Energy Program Eases Costs of Conversions

photo credit: twicepix

There are now 22 states, including Colorado, that have started a Property Assessed Clean Energy program (PACE). The program allows home owners to finance the upfront cost of installing energy efficient technology to their homes. The loans are repaid through their property taxes. If a home owner sells their house theyre not stuck with the loan, it gets transferred to the purchaser of the home.

The idea is that people install enough energy saving devices that the savings they realize are greater than the monthly cost of the improvements, making financial sense, improving living standards, and helping the environment.

Apparently, this idea has mortgages banker nervous because the typical mortgage doesnt offer this type of arrangement. People like the idea that the cost stays with the house and not with the person. It does make sense that if I buy a new roof the people under it should pay for the cover.

Of course, the lending giants Fannie Mae and Freddie Mac dont like the idea and said they refuse to finance a home with the PACE program. If a home is foreclosed on the government gets their money before the happy couple Fannie and Freddie. The couple also stated that the improvements offer no public benefit.

This arguable statement is rebutted by Boulder County where the program has reduced the publics energy problem and has saved more than 600 home owners money on their energy bills. It is a public benefit, its just not a Freddie and Fannie benefit.

Read the full article from Coloradoan.com

Posted on July 15, 2010 13:10:34 by Blog Author