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ATTACHMENT 1(a) ALERT: Fannie Mae/Freddie Mac Instructions for Lenders SINGLE FAMILY HOME OWNERS: In May, 2010, Fannie Mae and Freddie Mac, government sponsored enterprises that purchase a large segment of conforming single family home mortgages, issued new instructions to lending institutions on how to treat properties with assessments under Property Assessed Clean Energy(PACE) programs such as . These letters, and additional statements issued by the Federal Housing Finance Agency,the agency that regulates single family home lenders, instruct lenders to treat energy assessments as "loans" instead of"assessments." On August 31, 2010,the agencies issued additional instructions to lenders that Fannie Mae and Freddie Mac "will not purchase mortgage loans secured by properties with an outstanding PACE obligation." These letters and statements may lead lenders to conclude the PACE assessment should be paid off before a property transfers or is refinanced. In addition, it may lead some lenders to conclude that participating in PACE program is a violation of typical mortgage terms prohibiting prior liens without lender consent. If you are selling your property, a buyer's lender may refuse to finance the buyer's first mortgage loan unless the assessment is paid off. We urge you to carefully read the disclosure information in the Program application, review your mortgage documents, evaluate the risks of proceeding with an application at this time, and contact your lender if you have any concerns or for information regarding any other financing options that may be available to you. I/We have read the above statement. All property owners on title must initial below: Initials Date Initials Date Initials Date Initials Date Continued on next page: Electronic links to the copies of letters from the Federal Financing Housing Authority re: PACE programs: Agreement For Collaborative Services for Pace Financing Marketplace—[PACE Provider]