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Since PACE assessments are repaid through your property taxes, if your lender (mortgage company) escrows your property taxes, the monthly payment that you make to your lender will increase to cover the resulting increase in property taxes.
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Authorized by state statute, PACE is a voluntary financing mechanism to fund certain types of improvements to properties with no upfront cost to the owner. The funds used to finance these improvements are then repaid as a line item on the property tax bill.
Per state statute, eligible improvements include:
Please check with each program for complete lists of qualifying improvements.
No upfront cost. Flexible repayment terms up to 30 years (depending on the program and project). Improvements may increase property value. Improvements may decrease utility and/or insurance costs. Improvements may increase safety and resiliency of property. PACE assessment may transfer to new owner if the property is sold.
It is important to remember that PACE is one tool in the home improvement financing toolbox. Other options available include, but are not limited to, cash, home equity loans or lines of credit, energy efficient mortgages, personal/unsecured loans or lines of credit, construction loans, and contractor financing. Each project and individual situation should be carefully examined to determine the best method of financing for you and your project.
Program eligibility is not based on credit score but is instead based on the equity in your property (among other factors depending on the program). The minimum requirements based on state statute:
• Be owner of record of property
• Property taxes paid and no delinquent property taxes in preceding 3 years
• No involuntary liens on the property
• Current on all mortgage debt on property
• No delinquencies on any property-based debt in preceding 3 years
• Total amount of assessment may not exceed 20% of the just value of the property
Each PACE program may have more stringent and/or additional requirements than the minimum required by state law. Please check with each PACE provider to determine eligibility requirements.
While program qualification is not based on your credit score, your credit report confirms other program eligibility criteria.
One of the advantages of PACE is that it is designed for the PACE assessment, and its repayment, to be able to stay with the property. However, the seller, buyer, or lender may require the PACE assessment to be paid off as a condition of the sale or refinancing of the property. Property owners should consult with their lenders at the time of refinance or sale of the property to determine whether or not they will need to pay off the PACE assessment. Additionally, state statute requires that, prior to a purchaser executing a contract for the purchase of a property with a PACE assessment, the seller give the following written disclosure statement to the prospective purchaser:
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.
Yes, you can pay off your PACE assessment early, however, it must be in full. Depending on the PACE provider, there may be a fee and/or minimum payment amount with early payoff. Please contact the PACE provider to determine what, if any, fee or payment they may charge and to discuss early payoff of your project. Additionally, if the payoff occurs after that year’s PACE assessment has already been submitted to the property appraiser, the amount of that year’s PACE assessment will not have been included in the pay-off and will still be due with the property taxes.
Currently, the rates range between 6.75% - 8.5%. Similar to other forms of financing, the rates are dependent upon a number of factors and are subject to change. Please contact the PACE providers to determine what the rate would be for your project.
All PACE providers require contractors to register with their program in order to participate. If you have a contractor that you would like to use that is not registered with the PACE provider that you have chosen, they can register with the PACE provider as long as they meet the PACE program requirements. In general, contractors must possess all valid licenses, certifications, and registrations legally required to do the work requested. Additionally, contractors must maintain appropriate insurance coverage and be in compliance with all other legal requirements to perform the work requested.
No. While the PACE programs were approved by the City of Margate’s City Commission to operate within the City, they are not funded, subsidized, or operated by the City. The costs of the programs are funded by the program participants.
Per state statute, a PACE assessment is treated like a lien of equal dignity to county taxes and assessments and is recorded on the property to secure the financing. Therefore, failure to pay a PACE assessment would be equivalent to not paying your property taxes and would follow the same process. Click here for information on Broward County’s process for delinquent property taxes. It is important to note that property taxes are collected annually. It is the responsibility of each taxpayer to know when taxes are due and to pay them before they become delinquent, regardless of whether or not they received a tax bill.