S. 3642 (111th): PACE Assessment Protection Act of 2010

111th Congress, 2009–2010. Text as of Jul 22, 2010 (Introduced).

Status & Summary | PDF | Source: GPO

II

111th CONGRESS

2d Session

S. 3642

IN THE SENATE OF THE UNITED STATES

July 22, 2010

(for herself, Mr. Merkley, Mrs. Gillibrand, and Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To ensure that the underwriting standards of Fannie Mae and Freddie Mac facilitate the use of property assessed clean energy programs to finance the installation of renewable energy and energy efficiency improvements.

1.

Short title

This Act may be cited as the The PACE Assessment Protection Act of 2010.

2.

Treatment of PACE programs by Fannie Mae and Freddie Mac

(a)

Adoption of underwriting standards

Not later than the expiration of the 60-day period that begins upon the date of the enactment of this Act, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall adopt underwriting standards that are consistent with the Guidelines for Pilot PACE Financing Programs issued on May 7, 2010, by the Department of Energy. Liens or other property obligations that secure property taxes or assessments under a PACE program and are consistent with such standards shall be considered to comply with the Uniform Instruments of such Association and Corporation and shall not constitute a default on an existing mortgage or trigger the exercise of lender’s remedies for a property with such a lien. With respect to a property that meets the underwriting criteria of the Association and the Corporation without consideration of the PACE program lien, the Association and the Corporation shall not require repayment of a PACE program tax or assessment in order for a property owner to finance, refinance or transfer the property. The underwriting standards shall provide that, in the event that a tax or assessment under a PACE program is delinquent, only the unpaid delinquent amount along with applicable penalties, interest and costs will be subject to foreclosure and not the entire amount.

(b)

Prohibition of discrimination

The Federal Housing Finance Agency, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, and all Federal agencies and all entities chartered under Federal law shall not discriminate against communities implementing or participating in a PACE program, including by prohibiting lending within the community or requiring more restrictive underwriting criteria for properties within the community.

(c)

Definition of PACE program

For purposes of this section, the term PACE program means a property assessed clean energy program under which a State or political subdivision of a State levies taxes or assessments on residential, commercial, agricultural, and other real property to finance the installation of renewable energy and energy efficiency improvements.