Twenty-two states have passed legislation allowing and encouraging municipalities to start PACE programs. San Francisco, Sonoma and Placer counties in California, and Boulder County in Colorado have all recently launched programs, and Los Angeles and San Diego are set to begin ones later this year.
But they've all come to a sudden halt after Fannie Mae and Freddie Mac, the government-sponsored mortgage-finance corporations, sent a cryptic letter [PDF] to lenders on May 5 warning them away from PACE programs.
It has halted the creation of jobs and energy efficiency improvements that PACE provides. All the momentum that new PACE programs had has been killed and it is due to some puzzling reasons. The FHFA's concerns are already addressed in the Best Practices created by the Department of Energy. In reality PACE financing decreases the chance of default on a home loan.
Please download the PDF below to see how PACE addresses the concerns of the Fannie, Freddie, and the FHFA.
Template Letter to Senator/Representative