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.