Property Assessed Clean Energy (PACE) programs across the country addressed the financial obstacles associated with energy efficient installations by eliminating up-front costs and allowing gradual repayment through the owner’s property taxes. However, in July 2010 a directive issued by the Federal Housing Finance Agency (FHFA) effectively suspended most residential PACE programs.

Multiple law suits have been filed, some of which have been dismissed. The California lawsuits have been combined and, after a favorable ruling by U.S. District Judge, Claudia Wilken, the combined suit is awaiting appeal by FHFA.

In the meantime, a bipartisan group of Members of Congress have initiated a legislative approach to solving the PACE issue. Representatives Dan Lungren (R-CA), Mike Thompson (D-CA), and Nan Hayworth (R-NY) introduced House Resolution 2599 on July 20, 2011. HR2599, also known as The PACE Assessment Protection Act of 2011, has garnered the bipartisan support of 48 House members, 20 Republicans and 28 Democrats.

The PACE Assessment Protection Act of 2011 aims to prevent Fannie Mae, Freddie Mac, and other Federal residential and commercial mortgage lending regulators from adopting policies that disregard established State and local property assessed clean energy laws and would guarantee that state and local governments maintain the right to levy taxes for public purposes.

HR2599 establishes strict guidelines intended to protect lenders. In return, federal regulators would be required to rescind prior guidance against local jurisdictions implementing or participating in a voluntary PACE program. Guidelines to establish an applicant’s credit-worthiness are outlined, as is the requirement for an energy audit. The energy and/or water savings realized would be required to exceed the amount of the PACE assessment.

Twenty-seven states have adopted PACE legislation. However, there are only a handful of programs currently offering financing. MPOWER Placer is one of only five programs offering PACE financing for non-residential property owners in California.

MPOWER Placer provides financing to make water and energy efficiency improvements as well as power generation improvements such as solar photovoltaic for property owners in Placer County. The financed amount is amortized and the annual amount due is added to your property tax bill each year until paid in full. If the property is sold, the unpaid amount stays on the property tax bill and the new owner assumes payment of the balance on the property tax bill each year.

MPOWER Placer provides financing to make water and energy efficiency improvements as well as power generation improvements such as solar photovoltaic for property owners in Placer County. The financed amount is amortized and the annual amount due is added to your property tax bill each year until paid in full. If the property is sold, the unpaid amount stays on the property tax bill and the new owner assumes payment of the balance on the property tax bill each year.