HILLSBOROUGH COUNTY, Fla. — Hillsborough County leaders laid out a list of requirements they’re expecting if, and when, the controversial Property Assessed Clean Energy (PACE) home improvement funding program starts operating again in the county.

What You Need To Know

  • PACE, or the Property Assessed Clean Energy program, is a home improvement funding agency

  • Unlike a traditional bank loan, which is based on credit and financial records, PACE agreements are based on home equity

  • New rules went into effect for the PACE program on July 1 because of a newly-passed law

  • According to the agency, the funding is for homeowners who need home repairs after a disaster

In a meeting Wednesday, Hillsborough Tax Collector Nancy Milan described the program during the meeting. “It’s predatory lending,” she said.

A sentiment echoed by Hillsborough County Commissioner Pat Kemp. “They target low-income communities that are desperate, and they don’t know. They don’t understand what the PACE is,” she said.

Supporters of the program also spoke out during the meeting.

“PACE has made tremendous advances in the last ten years, specifically around SB 770,” said Chris Peterson, who spoke out in support of PACE. “We have better learned how to prepare consumers for the nuisances of home improvement lending and the importance of understanding all of the terms of the transaction.”

Hillsborough County leaders went back and forth about how they plan to protect residents from the PACE program.

“Today’s resolution only puts those guardrails in place as a beginning, but requires a next step, an interlocal agreement that would put even more consumer protections in place like today. We already restricted that they cannot do predatory solar panel sales on homes,” said Hillsborough County Commissioner Joshua Wostal.

County commissioners said they stopped the PACE program from operating in Hillsborough months ago after repeated reports of predatory practices. It’s a practice that Berdine and Darris Chatman said happened to them.

“They did take advantage of us, because they could, and we asked the questions we thought we should’ve been asking but they (were not) not telling us everything,” said Berdine.

They say they used the program to get a new roof after Hurricane Irma.

“We had been going through smaller companies calling and coming out here, but most of those guys couldn’t finance, so that’s why we had to go this route,” Darris said.

That was in 2018, and they’re still paying the price for it, which is double the amount they say they were quoted. And they say they pay the loan on their tax bill.

It’s a detail they claim they were never told.

“We have to pay it in property taxes. It goes against my home. They added it in. Now we’re paying — we were paying — a hundred and something for taxes. Now, we’re paying almost 700 dollars every three months for taxes because of that,” said Berdine.

A new state law that went into effect in July is supposed to protect people like the Chatman’s going forward, who get new loans using PACE.  

Hillsborough County is promising even more protections, like courses for senior citizens, bilingual forms for non English-speaking residents, and most importantly, transparency.

“We’re not even done. We have a couple more months of vetting, and then after that, the vendors have to agree to all of our terms, and if they don’t, there’s no interlocal agreement and there’s no PACE program,” Wostal said.

Leaders say it could take months before PACE is operational again in Hillsborough County.

When that happens, they want residents to know they’re looking out for them.

Representatives from the Florida PACE Funding Agency sent the following statement in response to a request for comment on the new asks from the county and the past accusations of bad practices:

“We’ve had significant success in Hillsborough County over the years, and we consistently receive numerous requests from homeowners in the area seeking PACE financing for crucial home improvements. We value the strong relationship we’ve built with Hillsborough County and look forward to continuing to support local homeowners as they work to strengthen and protect their properties.”

“The Florida PACE Funding Agency upholds transparency and ethical conduct through a rigorous process. Every PACE origination involves a thorough, audio-recorded confirmation call with the customer. During this call, customers receive a comprehensive overview of their financing, including details like the term, annual payment, interest rate, closing fees, and other relevant information, ensuring a clear understanding of the financing arrangement.”

“It’s essential to clarify that FPFA does not select contractors; 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. 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. The program prioritizes safeguarding property owner’s interests throughout.”

“Notably, FPFA does not regulate contractors, we rely on local municipalities that have the governmental duty of vetting and licensing contractors. FPFA’s mission is to provide funding assistance to homeowners and business owners through ‘assessments,’ making it possible for them to undertake significant projects, often addressing essential home renovations that might otherwise be neglected due to financial constraints.”