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 now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow 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 borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Louisiana has authorized certain local governments to establish such programs, as described below. (Not all local governments in Louisiana offer PACE financing; contact your local government to find out if it has established a PACE financing program.)
In July 2009, Louisiana legislators enacted SB 224 that enabled local governments to create a Sustainable Energy Financing District (SEFD) via ordinance or resolution. Once established, the owner of any immovable residential or commercial property may consent to include a property in the SEFD and execute a "cooperative endeavor agreement" with the district to receive financing for energy improvements. An owner's consent may be given before or after the initial creation of the district, and the district does not have to be contiguous.
In 2010, Louisiana legislators enacted HB 973 that provided financing qualifications and restrictions for energy efficiency improvement or renewable energy improvement loans. These include:
A SEFD may borrow money, issue bonds or obligations, and pay for the bonds from assessments against property. Loan terms will be decided by the governing body of the district, including interest rates, administrative fees, and maximum loan amounts. The district is permitted to provide a source of revenue for retrofitting and installing improvements, products, systems, devices, or interacting groups of devices installed behind the meter of residential and commercial buildings that conserve energy or produce energy from renewable resources. Eligible technologies are determined locally, but may include:
Renewable-energy improvements that interfere with a right held by a public utility regulated by the Louisiana Public Service Commission are not eligible.
New Orleans plans to create a Sustainable Energy Financing District with the help of a "special projects" grant from the U.S. Department of Energy SunShot Initiative.
|Incentive Type:||PACE Financing|
|Eligible Renewable/Other Technologies:||
|Terms:||Re-payment term may not exceed 20 years|
|Technologies:||Solar Water Heat, Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Daylighting, Lighting, Custom/Others pending approval, Other Distributed Generation Technologies|
|Parameters:||The incentive has a minimum of 20.00 Years|
|Name:||RS 33 Â§ 130.812|
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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