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Article filed under Energy, Energy Self-Reliant States

PACE Financing: A 101 and Status Update

| Written by John Farrell | 4 Comments | Updated on Sep 6, 2011 The content that follows was originally published on the Institute for Local Self-Reliance website at

A short slide deck providing a “101” on Property Assessed Clean Energy (PACE) financing, a status update on the legal challenges, and some of the policy design issues we explored in our report on Municipal Financing Lessons Learned.

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About John Farrell

John Farrell directs the Energy Democracy initiative at the Institute for Local Self-Reliance and he develops tools that allow communities to take charge of their energy future, and pursue the maximum economic benefits of the transition to 100% renewable power.


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  • Don Christiansen

    Thanks for the article John!

    RE: “the terms of the Fannie Mae/Freddie Mac Uniform Security Instruments prohibit loans that have senior lien status”

    In California SB 555 (an update to AB 811) treats PACE as a self-imposed Mello Roos TAX. Mello Roos is commonly used by developers to pay for infrastructure like roads and street lighting. It is my understanding that coming under Mello Roos negates the ability of the FHFA to limit PACE financing for FANNIE and FREDDIE loans.

    Any comments on this subject would be appreciated.