TY - JOUR T1 - PACE Loans: <em>Does Sale Value Reflect Improvements?</em> JF - The Journal of Structured Finance SP - 6 LP - 14 DO - 10.3905/jsf.2016.21.4.006 VL - 21 IS - 4 AU - Laurie S. Goodman AU - Jun Zhu Y1 - 2016/01/31 UR - https://pm-research.com/content/21/4/6.abstract N2 - This article determines how the resale value of homes with PACE (Property-Assessed Clean Energy) improvements and financing compare with similarly situated homes that have no PACE involvement. The authors use a number of different methodologies to show that the net impact of PACE on resale value of a home, after taking into account the cost of improvements, ranges from $199 to $8,882. Moreover, the premium for PACE homes purchased out of foreclosure was closer to the higher end of the range. They conclude that a home with a subordinate PACE loan will provide collateral for FHA and GSE recoveries in a foreclosure sale that is at least as high as comparable properties without PACE improvements.TOPICS: MBS and residential mortgage loans, legal/regulatory/public policy ER -