Ballwin, MO – November 11, 2020 – Today administrators for the Missouri Clean Energy District (MCED) announced that the Board of Directors had ratified enhanced consumer protections for all residential Property Assessed Clean Energy (PACE) financing programs.
“Today’s action is the next step in the District’s efforts to implement nation leading standards for residential PACE,” said MCED Director of Finance John Harris. “I look forward to working with each of the district’s program operators to fully implement and strengthen consumer protections which will only make the District’s offerings more attractive and effective.”
This action will help the District promulgate standards that not only will achieve statutory and mission objectives but also reflects a careful consideration of costs and benefits.
The District continues to strengthen its energy efficiency and renewable energy loan programs for residential property owners across Missouri. The District’s action is in reaction to concerns over lax standards by some PACE operators in other states. All District member communities secure benefit from the District’s enhanced policies and procedures.
The Missouri Clean Energy District was established with an intergovernmental structure providing access to unlimited capital resources to its member communities and relieving municipalities across the state from the burden of implementing and operating programs at the local level.
PACE Funding Group, approved as a program operator in June this year, welcomed the enhanced consumer protections outlined by the Board. PACE Funding CEO, Robert Giles said “We bring our highest standards of residential PACE consumer protections to Missouri, and welcome the steps taken by the District as a leader in PACE to set statewide standards.”
John Harris, said “We selected PACE Funding Group as they have demonstrated that they go over and above national standards with measures to protect homeowners”.
The Board’s consumer protections include clear PACE disclosures and the following measures:
Confirmation of Terms Call – Property owners speak with Program operator representatives on recorded lines to review project and financing details.
Know Before you Owe Disclosures – Easy to understand terms are clearly outlined regarding financing terms and repayment process. Hard copy documents are mailed out to property owners.
Right to Cancel – Inform property owners that they may cancel their financing agreement for any reason within three days of executing it.
Project Completion Call – Homeowners and contractors must sign a completion certificate, and homeowners attest on a recorded call that a project is complete to their satisfaction before a payment is made to the contractor.
Inspections – 100% inspection of projects to ensure completion before paying contractor.
No Reverse Mortgages – No PACE financing for homeowners with reverse mortgages.
Lien Registry Participation – Program operators participate in the industry lien registry to prevent lien stacking.
Enhanced Underwriting – Property owners must be current on mortgages and other property related debt and have no property tax delinquency within the past 3 years.
Ability to Pay – Program operator confirms that property owners have adequate income to cover their current debt obligations, cost of living plus the proposed PACE assessment.
About The District:
The Missouri Clean Energy District (MCED.MO.gov) is a political subdivision of the state, authorized to provide unlimited capital and make funding available to all property owners for the purpose of improving the state’s energy footprint and quality of the built environment. –Over one billion dollars in committed capital since inception in 2010.
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About The Company:
PACE Funding Group, LLC is a leading renewable energy and energy efficiency financing provider with a focus on consumer protection and conservatism, and the only company in the space backed by a chartered bank. The company’s Property Assessed Clean Energy (PACE) financing enables property owners to invest in their buildings and a healthier environment. PACE has proven to be a successful tool for supporting public policy initiatives across the country, without the use of taxpayer funds. While PACE programs are enabled by state legislation and must be approved by local governments, PACE Funding is not a government program. Based in Los Gatos, California, PACE Funding Group has assisted more than 14,000 homeowners and their families. They work with the California Statewide Communities Development Authority (CSCDA) and the Western Riverside Council of Governments (WRCOG) in California, the Florida PACE Funding Agency (FPFA), and the Missouri Clean Energy District. For more information contact Rachel Hobbs at rachel@pacefunding.com, or at www.pacefunding.com
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