"Sunnier Days Could Be Ahead for PACE Programs" by Vincent Basulto

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August 3, 2016

While touted for nearly a decade as a pathway to provide for the expansion of renewable energy and other energy-efficient upgrades in the U.S. housing sector, Property Assessed Clean Energy (PACE) programs have generally not been thought to have met their full potential.  One important impediment to the expansion of PACE has now been removed, however, with the U.S. Department of Housing and Urban Development’s guidance issued on July 19, 2016 to allow for the Federal Housing Administration to insure residential home mortgages which are subject to senior PACE liens meeting certain specified conditions. While banks, hedge funds and other investment firms have long had interest in PACE asset class, the Guidance is expected to spur renewed focus in PACE bonds and PACE-related financings.

In this client alert, RK&O partner Vincent Basulto examines issues most relevant to parties considering providing financing secured by PACE assets and/or purchasing PACE bonds.

Click here to read the client alert.