The Appraiser must review the sales contract and property tax records for the Property to determine the amount of any outstanding PACE obligation:
• if the Mortgagee notifies the Appraiser that the subject Property is subject to a PACE obligation;
• when the Appraiser observes that the property taxes for the subject Property are higher than average for the neighborhood and type of dwelling; or
• when the Appraiser observes energy-related building components or equipment or is aware of other PACE-allowed improvements during the inspection process.
The Appraiser must report the outstanding amount of the PACE obligation for the subject Property.
Where energy and other PACE-allowed improvements have been made to the Property through a PACE program, the Appraiser must analyze and report the impact on the value of the Property from the PACE-related improvements subject to the PACE assessments being extinguished.
For additional information see Handbook 4000.1, Section II.D.12.d.iv.(B) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh