C-PACE loans; removes an exclusion for residential dwellings and condominiums.
Impact
The implementation of HB 952 is expected to have a significant impact on state laws related to property improvements and financing mechanisms. By allowing residential properties to access C-PACE loans, localities can authorize contracts for loans that support renewable energy, water efficiency, stormwater management, and other resilient infrastructural improvements. This will not only aid in promoting sustainable practices among property owners but also set a legal framework for financing such improvements, making it easier for homeowners to implement energy-saving features in their residences.
Summary
House Bill 952 amends ยง15.2-958.3 of the Code of Virginia to extend the Commercial Property Assessed Clean Energy (C-PACE) financing program by removing exclusions related to residential dwellings and condominiums. This change enables residential properties to be eligible for C-PACE financing, thereby expanding the scope of the loan program to include energy efficiency improvements and other environmental initiatives for homeowners. By making these changes, the bill seeks to align property financing with sustainability goals and encourage investment in energy-efficient upgrades across all types of properties, not just commercial ones.
Contention
While the expansion of C-PACE financing to residential properties may receive support from proponents of sustainable development, concerns may arise regarding the approach to property taxation and the precedence of assessment liens imposed on properties receiving these loans. Some stakeholders may argue that the prioritization of voluntary special assessment liens could complicate financial circumstances for property owners who face already high mortgage and tax burdens. Additionally, debates may center around whom the benefits of these improvements will serve and the potential for straining local government resources through expanded financing obligations.