The Federal Housing Finance Agency (FHFA) recently released a proposed rule for Fannie Mae and Freddie Mac that would disallow them from purchasing mortgage assets affected by Property Assessed Clean Energy (PACE) programs.
This bizarre stance by FHFA, which boils down to a condemnation of PACE financing, comes despite multiple PACE pilot programs demonstrating that PACE properties have lower foreclosure rates and increased energy savings. In many areas, it helps meet the high demand for solar consumer financing.
In particular, the long-term financing aspect is crucial to eliminating the up-front cost barrier to solar energy projects.
In our state, PACE programs have aided in the creation of hundreds of jobs, generated the investment of millions of dollars, and given rise to a domestic solar manufacturing industry now recognized for excellence around the world.
Eligible projects include energy efficiency improvements such as insulation, weather sealing and high-efficiency water heaters as well as solar and other on-site renewable energy systems.
The FHFA needs a loud and clear message why PACE programs are good, and that the data bears this out. PACE programs create jobs, help consumers save money, and raise property values - all without mandates or taxpayer spending.
Please contact your elected representatives and tell them the FHFA stance on PACE is unacceptable – and hurts the American consumer. You can also contact the FHFA directly:
Federal Housing Finance Agency