Is the payoff of a PACE obligation considered to be an Interested party Contribution?

If a seller agrees to pay off an outstanding Property Assessed Clean Energy (PACE) lien or obligation as a condition of the sale of the property to an FHA borrower, the amount of the payoff is not considered to be an Interested Party Contribution.
 
For policy information see Handbook 4000.1  II.A.4.d.iii(G)(2) and II.A.5.c.iii(G)(2) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03453