Frequently Asked Questions

What requirements are needed to qualify for PACE?

Applying for Florida PACE is very simple, but it does have some eligibility requirements to secure the voluntary financing. While no money down or credit checks are required, here are the things needed to qualify:

• All property taxes are paid and have not been delinquent for three years
• Current on all mortgage debt on the property
• No notices of default in the preceding three years
• No involuntary liens

How do I know if I’m eligible for PACE?

Applying for PACE is very simple, but it does have some eligibility requirements to secure voluntary financing:

• No money down required
• No credit checks required
• All property taxes are paid and have not been delinquent for 3 years
• No involuntary liens
• No notices of default in the preceding 3 years
• Current on all mortgage debt on the property

Does Florida PACE offer financing in my county?

As of July 1, 2024, SB770 requires a local ordinance in your county for us to be able to offer you PACE voluntary financing. When you apply online, we will confirm that your county allows voluntary PACE financing for homes and businesses.

Does Florida PACE regulate contractors?

Florida PACE does not regulate licensed trade professionals. Regulation and penalties can only be issued by the city/county governmental entities that authorize them to do business or the Department of Business and Professional Regulation.

It’s worth noting that the majority of complaints related to PACE are due to homeowners being dissatisfied with their contractor rather than the PACE funding method itself. Homeowners always have the flexibility to choose any contractor they prefer.

Is there a penalty to pay off my PACE assessment ahead of schedule?

With R-PACE (residential), there is absolutely no penalty for paying off your PACE assessment early. The property owner can simply visit the 24/7 online portal at POportal.com, and it will reflect interest only for the period the assessment was on the property.

With C-PACE (commercial), a prepayment penalty may be assessed.

What are the interest rates associated with Florida PACE?

Interest rates for PACE are well below any credit card interest rates, a common method for financing home upgrades. Interest rates for PACE range from approximately 6% – 12.99%.

Additionally, homeowners are not required to make any down payments. All closing fees are included in the financing total. Closing fees are approximately 6.99% of the loan amount.

PACE allows homeowners with lower credit scores equal ability to secure financing for hurricane-hardening and energy-efficiency improvements at reasonable interest rates. PACE allows ALL Floridians (even property owners with impaired credit) to live in safe and efficient homes.

*The reason interest rates are so much lower than unsecured debt (credit cards) is that finance companies know the annual payment is predictable, as it’s included in your property tax bill.*

How does Florida PACE partner with investment bankers?

Investment bankers play a crucial role in making Florida PACE financing accessible by funding initial project payments. Florida PACE uses private funds to attract additional investors to the program, allowing us to continue providing our services to the public.

Has Florida PACE ever been involved with predatory lending?

In no way, shape or form does Florida PACE target or exclude any demographic or neighborhood. We provide a voluntary financing option to all Florida property owners if they qualify.

Do I need consent from my lender to move forward with PACE financing?

Lender consent is not necessary under Florida statute unless the amount financed will “exceed 20 percent of the just value of the property”.

For example, if your air conditioner breaks on a Saturday morning, you do not have to wait until Monday to call your bank and get your mortgage company to consent to your PACE financing.

While many commercial projects work cooperatively with lenders and get lender consent, it is not required by Florida Statute.

4 F.S. Chapter 163.08(2)(b)(12)(a)

Does the Florida Statute differentiate between commercial and residential properties?

The Florida Statute does not differentiate between commercial properties and residential properties. PACE is a voluntary financing method to hurricane harden and/or improve all properties in Florida. Effective 07/01/2024 SB 770 adds language related to Commercial PACE (C-PACE)

What protections are there for me as a property owner?

The Florida PACE Funding Agency has several consumer protections in place to protect Florida property owners:

• Cannot finance longer that the useful life of a product. For example, a roof might be financed for 30 years, but an air conditioner for only 10 years.
• Three (3) day right to cancel finance agreement before work commences without penalty.
• “Welcome Call” – this is a recorded telephone call with the property owner (in their choice of language), ensuring they fully understand the financing terms.
• “Closing Call” – this is a recorded telephone call (in their choice of language) to confirm the work was completed per the home improvement contract.
• Property Owner signs a Certificate of Completion authorizing the contractor to be funded after the work has been performed.
• PACE providers are not permitted to offer cash kickbacks to contractors for using PACE financing.

What is the local “Home Rule” discussion?

The Florida PACE Funding Agency is an independent special-purpose governmental entity. We have a very specific mission to carry out a compelling statute interest statewide.

Several local governments have tried to alter, amend and sometimes eliminate this financing option for Florida residents for years. In November of 2022, a court order was issued making it clear that the PACE mission is to be carried out independently of city and county authorities.

The main motivation for a court ruling was that each county (and sometimes the cities within a county) asked for significant contractual changes and separation agreements.

A similar example would be if an auto insurance company offered insurance in Florida that was dependent on what city you lived in and that determined which auto policy contract you receive — It is simply unmanageable.

With this said, in December of 2022, the Florida PACE Funding Agency put forward a uniform statewide Inter Local Agreement (ILA) that local municipalities have the option of executing.

The ILA intends to work with local governments to carry out the statewide hurricane-hardening and resiliency mission rather than working at cross-purposes. Various consumer protections and reporting requirements are included in this agreement. Effective 07/01/2024 SB 770 requires a local Ordinance in your county for us to be able to offer you PACE voluntary financing. When you “apply” online we will begin to track which Florida Counties will allow voluntary PACE financing for your home or business.

If I’m a property owner who has a leaking roof that makes my drywall wet, what options do I have other than using Florida PACE?

• Pay Cash: If you have the cash up front, this might be a good option for you. However, many homeowners do not have enough liquid cash to spend on home upgrades, which is why they opt for a financing program like PACE.
• Credit Card: If you’re able to pay off your balance quickly, this might be a good option for financing your repairs. Sometimes homeowners do not have enough credit limit to work with, however, or they simply don’t want to pay the higher interest rates (which can average around 29%).
• Borrow Money from Friends and/or Family: A loan from a family member or friend could be a huge help in a pinch, but sometimes this can be an awkward request, and many people don’t like making such requests.
• Home Equity Loan: This is a good option, but it can often take several weeks or months to secure a loan. Also, if the homeowner uses PACE, they can always pay off the assessment at a later date if/when the home equity line is approved with no penalty.
• Do Nothing: We don’t advise this option. In this case, the property loses value, can violate mortgage and insurance mandates, and the property is not ready for named storms.

Can a property owner lose their home?

Yes. Any tax or assessment lien can indeed cause you to lose your home. If a homeowner does not pay their tax/assessment bill each year, the government has a very formal process of putting a tax lien on the property. In addition, the homeowner has an extended period to pay the tax/assessment bill before any tax deed proceedings would begin.

While this has been greatly exaggerated in the press, losing your home is possible if you do not pay property taxes and assessments related to PACE.

A property owner does not lose their home over an annual assessment of a few hundred dollars. Most likely, the wage earner in the household became disabled or lost meaningful employment.

*PACE assessments are a lien on the property.*

As an additional protective measure, a PACE assessment is prohibited on the property unless it has sufficient equity. Florida state statute does not allow the amount financed to be greater than 20% of the property’s just value (assessed value) without additional approval from mortgage lenders.

Are tax collectors working for private organizations with PACE?

Some have argued the tax collector should not be collecting for private organizations. To clarify, the Florida PACE Funding Agency is a governmental agency, not a private business. The agency is responsible for providing the tax collector with any necessary information to put the assessment on a property owner’s property tax bill.

This secured collection method is then used to repay bonds that were sold to private investors. Keep in mind that no taxpayer money is used for the PACE program.

What tax collector and property appraiser fees are associated with Florida PACE?

The tax collector and property appraiser can only charge the property owner the actual cost to provide this service, not to exceed 4% (TC = 2%, PA = 2%). 

For example, if your annual assessment is $800:

• Tax Collector 2% (Max Fee) = $16
• Property Appraiser 2% (Max Fee) = $16

*Note: We do not control this fee.* We are required to send a detailed data file to the local tax collector.

How was the Florida PACE Funding Agency formed?

The Florida PACE Funding Agency (FPFA) was formed under the authority of the Florida Legislature as an independent special purpose local government tasked with the mission of bringing voluntary financing options to Florida property owners to hurricane-harden their property and/or make them more energy efficient.

1 Charter dated February 20th, 2017. “Separate legal entity, public body and unit of government, pursuant to Section 163.01(7)(g), Florida Statues, with all of the privileges, benefits, powers and terms provided for therein and by law.