ICLEI USA Joins Members of Congress in Urging Federal Housing Finance Agency Acting Director, Edward DeMarco to Restore PACE Funding or Resign

For Immediate Release                          
Contact: Guillermo Meneses
ICLEI USA - (202) 445-1570

Washington, D.C. – ICLEI-Local Government for Sustainability USA, the nation’s leading local government association addressing climate change and sustainability today joins Members of Congress in calling for Federal Housing Finance Agency Acting Director, Edward DeMarco, to step down, unless he works with local governments to restore critical funding to PACE programs in 22 states including California.

In recent public comments, Acting Director DeMarco has falsely described Property Assessed Clean Energy (PACE) programs as “loans” and “credit risks,” which is both misleading and inaccurate.  Mr. DeMarco’s comments follow recent actions by the FHFA at the direction of loan giants Fannie Mae and Freddie Mac that severely restrict a local government’s ability to implement PACE-enabling programs.  In responding to a recent lawsuit filed by California Attorney General, Jerry Brown, on behalf of local governments, Mr. DeMarco said his agency will fight Brown's lawsuit in order to protect ‘taxpayers, lenders and both mortgage programs (Fannie and Freddie).   

“We should not allow Acting Director DeMarco to destroy one of the most innovative and energy efficient tools available to homeowners and local governments today,” said Patrick Hays, Mayor of North Little Rock, AR, President of ICLEI USA, and Chairman of the Board of Directors. “As a mayor, I am reminded every day of the realities of persistently high unemployment, a fragile economy and the impact that climate change is having on our communities. Sadly, it appears that Mr. DeMarco is putting Freddie and Fannie’s interests first on his list, leaving the American taxpayer behind,” added Mayor Hays.

Contrary to Mr. DeMarco’s statements, PACE programs do not operate using traditional loan mechanisms. Local governments instead finance the upfront costs through tax assessments, which are paid incrementally in small amounts through a homeowner’s annual property tax bills. Similar assessment mechanisms are used by local governments and municipalities to fund sewers, sidewalks, schools, hospitals and other public projects.

“As a government official and a head of a federally mandated agency designated to protect taxpayers, it appears Acting Director DeMarco is more interested in protecting Fannie and Freddie rather than helping homeowners during this devastating  economy,” said Martin J. Chavez, Executive Director, ICLEI USA and three-term mayor of Albuquerque, NM. “Mr. DeMarco has severely damaged his credibility with Members of Congress and the American people by refusing to restore funding to innovative PACE programs that reduce energy and create much needed jobs in California and 21 other states,” added Mayor Chavez.

Recently, several Members of Congress led by Rep. Steve Israel (D-NY) sent a letter to Acting Director DeMarco asking him to step down from his position if he could not find a workable resolution to the new FHFA restrictions to PACE programs.

ICLEI USA has launched a nationwide effort calling on its 600+plus members across the country to contact the President and Congress, particularly the key committees with oversight authority to overturn the new FHFA regulations.  Some of the states that are currently engaged in PACE  include, AZ, MD, OR, CA, NV, TX, CO, NM, VT, FL, NY, VA, HI, NC, WI, IL, OH, LA, OK, among others.

About Property Assessed Clean Energy (PACE)   

PACE has been one of the most innovative tools in the nation for empowering homeowners to improve energy efficiency in their homes thereby reducing their utility bills and saving money.  22 states have already enacted PACE enabling legislation, which allows homeowners to finance residential solar systems or energy efficient retrofits.

About ICLEI-Local Governments for Sustainability USA

With over 600 members nationwide, ICLEI-Local Governments for Sustainability USA is the leading local government association addressing climate change and sustainability.  As a non-profit membership organization, ICLEI USA provides the expertise, technical support, training and innovative tools to help local governments advance their climate, energy reduction and sustainability goals.  Since its inception in 1990, ICLEI has grown to include more than 1,200 local governments worldwide with its international headquarters located in Bonn, Germany.

More information at www.icleiusa.org