Home | Mortgage giants disrupt local efforts to save energy |
 emPowerSBC, Santa Barbara County’s new energy financing program, is being put on hold due to a federal impasse. Learn more about the issue and take action to support PACE financing programs across the nation. Sign the support letter NOW!
Write your representatives to support Property Assessed Clean Energy!Last month, Santa Barbara County took a giant step forward in the effort to make our country more energy-efficient and less dependent on foreign and off-shore oil drilling when the Board of Supervisors approved a new energy efficiency and renewable energy financing program for local homeowners and business owners—emPowerSBC. The program, which would provide major opportunities for job growth and economic stimulus across the region, is one of many Property Assessed Clean Energy (PACE) programs being launched across the state and nation. Backed by the Obama Administration to the tune of over $150 million in stimulus dollars, PACE programs allow property owners to tack the cost of efficient water heaters, solar panels, insulation, better windows, etc. onto their property taxes, thus giving the property owner an easy way to make their home or business more efficient through no-money-down, convenient financing with a long payback period. Last week, however, emPowerSBC and all PACE programs across the nation were brought to a stand-still by the Federal Home Finance Agency (FHFA). Todd Moody, contributor to the New York Times, explained the impasse in an article dated July 6: “When a municipality pays for energy efficiency upgrades through the program, a lien is placed on the home. The liens, like other property tax assessments, take priority over the mortgage if the homeowner defaults. But the [FHFA] characterized PACE liens as different from other special assessments that cities routinely use to finance sewers, sidewalks and other civic improvements.” While this may all seem like semantics, the short of it is this: the FHFA has directed mortgage giants Freddie Mac and Fannie Mae to steer clear of mortgages that subjugate to PACE liens. Because Freddie and Fannie own or guarantee more than half of all mortgages in the U.S., this directive has placed a serious chill on PACE programs across the board. As such, the County of Santa Barbara is putting its program on hold until the federal debate is resolved. Energy efficiency advocates across the nation are quick to voice their continued support for PACE financing. Since the initial FHFA letter of July 6, a strong contingent of State and federal officials has been flooding the FHFA with rebuttals and requests for clarification and resolution. Governor Schwarzenegger expressed his concern in a letter stating that "FHFA's action threatens thousands of new sustainable jobs in California, especially in the hard-hit construction industry, while denying homeowners the opportunity to reduce monthly energy costs and add equity to their homes." Here in Santa Barbara, emPowerSBC was designed around stringent federal and State guidelines that ensure adequate underwriting criteria and responsible program management that minimizes risk to both participants and lenders. In fact, the Department of Energy (DOE) was so pleased with emPowerSBC’s strict lending guidelines it awarded Santa Barbara County with $2.4 Million in grant funds. DOE has indicated that those funds will still be available when emPowerSBC is ready to roll. A resolution of this federal impasse may come sooner than expected. The CA Attorney General and the town of Babylon, NY have both filed suits against the FHFA siting infringement upon state’s rights to assess property taxes in the name of energy efficiency and renewable energy installation. And a ‘PACE Assessment Protection’ bill (HR 5766) was introduced to congress on July 15. To show your support for a speedy solution, write your congressional representative! To learn more about emPowerSBC and to receive email alerts, visit www.empowersbc.org. |
