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Town of Babylon v. Fed. Hous. Fin. Agency

Country/Territory
United States of America
Type of court
National - higher court
Date
Oct 24, 2012
Source
UNEP, InforMEA
Court name
United States Court of Appeal for the Second Circuit
Judge
Winter,Cabranes, Carney.
Reference number
Nos. 11-3408-cv, 11-3285-cv
Language
English
Subject
Energy, Environment gen., Legal questions
Keyword
Subsidy/incentive Energy conservation/energy production Environmental technology
Abstract
In 2010, the Federal Housing Finance Agency (FHFA) and Office of the Comptroller of the Currency (OCC) warned Fannie Mae, Freddie Mac and national banks that Property Assessed Clean Energy (PACE)loans to homeowners with senior liens might pose risks to the institutions’ own security interests. Plaintiffs sued FHFA and OCC arguing that the warning discourages local participation in PACE initiatives. A district court dismissed the suits, and plaintiffs appealed Affirming the district court, the Second Circuit ruled that a 2008 federal law, 12 U.S.C. 4617, establishes FHFA as the federal conservator for Fannie Mae and Freddie Mac, and nothing in that law authorizes judicial review of FHFA decisions. As to OCC, the court held that plaintiffs lack standing under Article III of the Constitution. According to the court, plaintiffs cannot demonstrate redressability—in essence, that the relief sought would resolve the problem—because, even if OCC withdrew its warning, “national banks would remain entirely free to treat PACE-related properties on an unfavorable basis.”
Full text
COU-159836.pdf