Ygrene Energy Fund Applauds the Obama Administration’s Support of PACE Financing and the Launch of the Clean Energy Savings for All Americans Initiative
The Obama Administration has expressed its unequivocal support for the expansion of Property Assessed Clean Energy (PACE) as a tool for assisting local communities in meeting their sustainability goals. With strong statements from the White House, the Department of Energy (DOE), and the Department of Housing and Urban Development (HUD), the Administration laid out new guidelines for PACE financing. “This guidance provides resolution on how PACE financings will be handled in the event of a property’s sale, refinance or foreclosure and upholds PACE’s senior lien position,” said Stacey Lawson, CEO & President of Ygrene. “This is confirmation for the homeowners and local governments that have realized enormous, positive benefits of PACE financing for energy and water-related improvements.”
Today’s guidance makes clear that a senior PACE lien – a vital feature of PACE financing – can be secured to a property with an FHA-insured mortgage in a manner consistent with traditional special property tax assessments. Additionally, the announcement reinforces lien transferability by stating that in the event of a sale (including a foreclosure sale) that the outstanding PACE obligation will remain with the property and the new homeowner will be responsible for the balance. In addition to the much-anticipated guidelines, the Administration formally launched the Clean Energy Savings for All Americans Initiative. This program is a joint partnership between the DOE, HUD, United States Department of Agriculture (USDA), Health and Human Services (HHS), Veteran’s Affairs (VA), and the Environmental Protection Agency (EPA) and aims to strengthen and expand the availability of PACE financing to low and moderate income families.
“We have long known that, if we are going to be successful in achieving our ambitious greenhouse gas emission goals, we need to ensure that all property owners, regardless of their income level, have access to these tools and resources,” Lawson continued. The Initiative includes a goal of generating 1 gigawatt of solar energy through low and moderate income families – enough to power roughly 700,000 homes. With more than $785 million in committed capital, Ygrene is helping to scale resources for over 254 communities across the nation and is slated to begin doing business in Georgia, Missouri and Arkansas by the end of the year. To date, the YgreneWorks program has provided over $437 million in energy efficiency, renewables, water conservation and climate resiliency upgrades, resulting in an estimated $1.1B in economic stimulus, 6,549 new jobs created and sustained, 524 metric tons of CO2 reduction, 1.9B gallons of water saved and $873M in utility bill savings.
“We are encouraged by the President’s support for PACE. This endorsement aligns with our goal of helping communities become resilient in the face of energy and climate-related pressures, while providing the highest quality consumer protections and customer service for people to safely and affordably make improvements to homes and businesses, reduce CO2 emissions and protect the planet for future generations,” Lawson concluded.