California Governor Jerry Brown today signed legislation setting uniform disclosure rules for Property Assessed Clean Energy (PACE) financing programs.
PACE programs enable energy efficiency loans to be issued to property owners that are repaid as a line item on their tax bill. The press release on the bill from the Ygrene Energy Fund says that the law, AB 2693, mandates the loan administrator “accurately identifies important consumer issues with the program and prescribes on-point solutions that preserve PACE’s unique structure and benefits, while improving consumer disclosures and safeguards.”
The law is aimed at keeping consumers from overextending themselves by disclosure of special tax liens, the total amount of interest that will be changed and what requirements will be in case of a refinance or sale.
The Federal House Authority (FHA) began backing mortgages with PACE financing earlier this month.