In July, 2010 the PACE plan supported by many states stalled when the FHFA (Federal Housing Finance Agency) raised concerns about the priority level of this loan in relation to a mortgage in the case of a default. The PACE (Property Assessed Clean Energy) program was designed to allow property owners to obtain low-interest, long-term loans for energy efficiency upgrades with a line item repayment on their property tax bills. This program would allow for energy efficiency upgrades and retrofits to existing residential and commercial properties.
As this program is backed by local governments and private funds, the state of Vermont has decided to move forward with the PACE program beginning in January, 2012. There are some conditions which must be met prior to obtaining the low-interest loan, i.e. an energy audit, 15% equity in the property and a good history of paying property taxes.
There are many benefits to moving forward with the PACE program in other states. Continue reading “Nationally Stalled PACE Plan Moves Forward”