What are the pros and cons of the PACE program?
The pros and cons really depend on each individual project, and the property owner’s financial situation. There may be other types of financing available and Broward County does not guarantee that the PACE program is the best financing option. You might want to discuss with your financial adviser.
Here are a couple general advantages and disadvantages to consider in order to make the best financial decision for yourself and your property:
PACE allows a property owner to finance improvements without a large up-front cash payment. No up-front cash is required or allowed.
PACE can help incentivize investing in energy improvements, since many property owners are hesitant to make property improvements if they think they may not stay in the property long enough for the resulting savings to cover the upfront costs.
The energy and insurance savings should be greater than the PACE assessment over time. Before you sign an agreement, make sure you understand what projects would have the greatest energy and insurance savings. That means you may want to call your property insurance company to ask about rebates for particular home improvement items. It could also mean completing a home energy survey or home energy audit. The Department of Energy’s Energy Saver Webpage is a national resource to learn more about energy saving products and services.
PACE spreads repayment over many years, typically 15-20 years. • Qualified improvements typical of PACE generally increase the value of the property. • PACE assessment is tied to the property not on the individual. Under Florida law, property taxes stay with the property when it is sold and the same is true of an assessment. Therefore, if you sell the property the new homeowner would then take over the balance of the assessment.
However, the seller’s lender or the buyer's lender (Mortgage Company) may require pay off of the remaining outstanding balance of the assessment before the property can be refinanced or sold. This is particularly true of Freddie Mac and Fannie Mae mortgages.
Failure to pay the PACE assessment is treated the same as nonpayment of taxes