Federal lending agency quashed the programs by saying it wouldn’t approve mortgages encumbered with energy improvement loans
By Bob Berwyn
SUMMIT COUNTY — A languishing revolving loan program for installation of renewable energy features may get a new lease on life this year, as a bipartisan coalition of legislators in Washington, D.C. have introduced a bill that would revive the PACE program.
Twenty-seven states have adopted some form the Property Assessed Clean Energy program during the past few years. Under PACE programs, property owners can apply for loans to upgrade insulation or add solar panels, for example. The loan is repaid through an assessment on their property taxes for up to 20 years.
PACE financing spreads the cost of energy improvements such as weather sealing, insulation, energy efficient boilers and cooling systems, new windows, and solar installations over the expected life of the measures and allows for the repayment obligation to transfer automatically to the next property owner if the property is sold.
But about a year ago, in the aftermath of the housing market crash, Fannie Mae and Freddie Mac, the federal mortgage underwriters, issued a guidance letter saying they wouldn’t back loans on properties encumbered with a local energy improvement loan. (more…)
Filed under: Colorado, energy, Environment, renewable energy, Summit County Colorado, Summit County news | Tagged: Environment, Federal Housing Finance Agency, PACE, PACE Financing, renewable energy, renwable energy loan programs, Summit County News | 1 Comment »