On behalf of the Virginia PACE Authority, the program administrator for Virginia’s statewide C-PACE program, I write to state our opposition to HB 952, which seeks to create a statewide residential PACE (R-PACE) program in Virginia. To be very clear, we do not oppose R-PACE itself; we only oppose how an R-PACE program would be created by this bill.
Currently, Virginia’s C-PACE statute prohibits financing residential condominiums or properties with 1-4 dwelling units. HB 952 would remove this prohibition, indirectly creating a R-PACE program by this one change. The most important defect of this approach is that HB 952 does not include the consumer protections for R-PACE which most states with R-PACE programs have instituted. Secondly, attempting to launch an R-PACE program within the same statute as C-PACE will create a drafting nightmare that will confuse the public and stakeholders alike as to which provisions apply to which program. C-PACE and R-PACE each need to have their own, dedicated section of the Virginia Code. VPA recommends R-PACE proponents spend the coming year drafting a separate code section that stands alone and is not intertwined with C-PACE, and includes appropriate consumer protections that other states have put into place for R-PACE. Such a stakeholder group is what the General Assembly required of C-PACE stakeholders in conjunction with its adoption of the 2015 amendments that substantially revised the C-PACE statute, so there is precedent for such an approach, and it lays the groundwork for a much stronger - and safer - proposal in 2025.
But as it stands today, HB 952 will unintentionally lead to confusion, inefficiency, and potential financial harm to homeowners. HB 952 is not a prudent or proper way to develop a R-PACE program. We strongly recommend that the bill be stricken or PBI’d, and instead that 2024 be spent in preparation and consultation with the R-PACE stakeholders to craft an appropriate and balanced statutory framework, in anticipation of returning to the 2025 General Assembly with a well-thought out, complete proposal.
On behalf of the Virginia PACE Authority, the program administrator for Virginia’s statewide C-PACE program, I write to state our opposition to HB 952, which seeks to create a statewide residential PACE (R-PACE) program in Virginia. To be very clear, we do not oppose R-PACE itself; we only oppose how an R-PACE program would be created by this bill. Currently, Virginia’s C-PACE statute prohibits financing residential condominiums or properties with 1-4 dwelling units. HB 952 would remove this prohibition, indirectly creating a R-PACE program by this one change. The most important defect of this approach is that HB 952 does not include the consumer protections for R-PACE which most states with R-PACE programs have instituted. Secondly, attempting to launch an R-PACE program within the same statute as C-PACE will create a drafting nightmare that will confuse the public and stakeholders alike as to which provisions apply to which program. C-PACE and R-PACE each need to have their own, dedicated section of the Virginia Code. VPA recommends R-PACE proponents spend the coming year drafting a separate code section that stands alone and is not intertwined with C-PACE, and includes appropriate consumer protections that other states have put into place for R-PACE. Such a stakeholder group is what the General Assembly required of C-PACE stakeholders in conjunction with its adoption of the 2015 amendments that substantially revised the C-PACE statute, so there is precedent for such an approach, and it lays the groundwork for a much stronger - and safer - proposal in 2025. But as it stands today, HB 952 will unintentionally lead to confusion, inefficiency, and potential financial harm to homeowners. HB 952 is not a prudent or proper way to develop a R-PACE program. We strongly recommend that the bill be stricken or PBI’d, and instead that 2024 be spent in preparation and consultation with the R-PACE stakeholders to craft an appropriate and balanced statutory framework, in anticipation of returning to the 2025 General Assembly with a well-thought out, complete proposal.