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To All SLG Clients and Affiliates.
From: Spencer Scheer
Date: March21, 2017
Client Alert: From the Scheer Law Group:
Subject: PACE Financing: May not be as Sunny as Predicted for Lenders or Borrowers.
Going green” costs money. Previously, developers could offer a “green home” as a purchase incentive. The problem is that the cost was “baked” into the purchase price via a long term loan secured by a lien on the purchased property. Many purchasers would realize this after the fact, when they sought to sell or refinance their property, in some instances “tanking” the sale or refinance.
AB 2693 (Gov. Code 533228.1), Effective 1.1.17, seeks to address some of the problems resulting from the imposition of PACE liens on covered properties. The new law mandates disclosure of the lien and ramifications of the financing as well as a 3 Day Right of Recession.
The following are key provisions:
Lenders financing purchase of properties in PACE districts should consider:
Please call me if you would like to discuss
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