Bill Would End GSE Roadblocks
(Bond Buyer) Monday, July 19, 2010
WASHINGTON — Rep. Mike Thompson, D-Calif., and 29 other members of Congress have introduced legislation that would prevent Fannie Mae and Freddie Mac from stifling state programs that allow localities to sell bonds to finance energy-efficient upgrades made by homeowners.
The legislation follows a suit California attorney general and Democratic gubernatorial candidate Jerry Brown filed against Fannie Mae, Freddie Mac, and the Federal Housing Finance Agency, arguing they are violating state law by blocking the programs.
The programs, dubbed property assessed clean energy, or PACE, programs, have come under fire from the mortgage titans and their regulator, the FHFA, which argue they make the underlying mortgages on participating homes too risky for the two government-sponsored enterprises.
READ MORE
Monday, July 19, 2010
Sunday, July 18, 2010
Byron DeLear of Missouri Association of Accredited Energy Professionals speaks of PACE
Gov. Jay Nixon signed a bill on Monday enabling Property Assesses Clean Energy (PACE) programs, which allow cities and counties to issue bonds to help home owners finance energy efficiency upgrades or solar panel installation. Money from the bond sales is lent to property owners, who repay it over a period of up to 20 years through special property tax assessments.
PACE laws have been adopted in 22 states as a way to cut energy use and create jobs by making it easier for homeowners to cut energy use and shrink utility bills.
In Missouri, energy efficiency advocates acknowledge the uncertainty surrounding PACE but are working to roll out programs anyway, hoping the conflict is resolved.
On Friday, energy advocacy group Renew Missouri held a PACE implementation training conference in Columbia for about 100 energy auditors, solar installers and local government officials.
"Our view is that these concerns and problems will be resolved," said Byron DeLear, a founding partner of Energy Equity Funding LLC, a company that hopes to administer PACE programs in the state.
DeLear also heads the Missouri Association of Accredited Energy Professionals, a year-old state association of energy auditors and contractors. MAAEP helped push PACE legislation in Jefferson City and has a lot riding on the success of the programs.
PACE is expected to spur millions of dollars in efficiency and renewable energy upgrades across the state. That could mean hundreds of new jobs for energy auditors, contractors and home remodelers.
DeLear projects that 80 percent of PACE loans in Missouri will be used to finance energy efficiency projects averaging about $5,000. The rest will also incorporate renewable energy systems such as solar panels with those projects averaging about $25,000. Statewide, the average PACE loan would be about $9,000, he estimates.
READ MORE
PACE laws have been adopted in 22 states as a way to cut energy use and create jobs by making it easier for homeowners to cut energy use and shrink utility bills.
In Missouri, energy efficiency advocates acknowledge the uncertainty surrounding PACE but are working to roll out programs anyway, hoping the conflict is resolved.
On Friday, energy advocacy group Renew Missouri held a PACE implementation training conference in Columbia for about 100 energy auditors, solar installers and local government officials.
"Our view is that these concerns and problems will be resolved," said Byron DeLear, a founding partner of Energy Equity Funding LLC, a company that hopes to administer PACE programs in the state.
DeLear also heads the Missouri Association of Accredited Energy Professionals, a year-old state association of energy auditors and contractors. MAAEP helped push PACE legislation in Jefferson City and has a lot riding on the success of the programs.
PACE is expected to spur millions of dollars in efficiency and renewable energy upgrades across the state. That could mean hundreds of new jobs for energy auditors, contractors and home remodelers.
DeLear projects that 80 percent of PACE loans in Missouri will be used to finance energy efficiency projects averaging about $5,000. The rest will also incorporate renewable energy systems such as solar panels with those projects averaging about $25,000. Statewide, the average PACE loan would be about $9,000, he estimates.
READ MORE
Saturday, July 17, 2010
Congress tells Fannie and Freddie to support clean energy programs
Written by Office of Congressman Mike Thompson
Saturday, 17 July 2010
WASHINGTON, DC – On Thursday Congressman Mike Thompson (D-CA) was joined by 29 other members of Congress in introducing legislation to protect clean energy initiatives that are important to homeowners in California and the rest of the country.
The PACE Assessment Protection Act of 2010 would order lenders to adopt standards that support Property Assessed Clean Energy (PACE) programs, rather than stymie green energy efforts.
“PACE programs are an important part of the push to create a green economy and reduce our reliance on foreign oil,” said Congressman Thompson. “They create jobs, and are an exciting way for homeowners to reduce their energy bills while also reducing greenhouse gas emissions. This is especially important in California, which has already taken significant steps to ensure that PACE programs are available to 70 percent of Californians by the end of 2010. And our district has been a national leader in getting these programs up and running – lending institutions should not interfere with these great green energy programs.”
MORE
Bill Summary & Status - 111th Congress (2009 - 2010) - H.R.5766
Title:
To ensure that the underwriting standards of Fannie Mae and Freddie Mac facilitate the use of property assessed clean energy programs to finance the installation of renewable energy and energy efficiency improvements.
Sponsor: Rep Thompson, Mike
[CA-1] (introduced 7/15/2010)
Cosponsors
(29)
Latest Major Action:
7/15/2010 Referred to House committee. Status: Referred to the House Committee on Financial Services.
Thompson Bill Re FHFA 7-15-10
Saturday, 17 July 2010
WASHINGTON, DC – On Thursday Congressman Mike Thompson (D-CA) was joined by 29 other members of Congress in introducing legislation to protect clean energy initiatives that are important to homeowners in California and the rest of the country.
The PACE Assessment Protection Act of 2010 would order lenders to adopt standards that support Property Assessed Clean Energy (PACE) programs, rather than stymie green energy efforts.
“PACE programs are an important part of the push to create a green economy and reduce our reliance on foreign oil,” said Congressman Thompson. “They create jobs, and are an exciting way for homeowners to reduce their energy bills while also reducing greenhouse gas emissions. This is especially important in California, which has already taken significant steps to ensure that PACE programs are available to 70 percent of Californians by the end of 2010. And our district has been a national leader in getting these programs up and running – lending institutions should not interfere with these great green energy programs.”
MORE
Bill Summary & Status - 111th Congress (2009 - 2010) - H.R.5766
Title:
To ensure that the underwriting standards of Fannie Mae and Freddie Mac facilitate the use of property assessed clean energy programs to finance the installation of renewable energy and energy efficiency improvements.
Sponsor: Rep Thompson, Mike
[CA-1] (introduced 7/15/2010)
Cosponsors
(29)
Latest Major Action:
7/15/2010 Referred to House committee. Status: Referred to the House Committee on Financial Services.
Thompson Bill Re FHFA 7-15-10
PACE funding workshop attracts statewide attendance
Property Assessed Clean Energy funding workshop attracts statewide attendance
Friday, July 16, 2010
COLUMBIA — Representatives from 19 municipalities gathered to learn how to make Property Assessed Clean Energy (PACE) funding a reality in Missouri.
The PACE workshop drew more than 80 Missourians to Columbia on Friday. Jason Hughes of Renew Missouri, an organization focused on promoting renewable energy in Missouri and the event’s sponsor, was expecting 50.
The workshop follows Gov. Jay Nixon’s signing of a bill to allow the use of PACE financing systems in Missouri.
Attendees came from around the state to express the diverse needs of their communities.
Serving Seniors
Rosalind Williams, Director of Planning and Development for Ferguson, said her community is focused on the needs of it’s senior citizens. Making houses not only more comfortable, but cheaper to live in, encourages seniors to not move out of Ferguson, she said.
Williams said senior citizens aren’t an attractive demographic to most lenders, but PACE financing would allow them to afford adding value to their homes.
No Cherry Picking
John May of Creve Coeur wants to be sure PACE benefits everyone, not just the wealthy municipalities.
One proposal he saw for a PACE program “cherry-picked” the wealthier counties of St. Louis and St. Charles and avoided the poor.
“I got a little hot,” May said after hearing that proposal.
May also cautioned against rushing into any financing system without being sure of the risks. Believing in safety without surety led to the recession and the Deepwater Horizon disaster, he said.
Fannie May and Freddie Mac oppose PACE funding. They believe that the the stipulations of PACE financing could displace mortgages the lenders hold.
Their opposition has halted progress on PACE across the country, but is receiving heavy criticism.
READ ARTICLE
Friday, July 16, 2010
COLUMBIA — Representatives from 19 municipalities gathered to learn how to make Property Assessed Clean Energy (PACE) funding a reality in Missouri.
The PACE workshop drew more than 80 Missourians to Columbia on Friday. Jason Hughes of Renew Missouri, an organization focused on promoting renewable energy in Missouri and the event’s sponsor, was expecting 50.
The workshop follows Gov. Jay Nixon’s signing of a bill to allow the use of PACE financing systems in Missouri.
Attendees came from around the state to express the diverse needs of their communities.
Serving Seniors
Rosalind Williams, Director of Planning and Development for Ferguson, said her community is focused on the needs of it’s senior citizens. Making houses not only more comfortable, but cheaper to live in, encourages seniors to not move out of Ferguson, she said.
Williams said senior citizens aren’t an attractive demographic to most lenders, but PACE financing would allow them to afford adding value to their homes.
No Cherry Picking
John May of Creve Coeur wants to be sure PACE benefits everyone, not just the wealthy municipalities.
One proposal he saw for a PACE program “cherry-picked” the wealthier counties of St. Louis and St. Charles and avoided the poor.
“I got a little hot,” May said after hearing that proposal.
May also cautioned against rushing into any financing system without being sure of the risks. Believing in safety without surety led to the recession and the Deepwater Horizon disaster, he said.
Fannie May and Freddie Mac oppose PACE funding. They believe that the the stipulations of PACE financing could displace mortgages the lenders hold.
Their opposition has halted progress on PACE across the country, but is receiving heavy criticism.
READ ARTICLE
Thursday, July 15, 2010
California s Brown Sues GSEs Over PACE
(Bond Buyer) Thursday, July 15, 2010
WASHINGTON — California Attorney General Jerry Brown is suing mortgage titans Fannie Mae and Freddie Mac as well as their regulator, the Federal Housing Finance Agency, for effectively killing programs that allow the state’s localities to issue bonds to finance energy-efficient upgrades made by homeowners.
Brown, a Democratic gubernatorial candidate, filed the suit yesterday in the U.S. District Court for the Northern District of California, urging the court to issue an order restraining or enjoining the agencies from refusing to participate in these property assessed clean energy, or PACE, programs, which he insisted are permitted under state law.
The PACE programs were to receive about $150 million of seed money under the American Recovery and Reinvestment Act enacted last year. But they generally skidded to a halt earlier this month after the FHFA directed Fannie Mae and Freddie Mac to tighten their underwriting standards for the PACE programs, warning they “pose significant safety and soundness concerns” and “disrupt a fragile housing finance market and long-standing lending priorities."
READ ARTICLE
CA Fhfa Suit
WASHINGTON — California Attorney General Jerry Brown is suing mortgage titans Fannie Mae and Freddie Mac as well as their regulator, the Federal Housing Finance Agency, for effectively killing programs that allow the state’s localities to issue bonds to finance energy-efficient upgrades made by homeowners.
Brown, a Democratic gubernatorial candidate, filed the suit yesterday in the U.S. District Court for the Northern District of California, urging the court to issue an order restraining or enjoining the agencies from refusing to participate in these property assessed clean energy, or PACE, programs, which he insisted are permitted under state law.
The PACE programs were to receive about $150 million of seed money under the American Recovery and Reinvestment Act enacted last year. But they generally skidded to a halt earlier this month after the FHFA directed Fannie Mae and Freddie Mac to tighten their underwriting standards for the PACE programs, warning they “pose significant safety and soundness concerns” and “disrupt a fragile housing finance market and long-standing lending priorities."
READ ARTICLE
CA Fhfa Suit
Wednesday, July 14, 2010
Brown Fights to Preserve Job-Creating Clean Energy Program
SAN DIEGO - Attorney General Edmund G. Brown Jr. today filed a lawsuit against mortgage giants Fannie Mae and Freddie Mac for blocking an innovative California clean energy program that was designed to create tens of thousands of jobs, promote energy independence and lower utility bills.
"As the nation struggles through the worst recession in modern times, California is taking action in federal court to stop the regulatory strangulation of the state's grass-roots program that is spreading across the country," said Brown.
The PACE (Property Assessed Clean Energy) program stimulates the economy and promotes energy independence by assisting homeowners and small businesses in securing funding to make their properties more energy efficient. Property owners repay the costs of energy improvements through assessments spread out over a decade or more. Under California law, these costs are classified as tax assessments.
Ignoring California law, Fannie Mae and Freddie Mac have effectively shut down the program by wrongly characterizing PACE assessments as loans that must be subordinate to their own mortgages. The Federal Housing Finance Agency affirmed Fannie and Freddie's decision on July 6 over the objections of Attorney General Brown and congressional leaders.
For California, the stakes are high. Almost half the counties in California have developed PACE programs or plan to start one. The mortgage giants' actions have stopped these programs dead in their tracks, destroying job creation, stifling energy independence and hampering California's economic recovery. Clean energy companies have had to lay off workers, and California risks losing more than $100 million in federal stimulus money.
"Fannie Mae and Freddie Mac received enormous federal bailouts," Brown said, "but now they're throwing up impermeable barriers to bank lending that creates jobs, stimulates the economy and boosts clean energy."
One example of the effects of this: San Diego planned to launch a PACE program this summer but it has now been suspended indefinitely, leaving more than 100 people trained in energy retrofits without jobs.
"I believe that the PACE program is critical to stimulating our local and statewide economy," said San Diego Mayor Jerry Sanders. "I'm glad to see this lawsuit filed so that this novel program can continue."
In his lawsuit, Brown asks the court to apply California law, require Fannie Mae and Freddie Mac to recognize PACE assessments for what they are, and allow PACE to move California's economy forward.
"As the nation struggles through the worst recession in modern times, California is taking action in federal court to stop the regulatory strangulation of the state's grass-roots program that is spreading across the country," said Brown.
The PACE (Property Assessed Clean Energy) program stimulates the economy and promotes energy independence by assisting homeowners and small businesses in securing funding to make their properties more energy efficient. Property owners repay the costs of energy improvements through assessments spread out over a decade or more. Under California law, these costs are classified as tax assessments.
Ignoring California law, Fannie Mae and Freddie Mac have effectively shut down the program by wrongly characterizing PACE assessments as loans that must be subordinate to their own mortgages. The Federal Housing Finance Agency affirmed Fannie and Freddie's decision on July 6 over the objections of Attorney General Brown and congressional leaders.
For California, the stakes are high. Almost half the counties in California have developed PACE programs or plan to start one. The mortgage giants' actions have stopped these programs dead in their tracks, destroying job creation, stifling energy independence and hampering California's economic recovery. Clean energy companies have had to lay off workers, and California risks losing more than $100 million in federal stimulus money.
"Fannie Mae and Freddie Mac received enormous federal bailouts," Brown said, "but now they're throwing up impermeable barriers to bank lending that creates jobs, stimulates the economy and boosts clean energy."
One example of the effects of this: San Diego planned to launch a PACE program this summer but it has now been suspended indefinitely, leaving more than 100 people trained in energy retrofits without jobs.
"I believe that the PACE program is critical to stimulating our local and statewide economy," said San Diego Mayor Jerry Sanders. "I'm glad to see this lawsuit filed so that this novel program can continue."
In his lawsuit, Brown asks the court to apply California law, require Fannie Mae and Freddie Mac to recognize PACE assessments for what they are, and allow PACE to move California's economy forward.
Tuesday, July 13, 2010
Missouri governor signs bills on energy efficiency
From the governor's office:
House Bill 1692 contains numerous provisions, including one to spur energy efficiency and conservation through the Property Assessed Clean Energy (PACE) program. This lets cities and counties issue bonds and provide financing for all upfront costs of energy efficient upgrades, renewable energy upgrades and energy audits for homes and businesses. Those upgrades can be costly, and this assistance will help many projects move forward. The bill was supported by a broad range of groups including utilities, consumer advocates and environmental groups.
House Bill 1692 contains numerous provisions, including one to spur energy efficiency and conservation through the Property Assessed Clean Energy (PACE) program. This lets cities and counties issue bonds and provide financing for all upfront costs of energy efficient upgrades, renewable energy upgrades and energy audits for homes and businesses. Those upgrades can be costly, and this assistance will help many projects move forward. The bill was supported by a broad range of groups including utilities, consumer advocates and environmental groups.
Thursday, July 8, 2010
PACE Programs On Hold - Bond Buyer Article
The Bond Buyer is the paper of record for the bond market. The article presents a very good view of what should be expected in the marketplace. This gives the reader a sense that PACE will continue only if prudent underwriting practices are followed.
Regretably, the folks who were instrumental in getting the initial PACE programs started were not mindful of the protections desired and required by the GSE community.
Note the last paragraph. It appears to give a glimmer of hope that there may be a path back from the brink.
SEE ARTICLE HERE
Regretably, the folks who were instrumental in getting the initial PACE programs started were not mindful of the protections desired and required by the GSE community.
Note the last paragraph. It appears to give a glimmer of hope that there may be a path back from the brink.
SEE ARTICLE HERE
Monday, July 5, 2010
Green initiative's future murky as regulators weigh risks to homeowners
July 4, 2010(Washington Post) An Obama administration program to promote energy efficiency in homes appears to have met insurmountable resistance from financial regulators who are worried about its effect on residential mortgages, federal and local officials said Saturday.
As a result, the government has begun telling municipalities to think of other ways to use the millions in economic stimulus funds that had been set aside for the green initiative, officials said.
"Millions of dollars that would otherwise be invested and help out the local economy are on hold," said Ben Pearlman, a county commissioner in Boulder, Colo.
The program is emblematic of President Obama's effort to build the economy by reducing reliance on fossil fuels. It provides loans for such improvements as solar panels or new windows, and then allows homeowners to repay the money over many years through surcharges on property tax bills.
READ ARTICLE
As a result, the government has begun telling municipalities to think of other ways to use the millions in economic stimulus funds that had been set aside for the green initiative, officials said.
"Millions of dollars that would otherwise be invested and help out the local economy are on hold," said Ben Pearlman, a county commissioner in Boulder, Colo.
The program is emblematic of President Obama's effort to build the economy by reducing reliance on fossil fuels. It provides loans for such improvements as solar panels or new windows, and then allows homeowners to repay the money over many years through surcharges on property tax bills.
READ ARTICLE
Sunday, July 4, 2010
Loan Giants Opt to Block Energy Programs
July 3, 2010 NYT -- Two government-chartered mortgage finance companies are unlikely to accept loans on homes that are part of a special program that lets homeowners repay the cost of energy improvements through a surcharge on their property tax bills, according to Energy Department officials.
The Obama administration has allocated $150 million in stimulus money to support the financing technique, called Property Assessed Clean Energy, or PACE, and 22 states have authorized such programs. In a separate stimulus effort, President Obama on Saturday announced nearly $2 billion in loan guarantees for solar energy production.
READ NYT ARTICLE
The Obama administration has allocated $150 million in stimulus money to support the financing technique, called Property Assessed Clean Energy, or PACE, and 22 states have authorized such programs. In a separate stimulus effort, President Obama on Saturday announced nearly $2 billion in loan guarantees for solar energy production.
READ NYT ARTICLE
Saturday, July 3, 2010
US lawmakers urge guidance for clean energy loans
WASHINGTON July 2 (Reuters) - Two influential Democratic lawmakers warned on Friday that Fannie Mae and Freddie Mac could derail a $150 million clean-energy home-financing program and urged the Obama administration to rectify the problem with new regulatory guidance.
Rep. Barney Frank, chairman of the U.S. House of Representatives Financial Services Committee, and Rep. Henry Waxman, head of the House Energy and Commerce Committee, said in a letter that the two government-controlled mortgage finance providers have objected to tax liens on homes participating in Property Assessed Clean Energy (PACE) programs.
READ FULL ARTICLE
Rep. Barney Frank, chairman of the U.S. House of Representatives Financial Services Committee, and Rep. Henry Waxman, head of the House Energy and Commerce Committee, said in a letter that the two government-controlled mortgage finance providers have objected to tax liens on homes participating in Property Assessed Clean Energy (PACE) programs.
READ FULL ARTICLE
Obama admin unable to resolve shutdown of PACE clean-energy program
Obama administration officials have failed to resolve a dispute with Fannie Mae and Freddie Mac that has shut down Property Assessed Clean Energy (PACE), according to an email obtained by Grist. The impasse will likely kill the promising clean-energy financing tool until Congress passes legislation addressing it, according to Cisco DeVries, who first created the PACE system three years ago.
Department of Energy officials have been unable to convince the Federal Housing Finance Agency, which regulates Fannie and Freddie, to end the corporations' prohibition on using PACE, DeVries told PACE advocates in an email Friday evening.
READ MORE ON GRIST
Department of Energy officials have been unable to convince the Federal Housing Finance Agency, which regulates Fannie and Freddie, to end the corporations' prohibition on using PACE, DeVries told PACE advocates in an email Friday evening.
READ MORE ON GRIST
Thursday, July 1, 2010
PACE Energy-Efficiency Programs in Jeopardy
New York Times
SAN FRANCISCO — The Obama administration is devoting $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills.
At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they might not accept loans for homes that take advantage of the special financing.
The mixed messages have alarmed state officials and prompted many local governments to freeze their programs, which have been hailed as an innovative way to help homeowners afford the retrofitting of a house with solar panels, which can cost $30,000 or more before incentives.
SAN FRANCISCO — The Obama administration is devoting $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills.
At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they might not accept loans for homes that take advantage of the special financing.
The mixed messages have alarmed state officials and prompted many local governments to freeze their programs, which have been hailed as an innovative way to help homeowners afford the retrofitting of a house with solar panels, which can cost $30,000 or more before incentives.
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