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.
At the time of application for 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]
[H.R. 1958 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1958

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 5, 2017

 Mr. Sherman (for himself and Mr. Royce of California) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 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; and
            (3) 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 retrofits, 
        including property assessed clean energy loans for the purposes 
        of energy efficiency upgrades, renewable energy installations, 
        windproofing or seismic retrofits, water conservation upgrades, 
        septic tanks, or other similar real property improvements or 
        retrofits to a particular parcel of 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.--At the time of 
application for a real property retrofit loan, the creditor shall 
disclose that the real property retrofit loan will result in a lien on 
the real property securing the loan''.
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