PACE liens would cover home assessments and limit foreclosure debt

For a single-family home, the PACE lien would cover all annual assessments when the first assessment is imposed. This applies to qualifying single-family residential property. The lien would be recorded when the first annual assessment is imposed.

In a foreclosure or trust deed sale of a single-family home, delinquent PACE assessments would be paid according to lien priority; any remaining shortfall would be extinguished. This applies to single-family residential property sold through foreclosure or a trust deed power of sale. This applies if sale proceeds, the loss reserve fund, and any other means do not fully cover the delinquent assessments. Assessments that are not delinquent would not be accelerated or erased by the sale; they would remain liens after ownership transfers. These rules apply when the property is sold through foreclosure or under a trust deed power of sale.

For property other than a single-family home, a delinquent annual assessment would become a PACE lien, and the municipality would record notice and certify the amount to the county treasurer. This applies to qualifying property other than single-family residential property. If a third-party lender finances the energy project, the municipality records notice within fourteen days after receiving the lender's notice of delinquency. The lien would be collected like real estate taxes and special assessments. Without a third-party lender, the municipality records notice within fourteen days after delinquency. With a lender financing the project, it records notice within fourteen days after receiving the lender's notice.