Lean & Green Michigan PACE financing program receives HUD approval

DETROIT–Lean & Green Michigan, providers of PACE financing for energy efficiency projects, said it received a letter from the U.S. Department of Housing and Urban Development on April 1 stating that its financing programs have been approved for use by HUD-financed developments.

LAGM officials say that means its financing programs have met the conditions necessary to prove its program is compatible with HUD’s multifamily housing programs.

This opens up new areas of opportunity for PACE in Michigan. Over the years, LAGM officials said they’ve had to turn away many potential projects because they held a HUD mortgage. Now, LAGM officials can help those projects upgrade or construct buildings that are more energy efficient, water efficient, employ renewable energy or assist with the mitigation of environmental hazards.

PACE financing is authorized by local units of government in Michigan. It allows energy-saving projects to be financed like a special tax assessment over up to 25 years, which allows those projects time to pay for themselves over that 25-year period, generating immediate positive cash flow. In 2023, the PACE statute was amended to include environmental hazard remediation project as well.

More information on PACE financing is available at https://leandgreenmi.com.

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