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FHFA Proposes Rule for PACE Programs

Posted Date: 
July 2, 2012
Julie Ufner, Associate Legislative Director, NACo

The Federal Housing Finance Agency (FHFA) June 15 released a notice of proposed rulemaking (NOPR) concerning Property Assessed Clean Energy (PACE) programs. Written comments are due by July 30.

PACE allowed local governments to finance energy efficiency and renewable energy improvements to homes and businesses through property tax assessments. In the summer of 2010 however, PACE programs nationally ground to a halt after questions were raised about the program’s financial viability by the FHFA. The FHFA directed Fannie Mae and Freddie Mac not to purchase any property with a PACE priority lien.

A number of state and local governments challenged the FHFA ruling leading to the U.S. District Court for the Northern District of California to issue a preliminary injunction requiring the FHFA to release a NOPR.

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