On January 26, 2012, the Federal Housing Finance Agency (FHFA), in response to a court order, issued an Advance Notice of Proposed Rulemaking on adopting guidance concerning mortgages that are, or could be, affected by Property Assessed Clean Energy (PACE) programs.
FHFA then sought comments on conditions and restrictions relating to PACE; the financial risks to mortgage lenders and holders and homeowners; other available financing mechanisms; and underwriting standards. FHFA also sought comments on whether the restrictions and conditions set forth in its official Statement (7/6/10) and Directive (2/28/11) should be maintained, changed, or eliminated, and whether other restrictions or conditions should be imposed. In both statements, FHFA objected to local governments holding the first lien on PACE homes to ensure repayment of public funds if the home goes into foreclosure, calling this a significant risk to the mortgage financier.
NLC supports local authority to implement PACE programs and submitted comments along with colleagues at the National Association of Counties and the U.S. Conference of Mayors prior to the agency's March 26 deadline. See below for these and other comments from cities and key stakeholders.
NLC comments on proposed federal accounting requirements that would narrow the definition of eligible assets for Federal Home Loan Banks (FHLBanks). The rule, if enacted, would have resulted in the diminished ability of FHLBanks and their member financial institutions to partner with cities and towns to finance economic and community development. NLC challenged the Rule’s definition of “eligible” as contrary to Congressional intent.