PACE Act of 2017

Bill: 115-s-838
Sponsor: full_name: Sen. Cotton, Tom [R-AR]
Introduced: 2017-04-05
Policy area: Finance and Financial Sector
Subjects: Alternative and renewable resources

Consumer credit

Energy efficiency and conservation

Housing finance and home ownership

Property tax

Residential rehabilitation and home repair

Water use and supply
Latest action: action_date: 2017-05-11
text: Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 115-56.

Summaries:
action_date: 2017-04-05
action_desc: Introduced in Senate
text: <p><strong>Protecting Americans from Credit Entanglements Act of 2017 or the PACE Act of 2017</strong></p> <p>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.</p> <p>Before extending&nbsp;a real property retrofit loan, the creditor must disclose that the loan will result in a lien on the real property securing the loan.</p>

tv_txt: II 115th CONGRESS 1st Session S. 838 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.

1. Short title This Act may be cited as the Protecting Americans from Credit Entanglements Act of 2017 or the PACE Act of 2017 . 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. .