Story Created:
Jul 26, 2010 at 3:44 PM CDT
Story Updated:
Jul 26, 2010 at 4:22 PM CDT
(Springfield, MO) -- Springfield city council has an issue on tonight's agenda that could save homeowners thousands on home improvements.
It's called the Property Assessed Clean Energy (PACE) program. The goal is to help homeowners pay for energy-efficient upgrades, like windows, insulation, and solar panels.
This time of year, about anywhere you go in town is buzzing. It's a veritable symphony of air conditioning units. They're meant to give a sort of comfort. That is, until homeowners get their bills.
With the units on full-blast, Jim Howrey, with After Hours Plumbing, has a full schedule.
"The hotter it gets the more likely things are to break down," says Howrey.
The PACE program could keep Howrey's schedule full. In May, Governor Jay Nixon signed PACE into law. Now, Springfield needs to decide how to implement it.
"All the money that we would spend on electricity, we get to keep in Springfield," says Springfield councilman Dan Chiles.
Chiles says PACE will help home owners afford new energy-efficient upgrades with low-interest loans. The city will be in charge of issuing those loans.
"You borrow the money to put in a new air conditioner, and then you pay it back on your property tax," says Chiles.
The problem Howrey sees, is many homeowners don't want to pay up front to save. The program should help remedy that. A low-interest loan that's paid back in yearly installments.
"Draw more people to it, and give us more business, too," says Howrey.
And, maybe, give them more staff.
"Not only does it help you save money, your utility bills are lower, but, i think, in this recession, the thing that it does that is most exciting, is it puts people back to work," says Chiles.
Monday night, council will likely send the issue to the Finance and Administration Committee, which will discuss implementing it. The committee will need to figure out the rules, and form a board that will issue the loans. Chiles says to expect the program up and running in about six months.
More than 20 states are already using the PACE program. It's come under some scrutiny recently from Fannie May and Freddie Mac, the nation's two largest mortgage companies. The problem, PACE liens take priority over mortgages.
So, if the home is foreclosed on, PACE loans are paid before mortgage companies can recoup any money.
Contact: dmagditch@kspr.com
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