Loudoun County supervisors have adopted local ordinances to allow Commercial Property Assessed Clean Energy program financing to cover residential projects and stormwater projects.
Property Assessed Clean Energy or PACE loans allow low-cost, longer-term financing of clean energy, water-saving or energy-saving, allowing for a longer loan period compared to typical commercial loans. The property owner’s loan is secured by a lien against the property, and can be repaid over a period of decades. No local government lending is involved; instead, the program enables third-party lenders by allowing for the lien, and the county contracts with the Virginia PACE Authority to administer the program.
Supervisors approved the first PACE legislation in June 2019, but at that time only allowed loans to cover commercial projects. At that time, Loudoun was one of the first localities in Virginia to allow the program. With a vote March 16, supervisors expanded the county’s enabling legislation to cover residential projects with five or more units and stormwater management projects.
According to a county staff report, Supervisor Michael R. Turner (D-Ashburn) pushed the expansion as local contractors and the Virginia PACE Authority have told the county government expanding the program would increase participation.
More expansions are coming; supervisors also directed county staff members to prepare more ordinance changes to reflect changes to state code this year that also allow retroactive financing for projects for up to two years previous.
Supervisors voted unanimously, 9-0.