Monthly Archives: December 2010

PACE Litigation Alert

December 22, 2010

The United States District Court for the Northern District of California has taken up lawsuits filed by the State of California, Sonoma and Placer Counties, the Sierra Club, and the City of Palm Desert that seek to overturn the Federal Housing Finance Agency’s July 6, 2010 directives that were designed to stop PACE residential programs nationwide.

On December 20th, Judge Claudia Wilken responded to Sonoma County’s motion for a preliminary injunction that asked the court to prohibit the FHFA, Fannie Mae and Freddie Mac from applying any of the restrictions laid out in the July 6th FHFA Statement.  Judge Wilken did not grant the preliminary injunction, but did suggest that Sonoma County return to the Court with a request that it order the FHFA to initiate the notice and comment procedures required under the Federal Administrative Procedure Act.  The Defendants (the FHFA, Fannie Mae, and Freddie Mac) were ordered to respond by January 6, 2011 and Sonoma County was ordered to respond by January 13, 2011.

If the Court orders the FHFA to commence notice and comment procedures (without withdrawing their July 6,2010 statement), they will be required to follow specific procedures, as outlined on the FHFA Website:

  1. Advance Notice of Propose Rulemaking.  In this optional step, agencies publish initial analysis of the subject and ask for public comment.
  2. Proposed Rule. Next, the proposed regulatory language is published in the Federal Register, including the justification and analysis behind the rule, as well as the agency’s response to any advance public comment.
  3. Public comment.  After publication in the Federal Register, a public comment period begins.  Depending on the complexity of the rule, comment periods could stretch 30 to 60 or even as much as 180 days.
  4. Final Rule  After the comment period, the agency publishes its response to issues raised by public comments and an updated analysis and justification for the rule, including an analysis of any new information from public comments.

This process will allow PACE supporters to address specific claims made by the FHFA, Fannie Mae and Freddie Mac, including assertions that PACE assessments are not valid public benefits and claims that they threaten the safety and soundness of the mortgage industry.   It is likely that all comments will made available to the public.

Michigan passes PACE Legislation

December 14, 2010

Ann Arbor officials working to launch first PACE program in Michigan under new state law

In one of her last remaining acts as governor, Jennifer Granholm signed into law today a piece of Ann Arbor-inspired legislation that will help business owners throughout Michigan finance energy efficiency improvements on their properties.

Granholm penned her name to House Bill 5640, better known as the PACE legislation, during a ceremonial bill signing in her office on the second floor of the state capitol building.

Ann Arbor and Washtenaw County officials have been pushing for the state to approve a PACE law — which stands for Property Assessed Clean Energy — for several months. State Rep. Rebekah Warren, D-Ann Arbor, sponsored the bill that made it possible.

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Congresswoman Nan Hayworth (R-NY)

“PACE programs allow homeowners to make energy-saving modifications on their houses through a voluntary assessment on their property, at no cost to local taxpayers. Our bill facilitates participation by homeowners in states with PACE programs, which will promote conservation, energy savings and job creation.”

Congressman Dan Lungren (R-CA)

“My colleagues and I are fighting for a common sense program that would both increase the value of homes involved and help create jobs in our region. The time is now, more than ever to pass legislation that will accomplish this goal.”

Congressman Mike Thompson (D-CA)

“PACE promotes energy efficiency in ways that are good for our country, economy, and environment, saving property owners money by lowering energy costs and more importantly, creating jobs without taxes or government subsidies. Congresswoman Hayworth, Congressman Lungren, and I are committed to protecting PACE for the future.”

Mayor Jerry Sanders (R-San Diego)

“I am honored to be one of our nation’s first Mayors to support PACE. San Diego plans to derive strong long term advantages through PACE programs and we urge the rest of our nation, on a bipartisan basis, to join us.”

Gov Bill Ritter (D-CO)

“PACE is already creating economic opportunity, energy savings, and environmental benefits through the retrofit of residential and commercial building stock.”

Mayor Michael Bloomberg (I-NYC)

“A New York City PACE program providing property owners with the upfront capital to make energy efficiency retrofits will create jobs and reduce energy costs for residents and businesses.”

Gov Arnold Schwarzenegger (R-CA)

“With PACE, we are providing homeowners and business owners with powerful tools to take control of their energy use and create jobs at the same time”

Adam Hasner (R-FL)

“PACE provides a no-cost to taxpayers, no-mandate, consumer opt-in approach to bringing clean energy technology to homeowners and businesses. PACE will help create jobs for Floridians at a critical time when we are working to get Florida’s economy back on track.” Adam Hasner led passage of Florida's PACE legislation as Majority Leader of the State House of Representatives