Changes to Florida PACE Under SB 770

The Florida Property Assessed Clean Energy (PACE) program has recently undergone important updates with the passage of Senate Bill 770 (SB 770). These changes are designed to make the program safer and more accessible for you by introducing substantial revisions aimed at improving consumer protections, expanding services, updating eligibility requirements and making important administrative adjustments. 

To help you navigate these updates, we’ve broken down the key changes and their impact on your property.

What Is SB 770?

SB 770 introduces important amendments to the PACE program, which helps finance property upgrades that improve energy efficiency, increase renewable energy use and strengthen wind resistance, among other benefits. Instead of paying for these upgrades upfront, you can spread the cost over time through your property taxes. These home improvements not only make your property more resilient to Florida’s challenging weather conditions but can also lead to long-term savings on energy costs and even increase property value.

With this bill in place, PACE programs are now separated into distinct statutes for residential and commercial properties, allowing for more tailored protections and processes for each. The bill also introduces new categories of eligible improvements, helping homeowners and businesses invest in upgrades that provide long-term benefits.

These updates require more transparent financial disclosures, stronger contractor oversight and specific county or municipal approvals to make the process smoother and more transparent for participants.

Updates to the PACE Program Under SB 770

The recent updates under SB 770 bring several significant changes to the PACE program. These adjustments are designed to improve the program by:

• Divides the PACE Program: Separates residential and commercial properties into distinct statutes to streamline processes and provide tailored protections.
• Adds New Categories of Eligible Improvements: Expands the types of projects that can be financed, including wastewater treatment, flood and water damage mitigation and sustainable building enhancements.
• Refines the Application and Approval Process: Enhances transparency and ease for participants by:
  • Requiring More Detailed Financial Disclosures: Ensures that all financial aspects are clearly outlined, providing a better understanding of the costs involved.
  • Increasing Contractor Oversight: Implements stricter regulations for contractors to ensure quality and reliability in the improvements made.
  • Mandating Specific County or Municipal Approvals: Requires approval from local authorities before financing can be offered, ensuring that all projects meet regional standards.

These changes aim to provide greater clarity, enhance consumer protection and simplify the process for property owners and businesses seeking to benefit from the PACE program.

New Safeguards for PACE Participants 

One of the most significant updates under SB 770 is the introduction of stronger consumer protections to improve your PACE program experience, including:

• Contract Terms and Transparency: All PACE contracts provide detailed and straightforward terms and conditions before you commit. This ensures that you know exactly what to expect from the financing agreement and can make informed decisions.
• Contractor Oversight: Contractors involved in PACE projects must be registered and closely monitored. This helps ensure the work is completed to a high standard and reduces the likelihood of issues arising during the project.

Program Expansion

SB 770 expands the range of eligible improvements under the PACE program. In addition to energy efficiency and renewable energy upgrades, the program now includes funding for:

• Wastewater Treatment: Upgrades that help manage and treat wastewater, improving sanitation and efficiency.
• Flood and Water Damage Mitigation: Improvements designed to safeguard your property from flooding and water-related damage, which can save you from costly repairs.
• Sustainable Improvements: Enhancements aimed at increasing your property’s ability to withstand natural disasters, giving you greater peace of mind and protection against severe weather events.

Eligibility

The bill also updates the eligibility criteria for PACE financing:

• County Approvals: PACE program administrators can now only operate in counties or municipalities that have authorized the program through local ordinances or resolutions. This ensures that you’re working with approved administrators who understand your local requirements.
• Separate Statutes for Residential and Commercial: The bill creates distinct statutes for residential and commercial PACE programs, each with its own set of procedures and protections. By separating residential and commercial PACE programs into distinct statutes, the bill provides clearer guidelines and protections tailored to each property type.

How These Changes Affect You

For homeowners and businesses, SB 770 brings both benefits and potential challenges. Here’s what you need to know:

• Enhanced Protection: Improved contract terms and increased contractor oversight ensure you have clearer agreements and greater protection throughout the process.
• Expanded Financing Options: With new categories of eligible improvements, you have more choices for upgrading your property.
• County Restrictions: Some properties may face limitations due to local approvals, which could affect the availability of PACE financing. While these restrictions help ensure alignment with regional regulations, they may also add extra steps.
• Increased Property Value: Energy-efficient upgrades can raise your property’s value by making it more appealing to buyers and reducing future energy costs.
• Administrative Adjustments: The new requirements and processes aim to improve the program, but you might need to navigate additional procedures to stay compliant with the updated guidelines.
• Reduced Insurance Premiums: The bill aims to lower homeowners’ insurance premiums by promoting improvements that mitigate risk from natural disasters like hurricanes and floods. These upgrades make properties safer and more durable, helping to reduce the financial burden of rising insurance costs.

What’s Next for Florida PACE?

With SB 770 now in effect, Florida PACE has introduced new guidelines and opportunities for property owners. These updates aim to make the program more beneficial and accessible for your property improvement needs. Stay informed about the latest developments and consider how these updates could enhance your property. Learn more about Florida PACE and explore your options today. 

Ready to take the next step? Apply now to get started with your property improvements!