Innovative legislation could be a win-win for everyone, but it's hit a snag. Read through and help.
Property Accessed Clean Energy, or PACE, is a way for homeowners and businesses to finance renewable energy and energy efficiency upgrades through an established bond program at the City, County or State level. The low-interest loans/bonds are typically easier to obtain and cheaper than going to a bank on your own. The PACE loans get paid back as a tax assessment. Most programs allow for building owners to opt for a 20- year assessment on their property taxes. If the home or business is sold, the new owner continues the payments.
Several states including Missouri have jumped on the PACE band wagon. Governor Nixon signed the PACE legislation on July 12th enabling Cities and Counties to establish special Clean Energy Development Boards with the authority to issue the low-interest bonds. Twenty three other states as well as several cities and counties have recognized the immediate and long-term benefits of providing for energy upgrades upfront. By helping to spread out the initial investment communities see reduced energy consumption, economic influx, job creation as well as decreases in carbon and other pollutants. Building owners are able to improve their property and the occupants in homes and businesses are provided better living spaces. The program requires that the monthly energy savings must be more than the assessment, which reduces the cost of ownership immediately thereby improving the cash flow of participants.
Sounds like a win- win situation all around right?
Unfortunately the PACE program has hit a snag. Federally backed mortgage companies Fannie Mae and Freddie Mac have argued that PACE programs put the security interest of mortgage companies at risk as the loans take on a first or senior to the mortgage. All is not lost however; The Federal Housing Financing Agency, which oversees Fannie May & Freddie Mac, says they are working to resolve the issue and legislation has been introduced by Congressmen Michael Thompson to protect PACE (H.R. 5766). Many see the issue as a matter of a states right to utilize assessment districts. You can learn more about the fight for PACE and what you can do to help to ensure that it gets back on track by visiting: http://pacenow.org and http://votesolar.org
Business leaders, including The Energy Savings Store and representatives from 17 counties and 15 cities attended a recent training sponsored by Renew Missouri to learn more about how to establish a PACE program in their communities. Many are moving ahead laying the ground work to establish their Clean Energy Development Boards so they will be ready to once the mortgage issue is resolved. Contact your local municipality or county government and ask if they are planning to establish a PACE program.
