This report shows that PACE is a great option for homeowners who choose to make their homes more efficient, safer, and more comfortable – as over 180,000 homeowners already have.
Pleasantville, NY (PRWEB) February 23, 2018
Today, credit rating agency DBRS released the first comprehensive analysis of residential PACE (R-PACE) delinquency rates that combines data across multiple years and PACE providers. Using data on R-PACE assessments over four tax years, the analysis found lower delinquency rates compared to all properties and single-family homes in California.
DBRS rates R-PACE asset-backed securitization transactions. The agency remarked that their analysis of delinquency rates showed “strong performance with very low delinquency levels,” and “consistent performance and very low volatility across tax years.” The analysis highlights the following:
- The limited performance history shows strong performance with very low delinquency levels around 2% to 4% at the peak, declining to less than 1% within 12 months;
- PACE delinquency metrics are lower than general aggregate property tax and single-family residential only property tax delinquency levels. PACE also shows consistent performance and very low volatility across tax years; and
- Healthier performance relative to all residential tax payors may reflect self-selection of PACE homeowners to improve their properties.
PACENation welcomes the additional clarity this report brings to this important discussion. This data provides further confirmation that R-PACE remains a consistent and reliable way for homeowners to fund energy efficiency, renewable energy and resiliency upgrades to their properties. PACENation’s Executive Director David Gabrielson said “This report shows that PACE is a great option for homeowners who choose to make their homes more efficient, safer, and more comfortable – as over 180,000 homeowners already have.”
The DBRS report made use of data on R-PACE assessments from PACE providers Renew Financial and Renovate America, which comprised 81.3% of total ABS issuance over 2016 and 2017. Today, Renew Financial and Renovate America welcomed the report and reiterated the role of strong consumer protections.
“We’ve put consumer protections at the heart of our company since our founding. The very low delinquency rates in this report show that PACE financing is a great way to safely and effectively make important home improvements. And new consumer protections and oversight will only make PACE – already one of the most successful energy efficiency financing programs in history – even better for homeowners,” said Cisco DeVries, CEO of Renew Financial.
PACENation is a national non-profit organization serving the interests and needs of over 400 member organizations that share a common goal of making PACE financing available to all building owners throughout the United States. PACENation is building a broader PACE network by providing information, resources, and advice to a growing universe of PACE market stakeholders. To learn more, visit http://PACENation.org