AIA Encourages Congress to Save Clean Energy Bond Program
July 20, 2010
AIA has called on Congress to pass legislation that guarantees local governments the right to establish clean energy programs through Property Assessed Clean Energy (PACE) bonds.
AIA has called on Congress to pass legislation that guarantees local governments the right to establish clean energy programs through Property Assessed Clean Energy (PACE) bonds.
PACE bonds are municipal bonds in which the proceeds from the sale of the bonds are loaned to commercial and residential property owners for the purpose of financing energy retrofits. These loans are then repaid over long periods of time – much like a mortgage - via an annual assessment on their property tax bill. Given the numerous, well-documented benefits that energy-efficient buildings offer, PACE bonds are viewed as an innovative tool to help property owners reduce energy consumption.
“PACE bonds are particularly important now, at a time when a lack of credit and financing for construction projects has devastated the design and construction industry,’ said Paul Mendelsohn, AIA Vice President of Government and Community Relations. “As banks have restricted lending, building owners and developers have cancelled projects, taking work out of the hands of architects, builders and others.” Mendelsohn noted that employment in this sector has dropped by 25 percent since the recession began in 2007, adding to the unemployment rolls.
