California Center for Sustainable Energy

As many of you know, last month guidance letters issued by Fannie Mae and Freddie Mac suggested that property owners with mortgages from these lending giants would be prohibited from participating in  PACE programs.

6/14/10 Letter from The Vote Solar Initiative:

As many of you know, last month guidance letters issued by Fannie Mae and Freddie Mac suggested that property owners with mortgages from these lending giants would be prohibited from participating in  PACE programs. The move attacks the constitutional right of local governments to assess property taxes and throws a massive wrench in American green job growth and investment. (Read more here.)

In response, PACE supporters (including DOE and high-up administration officials) have been meeting with the Federal Housing Finance Agency (FHFA), the quasi-governmental agency that provides oversight over Fannie and Freddie, to get them to rescind the letters and work towards a long-term solution. FHFA promised a resolution two weeks ago, but so far, nothing has changed.

The coalition agrees that it's time to step up the pressure – the strategy is to activate the chairmen of the Senate Banking and House Finance Committees. Each of us can help by urging our members of Congress to get involved and talk to the chairmen. It will take about ten minutes. Here’s the game plan: Make three calls, and send three emails. Time is of the essence, so please take action this week.

If you have questions about the Congressional strategy please contact Nick Chaset at Renewable Funding, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or Annie Carmichael at Vote Solar at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Please forward this e-mail to other active PACE stakeholders.

Make Three Calls

Any member can help remedy this situation. Call your senators’ and representative’s office or the capitol switchboard at 202-224-3121.

Ask to leave a message with the legislative aid that works on banking/finance issues:

Here’s the script:

I am calling to ask for your help in saving an important local clean energy finance program known as PACE that is under threat. Cities and counties throughout the U.S. are developing new finance programs that support green retrofits. Called  PACE, these programs represent one of the most promising tools available to local governments eager to bring new jobs, energy bill savings, and environmental benefits to their communities. Last month, Fannie Mae and Freddie Mac issued lender guidance letters suggesting that property owners with mortgages from these lending giants would be prohibited from participating in  PACE programs. Please help defend PACE by working with the Senate Banking Committee or House Financial Services Committee to call on Fannie Mae and Freddie Mac to:

1. CLARIFY the lender letters immediately
2. PROTECT existing homeowners
3. ALLOW PACE programs to proceed

Send Three E-mails

Do you have any connections to staff members of Congress? If so, please send them the following e-mail.

Dear STAFFER NAME:

Cities and counties throughout the U.S. are developing new finance programs that support green retrofits. Called  PACE, these programs represent one of the most promising tools available to local governments eager to bring new jobs, energy bill savings and environmental benefits to their communities. (YOUR STATE) is one of 23 states that now authorizes  PACE, and cities such as (YOUR CITY) have already invested resources to start up a  PACE program.

On May 5, 2010, Fannie Mae and Freddie Mac published a “Lender Letter” that they sent to thousands to mortgage providers across the country that threatens to eliminate property assessed clean energy ( PACE) and endanger thousands of homeowners. If this situation is not addressed immediately, the Fannie Mae and Freddie Mac “lender letters” will have the following consequences:

• Thousands of homeowners will be put at risk of defaulting on their mortgages
• Federally authorized and supported PACE programs (~$100 million directed to PACE from the Recovery Act) across America will shut down, employees will be laid off and our nation will lose the ability to unlock an extraordinary new means to retrofit homes and buildings across America
• A significant and troubling precedent will be set by allowing a financial institution to curtail the authority of local governments to levy taxes in pursuit of a public purpose

The Federal Housing Finance Agency (FHFA) promised a resolution two weeks ago. They have failed to  live up to this promise.

On June 10, a coalition of PACE supporters sent a letter to Rep. Barney Frank, chair of the House Financial Services Committee and Senator Chris Dodd, chair of the Senate Banking Committee, requesting their immediate assistance to remedy this situation.

I write today to ask for your help in encouraging Chairman Frank and Chairman Dodd to engage with Fannie Mae, Freddie Mac, the FHFA and other relevant regulatory agencies to compel them to:

• Issue immediate clarification of the Fannie Mae and Freddie Mac May 5, 2010, lender letters, which state that retrofit financing obtained through Phase 1 PACE programs will not constitute a violation of the terms of the Fannie Mae or Freddie Mac uniform mortgage instruments, or otherwise subject the applicable property owners to adverse action by the GSEs; and
• Convene a meeting among their offices, the GSEs, FHFA, other interested regulatory agencies and PACE stakeholders to chart a course forward toward resolution of the parties’ concerns.

Please respond with your support for PACE to Scott Olson ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) in Congressman Barney Frank’s office, and Beth Cooper and Misha Roth ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it and This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) in Senator Chris Dodd’s office.

I thank you for your time and support.