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 im-
provements. 
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. SHER-
MAN, 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 Col-
orado, and Mr. SARBANES) introduced the following bill; which was re-
ferred 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 re-
newable energy and energy efficiency improvements. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘The PACE Assessment 
Protection Act of 2010’’. 
SEC. 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 under-
writing 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 prop-
erty 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 Cor-
poration without consideration of the PACE program lien, 
the Association and the Corporation shall not require re-
payment 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, 
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in the event that a tax or assessment under a PACE pro-
gram 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 Cor-
poration, and all Federal agencies and all entities char-
tered under Federal law shall not discriminate against 
communities implementing or participating in a PACE 
program, including by prohibiting lending within the com-
munity 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 prop-
erty assessed clean energy program under which a State 
or political subdivision of a State levies taxes or assess-
ments on residential, commercial, agricultural, and other 
real property to finance the installation of renewable en-
ergy and energy efficiency improvements. 
Æ 
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