NOTE: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are operating with loan loss reserve funds, appropriate disclosures, contractual subordination or other protections meant to address FHFA's concerns. The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD), has released initial guidelines for using PACE with FHA-secured single or multifamily properties. This guidance is independent of FHFA policy. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing, and for a comprehensive list of all PACE programs across the country.
Property-Assessed Clean Energy (PACE) financing effectively allows property owners to cover the full upfront costs of energy improvements. The amount financed is repaid via a special assessment on the property over a period of years. Nevada has authorized certain local governments to establish such programs, as described below.
Existing Nevada law authorizes cities and counties to create special financing districts for a variety of projects that "serve a public use and will promote the health, safety, prosperity, security and general welfare of the inhabitants thereof and of the State of Nevada." The legislation enacted in May 2009 (S.B. 358) added renewable energy and energy efficient technologies to the list of projects eligible for special financing districts.
Though Nevada has this enabling legislation, there are currently no active PACE programs in the state.