Property Assessed Clean Energy (PACE) presents a pioneering approach to finance improvements in energy efficiency and renewable energy on properties that are privately owned. Both commercial and residential PACE programs operate on a similar basis, allowing property owners to secure financing for qualifying improvements. The expenses incurred are gradually repaid over time through a voluntary assessment. Notably, PACE assessments are tied to the property itself rather than the individual.

Property Assessed Clean Energy (PACE) Loss Reserve Program

In response to concerns raised by the FHFA, the Property Assessed Clean Energy (PACE) Loss Reserve Program was established in March 2014. Its purpose is to support residential PACE financing, specifically for projects involving energy or water efficiency improvements, distributed generation renewable energy installations, and electric vehicle charging infrastructure. The program seeks to address the potential risks associated with PACE financing while promoting these beneficial initiatives.

The primary objective of the PACE Loss Reserve Program is to reduce risks for first mortgage lenders by providing compensation for any losses they experience as a result of a primary focus PACE lien on a property in the event of foreclosure or a compelled sale. The reserve program covers various types of losses, including PACE payments made while a first mortgage lender possesses a foreclosed home and losses up to the amount of outstanding PACE assessments in a forced sale due to unpaid taxes or special assessments.

Also Read: What is a PA Sunshine Program?


Elliot is a passionate environmentalist and blogger who has dedicated his life to spreading awareness about conservation, green energy, and renewable energy. With a background in environmental science, he has a deep understanding of the issues facing our planet and is committed to educating others on how they can make a difference.

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