How Does PACE Financing Work In Florida?

Property Assessed Clean Energy (PACE) financing is an innovative program designed to help homeowners make energy-efficient and storm-resistant property upgrades. 

This program allows property owners to finance up to 100% of eligible home improvement projects, mitigating the burden of upfront payments. Instead of traditional loans, PACE financing is repaid through a non-ad valorem assessment added to the property tax bill, making it a unique option that aligns payments with property ownership.

For Florida homeowners, PACE financing is particularly significant due to the state's unique climate challenges and the rising costs of energy. With frequent hurricanes and high energy demands, many homeowners are seeking ways to enhance their properties' resilience and efficiency. 

PACE financing provides an accessible solution that helps improve home safety and comfort and contributes to long-term savings on energy bills.

What is PACE Financing?

Property Assessed Clean Energy (PACE) financing is a funding option for homeowners looking to finance energy efficiency, renewable energy, and wind mitigation projects with little to no upfront costs. 

PACE financing offers a unique approach to funding home improvements, including:

1. Property-based funding: PACE financing is tied to the property itself, rather than to an individual borrower.
2. Tax-based repayment: Repayments are made through a voluntary non-ad valorem assessment added to the property owner's annual tax bill.
3. Equity-based eligibility: Qualification for PACE financing is primarily based on the property's equity rather than personal credit scores.
4. Transferability: If the property is sold, the remaining balance of the PACE financing can often be transferred to the new owner.

These characteristics make PACE financing a distinctive option for homeowners looking to fund energy-efficient upgrades or storm protection improvements to their properties.

The History of PACE in Florida

While the West Coast introduced the concept of PACE financing in 2008, the Sunshine State followed suit in 2010 when it passed Statute 163.08, authorizing local governments to create PACE programs. This legislation was part of a broader national movement to promote energy efficiency and renewable energy adoption.

As of July 1, 2024, Florida requires each county to approve offering PACE financing to its citizens.

And today, Florida is one of only three states offering residential PACE (R-PACE) financing.

How PACE Financing Works in Florida

One of the things that makes PACE financing so innovative is that funding is based on property equity rather than individual credit scores, opening up important home improvement projects like installing impact windows and doors to more South Florida homeowners. 

But how does the program work?

Let’s take a look. 

Eligibility criteria for PACE financing vary depending on the county, provider, project, and more but typically include: 

• Establishing property ownership in a participating district.
• Being up-to-date on mortgage payments.
• No bankruptcy declarations within the last 2-3 years.

If all of the above looks good, you’ll then select an approved PACE loan provider like USA Home Improvement and complete the provider’s application process. 

It’s also important to understand the repayment schedule. As we’ve discussed, the amount you finance is repaid through an annual assessment on your property tax bill. 

While every provider is different, repayment terms can range from as little as 5 years to as long as 35 years, depending on the scope and complexity of the project. For example, if you’re replacing an impact window here and there, that may be a lower loan amount and faster repayment cycle. But if you’re investing in a new roof, that payment might be better spread out over a longer period. 

With PACE loans, most interest rates are fixed and range from 6-8% but can be as low as 3-5% depending on the project and provider. 

For South Florida homeowners, PACE financing is an excellent way to finance 100% of the costs of eligible projects, including labor, equipment, and materials, without the burden of upfront expenses. 

Eligible Home Improvements Under PACE Financing 

PACE financing in Florida covers a wide range of home improvements that enhance energy efficiency, promote renewable energy use, or provide hurricane protection. Here are some of the most common eligible projects:

Energy Efficiency Upgrades:

• High-efficiency HVAC systems
• Energy-efficient windows and doors
• Improved insulation for walls, attics, and crawl spaces
• LED lighting upgrades
• Energy-efficient appliances (e.g., water heaters, refrigerators)
• Cool roofing systems

Hurricane Protection Measures:

• Impact-resistant windows
• Impact-resistant doors
• Hurricane shutters
• Roof-to-wall reinforcements
• Garage door bracing
• Roof deck attachment improvements
• Secondary water barriers for roofs

Other Qualifying Projects:

• Solar panel installation
• Solar water heaters
• Wind turbines (where permitted)
• Electric vehicle charging stations
• Water conservation systems (e.g., low-flow fixtures, rainwater harvesting)
• Seawall improvements (in certain coastal areas)

It's important to note that while these improvements are generally eligible for PACE financing in Florida, specific eligibility may vary depending on your local PACE program and provider. Some programs may have additional requirements or restrictions.

Before starting any project, it's advisable to consult with a PACE-approved contractor or your local PACE program administrator to ensure your planned improvements qualify for financing.

For South Florida homeowners, these improvements not only enhance your home's resilience against hurricanes and reduce energy costs but can also increase your property value. 

At USA Home Improvement, we specialize in many of these upgrades, particularly impact windows and doors, which offer both energy efficiency and hurricane protection benefits.

Benefits of PACE Financing for Florida Homeowners

PACE financing offers several significant advantages for Florida homeowners looking to make energy-efficient and hurricane-resistant improvements to their properties:

No Upfront Costs

One of the most attractive features of PACE financing is the ability to fund 100% of eligible projects without any initial out-of-pocket expenses. This allows homeowners to start benefiting from upgrades immediately while spreading the cost over time, making it easier to budget for significant home improvements.

Potential Energy Savings

By financing energy-efficient upgrades through PACE, homeowners can significantly reduce their utility bills. For example, upgrading to a more efficient HVAC system or installing high-efficiency windows can lead to substantial energy savings over time.

Increased Home Value

PACE-funded improvements can increase a property's value by enhancing its energy efficiency and resilience. This is particularly relevant in Florida, where hurricane protection measures are highly valued. Additionally, energy-efficient upgrades can make a home more attractive to potential buyers if the owner decides to sell.

Unique, Home-owner Friendly Repayment Terms 

Unlike traditional loans, PACE financing is repaid through an assessment on the property tax bill, potentially offering longer repayment terms. 

More Accessible Approval Process

PACE eligibility is primarily based on property equity rather than credit scores, making it accessible to a broader range of homeowners. 

Ability To Transfer The Loan

PACE assessments can often be transferred to new owners upon sale of the property, which may be advantageous for homeowners not planning to stay in their homes long-term.

Ultimately, Florida homeowners should carefully consider their specific circumstances, project needs, and long-term plans when choosing between PACE and other financing options for home improvements.

How To Choose the Right PACE Financing Providers in Florida

When selecting a PACE provider in Florida, homeowners should consider several factors to ensure they're working with a reputable and experienced company:

1. Verify state approval: Ensure the provider is approved to operate in Florida.
2. Check service areas: Confirm the provider serves your specific county or region.
3. Review project eligibility: Make sure the provider finances the type of improvements you're planning.
4. Compare interest rates and terms: Look for competitive rates and favorable repayment terms (like ours!).
5. Consider expertise: Work with a company with extensive experience in your home improvement repair, skilled craftspeople, and a laundry list of happy customers. 
6. Assess customer support: Choose a provider that offers comprehensive assistance throughout the process.

USA Home Improvement stands out as a leading PACE provider in South Florida. With years of experience in PACE-funded projects, USA HI has established itself as a trusted partner for homeowners seeking to make energy-efficient and hurricane-resistant improvements.

Our Experience with PACE-Funded Projects

USA HI has successfully completed numerous PACE-funded projects across South Florida, including:

• Installation of impact windows and doors
• Energy-efficient HVAC system upgrades
• Solar panel installations
• Roof replacements and reinforcements

These projects have helped homeowners enhance their property's value, reduce energy costs, and improve hurricane protection.

Support Throughout the PACE Application and Improvement Process

At USA HI, we provide comprehensive support to homeowners throughout their PACE journey:

1. Initial consultation: We assess your home's needs and explain PACE financing options.
2. Project planning: Our experts help design improvements that qualify for PACE financing and meet your goals.
3. Application assistance: We guide you through the PACE application process, ensuring all requirements are met.
4. Quality installation: Our skilled technicians perform high-quality installations of approved improvements.
5. Post-project support: We offer ongoing assistance and warranty support after project completion.

By choosing USA Home Improvement as your PACE provider, you're partnering with a company that prioritizes customer satisfaction and has a proven track record of successful PACE-funded home improvements in South Florida.

USA Home Improvement: Empowering South Florida Homeowners Through PACE Financing

PACE financing represents a powerful tool for South Florida homeowners looking to enhance their properties' energy efficiency, hurricane resilience, and overall value. 

For South Florida homeowners facing rising energy costs and increasing hurricane risks, PACE financing offers a strategic solution. It provides an accessible pathway to make critical home improvements without the burden of upfront expenses.

We encourage you to explore PACE financing as a viable option for your home improvement projects. Every property is unique, and PACE could be the key to unlocking enhanced safety, efficiency, and value for your home.

Ready to take the next step? USA Home Improvement is here to guide you through the PACE financing process, from initial consultation to project completion. Our team of experts specializes in South Florida home improvements and can help you navigate the PACE program with confidence.

Don't wait to protect and improve your home. Contact USA Home Improvement today to get a free quote.