In this ValueWalk article, Joseph Cioffi offers insight into concerns surrounding the Property Assessed Clean Energy program (PACE), including the adequacy of disclosures made at the time a PACE-funded project is sold to a homeowner as a means of financing energy efficient home improvements through a tax assessment on the property. Click here to view the full article.
Property Assessed Clean Energy (PACE) financing is one of the fastest growing, and most controversial, type of financing, in which environmentally efficient home improvements are repaid through an assessment on the real property. Issues exist for all participants: borrowers, who are unaware of their repayment obligations; local governments, who are tasked with reporting defaults and enforcing obligations owed to private lenders; investors, who are often in the dark as to borrower defaults; and lenders, who face uncertain rules and regulations. The survival of the industry may soon require a significant shift in practices. The Credit Chronometer closely follows all aspects of this dynamic market and analyzes the issues from the perspective of past turning points and industry shifts.