SB 1032 Summary

• Expands Michigan's Property Assessed Clean Energy (PACE) program to include residential properties by creating Part 3 for noncommercial, nonindustrial property, extending beyond the existing commercial and industrial focus in Parts 1 and 2.

• Broadens eligible projects to include energy efficiency improvements, renewable energy systems, water usage improvements, air quality improvements, and environmental hazard projects (lead mitigation, flood/drought resistance, severe weather protection, PFAS contamination mitigation).

• Allows homeowners to finance qualifying projects through property assessments with fixed interest rates, fully amortizing payments, and terms not exceeding the useful life of the project, with assessments capped at 20% of property value.

• Establishes consumer protections including verification of tax and mortgage payment compliance, written financing estimates, recorded telephone consultations, contractor completion certifications, and energy savings guarantees for projects exceeding $250,000.

• Permits local governments to issue bonds secured by assessment payments to finance the program and allows multiple local units to jointly implement PACE programs with a single public hearing.