Local Option - Energy Improvement Loan Program

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 operating with loan loss reserve funds, appropriate disclosures, contractual subordination or other protections meant to address FHFA's concerns. The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD), has released initial guidelines for using PACE with FHA-secured single or multifamily properties. This guidance is independent of FHFA policy. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation 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 cover the full upfront costs of energy improvements. The financing is repaid via a special assessment on the property over a period of years. Wyoming has authorized local governments to establish such programs, as described below.

Wyoming enacted legislation in July 2011 (H.B. 0179) authorizing local governments to establish a loan program to provide financing for cost-effective energy improvements to existing residential, commercial and industrial properties. Governments that opt in to the establishment of energy improvement programs must provide an explanation of proposed programs to utilities distributing energy or natural gas to the area no later than 30 days prior to implementing said program. Eligible energy improvement programs are described as energy efficiency or renewable energy improvements within a program adopted by a municipality, county, or multi-county joint board.

Local governments are authorized to secure loans under energy improvement programs through liens in the same manner as provided for special assessments (W.S. 15-6-401 et se.) or through other securities deemed necessary. Additional securities may include the requirement of energy audits, loan terms, application and loan fees, and conditions to ensure timely repayment of loans and fees.

Though Wyoming has passed this enabling legislation, there are currently no active PACE programs in the state.