We are writing with good news. Remember PACE, the innovative local energy retrofit program that ran into a roadblock in the form of Fannie, Freddie and their regulators at the Federal Housing Finance Agency? Well, next week Congress will introduce new BIPARTISAN legislation to fix the situation and get these money saving efficiency and renewable programs back on track. And that means, it’s time to shout your support from the (weatherized) rooftops!

The “PACE Assessment Protection Act of 2011,” to be introduced shortly by Congresspersons Nan Hayworth (R-NY), Daniel Lungren (R-CA) and Mike Thompson (D-CA . . . see, bi-partisan!), addresses three key issues:

1. It undoes the damage. The Bill rescinds the 2010 guidance from the FHFA, OCC, Fannie and Freddie that derailed PACE in the first place. It further prohibits these groups from discriminating against homeowners and communities participating in PACE programs.
2. It resolves the legal question. Much of the FHFA’s legal arguments against PACE have been founded in the erroneous assertion the programs administer loans rather than assessments. This isn’t semantics – a loan is the purview of the FHFA, but an assessment is a 100 year old constitutional right of local government. This Bill correctly defines PACE as an “assessment” rather than a “loan” once and for all.
3. It virtually eliminates risk to Fannie and Freddie. Nobody wants to see these mortgage giants, already over $150 billion in debt with taxpayer dollars on the line, go further into the red. The Bill establishes national PACE program standards to further reduce the chance that a participant would default: participant underwriting criteria, consumer protections, qualifying improvements and qualifying contractors.

This bill doesn’t cost money, doesn’t impose any government mandates, or touch non-participants’ taxes.

This bill does restore states rights, leverage private capital, and put America to work saving homeowners money.

All of that is to say, if passed, the bill would let the 27 states that have enabled PACE programs over the past couple years get back to business reducing energy use, saving homeowners money, and creating local jobs.

What’s not to like?  Let’s pass this sucker: stop reading this blog post, and get on the horn to ask your Congressional representative to be a co-sponsor through our action page. And take a look at the PACENow website for more more ways you can get involved.

The case has long been made that, contrary to the Fannie/Freddie/FHFA assertions, PACE programs present little risk to lenders. Well now there’s real world proof from those intrepid municipalities that have allowed PACE participation despite the FHFA’s action. Of the 2,565 homes with PACE assessments currently in place around the country, there are only 2 defaults.  That’s 1/30th of the national average default rate–which is to be expected, as PACE lowers the cost of living, and puts homeowner in a better financial position.  The irony is that data shows that PACE has SAVED the FHFA money in the process.

Earlier today, our friends at PACENow presented a webinar on the latest from the front lines to save PACE. Watch it for yourself here . . .