a question below to link to the provided answer.
How does PACE work?
the pros and cons of PACE?
PACE different from other financing options?
is the interest rate for PACE financing?
Will my credit score impact my ability to qualify for PACE
improvements qualify for PACE financing?
there a time limit or a funding limit on the amount of financing available?
condominium qualify for PACE?
have to pay the remaining PACE assessment in full if I sell my home/property?
happens if PACE assessment is not paid?
pay off my PACE loan early?
Who do I call if I have a complaint?
What is PACE?
Property Assessed Clean Energy
(PACE) is a financing mechanism that allows property owners to fund energy
efficiency, renewable energy, and wind mitigation projects with little or no
up-front costs. With PACE, residential and commercial property owners living
within a participating district can finance up to 100% of an eligible project
and pay it back over time as a voluntary non-ad valorem assessment on their
annual property tax bill. PACE financing is paid back through an assessment on the
owner’s property; it is not a loan nor a grant. In addition, although the Palm
Beach County Board of County Commissioners authorized PACE financing, it is not
a County program.
In 2010, Florida passed Statute §163.08, authorizing local
governments to create PACE programs. In 2017 Palm Beach County established a PACE ordinance.
Currently the County has agreements with four agencies/districts to provide
services in Palm Beach County, each with their own third-party administrators (“Providers”).
A list of County-approved Providers can be found on the main Palm Beach County PACE page.
To apply for PACE financing, you decide on an energy efficiency, renewable
energy, and/or wind mitigation project for your property and select a PACE Provider.
The application and payment process will vary by Provider; a general flowchart
of process steps can be found here. All Providers
are held to strict consumer disclosure requirements as outlined in the FL Statute
and County Ordinance. All work must be properly permitted
and installed by licensed contractors, meeting applicable federal, state, and
local energy, wind, and building code standards. See the main Palm Beach
County PACE page for links to contractors approved by each Provider.
Generally, once the work has
been completed to your satisfaction, the PACE Provider will release funds to
the contractor. Then you will repay your Provider through an annual assessment
on your property tax bill. Prior to beginning any project, you should discuss
the timeline and steps with your contractor and PACE Provider.
What are the pros and cons of PACE?
Whether PACE is right for you depends on each individual
project and your unique financial situation. The County does not guarantee the
PACE program is the best financing option for you, and other types of financing
might be available. You might want to discuss options with your financial
Here are some things to consider when making your decision:
allows a property owner to finance improvements without a large up-front cash
property owners are hesitant to make property improvements if they think they
may not stay in the property long enough for the anticipated savings to cover
the upfront costs. PACE incentivizes energy efficiency, renewable energy, and
wind mitigation improvements by allowing the assessment to stay with the
property, not the owner. This may not apply in the event that the mortgage
company requires the homeowner to pay any outstanding balance of the PACE assessment
before the property can be sold.
energy bill and insurance savings should be greater than the PACE assessment
over time, but this is not guaranteed. Before you sign an agreement, make sure
you understand what projects have the greatest energy bill and insurance
savings. You can call your property insurance company to ask about rebates for
particular improvements. You can also consider completing a home energy survey
or home energy audit. The U.S. Department of Energy’s Energy Saver webpage has additional information on energy
saving products and services.
repayment periods typically vary from 5 to 20 years.
PACE improvements generally increase property value, but this is not guaranteed
and the increased value might not equal the cost of the improvement.
you do not pay the PACE assessment, the result is the same as not paying your
property taxes. Failure to pay the full tax bill including the PACE assessment
could trigger foreclosure and property loss even if the property owner is
current on other mortgage lien(s). The PACE assessment is the priority lien,
and the lien position may impact options to sell or refinance.
- Be a diligent,
smart consumer and take time to research the program and any financing options
available to you. Seek more than one project quote requesting written estimates
that include a detailed scope of work with itemized cost estimates (e.g.
materials, labor, permits, taxes, fees).
How is PACE
different from other financing options?
is a special assessment, commonly referred to as a PACE assessment, for an
improvement tied to the property. Under Florida law, just as property taxes stay with the
property when it is sold, the same is true of a PACE assessment. Therefore, if
you sell the property, the buyer could then take over the balance of the
assessment. However, the seller’s
lender or the buyer's lender (the mortgage company) may require the seller to pay
off the remaining outstanding balance of the PACE assessment before the property
can be sold, especially with Freddie Mac and Fannie Mae mortgages. This might
also be true for refinancing.
Failure to pay the full tax bill including the PACE
assessment could trigger foreclosure and property loss even if the property
owner is current on other mortgage lien(s). The PACE assessment is the
priority lien, and the lien position may impact options to sell or refinance.
What is the interest rate for PACE financing?
Currently, PACE financing has an average range of 6-8%
interest rate with additional associated fees. Typically, the cost of the project
is repaid over a period of 15 to 20 years as an annual payment on the property
tax bill; however, other payment lengths are available. Interest rates and fees
for the project are set by the PACE Provider at the time that Financing
Document/Agreement are finalized with the property owner. More information can
be found on the PACE Providers’ websites.
my credit rating impact my ability to qualify for PACE financing?
Your credit rating should not impact your ability to qualify
for PACE financing. However, Providers may run a credit report to determine the
status of any mortgage payments, to determine the balance on your mortgage, or
to check for bankruptcies. We recommend contacting the individual PACE Providers
for specific details on their application process and whether they will run a
improvements qualify for PACE financing?
Qualifying Improvements are real property improvements specified by Florida
law, and include energy conservation and efficiency, renewable energy, and wind
resistance improvements. To qualify, projects must be permanent improvements such
as new roofs, air conditioning units, impact windows, or solar photovoltaic panels.
For questions regarding specific qualifying improvements, contact the
individual PACE Providers.
you are requesting project bids from contractors, ask them to provide energy
savings estimates for the products/materials. Look for ENERGY STAR® labeled
Is there a
time limit or a funding limit on the amount of financing available?
is no short-term deadline to apply. The amount of funding available is
significant. There are multiple PACE Providers and approved contractors available.
You should not feel rushed to enter into a financial agreement by any Provider
There are potential individual limits for the amount
of financing available to your property due to the consumer protections found
in the County PACE ordinance. For residential properties, the total amount of
any non-ad valorem assessment for a property under the PACE Statute may not
exceed twenty percent (20%) of the just/fair market value of the property as
determined by the county property appraiser, excepted as otherwise provided by
Who qualifies for PACE
For residential properties,
PACE Providers will check to ensure that:
property taxes and other assessments levied on the property tax bill have been
paid and have not been delinquent for the preceding three years, or the
property owner’s period of ownership, whichever is less;
are no involuntary liens, including but not limited to construction liens on
notices of default or other evidence of property-based debt delinquency have
been recorded during the preceding three years, or the property owner’s period
of ownership, whichever is less;
mortgage debt on the property is current and not delinquent;
mortgage-related debt on the underlying property does not exceed 90% of the
property’s fair market value; and
total mortgage-related debt on the underlying property plus the PACE program
financing does not exceed the fair market value of the property.
commercial properties, PACE Providers have to comply with the FL Statute
condominium qualify for PACE?
general, condominiums are eligible. Due to the complexities associated with
condominium ownership, assessment payments, rules of the condominium
associations, and physical unit design, it is best to contact the PACE
Providers directly to research eligibility and process. For properties subject
to Homeowners Association (HOA) restrictions, it is the responsibility of the
Property Owner to obtain authorization that the requested Eligible Products
meet the applicable HOA requirements. For specific project eligibility, contact
the individual PACE Providers.
Do I have to
pay the remaining PACE assessment in full if I sell my home/property?
designed to allow the repayment to stay with the property; however, accelerated
repayment could be a condition of tile transfer, at the discretion of the
seller, buyer and lender. When a property owner sells or refinances their
property, state law authorizes the assessment to stay with the property;
however, the seller’s lender or the buyer's lender (the mortgage company) may
require the seller to pay off the remaining outstanding balance of the
assessment before the property owner refinances or sells the property. Property
owners should consult with their lenders at the time of refinance or sale of
the property to determine whether the program assessment will need to be paid
in full. In addition, by law, property owners must provide written notice of the
assessment to the buyer prior to sale of the property.
The disclosure shall state “QUALIFYING IMPROVEMENTS
FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND RESISTANCE.— The property
being purchased is located within the jurisdiction of a local government that
has placed an assessment on the property pursuant to s. 163.08, Florida
Statutes. The assessment is for a qualifying improvement to the property
relating to energy efficiency, renewable energy, or wind resistance, and is not
based on the value of property. You are
encouraged to contact the county property appraiser’s office to learn more
about this and other assessments that may be provided by law.”
if PACE assessment is not paid?
Florida Law, a PACE assessment is treated like a lien and recorded on the
property to secure the financing. The PACE assessment will have a higher
priority than most other liens on your Property, including any mortgage. It is
the responsibility of each taxpayer to know when taxes are due, and to pay them
before they become delinquent. Failure to receive a tax bill does not relieve a
taxpayer of the responsibility for payment, nor is it cause for cancellation of
penalties and/or charges if the bill becomes delinquent. Taxes on real property
(ad valorem and non-ad valorem) are collected on an annual basis. Read more information about the
Beach County process for delinquent property taxes here.
Can I pay
off my PACE assessment early?
Yes, you are able to
pay off the PACE assessment in full. In some cases a mortgage company may
require full pay off prior to selling or refinancing the property. There may be
a fee and/or minimum payment amount associated with early payoff, but the Palm
Beach County PACE Ordinance prohibits Providers from charging prepayment
penalties or “premiums”.
Please contact your
PACE Provider directly to discuss early payoff of your assessment.
Who do I call if I have a complaint?
For all questions or concerns related to your financing
agreement or contractor’s quality of work, please contact the customer service
team for the Provider you are working with.
Customer Service Contacts:
Ygrene: (866) 634-1358
Renovate America: 855-225-HERO (855-225-4376)
Counterpointe Sustainable Real Estate: (855) 248-8900
Alliance NRG: (855) 248-8900
Renew Financial: (844) 736-3934
For questions or concerns related to the County
PACE Program as a whole, or if you are unable to resolve an issue with your Provider,
please contact Palm
Beach County’s Consumer Affairs team