The increasing funds for commercial PACE are a fraction of the residential PACE total, which has passed the $1 billion mark in completed projects in 2015, almost all of which was deployed by Renovate America’s HERO program in California.
According to PACENation, an advocacy organization, Renovate America’s proprietary HERO program is the most widely adopted residential PACE program in the United States, accounting for 95 percent of the established market.
HousingWire finds that homes with subordinate PACE financing that travels with the property provide collateral for FHA and GSE loans that is at least as strong and indeed likely stronger than properties without PACE improvements.
Since 2011, Renovate America has financed more than $1 billion in home improvements through its HERO program. This is a significant investment which is paid back over twenty years. Thus it is not surprising to read about Renovate America’s 5th securitization of PACE bonds.