Legal Challenges Arising from PACE Funding

Pace Funding is a program designed to finance energy upgrades, such as installing solar panels, impact windows, and roofing. One of its unique features is that the loan is linked to your property tax bill. As homeowners explore options to improve their homes and reduce energy expenses, PACE funding emerges as a solid option. However, it is essential to look at it closely to understand fully how it is financed and the implications.

The Other Side of PACE Funding 

The PACE program provides loans for property improvements that increase energy efficiency while reducing insurance costs. For instance, homeowners are told that their properties will become safer and more efficient by replacing their roofs or installing impact windows. However, these promises may fall short—and you’ll still be required to pay for it.

Why? Because it is tied to your taxes. In some cases, the work may be incomplete or of poor quality. Projects that guarantee “added years to your roof” might not live up to expectations, leaving homeowners dissatisfied with results that fail to deliver insurance savings. The initial allure of improving home efficiency and its value can quickly devolve into frustration.

Homeowners might encounter problems, like leaks, drafts, or other issues expected to be resolved through the upgrades. Dealing with the contractors for these projects can often be challenging, especially once they have received payment via the PACE program. This creates a cycle of attempting to fix or complete the work, resulting in expenses for homeowners. Ultimately, what was initially envisioned as an energy-secure home can cost more financially and emotionally than anticipated.

Another complicating factor is how PACE funding is structured. As we mentioned, homeowners cannot stop making payments since the loan is repaid through their property taxes. The Department of Revenue enforces this payment method, making loan repayment as obligatory as property taxes.

If the work turns out to be unsatisfactory or incomplete, homeowners find themselves in a situation where they are obligated to repay the loan despite facing ongoing issues. This often leads them to take action against contractors. Furthermore, PACE loans may carry interest rates. Unfortunately, this situation has allowed reputable companies to exploit the system since they know they will receive payment regardless of service quality.

Facing Issues with PACE Funding? Contact The Law Office of Ray Garcia, P.A.

Understanding PACE funding intricacies and potential pitfalls is essential before starting home improvement projects financed through it. If you have any further legal questions regarding real estate, schedule a consultation with our team so we can learn more about your situation before exploring your options. Safeguarding your property and financial well-being is paramount. We are here to assist you in navigating these matters.

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Law Office of Ray Garcia, P.A.

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