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Submitted photo – PACE Executive Director Michael Moran
A statewide home improvement program that promises residents upgraded home fixtures with monthly payments isn’t what it seems, local tax officials said.
The Florida Property Assessed Clean Energy Funding Agency defines itself as an interlocal agreement, where program administrators “work with homeowners … to finance their projects through long-term, fixed-rate assessments added to their property tax bills,” according to the PACE website.
As of Monday, 31 Putnam County property owners had signed up for the program, but those proposed monthly payments won’t show up on their tax bill or mortgage payments, Deputy Tax Collector Brenda Bridges said.
“These people have signed legal agreements,” Bridges said. “And yes, they’re adults and they signed a document, but they have no idea what they signed.”
PACE officials are not directly seeking residents to sell them on the program. Instead, contractors tell property owners they can get needed home improvement projects completed through a financing plan, which is linked to PACE, Bridges said.
Contractors presenting the information do not appear to be local, Bridges added.
“It’s the wording they’re using that we’re hearing from (people who signed up) that they’re not quite telling the whole story,” she said.
Bridges talked to a woman who signed up to get a new air conditioner through the PACE program. When the woman inquired how much it would cost, the contractor asked how much she could afford to pay monthly, according to Bridges.
The woman thought the air conditioner payments would be attached to her mortgage payments, but that isn’t the case, Bridges said.
Instead, the woman told Bridges she needs to pay $3,000 by March 2024, but she doesn’t have that kind of money.
Some counties have partnered with PACE to add PACE payments to tax bills, but Putnam County did not. In September, Putnam County Tax Collector Linda Myers wrote to PACE Executive Director Michael Moran to say her agency would not collect funds on behalf of his organization.
PACE is a private company that can work with governments if the two parties reach an agreement, Bridges said.
Proper protocol would have been for PACE officials to conduct public hearings on the county level regarding the program, but that did not happen, Bridges said.
For this reason, Myers declined to put the PACE bills on taxes.
“There is no evidence of the required public hearing having been held in our county or our cities – the purpose of which, of course, is to allow the Board of County Commissioners (city councils) and Putnam property owners to understand the process associated with such assessment,” Myers wrote. “I know you will agree, when it comes to homeowner protections, due diligence is a major factor on behalf of all participants.”
With PACE, people can pay for their home improvements over five to 30 years, Bridges said, but people don’t realize interest accrues over that time. She said one person borrowed $23,000 for a project over 30 years, and they must pay back $53,000 in interest.
Bridges said interest rates can range from 5.99% to 10.49%.
However, Moran defended the program Tuesday, saying PACE upholds transparency and ethical conduct.
PACE oversees program administrators, which are different companies working with property owners and businesses to fund improvement projects, Moran said in an email. He told the Daily News that every customer who participates in a “PACE origination” receives “a thorough, audio-recorded confirmation call,” during which the customer gets the complete overview of their financing payments.
“It’s essential to clarify that (the Florida Property Assessed Clean Energy Funding Agency) does not select contractors,” he said in the email. “It’s the property owner’s prerogative to choose a contractor. In the PACE program, the property owner’s chosen contractor commits to receiving payment only after the property owner confirms satisfaction during a ‘closing call,’ recorded for all customers.”
While the information people receive from contractors might not outright say it is part of PACE, Bridges said, the legal documents people sign to participate in this home-improvement plan can be 50 pages.
Not many people are reading the entire contract, which explains the concept in more detail, she said. Contractors can be seen as vendors for different home improvement opportunities that all fall under PACE, Moran said.
“This robust consumer protection differentiates PACE from other financing options, ensuring that contractors are incentivized to deliver top-quality service, as their payment hinges on customer contentment,” Moran stated. “The program prioritizes safeguarding property owner’s interests throughout.”
Bridges said people who signed up for the program should call the Tax Collector’s Office at 386-329-0282. The Florida Property Assessed Clean Energy Funding Agency can be contacted at 800-969-4382.