An article in the New York Times today highlights problems that may arise for Property Assessed Clean Energy programs (initiated here in Berkeley in 2008). Fannie Mae and Freddie Mac have warned lenders that “an energy efficiency lien may not be senior to any mortgage delivered” to the loan giants.
For at least one home in California, the lenders refused to approve a loan for the purchase of a home with heating and cooling systems financed through a program in Sonoma County. The property tax assessment that was to cover the cost of the systems had to paid off before the lenders would issue a loan for the property.
The full New York Times article, with more information about PACE programs and implications for them and other property tax assessment programs, is here.
More information about PACE programs can be found here.