WASHINGTON — California Attorney General Jerry Brown is suing mortgage titans Fannie Mae and Freddie Mac as well as their regulator, the Federal Housing Finance Agency, for effectively killing programs that allow the state’s localities to issue bonds to finance energy-efficient upgrades made by homeowners.

Brown, a Democratic gubernatorial candidate, filed the suit yesterday in the U.S. District Court for the Northern District of California, urging the court to issue an order restraining or enjoining the agencies from refusing to participate in these property assessed clean energy, or PACE, programs, which he insisted are permitted under state law.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.