This post is part of our ongoing focus on energy, water, waste and transportation issues relevant to California at large.
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photo credit: free foto.com
Property Assessed Clean Energy (PACE) programs are being quickly halted due to a recent announcement by the Federal Housing Finance Agency (FHFA) that declared the investments potentially unsafe for lenders. The new and upcoming PACE programs being piloted and planned by cities and counties around the country would offer homeowners bond-backed loans for solar and other energy efficiency upgrades to homes.
Under most terms, the PACE loan (which is attached to the house itself, like an assessment) would have first priority for repayment ahead of the mortgage. This repayment structure provoked a warning pronouncement from Fannie Mae and Freddie Mac last month. Now the FHFA has dealt another blow by also warning lenders that the programs could prove risky- effectively halting operations for the time being.
Read more coverage on the FHFA’s PACE announcement in: