In the meantime, a number of pirate PACE programs stayed in business and proved that PACE can drive significant demand and volume. In particular, the HERO program in Southern California has done over $100M in residential PACE loans, and just today released a preliminary rating for the first PACE Securitization.
Based on now proven success, and a continued belief by many that PACE is not the threat FHFA made it out to be, and that it is a critical component to meeting our energy and climate goals, many have continued to fight for residential PACE. In California that fight is about to bear fruit.
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), with the backing of the California Governor Brown, is about to roll-out a first of its kind PACE Loss Reserve Program. CAEATFA recently published a final version of its PACE Loss Reserve Program which should be officially approved based on their website, by the second week of March - only a few weeks away.
It would appear that we may have a second chance to make Residential PACE happen in California, and if we can make it work here, perhaps the rest of the country as well. A big thank you to all the people who continued fighting for PACE and to CAEATFA and Governor Brown for keeping PACE and residential energy efficiency a priority.
The last remaining question is really FHFA and how they will react to California's new plan. With their primary concern dealt with through the State reserve fund covering any potential losses, I hope this question will be put to rest so we can get on with the business of creating American jobs and saving the planet!