PACE home improvement financing, one of many options for homeowners

Energy efficiency, renewable energy and storm-hardening/ resiliency are areas of interest and investment for individuals, businesses and communities across our region, country, and internationally. These are property improvements that can be financed using the Property Assessed Clean Energy (PACE) program in Broward County.

In his January 20 article, Sun Sentinel reporter Ron Hurtibise discussed the mechanics of PACE and raised several questions regarding PACE program practices. The article was of great value to identifying some of the main questions and potential concerns for property owners who are considering using PACE.

For those new to PACE, it is authorized by Florida Statutes and allows residential and commercial property owners to pay for qualifying property improvements via a non-ad valorem assessment on their property tax bill. The Broward County Board of County Commissioners approved the PACE program in June 2016. While it was a statutory requirement that PACE be approved by the Board, it is not a county program. PACE is provided by various PACE financing entities. Please note that PACE is only available in Broward cities that have also approved its use within their jurisdictions.

Included in the local authorizing legislation were several consumer protection measures designed to protect the most vulnerable in our community. These measures were unique to Broward and have since been used by other jurisdictions in Florida and elsewhere. While fielding PACE inquiries over the past two years, it became clear to staff that while the original consumer protections were effective, additional measures were needed to better inform and protect our residents, with the goal to improve PACE program delivery and ensure a clear understanding of all project obligations and implications by potential participants. County staff are currently working to finalize those changes for consideration by the Board.

Energy efficiency improvements have long been a practice for property owners based on the potential cost savings. Environmental priorities and the desire to help curb global carbon emissions now provide an even stronger motivation for many community stakeholders to become engaged in these efforts. Renewable energy projects (e.g. solar) offer another opportunity for reducing traditional energy demands and often generate sizable cost savings, but historically the upfront capital costs have precluded the participation of many in our community.

More recently, the value of wind resistant property improvements has been underscored as we have witnessed the aftermath of severe tropical storms and hurricanes. In the poststorm assessment of Hurricane Irma, structures in the Florida Keys built to the current building code, with hurricane-grade roofs and impact resistant windows (in addition to being elevated), emerged nearly unscathed compared to older structures. As our communities are increasingly subject to storms of this magnitude, their resilience will be defined by their ability to withstand and quickly recover from the impacts of these severe events.

Community resilience requires that we find ways to facilitate the participation and preparation of individuals in our community to the broadest extent possible. Improvements to our homes and businesses that provide for long-term cost savings and reduce our vulnerabilities to severe events will protect individuals, reduce the potential for damage, minimize losses, and bolster the resilience of our local economy. Since its inception in Broward, PACE has provided a unique means to accomplish this, and in many instances, is enabling improvements that simply couldn’t be accomplished otherwise.

With all its benefits, it is important to know that PACE remains but one financing option for eligible property improvements. Property owners are encouraged to explore all options before deciding whether PACE is right for them, as it may not be the best or least costly option they have.