California's attorney general on Wednesday sued U.S. mortgage agencies Fannie Mae and Freddie Mac for blocking financing programs for home clean-energy projects.
Last week the Federal Housing Finance Agency (FHFA), which oversees Fannie and Freddie, issued guidance to lenders across the country stating that property assessed clean energy (PACE) programs are risky and inadvisable.
That guidance followed a similar letter issued by Fannie and Freddie in May, which essentially halted the development of PACE programs, which use local bonds to fund the upfront costs of home energy retrofits and solar power systems. The funds are then repaid through a lien on the property's tax assessment.
The suit, filed by Jerry Brown--who is also a Democratic candidate for governor, asks that Fannie and Freddie drop policies opposing PACE programs.
Brown also sent a letter to President Obama asking him to intervene. "I'm writing to inform you that Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA) are obstructing an innovative program aimed at encouraging clean energy development and creating tens of thousands of jobs," Brown wrote. "I urge you to do everything in your power to reverse their illegal and short-sighted actions."
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