Support Residential PACE

Submit your comment to the Federal Housing Finance Agency (FHFA) by September 13, 2012. 

Court ordered Rulemaking resulted in over 30,000 public comments in response to the FHFA’s Advance Notice of Proposed Rulemaking (ANPR), the overwhelming majority in support of PACE. The FHFA’s Notice of Proposed Rule (NPR):

  • Allows Fannie Mae and Freddie Mac to bring default proceedings against homeowners with PACE assessments that are not paid off on demand,
  • Prohibits Fannie Mae and Freddie Mac from consenting to a PACE assessment, and
  • Directs Fannie Mae and Freddie Mac not to underwrite mortgages with PACE assessments.

PACENow believes strongly that the FHFA’s proposed rule is unnecessary and can not be justified, based on the evidence and record established with comments filed in response to the ANPR. Courts will decide whether the FHFA has acted arbitrarily or capriciously, in the light of that record. In its NPR, the FHFA says it is considering three alternatives to its proposed rule.

PACENow supports comment which rejects the FHFA’s proposed rule and urges it to adopt a rule that would allow Fannie Mae and Freddie Mac to buy and hold mortgages with PACE assessments and require Fannie and Freddie to consent to PACE liens if PACE programs meet standards set forth in FHFA’s Third Risk-Mitigation Alternative (H.R. 2599 Underwriting Standards). These standards are derived from H.R. 2599, the PACE Assessment Protection Act of 2011. See Federal Register page 36108. If an insurance product or reserve fund that provides sufficient protection against the risk to the Enterprises perceived by FHFA becomes available in the future, local governments should be permitted to choose whether to utilize such products or comply with FHFA’s Third Risk Mitigation Alternative standards.

Submit your comment by using our sample letter!

This action is no longer active. To view the current list of our active campaigns click here

Other ways to submit your comment:

You can also download the Template Letter we have prepared, or write your own, and submit it yourself.

Email: You can send your comments via email to FHFA General Counsel Alfred M. Pollard. The email address is: Please include “RIN 2590-AA53” in the subject line of the message.

Online: Enter comment directly, or upload a file using the Federal eRulemaking Portal but be sure to also email comments to Mr. Pollard at using “RIN 2590-AA53” as the subject.

Mail: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590–AA53, Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20024.

Review other Comments:

Review all other comments to help frame your own on the FHFA Rulemaking website.

Some Background

In 2010, the Federal housing Finance Agency put residential PACE on hold. The FHFA says PACE assessments are not valid and should be treated like “loans” that can not be senior to mortgages. FHFA argues that PACE assessments are also “unlike routine tax assessments” because they are voluntary and are “typically longer in duration." Regulatory agencies like the FHFA are obliged to conduct rulemaking process before announcing a new regulation. It is a process designed to allow public comment and open access to the proposed rulemaking records. In the case of PACE, in July 2010, the FHFA released a Statement on Certain Energy Retrofit Loan Programs, which stalled residential PACE programs by advising Fannie Mae and Freddie Mac to avoid buying mortgages with PACE assessments. Consequently, in August 2011, the United States District Court for the Northern District of California provided that the agency must undertake a formal rulemaking process. There are four steps to a rulemaking process: (1) advanced notice of proposed rulemaking, (2) proposed rule, (3) public comment, (4) final rule. 

Click here to view history of communication with the FHFA. The FHFA issued a proposed rule on June 15, 2012 and we have an opportunity to comment and voice our support for PACE until September 13, 2012. After this commenting process, the FHFA will issue a final rule and publish its official response to issues raised during the commenting process.