NSDCAR is seeking information about
transactions affected by these loan types
An important issue affecting real estate transactions is beginning to emerge in North County. Homeowners who have entered into Property Assessed Clean Energy (PACE) loans for home improvements are finding they are having problems selling their homes for a variety of reasons. There are several of these programs now operating under such names as PACE, HERO and YGRENE.
PACE-type vendors have made wildly inaccurate claims to get people to purchase improvements, and now the problems are surfacing. Last week, NSDCAR stopped the City of Vista from entering into a new contract with PACE, but several cities have contracts approved several years ago. Here is a link to the information NSDCAR provided to the City of Vista opposing PACE.
PACE providers have gone to cities and counties for endorsement, and then salesmen are telling people these are "government-backed loans." Cities do this because they receive financial compensation, but more importantly, as these energy efficient modifications are made, it helps the city meet clean air and energy efficiency standards.
NSDCAR is joining an effort to stop cities from authorizing these programs until several issues are addressed, including proper disclosure, consumer protection oversight, transparency of consumer lending, proper regulatory scrutiny of PACE sales tactics, loan transferability affecting FHA and FHFA, and PACE refrains from making wild claims about property value increases resulting from financed improvements.
What we are trying to do now is gather real horror stories from REALTORS® who have had difficulties with transactions as a result of a PACE-type loan on the property.
Please reach out to your office, your local marketing session or at any gathering of REALTORS® and let NSDCAR know of any cases you hear about. Please provide contact information so the information can be verified. Please send your information to:
NSDCAR Vice President of Government Affairs Ernie Cowan at firstname.lastname@example.org, or call him directly at (760) 597-5164.