Residential ClimateSmart Loan Program Suspended

The third round of Boulder County's residential ClimateSmart Loan Program (CLSP) was suspended indefinitely today due issues with the Federal Housing Finance Agency and federal mortgage regulators, Fannie Mae and Freddie Mac. A couple of months ago the program announced that it was delaying the program for 60 days to "address two significant issues at the federal level" that impacted the program.  Because those issues were not able to be addressed, the program has been suspended.  Further, although the information available at the moment does not address this, it's would stand to reason that all of the other programs around the state and the country that were modeled after Boulder County's successful program will also need to be suspended. 

The problem stems from a rule put in place by FHFA, Fannie Mae and Freddie Mac which prohibits new financing on any property where there exists a property assessment for energy efficiency or renewable energy improvements, if that property is secured by a Fannie Mae or Freddie Mac mortgage. Because these entities collectively control almost half of all residential mortgage debt in the United States, their rules make the CSLP unable to proceed until a solution can be put in place.

Since it was launched a little over a year ago the CSLP has generated over $10 million in business to over 280 local businesses -- a much needed shot in the arm of the local economy during difficult economic times. 

The only good news in all of this is that the Commerical CSLP is unaffected by the same issues and it will continue. In fact, the program is still accepting applications until July 12.