News & Blog

PACENation responds to the August 15, 2017 Wall Street Journal story, “More Borrowers Are Defaulting on Their ‘Green’ PACE Loans”

Residential PACE has been the best financing solution for the roughly 160,000 homeowners who have used it for energy, water, and safety related projects that they wanted or needed to make; projects that made their homes more comfortable, healthier, safer, less expensive to heat and cool, and more valuable. State and local government partners also appreciate the tens of thousands of local jobs that R-PACE has helped create and sustain. PACE financing for commercial, industrial, agricultural and non-profit owned properties is now available widely throughout the United States, a success story the Journal has ignored.

There is a great story to tell. But instead, the Wall Street Journal, yesterday, ran another in a series of misleading stories about PACE. Yesterday’s, again, includes many ill drawn conclusions and seems to reflect the author’s clear bias for sensationalism.

There is simply no evidence to suggest that PACE is a looming crisis for the banking industry or homeowners.  None.  Zero. There is no data to suggest that PACE homes are delinquent or likely to default at rates higher than those for the broader housing market in PACE served communities. With more than 60,000 new homes using PACE over the previous year, it is not surprising that the number of defaults has increased. But there is absolutely no indication that the PACE assessment has been the direct cause of the delinquencies or defaults in any but the tiny number of anecdotal cases that the Journal has reported on.

Learning from these bad outcomes, PACE programs are working hard to eliminate them to every extent possible, and PACENation’s Consumer Protection Policies go well beyond those available to homeowners who use other methods of paying. The Journal notes, for example, that PACE defaults are well below those for credit cards. Most home delinquencies (some of which are cured) and defaults are caused by a loss of job, a catastrophic household financial event, or in the height of the financial crisis, homeowners simply walking away from properties.

PACE providers have proven a willingness to work with homeowners who are in distress. Since 2014, mortgage lenders have foreclosed on thousands of homes in communities served by PACE.  PACE programs have foreclosed on none. Zero. PACE is under attack by mortgage lenders and realtor groups who cannot accept that energy efficiency, renewable energy, water conservation, and certain resiliency measures are valid state and local government policy concerns. PACENation and our members are intently focused on adhering to the strongest consumer protections with a clear goal: every homeowner should have a perfect outcome. But we cannot let failure to achieve perfection in the eyes of a Wall Street Journal reporter result in the loss of the overwhelming good PACE creates for homeowners, local businesses, and our government partners.

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David Gabrielson
Executive Director, PACENation

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MikePACENation responds to the August 15, 2017 Wall Street Journal story, “More Borrowers Are Defaulting on Their ‘Green’ PACE Loans”

CleanFund launches in Colorado, bringing a new source of direct capital for commercial clean energy projects across the state

Source: CleanFund.

SAN FRANCISCO, CA — CleanFund Commercial PACE Capital, Inc. (www.CleanFund.com), the leading direct provider of commercial Property Assessed Clean Energy (“C-PACE”) financing, announced today that they have completed their first transaction in Colorado, opening up a new source of capital to finance energy efficiency, solar energy and many other building improvements throughout the state.

CleanFund provides capital to finance up to 100% of project’s cost using the C-PACE framework, which has been adopted in 33 states and the District of Columbia. This allows property owners to repay investments for qualified building upgrades and new construction as a line item on their regular property tax bills.

In Colorado, much of the demand for sustainable buildings comes from building owners and their tenants. Developers know that “green buildings” drive higher rents and economic growth; however, the traditional lending market has been unable to keep pace with these demands. CleanFund’s PACEDirect™ financing product now available in Colorado enables local owners and developers to have access to fixed rate, long-term, non-recourse capital that can transfer to the new owners when the building is sold.

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MikeCleanFund launches in Colorado, bringing a new source of direct capital for commercial clean energy projects across the state

PACE Funding Group, LLC. Announces a New Partnership with the Western Riverside Council of Governments (WRCOG) Expanding its Footprint into Fourteen Cities in Western Riverside County

Source: PACE Funding.

LOS GATOS, Calif.Aug. 15, 2017 /PRNewswire/ — On Monday, August 7, 2017, the Executive Committee of the Western Riverside Council of Governments (WRCOG) approved a partnership with PACE Funding Group, LLC., a leading provider of residential Property Assessed Clean Energy (PACE) financing in the State of California.  This partnership will offer more financing options and greater choice to the residents of western Riverside County as they consider their energy efficient home improvement needs.

With WRCOG as a partner, PACE Funding Group, LLC. will be able to offer financing to homeowners in 14 Riverside County Cities: BanningCalimesaCanyon LakeCorona, Eastvale, Hemet, Jurupa Valley, Lake ElsinoreMenifeeMurrietaNorcoPerrisTemecula and Wildomar, comprising more than 300,000 homes.

“PACE Funding’s entry into western Riverside County means more competition for our residents’ business, which results in better service and increased options for homeowners,” said Deborah Franklin, Chair of the WRCOG Executive Committee.  “We look forward to working with PACE Funding to help our homeowners finance their important, energy efficient home improvements and drive additional local economic activity.”

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MikePACE Funding Group, LLC. Announces a New Partnership with the Western Riverside Council of Governments (WRCOG) Expanding its Footprint into Fourteen Cities in Western Riverside County

Join PACENation at the 1st Annual Investor’s Conference on Green Bonds in London

1st Annual Investors’ Conference on Green Bonds
30 October 2017
London, UK

PACENation is proud to be an Association Supporter of IMN’s inaugural Investors’ Conference on Green Bonds, taking place 30 October in London. Unlike any other green bond conference, this event will herald the first in-depth conversation about the intersection of securitisation and environmentally sustainable finance.

PACENation Members Receive 15% Discount to Attend!
Register here with code PACE15

This inaugural event will feature high level discussions about investment opportunities in bonds carrying the green label and the challenges issuers may face in obtaining it. Attendees will develop a more crystallized idea of what a green bond is, its yield potential, and the benefits of issuing a green bond. We will also introduce the U.S. concept of Property Assessed Clean Energy (PACE) financing and its potential application in Europe. For the first time, this event will ultimately bridge together the sustainable finance community with IMN’s long standing ABS investor base.

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MikeJoin PACENation at the 1st Annual Investor’s Conference on Green Bonds in London

Utah Relaunches Statewide Commercial PACE Program, Chooses Sustainable Real Estate Solutions as Program Administrator

Brian McCarter, chief executive officer of Sustainable Real Estate Solutions, announced today that the company will serve as program administrator for Utah’s updated commercial property assessed clean energy (C-PACE) program. The Utah Governor’s Office of Energy Development (OED), which manages the program, selected SRS after conducting a competitive search process for a third-party firm to provide program administration services.

Utah launched its statewide C-PACE program in 2015 after passing legislation enabling commercial PACE in March 2013. Senate Bill 221 authorized local governments to adopt C-PACE financing programs, which offered commercial and industrial property owners a unique mechanism to finance energy efficiency, renewable energy, and water efficiency improvements to their buildings.

Senate Bill 273, enacted in March 2017, amends the earlier legislation by expanding the scope of eligible projects, establishing a statewide C-PACE District, and more clearly defining the process of developing and closing projects.

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MikeUtah Relaunches Statewide Commercial PACE Program, Chooses Sustainable Real Estate Solutions as Program Administrator

HERO Launches in Florida

Source: Renovate America

Homeowners can use innovative HERO financing to reduce energy bills and stay safe through upgrading roofing, windows and doors, HVAC, solar, and more

ORLANDO, July 26, 2017 – Homeowners in communities across the state of Florida now have access to an innovative form of financing called HERO, which allows them to make residential energy, efficiency, and wind-resistance improvements and pay for the upgrades over time through their property tax bill. Eligible improvements include solar panels; energy-efficient HVAC systems, roofing, and windows; and roof-to-wall connections, storm shutters and other products that can protect against wind damage and meet Florida Building Code requirements.

HERO, which stands for Home Energy Renovation Opportunity, is the nation’s largest form of Property Assessed Clean Energy (PACE) financing and its launch is expected to bring multiple benefits to Florida communities and to individual homeowners.

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MikeHERO Launches in Florida

The State of Hockey Goes Wild for PACE Financing

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Source: St. Paul Port Authority

Saint Paul, MN , July 18, 2017 – Go Wild, LLC secured $6.74 million in PACE financing as part of its capital stack for the Treasure Island Center redevelopment project in Saint Paul, Minnesota. PACE funds will be used for energy efficiency upgrades that are projected to cut utility costs by 40 to 60 percent, decreasing from $1.2 million per year to between $480,000 and $720,000.

Treasure Island Center is a major, mixed-use redevelopment project scheduled for completion this fall. The former department store, built in 1963, covers 2.5 acres with 540,000 square feet of space. The new facility will be home to TRIA Rink, a fully enclosed rooftop ice arena that will be used by the Minnesota Wild as a practice facility.

By working with Xcel Energy, the developer has committed to a number of building-wide, energy saving investments including: increased insulation; improved HVAC; new motion-controlled and LED lighting; and a new domestic water infrastructure.

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MikeThe State of Hockey Goes Wild for PACE Financing

Tulare County Approves Renovate America’s HERO PACE Financing

Source: Renovate America

California county becomes latest local or state government in U.S. to give residents access to innovative financing for home energy and efficiency improvements

SAN DIEGO, July 13, 2017 – Supervisors in Tulare County, California, voted this week to give residents access to Renovate America’s HERO Property Assessed Clean Energy (PACE) financing for home energy and efficiency improvements. The vote was the latest in a string of local legislative victories for both HERO and PACE, and showed momentum for the innovative financing mechanism growing in California and beyond.

The vote by Tulare County supervisors to allow HERO to be offered in unincorporated portions of that county came as supervisors in neighboring Kern County voted 4-0 to give HERO a six-month extension to operate there. It also came a day after commissioners in Collier County, Florida, gave final approval to HERO in that county’s unincorporated region, which followed similar moves earlier this year by commissioners in Hillsborough and Pasco counties – also in Florida – and supervisors in California’s Amador and Glenn counties. Last month, city councilmembers in Santa Rosa, California, voted to give their residents access to HERO, as did the city of Columbia, Missouri.

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MikeTulare County Approves Renovate America’s HERO PACE Financing

WDCEP Partners with Greenworks Lending to Support Economic Development Using Innovative Public/Private Partnership Approach

Source: Greenworks Lending

Washington, D.C., July 11, 2017 — The Washington DC Economic Partnership (WDCEP) and Greenworks Lending have entered into a partnership to bring Commercial Property Assessed Clean Energy (C-PACE) financing to commercial and multi-family property owners across Washington D.C.

“The Washington DC Economic Partnership’s mission is to support business growth and economic development in Washington, DC,” said Keith Sellars, president and CEO of the WDCEP. “This partnership will help lead to more low-cost capital for city development, enhanced property values, reduced property operating expenses, and an improved environment that will ultimately support business owners and developers across the District. WDCEP will help introduce C-PACE, particularly to our partners in the development community and multifamily property owners who can utilize this program to improve housing stock and fuel redevelopment.”

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MikeWDCEP Partners with Greenworks Lending to Support Economic Development Using Innovative Public/Private Partnership Approach

Historic Dallas building secures $23.9M in PACE financing for energy and water efficiency through TX PACE Authority

Source: Dallas Business Journal

The Dallas developer behind proposed plans to bring a Trump-branded hotel to downtown Dallas has landed $23.9 million in Property Assessed Clean Energy finance funds — which will help update the $120 million historic building with energy-efficient systems and water reduction technology.

This loan is the largest commercial Property Assessed Clean Energy (PACE) deal in Texas and is believed to be the second largest of its kind in the country.

Alterra International, which is based in Dallas and San Francisco, decided to apply for the PACE loan for the nine-story, century-old building at 500 S. Ervay St. to help it increase the energy-efficiency of the redevelopment project, which is still underway.

Read the full article.

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MikeHistoric Dallas building secures $23.9M in PACE financing for energy and water efficiency through TX PACE Authority