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According to its website, the Florida PACE Funding Agency was created in 2011 and has a stated goal of providing financing for residential and commercial property owners to make “Qualifying Improvements” to their properties. The PACE program will “only issues bonds on an as-needed basis to underwrite energy efficiency, renewable energy and wind resistance improvements.” The funding is established through several financing agreements entered into between the property owner(s) and the PACE organization and/or its affiliates, through which the property owner pays down the cost of the improvements over time, through no-ad valorem assessments on their county tax bills. The PACE program gives homeowners access to private lenders that offer up to one hundred (100%) percent financing for said improvements at affordable interest rates.

As it relates our business, specifically to individuals thinking of selling a home, it is important to note that not only are the financing agreements recorded in the public records, they likely will be required to be satisfied out of the sales proceeds of your home at the time of closing. This may be in contrast to what one believes at the time of entering into these agreements and may give pause to homeowners that are looking to sell in the near future, but may not have an abundance of equity in their property. We have seen closings derailed due to the sales price of the property not being sufficient to cover the outstanding balance of PACE loans, in addition to any outstanding mortgage(s). Currently, Hillsborough and Pasco Counties (not Pinellas) are participating in the Florida PACE Funding Agency program. You can find a full list of participating counties on Florida PACE’s website, if you are interested in making energy efficient improvements to you home.