Frequently Asked

Questions



What is PACE?

 

myflpace logo faq

Property Assessed Clean Energy. Named one of the top 20 “world-changing” ideas by Scientific American magazine, PACE is a special purpose, non-credit score based, home improvement financing program that’s backed by the Florida Legislature (163.08). It’s not well known, but it’s growing fast! It provides 100 percent, no money down financing--enabling property owners to make energy efficiency, renewable generation and water conservation improvements to residential, multifamily, commercial and agricultural buildings. It’s pretty simple to qualify for, but there are a few requirements.

 

To be eligible, the financing Property Owners must:


  • Be the owner of record;
  • Be current and have no missed or late property taxes, and/or no more than 1 (30 day) late mortgage payment in the past (1) year;
  • Have no involuntary liens on the property; and
  • Not currently be in bankruptcy, and have at least 10% equity in your home. (Florida properties have gone up around 10% in the last year.)

 

What kinds of projects can be financed using MyFloridaPACE?


PACE financing can be used to pay for energy efficiency, renewable energy and water conservation upgrades to residential, multifamily, commercial and agricultural buildings. In certain locations, it can also be used to finance electric vehicle charging stations, seismic upgrades and hurricane protection measures. Hundreds of eligible improvements (and associated installation costs) qualify. Some of the most commonly financed projects are qualifying solar systems, energy-efficient heating and cooling systems, windows, doors, roofing, insulation and ducts, pool pumps, water heaters and water-saving upgrades. To see all the possible project options Sunologi can help you with, please see our application below.

FAQ's

Is my credit score used to determine whether I may apply for PACE financing?

No. However, a soft-pull credit report will be run to determine status of any mortgage payments and/or balance and verify there are no active bankruptcy.

What types of properties are eligible for PACE financing?

Financing is available for residential, commercial, industrial and non-profits. Government-owned properties (cannot be assessed) and mobile homes (not permanent structures) are not eligible.

How is PACE financing repaid?

PACE financing is repaid through a special non-ad valorem assessment included on the annual property tax bill. The assessment is assignable and may transfer to the next owner or be paid off as a condition of sale. You can elect to pay an annual lump sum, or arrange to adjust your escrow with your mortgage company or servicer.

How is PACE financing attached to the property?

A notice of assessment is filed with the County Clerk office within five business days after all financing documents have been signed. The assessment will be included on your annual property tax bill for the term of the financing, or until paid in full.

What happens to PACE financing if the property is sold before the end of the term?

The assessment stays with the property upon title transfer (assignable) or may be paid off in full as a negotiable term of sale. If the assessment is assigned to the new owner, the energy savings on the property continue to accrue to the benefit of the new owner.

How much financing may I apply for?

The maximum amount that may be financed is 20% of the just market property value (found on your local property appraiser website). Exceeding 20% requires an energy audit verifying energy savings exceed the cost, or Lender approval.

May I pay off my assessment early?

Yes, assessments can be prepaid in full with no penalty. For further program details, please contact MyFloridaPACE, and arrange to have one of our consultants meet with you.

Do I get to keep utility rebates and tax incentives when I use PACE financing?

Yes. All utility rebates and tax incentives flow to the property owner. Information on available energy rebates and/or incentives may be obtained by accessing the DSIRE website.

Are there loan-to-value (LTV) requirements for participation in MyFloridaPACE financing?

Currently, the Agency’s underwriting guideline requires that the total outstanding mortgage balance (including home equity loans) plus the total PACE assessment is less than or equal to 100% of the Just Market Value of the property per the property appraiser website. The Agency will consider an appraised value in place of the Just Market Value if an appraisal was completed within the past 12 month. The maximum PACE assessment, however, is 20% of the Just Market Value, per the FL Statute 163.08.

What protections are in place for me as a property owner?

All Qualifying Improvements must be made Authorized Contractors. All Qualifying Improvements require building permits to ensure compliance with all applicable codes through mandatory inspection by local building officials.

Contractor payment will not be made until the Property Owner submits a signed Property Owner Approval form to verify that the work is complete. This may be completed once the building permit is signed by the local building official.

What are the benefits for commercial property owners?

Businesses often face capital budgets constraints that force business owners to choose between capital improvements. Using the PACE program enables businesses to take advantage of fixed rates and longer terms; that allow capital costs to be annually and significantly reduced by savings associated with energy efficiency, renewables and wind resistance improvements. In addition, PACE purposed financing is an off-balance sheet transaction that maintains your company’s cash position, while allowing capital projects to be advanced immediately. All Federal Tax credits remain available.

What are the benefits for residential property owners?

Lower utility bills and a more comfortable home are the big benefits of home energy efficiency. By combining proper equipment maintenance and upgrades with recommended insulation, air sealing, and thermostat settings, you can reduce your energy use for heating and cooling and reduce environmental emissions.

Wind mitigation improvements can provide a safer home and protect your loved ones and the contents of your home during a damaging wind event (e.g., hurricane). These improvements may also reduce the wind portion of your property insurance bill by up to 77%, depending on the age of your home and type of improvement. All Federal Tax credits remain available.

Is making payments through my property tax bill a good idea?

PACE financing payments are authorized under state legislation and secured by a special tax lien (or special assessment) on the property. PACE financing may have tax benefits (consult with your tax advisor; Sunologi does not provide tax advice); and, if you sell your property, payments may transfer to the new owner, just like your property taxes.