Property Assessment Clean Energy Loans (PACE)


Property Assessed Clean Energy (PACE) programs allow lenders authorized by the state to finance loans for energy improvements on residential properties. These loans often take first priority and must be paid before borrowers can refinance or sell their property. Further, many PACE loans are not regulated and lack protections for consumers. Because of the lack of regulation surrounding PACE programs and the super-priority lien status, these programs have received considerable attention from homeowners, traditional lenders, and the Federal Housing Finance Agency (FHFA).  

Where We Stand

CUNA has been actively opposing state efforts to expand PACE programs that record loans as tax assessments, but have vocal supporters of federal legislation to require consumer disclosures and underwriting for PACE loans.  A number of state credit union leagues have been amending bills and state laws to require regulations and consumer protections for PACE loans.

What We've Told Lawmakers & Regulators
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