Major Amendments to Dababneh PACE Bill
May 5, 2016
AB 2693, by Assembly Member Dababneh, was amended yesterday in the Assembly Local Government Committee to eliminate the provisions of the bill that would have subordinated Property Assessed Clean Energy (PACE) liens in statute. The bill will now focus on disclosure requirements to property owners interested in financing energy and water efficiency and renewable energy improvements with a PACE assessment.
CSAC is very supportive of the PACE program, which allows property owners to finance energy and water efficiency and renewable energy improvements through locally-backed financing which is repaid through an assessment on the property tax bill. Prior to yesterday’s amendments, the bill would have eliminated the senior lien status of PACE assessments in the event of delinquency.
This would have been detrimental to the program as CSAC has been working with our partners at the federal level to develop a more permanent resolution on the PACE seniority lien status issues with the Federal Housing Financing Agency, the independent regulatory agency that oversees government-sponsored enterprises.
The author and the chair of the Assembly Local Government Committee have committed to holding an information hearing on the issue before the end of session. CSAC will work with the author to develop robust disclosure requirements for PACE programs.