Title: PACE Act of 2017
Policy area: Finance and Financial Sector

Summary:
Protecting Americans from Credit Entanglements Act of 2017 or the PACE Act of 2017
This bill amends the Truth in Lending Act to extend that Act's requirements to real property retrofit loans. A "real property retrofit loan" is a loan that is: (1) secured by an interest in real property; (2) repayable in installment payments made concurrently with the payment of property taxes on the real property; and (3) used to finance real property retrofits, including energy-efficiency upgrades, renewable-energy installations, seismic retrofits, water-conservation upgrades, and other similar improvements.
Before extending a real property retrofit loan, the creditor must disclose that the loan will result in a lien on the real property securing the loan.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 838 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 838

  To amend the Truth in Lending Act to include retrofit loans such as 
     property assessed clean energy loans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 5 (legislative day, April 4), 2017

  Mr. Cotton (for himself, Mr. Boozman, and Mr. Rubio) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Truth in Lending Act to include retrofit loans such as 
     property assessed clean energy loans, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Americans from Credit 
Entanglements Act of 2017'' or the ``PACE Act of 2017''.

SEC. 2. REAL PROPERTY RETROFIT LOANS.

    (a) In General.--Section 103 of the Truth in Lending Act (15 U.S.C. 
1602) is amended--
            (1) in subsection (g), in the last sentence, by inserting 
        ``and a person who lends money to consumers for real property 
        retrofit loans'' before ``for purposes'';
            (2) by redesignating subsection (cc) (relating to 
        definitions relating to mortgage origination and residential 
        mortgage loans) and (dd) as subsections (dd) and (ee), 
        respectively;
            (3) in subsection (dd)(5), as redesignated, by inserting 
        ``, including a real property retrofit loan,'' before ``other 
        than''; and
            (4) adding at the end the following:
    ``(ff) The term `consumer credit transaction' includes a real 
property retrofit loan extended to a consumer.
    ``(gg) The term `real property retrofit loan' means a financing 
instrument--
            ``(1) secured by an interest in real property;
            ``(2) that is repayable in installments through payments 
        made concurrently with the payment of property taxes on the 
        real property; and
            ``(3) that is used to finance real property improvements or 
        retrofits, including property assessed clean energy loans or 
        other loans repaid through the property tax system for the 
        purposes of energy efficiency upgrades, renewable energy 
        installations, windproofing or seismic retrofits, water 
        conservation upgrades, septic tanks, or other real property 
        improvements or retrofits to a particular parcel of real 
        property.''.
    (b) Real Property Retrofit Loan Disclosure.--Section 128 of the 
Truth in Lending Act (15 U.S.C. 1638) is amended by adding at the end 
the following:
    ``(g) Real Property Retrofit Loan Disclosure.--Before extending a 
real property retrofit loan, the creditor shall provide a disclosure 
statement explaining that the real property retrofit loan will result 
in a lien on the real property securing the loan.''.
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