Close to 150,000 Californian homeowners have made energy and efficiency improvements through Property Assessed Clean Energy (PACE) financing. For the most part they are success stories, but there are isolated reports of problems with “independent solar, plumbing and roofing contractors who pitch the loans and sign up consumers through online software.” The California state legislature responded with two bills providing increased protection for PACE customers. Continue reading Two Bills Providing Increased Protection For PACE Customers→
There have been some pretty strange “goings on” in Washington since the Republicans took over. Confronted with facts they didn’t like, the new administration came up with the concept of “alternate facts” that are more in line with the way they want people to think. This has gone beyond the White House. With the new Protecting Americans from Credit Exploitation (PACE) Act, three Republican senators apply alternate facts to PACE financing.
Seven years ago, the White House released policy guidelines that would allow homeowners to finance home energy improvements through their property taxes. The Property-Assessed Clean Energy (PACE) is a local government/corporate partnership, in which private companies supply 100% of the initial funding and are paid back over time. If this remarkably simple program were not classified as tax, it would have been adopted offered through-out America years ago. Taxes take priority over mortgages, should the homeowner default. So Fannie Mae and Freddy Mac urged local governments to put their PACE programs on hold. Yesterday, the US Department of Housing and Urban Development (HUD) announced the obvious solution. Aside from the length of time it took the government to adopt a painfully obvious solution, there are no surprises in HUD’s PACE guidance.
There are almost 400 registrants, from 35 or 36 states, all keenly aware that the US government is about to partially remove a hindrances that have kept residential Property Assessed Clean Energy (P.A.C.E.) financing from spreading throughout the nation. George Caraghiau said, “I’ve been to so many conferences in my life, but I cannot believe the excitement I am feeling at this conference.” David Gabrielson, Executive Director of PACENation, added,1People are excited about the impact this will have on job creation, climate change…” They were speaking from America’s First PACENation Summit.
It has been eight years since Cisco DeVries invented Property Assessed Clean Energy (PACE) loans. They were meant to spur the mass adoption of residential solar, but have also proven to be an effective means of financing other energy and water saving devices. If PACE weren’t classified as a tax, it would have been offered through-out America years ago. Instead, five years ago Fannie Mae and Freddy Mac urged local governments to put their PACE programs on hold and the vast majority of PACE projects have been in California. That is about to change. Cisco DeVries explains how PACE is changing.