HomeMy WebLinkAboutbocc.res.085.2010A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF PITKIN COUNTY, COLORADO,
SUPPORTING PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAMS
RESOLUTION NO. �-2010
The Pitkin County Board of County Commissioners (the Board) supports funding for
Property Assessed Clean Energy (PACE) programs and supports their treatment by
Federal regulators as a traditional tax assessment program with first lien status.
The Board supports federal funding and other incentives to promote nationwide energy
conservation efforts. The Property Assessed Clean Energy (PACE) program is an
innovative local government financing program that allows a homeowner to apply for
funds to pay for energy efficiency and renewable energy improvements of their homes.
Participation in the program is voluntary and repayment is accomplished through a
property tax assessment on the home.
Over 200 local jurisdictions across the country have established or are in the process of
establishing PACE programs. However, on July 6, the Federal Housing Finance
Administration (FHFA) issued a statement in which it concluded that the PACE program
was not a"traditional tax assessment" and took a series of steps that will prevent PACE
assessments from being considered senior to mortgage obligations, as other municipal
assessments are treated, and will severely limit or eliminate interest in PACE bonds. The
FHFA's action threatens the viability of PACE programs, which in turn will hamper job
creation and deny homeowners an opportunity to responsibly reduce their energy
consumption, reduce their utility bill, and benefit their community.
PACE is not a loan, but instead is built on traditional tax assessments, which local
governments have managed for over 100 years. PACE was not designed to increase the
risk of homeowners, lenders, or the financial system, and was created with stringent
operating rules, to ensure a net positive benefit to all parties. When fully implemented,
PACE can achieve significant energy savings and provide positive benefits to the
environment.
Several members of Congress, including House Financial Services Committee Chairman
Frank, and House Energy and Commerce Committee Chairman Waxman, and 12
members of the Senate, have contacted the Administration to request that PACE
programs be allowed to move forward and have first lien priority over previously
recorded mortgages. However, in light of FHFA's most recent action, it is increasingly
likely that Congress itself will be requi�ed to preserve the integrity, autonomy and priority
of local governments' property tax assessments.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Pitkin County, Colorado that it urges the Federal Housing Finance Administration to
allow PACE programs to move forward and have first lien priority over previously
recorded mortgages. '
BE IT FURTHER RESOLVED, that the Board of County Commissioners urge Congress
to take whatever steps are necessary to accomplish this task.
APPROVED ON the 14�' day of July, 2010.
ATTEST:
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Je ette Jones
D uty Clerk & ecorder
APPROVED AS TO FORM:
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John Ely, "� ttorney
BOARD OF COUNTY COMMISSIONERS
OF PITKIN COUNTY COLORADO
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George Newm�'n, Chai
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Date: �� �J' d�,Gi ()
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MANAGER APPROVAL:
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Hilary F�her, County Manager