PACE, the loan Floridians turn to for weatherproofing their homes, has sparked concern as officials warn that loans linked with taxes could obtain serious consequences.
The Property Assessed Clean Energy (PACE) program helps homeowners finance hurricane resistant and energy efficient upgrades like roofs, windows and solar panels. These loans are repaid through property tax assessments and not traditional monthly payments making them appealing to individuals or groups struggling with rising insurance premiums.
Now, a new state-backed home improvement loan program is gaining traction among both homeowners and prospective buyers in Florida with warnings from local tax collectors directed towards borrowers to read the fine print.
St. Lucie County Tax Collector Chris Craft cautions that the same tax-based repayment structure can also create risk. He told WPTV, “If you’re in a financial hardship and need to make these improvements on your home, be prepared, your property tax bill will go up.”
PACE assessments are directly added to property taxes so missed payments can lead to tax delinquencies and homeowners losing their properties in more serious cases.
PACE Updates Mission to Rebuild Trust
PACE’s program in Florida operates through providers which the state authorizes. Lawmakers passed new legislation to tighten oversight and improve transparency after controversies arose.
Based on statements from the CEO of Renew Financial, Mark Floyd, the updates “bring much-needed modernization” and assist homeowners in understanding their repayment obligations. Local governments are given more control and funding for septic to sewer conversions. Florida PACE Funding Agency conducted a survey that found 86% participants positively rating their experience which suggests the reforms are restoring confidence in PACE.
Caution is Essential
Officials urgently express caution before signing up despite the improvements PACE has made.
Craft stated, “Make sure you get full disclosure of the documents.” This emphasizes that homeowners should understand how the financing will affect their tax bills before making such a commitment.
With hurricane season approaching, Florida homeowners, buyers and sellers weigh the benefits of protecting their properties against potential financial risks that PACE financing brings along.
