California Alternative Energy and Advanced Transportation Financing Authority

Property Assessed Clean Energy (PACE) Loss Reserve Program

About the PACE Loss Reserve Program

In 2013, Senate Bill 96 directed the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to develop the PACE Loss Reserve Program (the Program) to mitigate the potential risk to mortgage lenders associated with residential PACE financing. The $10 million Loss Reserve will make first mortgage lenders whole for any losses in a foreclosure or a forced sale that are attributable to a PACE lien covered under the Program. The goal of the Program is to put first mortgage lenders in the same position they would be in without a PACE lien.

PACE administrators can participate in the Program by applying to CAEATFA and demonstrating that they meet the Program’s minimum underwriting criteria. Once a PACE program is enrolled, the Loss Reserve will cover assessments issued by that program for their full terms, or until funds are exhausted. Enrolled PACE programs report their financing activity to CAEATFA semi-annually.

Additional Information

Contact Information

If you have any questions about the PACE Loss Reserve Program please contact Ashley Bonnett at (916) 651‑5100.