I was very excited about an innovative and progressive program known as mPOWER Placer.
I was proud that our county, after Sonoma, was the second in the state to initiate such a farsighted program.
I really appreciated the fact that the program would have created jobs for local businesses and contractors while relieving stress on our environment through energy independence.
mPower’s motto: Save money. Conserve energy and create jobs.
The program allowed Placer County homeowners to apply for financing for energy-efficient improvements, such as dual pane windows and whole house fans as well as alternative power generation systems like solar photovoltaic.
The financed debt was to be put on the property tax bill and treated as an assessment as opposed to a loan.
It would have been payable twice a year along with the taxes at a fixed interest rate. The term would be based on the useful life of the improvement — five, 10, 15 or 20 years.
If a homeowner financed a water system with a five-year life span, the term would be for five years. If a homeowner financed a solar system that had a projected 20-year life the term would be for 20 years.
Like taxes, the debt would stay with the property when it was sold. The unpaid amount would remain on the property tax bill and the new owner would assume payment of the balance on the property tax bill each year.
Thanks to Glen Sabol, a local contractor and Placer County homeowner, I learned that Fannie Mae and Freddie Mac would not honor the treatment of the debt as assessments.
These mortgage giants insist on treating the debt as a loan. They refuse to finance or refinance a homeowner’s property unless the loans are paid in full.
This hard-lined position is a threat to the program since Fannie and Freddie control more than 50 percent of the mortgage loans nationwide. What cute names for such short-sighted agencies.
New York Times columnist, Todd Woody, pointed out the irony in all of this. In his article June 30, 2010, he reported that the Obama administration devoted $150 million in stimulus money for programs that help homeowners install solar panels and other energy improvements, which they pay for over time on their property tax bills.
At the same time, the two government-chartered agencies that buy and resell most home mortgages are threatening to derail the effort by warning that they will not accept loans for homes that take advantage of the special financing.
The refusal by Fannie and Freddie to honor the assessments for the energy improvements sets a dangerous precedent.
This could be a matter of bad Home $$$s and Sense.
Sue Thompson is owner and sales manager of HomeTown Realtors. She can be reached at seesue@seehometown.com, or on the Web at www.homedollarsandsense.com.
