Removing federal obstacles to property-assessed clean energy (PACE) has been a long-term subject of debate. United States Department of Housing and Urban Development (HUD) issued a guideline on July 19 enabling residential PACE financing and clarifying the conditions for purchasing or refinancing assessments with Federal Housing Administration (FHA) loans.
This announcement is an important step for addressing financing barriers for homeowners. Previously, federal organizations took a stand that restricted PACE’s growth.
During PACENation’s “FHA PACE Guidance Explained” webinar on July 26, experts on residential financing explained the importance and implications of the guideline.
“The guidance tells the market that two giants in American housing, HUD and FHA, agree that PACE is a valid use of state and local assessment finance and [the market] can proceed with FHA-related mortgage products in many ways,” said David Gabrielson, executive director of PACENation.
Read full article at Clean Energy Finance Forum, produced by Yale Center for Business and the Environment