S. 838Senate115th Congress (2017-2019)In Committee

PACE Act of 2017

Sponsored by Tom CottonSen. Tom Cotton (R-AR)
Introduced April 5, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:40 PM UTC

The PACE Act of 2017 amends the Truth in Lending Act to treat real‑property retrofit loans—such as property‑assessed clean‑energy (PACE) loans—as consumer credit transactions. It creates a clear definition of these loans and requires lenders to disclose that the loan creates a lien on the property. The changes affect lenders who offer retrofit financing and consumers who obtain such loans for energy‑efficiency, renewable‑energy, or other property improvements.

Key Provisions

  • Adds lenders of real‑property retrofit loans to the definition of “consumer credit transaction” under TILA.
  • Defines “real property retrofit loan” as a loan secured by real property, repaid through property‑tax installments, and used for energy‑efficiency, renewable‑energy, wind‑proofing, seismic, water‑conservation, septic, or similar upgrades.
  • Amends TILA sections to include retrofit loans in mortgage‑related definitions and disclosures.
  • Requires creditors to provide a disclosure before extending a retrofit loan that explains the loan will create a lien on the property.

Legislative Activity

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2 earlier actions
SenateCommittee Latest Action

Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 115-56.

May 11, 2017

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SenateIntro Referral

Introduced in Senate

April 5, 2017

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

April 5, 2017

SenateCommittee

Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 115-56.

May 11, 2017

Floor Debate

6 members

What members said about S. 838 on the floor

3 Republicans3 Democrats
Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · May 25, 2017

Mr. Speaker, I thank the opponents and proponents of this legislation because they have said much the same thing. H.R. 1761 is a bill that stands against everything we stand against. It is for…

Mike Johnson
Rep. Mike JohnsonR-LA-4 · May 25, 2017

Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. McCarthy). Mr. Speaker, I yield myself such time as I may consume. I am honored today to speak in support of my legislation, the…

John Conyers, Jr.
Rep. John Conyers, Jr.D-MI-13 · May 25, 2017

Mr. Speaker, I yield myself such time as I may consume, and rise in opposition to this bill. Mr. Speaker, this bill restructures section 2251 of title 18 of the United States Code as apparently…

Bob Goodlatte
Rep. Bob GoodlatteR-VA-6 · May 25, 2017

Mr. Speaker, pursuant to House Resolution 352, I call up the bill (H.R. 1761) to amend title 18, United States Code, to criminalize the knowing consent of the visual depiction, or live transmission,…

Robert C. "Bobby" Scott
Rep. Robert C. "Bobby" ScottD-VA-3 · May 25, 2017

Mr. Speaker, I rise in opposition to H.R. 1761. I first want to point out that the case outlined by the chair of the Judiciary Committee that failed in Federal court could have been brought in State…

Show 1 more
Kevin McCarthy
Rep. Kevin McCarthyR-CA-23 · May 25, 2017

Mr. Speaker, before I begin, I want to thank the gentleman for his leadership on this issue to help save those who have been trafficked across not only just America, but around the world. Mr.…

Bill Text

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Introduced in SenateIssued April 5, 2017

II

115th CONGRESS

1st Session

S. 838

IN THE SENATE OF THE UNITED STATES

April 5 (legislative day, April 4), 2017

Mr. Cotton (for himself, Mr. Boozman, and Mr. Rubio) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

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

1.

Short title

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

2.

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;

(3)

in subsection (dd)(5), as redesignated, by inserting , including a real property retrofit loan, before other than; and

(4)

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 improvements or retrofits, including property assessed clean energy loans or other loans repaid through the property tax system for the purposes of energy efficiency upgrades, renewable energy installations, windproofing or seismic retrofits, water conservation upgrades, septic tanks, or other real property improvements or retrofits to a particular parcel of real 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

Before extending a real property retrofit loan, the creditor shall provide a disclosure statement explaining that the real property retrofit loan will result in a lien on the real property securing the loan.

.