HB 5357 Summary

• Expands Michigan's Property Assessed Clean Energy (PACE) program to include residential properties for energy efficiency, water conservation, environmental hazard mitigation, and air quality improvements, in addition to renewable energy systems.

• Establishes Part 3 of the PACE Act governing noncommercial, nonindustrial property (excluding multifamily buildings with 5+ units) with financing through voluntary property assessments that create liens on benefited property.

• Requires local governments establishing PACE programs to adopt resolutions of intent, conduct public hearings, prepare detailed program reports, and offer annual educational workshops for the first 3 years.

• Imposes consumer protections including verification of property conditions before financing (no delinquent taxes/mortgages/bankruptcies), written financing estimates, recorded telephone calls explaining terms, 5-day cancellation rights, and fixed-rate fully amortizing contracts.

• Authorizes local governments to issue tax-exempt bonds secured by assessment payments, reserves, or other available funds to finance projects under PACE programs.