CHICAGO — Michigan would join a growing number of states allowing local governments to issue bonds to finance loans to residential and commercial homeowners for energy-efficiency upgrades under a bill being considered by a state House committee.
The program is known as property assessed clean energy, or PACE, bonds. Similar programs in other states allow local governments to issue revenue bonds and use the proceeds for loans to homeowners. The loans are repaid over a period of 20 years through a special assessment that appears on the property tax bill. The bonds are additionally backed by liens on the property.