I 

111TH CONGRESS 

2D SESSION H. R. 5766 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 15, 2010 

Mr. THOMPSON of California (for himself, Ms. WOOLSEY, Ms. MATSUI, Mr. 

ISRAEL, Ms. ZOE LOFGREN of California, Mr. FARR, Mr. STARK, Ms. 

LORETTA SANCHEZ of California, Ms. ESHOO, Ms. WATSON, Mr. SHERMAN, Mr. BERMAN, Ms. SPEIER, Mrs. DAVIS of California, Mr. 

MCNERNEY, Ms. SCHWARTZ, Mr. RANGEL, Mr. LEVIN, Mr. 

MCDERMOTT, Ms. BERKLEY, Mr. NEAL of Massachusetts, Mr. 

BLUMENAUER, Mr. YARMUTH, Mr. SCHIFF, Mr. TIERNEY, Mr. GEORGE

MILLER of California, Mr. GARAMENDI, Mr. WAXMAN, Mr. POLIS of Colorado, and Mr. SARBANES) introduced the following bill; which was referred to the Committee on Financial Services 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘The PACE Assessment 

3 Protection Act of 2010’’. 

4 SEC. 2. TREATMENT OF PACE PROGRAMS BY FANNIE MAE 

5 AND FREDDIE MAC. 

6 (a) ADOPTION OF UNDERWRITING STANDARDS.— 

7 Not later than the expiration of the 60-day period that 

8 begins upon the date of the enactment of this Act, the 

9 Federal National Mortgage Association and the Federal 

10 Home Loan Mortgage Corporation shall adopt under11 writing standards that are consistent with the Guidelines 

12 for Pilot PACE Financing Programs issued on May 7, 

13 2010, by the Department of Energy. Liens or other prop14 erty obligations that secure property taxes or assessments 

15 under a PACE program and are consistent with such 

16 standards shall be considered to comply with the Uniform 

17 Instruments of such Association and Corporation and 

18 shall not constitute a default on an existing mortgage or 

19 trigger the exercise of lender’s remedies for a property 

20 with such a lien. With respect to a property that meets 

21 the underwriting criteria of the Association and the Cor22 poration without consideration of the PACE program lien, 

23 the Association and the Corporation shall not require re24 payment of a PACE program tax or assessment in order 

25 for a property owner to finance, refinance or transfer the 

26 property. The underwriting standards shall provide that, 


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1 in the event that a tax or assessment under a PACE pro2 gram is delinquent, only the unpaid delinquent amount 

3 along with applicable penalties, interest and costs will be 

4 subject to foreclosure and not the entire amount. 

5 (b) PROHIBITION OF DISCRIMINATION.—The Federal 

6 Housing Finance Agency, the Federal National Mortgage 

7 Association, and the Federal Home Loan Mortgage Cor8 poration, and all Federal agencies and all entities char9 tered under Federal law shall not discriminate against 

10 communities implementing or participating in a PACE 

11 program, including by prohibiting lending within the com12 munity or requiring more restrictive underwriting criteria 

13 for properties within the community. 

14 (c) DEFINITION OF PACE PROGRAM.—For purposes 

15 of this section, the term ‘‘PACE program’’ means a prop16 erty assessed clean energy program under which a State 

17 or political subdivision of a State levies taxes or assess18 ments on residential, commercial, agricultural, and other 

19 real property to finance the installation of renewable en20 ergy and energy efficiency improvements. 

Æ 


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