Maine receiving $30 million to create green loan program
Homeowners can ask for efficiency mortgages from hometowns that take part.
Kennebec Journal
AUGUSTA - The state announced Wednesday that it will receive $30 million in federal stimulus funds to establish an energy-efficiency program that will let homeowners get long-term loans through their hometowns.
In announcing the grant, Gov. John Baldacci said the stimulus would help jump-start the green economy in Maine.
State officials had hoped to receive $75 million from the competitive grant process. Maine's award, however, was second only to New York's $40 million. Michigan and Los Angeles County, Calif., also will get $30 million.
The money will create a revolving loan fund that a homeowner can tap through a mortgage administered by their hometown, if the community opts into the program.
The efficiency mortgage would take a second priority to any other mortgages on the property, and repayment would be made through property tax bills.
The system is modeled after one created in Berkeley, Calif., called the Property Assessed Clean Energy program, or PACE.
Although the program is considered useful for homeowners who want to install small-scale alternative energy generators, lawmakers joked that the program in Maine should be called PAW, to promote weatherization upgrades in a state where residents use more heating oil than those in any other state.
The legislation to introduce the system to Maine was sponsored by Rep. Patsy Crockett, D-Augusta.
"PACE programs are a great opportunity for property owners to weatherize their homes and save energy and money," she said in a news release. "These federal funds will ensure that the programs can be a success throughout the state and more Maine people will have the ability to make their homes and businesses energy efficient."
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5 COMMENTS
Scommentname said...
PACE is not really a very good idea. It's a mortgage that's added to property taxes so when the homeowner wants to sell the tax load looks bad to a buyer. Or if the homeowner doesn't pay the extra tax the municipality can foreclose. Or if the homeowner goes bankrupt the faux tax obligation collects before creditors. They say it's an alternative for oil heating but solar heating doesn't apply. Like most "green" ideas the colors fade when you do the investigating.
April 22, 2010 at 7:48 AM Report abuse
LordNelson said...
Subsidy upfront....and subsidy in the end when we have to pay the mortgage....isn't government grand? We should all quite our jobs and just enjoy the benefits of big government.
April 22, 2010 at 8:43 AM Report abuse
YmF5Y2Fz said...
Lemme see if I comprehend. The Government is going to 'lend' money to deserving 'green' projects and collect via property tax. Sounds like socialism/bureaucracy at it's best with government employees 'skimming' along the way.
April 22, 2010 at 12:17 PM Report abuse
TheBigGuy said...
I think it is a good idea to help people make their homes more energy efficient. They could save serious money on heating and cooling costs in the long term and use some of the savings to help re-pay the loan.
April 22, 2010 at 12:17 PM Report abuse
LordNelson said...
If it is such an economic idea? Why wouldn't people do it without govt subsidy? THINK ABOUT IT? And then read the article on the latest Casco Bay Lines fiasco...all this stuff is related...someone, someday will have to pay for all this mess. Many of those advocating for this nonsense...have little accountability either fiscally or morally for this stuff. It comes at us in dribs and drabs so we never connect the big picture. Lets abolish privtate mortgages right after private healthcare...home ownership is another "right" or should be...correct? Oh that's right...there are no private mortgages as Fannie and Freddie turned out to be gubment subsidized after all? Eventhough Barney Frank et al told us for years it wasn't and this would never happen.
April 22, 2010 at 12:47 PM Report abuse