Trade Organizations Express Opinions on Proposed Legislation Regarding PACE Financings

Federal Issues Congress Lending PACE Programs TILA

On April 24, various trade associations submitted a joint letter to U.S. Representatives Brad Sherman (D-CA) and Edward Royce (R-CA) expressing their opinions on the legislators’ recently-introduced bill, the Protecting Americans from Credit Entanglements (PACE) Act of 2017 (H.R.1958). The PACE Act of 2017 would, among other things, require specific consumer disclosures for Property Assessed Clean Energy (PACE) financings—a financial product that allows homeowners to pay for energy-efficient retrofitting (such as solar panels and high-efficiency air conditioners) through their property tax assessments. More than 30 states currently have PACE programs. The proposed legislation and its companion bill, S. 838, introduced by Sen. Tom Cotton (R-AR) in the Senate, would subject PACE financing originators and sales personnel to TILA requirements.