PT - JOURNAL ARTICLE AU - Laurie S. Goodman AU - Jun Zhu TI - PACE Loans: <em>Does Sale Value Reflect Improvements?</em> AID - 10.3905/jsf.2016.21.4.006 DP - 2016 Jan 31 TA - The Journal of Structured Finance PG - 6--14 VI - 21 IP - 4 4099 - https://pm-research.com/content/21/4/6.short 4100 - https://pm-research.com/content/21/4/6.full AB - 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