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Missouri Gov Mike Parson signs loan reform, other bills into law

Springfield News-Leader JEFFERSON CITY Gov. Mike Parson signed a slew of bills into law Tuesday, including one that reforms a state loan program designed to lower utility costs and lessen climate impact. The legislation, House Bill 697, will strengthen protections for borrowers and businesses that use the Property Assessed Clean Energy program, which a ProPublica investigation this year found put homeowners in majority-Black neighborhoods at risk of losing their homes. Weeks after its publication, a bill reforming the program, sponsored by Rep. Bruce DeGroot, a Republican from Ellisville, passed both chambers with few dissenting votes. Those who borrow using the program will now be provided with comprehensive information about the risk and impact of their loan, as well as the possibility of foreclosure if they fail to pay. Residents will also be limited on how much they can borrow using the program based on home value and other debts.

Missouri Lawmakers Approve Reforms To Controversial Clean Energy Loan Program

ProPublica Lawmakers approved consumer protections and oversight to PACE loans that have disproportionately burdened borrowers in Black neighborhoods. A legislative measure that would add consumer protections and oversight to programs that make high-interest “clean energy” loans in Missouri will go to the governor for his signature, after the state House on Wednesday voted overwhelmingly to pass it. A ProPublica investigation found the programs disproportionately burden borrowers in predominantly Black neighborhoods. The House voted 137-12 on the proposal, with two members voting “present.” The The measure would require that residential Property Assessed Clean Energy programs be reviewed by the state Division of Finance at least every other year. Currently, PACE programs have to submit annual reports to the state, but ProPublica’s investigation found there was little oversight.

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