those who weren’t able to make it you can use this link to see a recording of it…. just give it a few seconds to load and it will begin automatically:
Download PACENow Webinar Presentation here
The text of the Bill is here:
HR 2599 PACE Protection Act of 2011
Please use the link below to send a letter to your member of the House of Representatives:
Sample Letter for Members of Congress
Or use this link to send a letter by entering your zip code:
Enter your zip code – Send a letter to your Representative here
Please use the link below for a sample Resolution that your municipality or organization can pass in support of the Bill
Sample PACE Resolution of Support for HR 2599
Please use the Take Action tab above for more information… and be sure to send copies of your letters to: PACENow@gmail.com
PACE
PACE means Property Assessed Clean Energy, local government/community initiatives that creates permanent private sector jobs in America and makes our nation more energy secure by promoting energy efficiency and renewable energy projects in our homes and commercial buildings. PACE is voluntary and community based, not mandated by Washington. It provides long term funding from private capital markets at low cost and needs no government subsidies or taxes. PACE raises property values by making buildings less expensive to heat and cool and it enjoys broad bipartisan support nationwide at state and local levels. PACE enabling legislation has been adopted by a total of 27 states (including Hawaii, which had existing authority).
What is PACE ?
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.
To learn more….
Why PACE ?
PACE solves two key barriers to increased adoption of energy efficiency and small scale renewable energy:
- high upfront costs.
- fear that project costs won’t be recovered prior to a future sale of the property.
Because basic energy efficiency measures can cut energy costs by up to 35%, annual energy savings will typically exceed the cost of PACE assessments; the upfront cost barrier actually turns into improved cash flow for owners. And, like all property based assessments, PACE assessments stay with a property upon sale, until they are fully repaid by future owners who continue to benefit from the improvement measures.
Unlike state or utility sponsored programs that seem distant and bureaucratic, PACE programs provide a way for local communities to sponsor programs that meet their individual needs.
To learn more….
How PACE Works
PACE uses the same kind of land‐secured financing districts that American cities and towns have used for over 100 years to pay for improvements in the public interest. Over 37,000 land secured districts already exist and are a safe and familiar tool of municipal finance for street paving, parks, open space, water and sewer systems, street lighting, and seismic strengthening, among others.
To learn more….
Benefits of PACE
PACE promotes energy efficiency in ways that are good for America, our municipalities, building owners and mortgage lenders.
Benefits to Our Nation
- Creates permanent private sector jobs – nationwide and across a range of skills.
- Uses private capital for funding – NO taxes or government subsidies.
- Saves owners money – lower operating costs make their buildings more valuable.
- Promotes energy security – without federal regulation or taxes that drive up energy costs.
- Avoids costly power plants – increasingly difficult to site.
- No budgetary impact - voluntary participants pay all fees and expenses.
Benefits to Municipalities
- Permanent local jobs – as many as 10 per $1 million in spending makes communities stronger.
- No debt or credit risk - bonds are secured solely by the assessment payments of op-in participants.
- Saves money for residents – PACE is the only assessment that creates positive cash flow.
- Voluntary participation – building owners who opt-in if they decide benefits warrant.
- Improves air quality - reduced exhaust emissions make communities healthier.
Benefits to Property Owners
- No upfront cost - PACE financing spreads costs over the life of improvements.
- Owners save money - programs are designed to ensure annual savings exceed assessments.
- Assessment transfers upon sale - new owner benefits from improvements that stay with the property.
- Safety - assured by best practices and guidelines established to protect all program participants.
- Broad applicability – residential and commercial properties can use PACE.
- Voluntary – only opt-in participants pay assessments (and benefit from improvements).
- Comfort – efficient buildings are healthier and more comfortable.
Benefits to Existing Lenders
- Lowers default risk – improved cash flow makes it easier for owners to pay mortgages.
- Improves Loan‐to‐Value Ratio - buildings that are less expensive to operate are worth more.
- Safety and soundness - best practices framework developed to meet all participants’ concerns.
- Lien risk minimized - non-acceleration of assessments in default limits senior lien PACE exposure to less than $200 per home, on average.
To learn more….
Federal Regulatory Overreach
Federal overreach, in a challenge to state and local government rights, has brought PACE to a standstill today despite its great promise. For over a century, municipalities have used property taxes and assessments to finance projects that achieve a broad range of public purposes established in laws enacted by our elected state and local representatives. Like all municipal assessments, PACE assessments in arrears have a senior lien to mortgage payments in the event of a default. Recognizing this, PACE advocates began a dialogue in 2008 with Fannie Mae, Freddie Mac, and their regulator, the Federal Housing Finance Agency (FHFA) to find ways to address their concerns. Broad safeguards were developed as program guidelines by a working group that included the U.S.Department of energy to ensure that PACE programs would be beneficial to building owners, municipalities, and mortgage lenders.
Notwithstanding these measures, on July 6, 2010, the FHFA issued a statement that directed Fannie Mae and Freddie Mac not to underwrite mortgages for properties with a PACE assessment. It further directed mortgage lenders to redline communities with PACE programs by tightening lending standards (which, ironically, has the effect of reducing property values in such communities, devaluing lenders’ collateral). FHFA based its action on two astonishing claims:
- PACE benefits, articulated and codified by state and local governments in 23 states, do not meet a valid public purpose.
- PACE program defaults, estimated to be no more than $200 per average home, raise concerns with regard to the safety and soundness of the mortgage industry.
To help restore PACE click here……
The Fight to Restore PACE
A nationwide and completely bipartisan coalition of PACE advocates is fighting to support states’ rights and restore our country’s PACE programs. Municipalities with PACE programs in place or in development, members of Congress, state legislators, governors and attorneys general, organizations like the National League of Cities, the National Association of Counties, and the US Conference of Mayors, corporations and private citizens have all joined forces to save PACE. There are both legal and legislative efforts underway, with lawsuits filed in federal courts and legislation introduced in both houses of Congress.
Lawsuits – filed by the State of California, Sonoma County, Babylon, NY, and others ask that courts affirm the right of state and local governments to define public purpose and require that federal regulators and mortgage lenders treat PACE assessments no differently than other assessments when underwriting mortgages.
Legislation – entered in both houses of Congress would require that federal regulators and mortgage lenders treat PACE assessments like others and underwrite mortgages with PACE assessments.
In the coming weeks, a renewed effort to restore PACE will begin with opportunities to gain new support, particularly in Congress.
