Property Assessed Clean Energy Loans - good or bad??
Title association worried about energy efficiency loans
(WASHINGTON) – The American Land Title Association is joining Fannie Mae in questioning the propriety of a special loan program that allows local governments to loan money to homebuyers so they can make them more energy efficient.
Property Assessed Clean Energy (PACE) loans are repaid to municipalities as part of the owner’s annual tax payments. If a home is resold, the tax remains on the house because the energy conservation measures remain with the home.
ALTA, however, questions whether clear titles can be given to new homeowners if they are encumbered by debt secured by a previous owner. Fannie Mae says it objects to the PACE loans because tax debt repayment is superior to bank loan repayment in case of default.