PACENation welcomes new DBRS report showing “strong performance with very low delinquency levels.”
Today, credit rating agency DBRS released the first comprehensive analysis of residential PACE (R-PACE) delinquency rates that combines data across multiple years and PACE providers. Using data on R-PACE assessments over four tax years, the analysis found lower delinquency rates compared to all properties and single-family homes in California.
DBRS rates R-PACE asset-backed securitization transactions. The agency remarked that their analysis of delinquency rates showed “strong performance with very low delinquency levels,” and “consistent performance and very low volatility across tax years.” The analysis highlights the following:
- The limited performance history shows strong performance with very low delinquency levels around 2% to 4% at the peak, declining to less than 1% within 12 months;
- PACE delinquency metrics are lower than general aggregate property tax and single-family residential only property tax delinquency levels. PACE also shows consistent performance and very low volatility across tax years; and
- Healthier performance relative to all residential tax payors may reflect self-selection of PACE homeowners to improve their properties.
PACENation welcomes the additional clarity this report brings to this important discussion. This data provides further confirmation that R-PACE remains a consistent and reliable way for homeowners to fund energy efficiency, renewable energy and resiliency upgrades to their properties. PACENation’s Executive Director David Gabrielson said “This report shows that PACE is a great option for homeowners who choose to make their homes more efficient, safer, and more comfortable – as over 180,000 homeowners already have.”read more