by JOHN MCCHESNEY

A White House-backed program that allows property owners to pay for energy improvements like solar panels or efficient furnaces through an additional assessment to their property taxes may soon be shut down.

Listen to the full story from Morning Edition here: http://www.npr.org/templates/player/mediaPlayer.html?action=1&t=1&islist=false&id=128700648&m=128839387

Robert Selna, Chronicle Staff Writer

Thursday, July 29, 2010

Renee Hyde, an insurance agent who lives in Sonoma County, could not afford to have solar panels installed on her home until a local program provided $30,000 and allowed her to repay the funds gradually through her property taxes.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/07/29/MNBH1EK5HM.DTL#ixzz0vSrkb4ju

Sens. Barbara Boxer (D-Calif.), Jeff Merkley (D-Ore.), Kirsten Gillibrand (D-N.Y.), and Mark Begich (D-Alaska) introduced a bill Thursday that would put Property Assessed Clean Energy (PACE) programs back in action over Fannie Mae and Freddie Mac’s objections. Based on the Senate’s less-than-speedy performance in recent years, it’s not likely to pass anytime soon.

Read the full story here: http://www.grist.org/article/2010-07-22-senate-pace-bill-adds-to-pressure-to-restoreclean-energy-program

Property Assessed Clean Energy is an innovative program that helps local communities by creating green jobs and reducing energy consumption. PACE enables homeowners in Maryland and 21 other states to make energy efficiency and renewable energy improvements, such as solar panels and weatherization retrofits, and to pay for the cost over time through their property taxes. Any increase in residential taxes is offset by a reduction in energy costs.

Read more: http://www.washingtonexaminer.com/opinion/letters/Letters-from-Readers-1005996-99653984.html

The Federal Housing Finance Agency will say Wednesday whether it will allow a 30-month pilot project for Property Assessed Clean Energy (PACE), Congressman Steve Israel (D-N.Y.) said after a meeting today with FHFA reps…

Read full article at: http://www.grist.org/article/2010-07-20-fate-of-pace-clean-energy-programs-about-to-become-clearer/

For immediate release:
Washington, D.C. –July 19, 2010 – The American Institute of Architects today called on Congress to pass legislation that guarantees local governments the right to establish clean energy programs through Property Assessed Clean Energy (PACE) bonds.
PACE bonds are municipal bonds in which the proceeds from the sale of the bonds are loaned to commercial and residential property owners for the purpose of financing energy retrofits. These loans are then re-paid over long periods of time – much like a mortgage – via an annual assessment on their property tax bill. Given the numerous, well-documented benefits that energy efficient buildings offer, PACE bonds are viewed as an innovative tool to help property owners reduce energy consumption.
“PACE bonds are particularly important now, at a time when a lack of credit and financing for construction projects has devastated the design and construction industry,’ said Paul Mendelsohn, AIA Vice President of Government and Community Relations. “As banks have restricted lending, building owners and developers have cancelled projects, taking work out of the hands of architects, builders and others.” Mendelsohn noted that employment in this sector has dropped by 25 percent since the recession began in 2007, adding to the unemployment rolls.
“PACE bonds provide a new funding source that puts people back to work improving our nation’s energy independence. They also help shore up the depressed commercial and residential real estate markets,” Mendelsohn said in a letter to the Chairmen and Ranking Members of the House Financial Services and Senate Banking Committees.
The Federal Housing Finance Agency (FHFA) and the Office of the Comptroller of the Currency (OCC) have recently issued recent statements blocking PACE pilot programs, challenging states’ rights to levy tax assessments for a public purpose and asserting that the consumer and lender protections were not sufficient. Because of FHFA’s oversight of Fannie Mae and Freddie Mac, and OCC’s influence over banks, the statements brought existing PACE programs to a halt and froze the ability of communities to launch PACE programs already under development nationwide.
PACE is a local government solution that is supported by a century of legal and historical precedent for special assessment districts, including more than 37,000 districts nationwide that have been used to finance sewers, sidewalks, and other projects that serve a public purpose. In just the past two years, twenty-two states have passed laws enabling local governments to develop PACE programs.
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

For Immediate Release

Contact: Guillermo Meneses

ICLEI USA – (202) 445-1570

ICLEI-Local Governments for Sustainability USA Joins Members of Congress in Urging Federal Housing Finance Agency Acting Director, Edward DeMarco to Restore PACE Funding or Resign

“Acting Director DeMarco Should Take a Deep Breath, Apologize to the American People for Distorting the Record on PACE and Reverse Course.  If He’s not Willing to Restore PACE Funding as Requested by Congress, He Should Follow Their Suggestion and Resign His Post Immediately,” Martin J. Chavez, Executive Director, ICLEI USA.

Washington, D.C. [July 16, 2010] – ICLEI-Local Government for Sustainability USA, the nation’s leading local government association addressing climate change and sustainability joins Members of Congress in calling for Federal Housing Finance Agency Acting Director, Edward DeMarco, to step down, unless he works with local governments to restore critical funding to PACE programs in 22 states including California.

In recent public comments, Acting Director DeMarco has falsely described Property Assessed Clean Energy (PACE) programs as ‘loans’ and ‘credit risks,’ which is both misleading and inaccurate.  Mr. DeMarco’s comments follow recent actions by the FHFA at the direction of loan giants Fannie Mae and Freddie Mac that severely restrict a local government’s ability to implement PACE-enabling programs.  In responding to a recent lawsuit filed by California Attorney General, Jerry Brown, on behalf of local governments, Mr. DeMarco said his agency will fight Brown’s lawsuit in order to protect ‘taxpayers, lenders and both mortgage programs’ (Fannie and Freddie).

“We should not allow Acting Director DeMarco to destroy one of the most innovative and energy efficient tools available to homeowners and local governments today,” said Patrick Hays, Mayor of North Little Rock, AR. and Chairman of the Board of Directors, ICLEI-Local Governments for Sustainability USA. “As a mayor, I am reminded everyday of the realities of persistently high unemployment, a fragile economy and the impact that climate change is having on our communities. Sadly, it appears that Mr. DeMarco is putting Freddie and Fannie’s interests first on his list, leaving the American taxpayer behind,” added Mayor Hays.

Contrary to Mr. DeMarco’s statements, PACE programs do not operate using traditional loan mechanisms. Local governments instead finance the upfront costs through voluntary tax assessments, which are paid incrementally in small amounts through a homeowner’s annual property tax bills and offset by reduced energy costs.  Similar assessment mechanisms are used by local governments and municipalities to fund sewers, sidewalks, schools and other public projects.

“As a government official and a head of a federally-mandated agency designated to protect taxpayers, it appears Acting Director DeMarco is more interested in protecting Fannie and Freddie rather than helping homeowners during this devastating  economy,” said Martin J. Chavez, Executive Director, ICLEI-Local Governments for Sustainability  USA and three-term mayor of Albuquerque, NM. “Mr. DeMarco has severely damaged his credibility with Members of Congress and the American people by refusing to restore funding to innovative PACE programs that reduce energy and create much needed jobs in California and 21 other states,” added Mayor Chavez.

Recently, several Members of Congress led by Rep. Steve Israel (D-NY) sent a letter to Acting Director DeMarco asking him to step down from his position, unless he could find a workable resolution to new crippling FHFA-imposed restrictions on PACE programs.

ICLEI-Local Governments for Sustainability USA has launched a nationwide effort calling on its 600 plus members across the country to contact the President and the Congress, particularly the key committees with oversight authority to overturn the new FHFA regulations.  Some of the states that are currently engaged in PACE  include, AZ, MD, OR, CA, NV, TX, CO, NM, VT, FL, NY, VA, HI, NC, WI, IL, OH, LA, OK, among others.

About Property Assessed Clean Energy (PACE)

PACE has been one of the most innovative tools in the nation for empowering homeowners to become more efficient and generate clean energy in their homes thereby reducing their utility bills and saving money.  22 states have already enacted PACE enabling legislation, which allows homeowners to finance residential solar systems or energy efficient retrofits.

About ICLEI-Local Governments for Sustainability USA

With over 600 members nationwide, ICLEI-Local Governments for Sustainability USA is the leading local government association addressing climate change and sustainability.  As a non-profit membership organization, ICLEI USA provides the expertise, technical support, training and innovative tools to help local governments advance their climate, energy reduction and sustainability goals.  Since its inception in 1990, ICLEI global has grown to include more than 1,200 local governments worldwide with its international headquarters located in Bonn, Germany.

More information at www.icleiusa.org

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Guillermo A. Meneses
Director of Communications
Washington, D.C.
Cell: (202) 445-1570
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