I reported good  news last week that PACE financing was enabled in Massachusetts. I ended with a caviat that nothing can go forward until setbacks on the National level are addressed. Please contact your representatives to show your support for the PACE Assessment Protection Act.
Below are current updates on PACE from Kelley McKanna of Renewable Funding:

Legislation:  On Thursday Congressman Mike Thompson was joined by 29 co-sponsors in introducing the “PACE Assessment Protection Act of 2010“.  This bill seeks to safeguard our nations PACE programs from Fannie Mae, Freddie Mac and the Federal Housing Finance Agency’s recent attacks, thereby allowing them to drive economic development in communities across the country.  We strongly encourage you to state your support for this bill in all of your outreach to Congress.

Law Suit: California Attorney General Brown announced that they are filing lawsuit against the FHFA last Wednesday.  A copy of the complaint can be found here.
Efforts: Congressman Israel has called for the Director of the FHFA to work with PACE advocates or resign. Senator Israel has made progress in negotiating with the agency which you can read about in this Grist article.