H.R. 1958House115th Congress (2017-2019)In Committee

PACE Act of 2017

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Updated April 15, 2026 at 2:33 PM UTC

The PACE Act of 2017 amends the Truth in Lending Act to treat property‑assessed clean‑energy (PACE) and other retrofit loans as consumer credit transactions. It defines what a real‑property retrofit loan is, expands the Act’s coverage to lenders of such loans, and mandates that borrowers be told the loan will place a lien on their property. The changes affect lenders offering retrofit financing and the homeowners who obtain these loans.

Key Provisions

Adds “real property retrofit loan” to the definition of a consumer credit transaction under the Truth in Lending Act, meaning any loan secured by real‑estate that is repaid through property‑tax installments and used for energy‑efficiency, renewable‑energy, wind‑proofing, seismic, water‑conservation, septic‑system, or similar property upgrades.
Requires lenders of these retrofit loans to disclose at the application stage that the loan will create a lien on the property securing the loan.
Updates the Act’s language to explicitly include lenders who provide real‑property retrofit loans within its coverage.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

April 5, 2017

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HouseIntro Referral

Introduced in House

April 5, 2017

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

April 5, 2017

Bill Text

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Introduced in HouseIssued April 5, 2017

115th CONGRESS

1st Session

H. R. 1958

IN THE HOUSE OF REPRESENTATIVES

April 5, 2017

Mr. Sherman (for himself and Mr. Royce of California) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Truth in Lending Act to include retrofit loans such as property assessed clean energy loans, and for other purposes.

Short title

This Act may be cited as the Protecting Americans from Credit Entanglements Act of 2017 or the PACE Act of 2017.

Real property retrofit loans

(a)

In general

Section 103 of the Truth in Lending Act (15 U.S.C. 1602) is amended—

(1)

in subsection (g), in the last sentence, by inserting and a person who lends money to consumers for real property retrofit loans before for purposes;

(2)

by redesignating subsection (cc) (relating to definitions relating to mortgage origination and residential mortgage loans) and (dd) as subsections (dd) and (ee), respectively; and

(3)

adding at the end the following:

(ff)

The term consumer credit transaction includes a real property retrofit loan extended to a consumer.

(gg)

The term real property retrofit loan means a financing instrument—

(1)

secured by an interest in real property;

(2)

that is repayable in installments through payments made concurrently with the payment of property taxes on the real property; and

(3)

that is used to finance real property retrofits, including property assessed clean energy loans for the purposes of energy efficiency upgrades, renewable energy installations, windproofing or seismic retrofits, water conservation upgrades, septic tanks, or other similar real property improvements or retrofits to a particular parcel of property.

(b)

Real property retrofit loan disclosure

Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended by adding at the end the following:

(g)

Real property retrofit loan disclosure

At the time of application for a real property retrofit loan, the creditor shall disclose that the real property retrofit loan will result in a lien on the real property securing the loan