Miami Dade County Property Assessed Clean Energy Program

Property Assessed Clean Energy (PACE) Program for Middle-Class Families in South Florida

In recent years, energy efficiency and renewable energy have become central topics in the conversation surrounding climate change, rising utility costs, and homeownership. For middle-class families in South Florida, a unique and practical solution has emerged: the Property Assessed Clean Energy (PACE) program. This initiative is aimed at helping homeowners make energy-efficient upgrades to their properties without the burden of upfront costs. PACE programs offer a pathway for middle-income households to lower their energy bills, improve their living environment, and contribute to a more sustainable future.

What is the PACE Program?

The Property Assessed Clean Energy (PACE) program is a government-backed initiative designed to help homeowners finance energy efficiency improvements, renewable energy installations, and water conservation measures. PACE financing is repaid through property taxes, allowing homeowners to spread the cost of upgrades over an extended period, typically 20 years.

PACE financing can cover a wide range of home improvements, including:

• Solar panel installation
• Energy-efficient HVAC systems
• Impact-resistant windows and doors
• Insulation and air sealing
• Water-saving appliances
• Roof and electrical upgrades

By offering low-interest, long-term financing options, the PACE program removes the barrier of high upfront costs that often prevent middle-class families from undertaking energy-efficient home improvements.

Benefits of the PACE Program for Middle-Class Families in South Florida

1. No Upfront Costs: One of the most appealing aspects of the PACE program is that homeowners do not have to pay out-of-pocket for qualifying home improvements. The cost of these upgrades is added to the homeowner’s property tax bill, making it easier for middle-class families to invest in energy-efficient solutions without draining their savings.
2. Energy Savings: South Florida is known for its hot and humid climate, which places a significant demand on air conditioning and energy consumption. Energy-efficient upgrades, such as solar panels and high-efficiency cooling systems, can drastically reduce utility bills. These savings can be substantial over time, helping families offset the cost of their property tax payments.
3. Increase in Home Value: Homes that are energy-efficient and environmentally friendly tend to have higher market values. As more buyers seek out homes with lower utility costs and sustainability features, homeowners who invest in PACE improvements may see an increase in their property value. For families looking to sell in the future, this can be a significant advantage.
4. Low Interest Rates and Flexible Terms: PACE financing typically offers favorable interest rates compared to traditional loans. The repayment terms are spread out over an extended period (up to 20 years), which makes monthly payments more affordable. Additionally, payments are tied to the property, not the homeowner, meaning that if the home is sold, the remaining balance of the PACE loan can be transferred to the new owner.
5. Support for Environmental Goals: South Florida faces significant challenges from climate change, including rising sea levels and stronger hurricanes. By embracing clean energy and energy-efficient solutions, families can reduce their carbon footprint and contribute to a more sustainable community. PACE financing allows middle-class families to be part of the solution by investing in green technologies that help mitigate environmental impact.

Challenges and Considerations

While the PACE program offers numerous benefits, there are some factors that homeowners need to consider before committing to financing under this program:

1. Eligibility Requirements: While PACE financing is designed for a wide range of homeowners, there are some eligibility requirements that need to be met. Homeowners must have sufficient equity in their homes and a good payment history with their mortgage lender. Those who are behind on their property taxes may not qualify.
2. Impact on Property Taxes: Since PACE financing is repaid through property taxes, it can increase the homeowner’s annual property tax bill. This increase may be manageable for some families, but others may find it challenging, especially if their income is tight or their property taxes are already high.
3. Long-Term Commitment: PACE financing terms can extend up to 20 years, meaning homeowners must commit to making these payments for the long term. It’s important to evaluate whether the benefits of energy savings and home improvements will outweigh the financial commitment over the loan’s duration.
4. Potential Resale Complications: Though PACE financing is transferable to a new homeowner when the property is sold, there may be some complications with resale. Some buyers may be wary of taking on a PACE obligation, especially if the home improvement projects do not directly impact their own energy needs.

How to Get Started with PACE in South Florida

For middle-class families in South Florida interested in the PACE program, getting started is relatively straightforward. Here’s a step-by-step guide to accessing PACE financing:

1. Research Eligible Programs: South Florida is home to several local governments that participate in the PACE program. The most prominent programs include Hero Program, Florida PACE Funding Agency (FPFA), and Ygrene. Homeowners should research which programs are available in their specific county or city.
2. Evaluate Home Improvements: Homeowners should assess which energy-efficient upgrades or renewable energy installations would benefit their home the most. Consulting with a PACE-approved contractor can help determine which improvements are eligible for financing and offer the greatest return on investment.
3. Apply for Financing: Once a homeowner has identified the improvements they wish to make, they can apply for financing through a PACE administrator or participating lender. The application process typically requires proof of property ownership, a valid mortgage, and a good payment history.
4. Get Started on Home Improvements: After securing financing, homeowners can begin their home improvement projects. PACE-approved contractors will perform the work, and the financing will be repaid through the homeowner’s property tax bill.