HF3688 Summary

• Establishes a new residential PACE loan program under Minnesota law with comprehensive consumer protections for homeowners financing energy improvements through property tax assessments

• Requires residential PACE administrators to obtain licenses from the Commissioner of Commerce, maintain $100,000-$200,000 surety bonds (scaled by loan volume), and comply with examination and reporting requirements

• Mandates underwriting standards including debt-to-income ratio limits (43 percent maximum), ability-to-repay verification using reliable documentation, and prohibits loans to vulnerable adults or those unable to understand loan terms

• Provides homeowners with a 3-day rescission right, mandatory disclosures on a separate one-page document in 14-point type, and oral confirmation of key loan terms prior to execution by a live recorded telephone conversation

• Establishes civil remedies for violations including actual damages, statutory damages of $5,000-$10,000, attorney fees, and court costs, with enhanced relief available for vulnerable adult homeowners