Carson Comments Leave PACE Twisting In Wind

Recent comments from HUD Secretary Ben Carson struck a sour note for supporters of the PACE loan program, through which thousands of homeowners and businesses have made energy-efficient improvements to their properties. Just last year, in an effort to boost the program, the FHA, under the Obama Administration, said it would back mortgages on homes encumbered by PACE loans. But earlier this month, Carson said that the new administration is “very, very amenable to adjusting that policy.” The comments suggest a clear willingness to reverse the FHA policy—and beyond that, signal an existential threat to a well-intentioned program.

PACE was conceived in the wake of the credit crisis as a way to put contractors to work while also serving clean-energy goals. It offers homeowners financing for solar panels, energy-efficient windows, and other eco-friendly upgrades with no upfront cost. But nothing comes for free; a lien is placed on the home, and the homeowners repay it