Property Assessed Clean Energy: Is There Finally a Clear Path to Success?

PACE programs allow property owners to finance energy efficiency and wind resistance improvements through their annual tax bill. This helps property owners fund these projects upfront, and local governments support PACE because it creates jobs, generates revenue through permit fees, and increases property values. PACE also helps reduce greenhouse gas emissions and save money on utility bills. In 2008, California introduced PACE programs for energy-efficient home improvements, but they faced obstacles from federal agencies like Fannie Mae and Freddie Mac. Despite this, Florida passed a law in 2010 allowing local governments to create PACE programs. However, Fannie Mae and Freddie Mac later opposed PACE assessments, leading to lawsuits in California, Florida, and New York. Plaintiffs argued that Fannie Mae and Freddie Mac bought and guaranteed mortgages that were less important than government assessment liens, and PACE assessments were the same. They wanted the assessments to be considered liens, not loans, and sought to prevent any negative actions against people or local governments involved in PACE. The defendants, representing the government, said that they were just trying to keep Fannie and Freddie financially responsible and that their actions were not up for review. In the end, the courts agreed with the government. After the legal battles, PACE programs started up again, with some focusing on commercial properties and others on residential ones. Each program has its own rules and strategies. PACE programs have seen some new developments. It’s now more efficient for multiple local governments to run a common program together. Also, there are now more options for financing, especially for commercial programs. Lastly, some places are offering multiple PACE programs at once. The programs also make sure to disclose any potential risks, like having to pay off remaining PACE lien balances if you sell or refinance your property. All costs and payment details are clearly explained to property owners. Prior to 2014, three bond validations for energy efficiency programs in Florida were unchallenged. In 2014, five bond validations were appealed to the Florida Supreme Court. These appeals raised issues related to the authority to issue bonds, the legality of the bonds’ purposes, and compliance with the law. The appeals were eventually resolved in favor of the PACE programs. The appeals relied on a 1955 court case, but the Florida Supreme Court found that only those who participate in the initial court proceedings have full party status. This was an important factor in the cases in which the validity of the PACE program was questioned. Several people and organizations filed appeals in different legal proceedings in Florida. They were questioning the authority to issue bonds and the use of judicial foreclosure. Some cases were dismissed for lack of standing, while others were affirmed with the requirement to remove judicial foreclosure. Different parties were represented by different lawyers and the cases involved issues related to special assessments, mortgages, and contracts. PACE programs in Florida have faced legal challenges, but ultimately they have been upheld with some modifications. Several local governments in Florida have launched PACE programs, which operate independently from the state. These programs do not charge fees to join or terminate and allow new partners to join through a standard process. They all use a common platform for their operations. After facing legal issues, PACE programs in Florida now have the “green light” for strong growth. There are different programs in Florida that help homeowners and businesses pay for energy-efficient upgrades to their properties. These programs involve partnerships between local governments and third-party companies. The programs include Green Corridor District PACE Program, RenewPACE, Florida PACE Funding Agency, and LCEID. They have helped finance millions of dollars in improvements for both residential and commercial properties. The Solar and Energy Loan Fund (SELF) has been around for five years and offers unsecured personal loans for home improvement projects in Florida. They’ve completed over 1,000 energy audits and closed over 500 loans totaling $4.2 million. They’ve also partnered with KIVA.org for peer-to-peer lending and helped create a new PACE program in St. Lucie County. They’re also working on agreements with property appraisers and tax collectors for collecting assessments. Local governments are concerned about protecting people who participate in the PACE program and making sure they understand the rules. They want to create rules to protect participants and make sure they understand what they are signing up for. The government is also working on new guidelines to help people who have PACE assessments when they want to get a loan for their home. These guidelines will also focus on protecting people who are part of the PACE program. PACE was recognized as a top idea in 2010 and is now on a path to success in Florida. There have been legal challenges, but now there is guidance and a plan for success. PACE programs need transparency and a record of saving money to be successful. There are laws and regulations in place to support PACE programs. Some groups have filed lawsuits against PACE programs, but it seems like things are moving in a positive direction. Several courts dismissed cases challenging the Federal Housing Finance Agency’s decision to stop buying mortgages on PACE-encumbered properties, citing the agency’s authority as a conservator of Freddie and Fannie. The courts ruled that they didn’t have jurisdiction to review the agency’s actions. Additionally, Connecticut launched a program to help property owners finance clean energy improvements, and there were several related legal cases in Florida. These citations are references to legal cases and laws in the state of Florida. They involve disputes over clean energy projects, financing, and property rights. The cases include lawsuits between different parties and decisions made by the courts. The laws mentioned provide guidelines for legal procedures. Some local governments have also passed ordinances related to clean energy and property financing. These legal documents provide information about rights and responsibilities for property owners and financing providers. This article discusses the use of PACE programs for energy and sustainability projects. It is written by a lawyer who specializes in environmental and administrative law. The author thanks several people for their contributions to the article.

Source: https://www.floridabar.org/the-florida-bar-journal/property-assessed-clean-energy-is-there-finally-a-clear-path-to-success/