PACE Financing in Florida: Rules, Payoff and Risks (2026)

What PACE is in Florida

PACE, short for property assessed clean energy, is financing for home improvements that you repay as a non-ad valorem assessment collected with your property taxes. In Florida it's offered by a program administrator that a county or city has authorized by ordinance or resolution, so whether it exists where you live depends on your local government.

For homes of up to four units, Florida Statute 163.08 lists what PACE can pay for: solar and other renewable energy systems, roofs and roof strengthening, impact windows, doors and shutters, flood-resistance upgrades, energy-efficient air conditioning, insulation and water heaters, permanent generators, and septic-to-sewer conversions.

Florida's PACE requirements

A 2024 law, Florida Statute 163.081, requires the program administrator to confirm all of the following, from public records, credit reports and your own records, before you can sign:

Area	What must be true
Your payments	All your PACE payments together are no more than 10% of your household income, confirmed with real evidence, not just your word.
Your home's value	All PACE assessments on the home total no more than 20% of its just value, unless your mortgage holder agrees in writing to more.
Taxes and mortgage	Property taxes current and not delinquent for 3 years; you're current on your mortgage; no recorded default notices in 3 years.
Liens and fines	No involuntary liens, such as construction liens, and no unpaid code enforcement fines unless the project fixes the violation.
Bankruptcy and reverse mortgages	No bankruptcy in the last 5 years unless it ended more than 2 years before you applied; no reverse mortgage on the home.
Loan terms	No balloon payment, no negative amortization, no prepayment penalty beyond nominal costs, and a term no longer than the improvement's useful life, capped at 20 years. At least $2,500 financed.

For projects of $10,000 or more, the administrator must also tell you in writing that the best practice is to get estimates from more than one unaffiliated contractor.

Protections built into the Florida law

A 14-item disclosure you acknowledge item by item. Total financed, yearly assessment, term, interest and APR, the monthly amount you'd need to set aside, when the first payment is due, and warnings that selling or refinancing may require payoff and that missing payments can lead to a tax certificate and losing the home.
A recorded phone call. Before approval, the administrator must confirm every finding and disclosure with you on a recorded call.
Three business days to cancel. With no penalty, and a canceled agreement can't be enforced.
No "free" or "government program" pitch. Administrators and contractors can't suggest PACE is government assistance, free, or doesn't have to be repaid, and can't promise it's tax deductible.
Same price with or without PACE. A contractor can't charge more because the job is PACE-financed, and can't be paid referral kickbacks by the administrator.
Paid only after the work is done. Final funds go to the contractor only once the work is complete or the final permit is closed.

The federal rule that took effect March 1, 2026

Congress directed the Consumer Financial Protection Bureau to set ability-to-repay rules for PACE, and its rule took effect March 1, 2026. It treats residential PACE as credit under the Truth in Lending Act. That means the lender must make a reasonable determination that you can repay, taking into account any escrow increase your mortgage servicer is likely to charge, and you get the same Loan Estimate and Closing Disclosure forms used for mortgages. A PACE loan can't count as a qualified mortgage, and a PACE company substantially involved in the credit decision can be held liable along with the creditor.

PACE and your mortgage

Overhead view of a sunny wooden table with a house key on a ring, a fountain pen, a stack of blank papers and a small model house with solar panels, crossed by palm leaf shadows

The lien is the catch

A Florida PACE lien has "equal dignity to county taxes and assessments," so it can outrank your mortgage.

Your mortgage payment can go up. If your taxes are paid through escrow, the law lets your servicer raise the monthly escrow to cover the assessment. Florida also makes clauses that would call your mortgage due just for taking PACE unenforceable.
FHA loans. Since HUD's Mortgagee Letter 2017-18, homes with PACE obligations aren't eligible for FHA-insured mortgages; the PACE balance has to be paid off, which a refinance can do.
Fannie Mae and Freddie Mac. Fannie Mae won't buy a mortgage on a home with outstanding PACE that can take priority over the first mortgage, and Freddie Mac says a property with a lien that has, or may take, priority isn't eligible either.
Selling. The seller must give the buyer a written PACE disclosure at or before signing the sale contract. Our guide to selling or buying a house with solar covers the closing side.

Paying off PACE early or when you sell

Florida's disclosure has to tell you that you can repay any remaining amount at any time without a penalty beyond nominal administrative costs. To pay it off, ask the program administrator named on your financing agreement for a payoff amount; when you sell or refinance, the closing agent usually requests it. Once it's paid, the assessment should stop appearing on your tax bill.

Because the lien stays with the house, not with you, don't assume a buyer will take it over. With FHA, Fannie Mae and Freddie Mac rules as they are, plan on paying PACE off at closing when you sell.

How to check a PACE program or contractor

Confirm your county or city authorized the program. Only an administrator authorized by your local government can offer PACE there.
Look up the contractor on the administrator's website. Florida law requires every administrator to keep a public page showing registered contractors' status, including any on probation, suspended or terminated.
Check the contractor's license. Solar work needs a Florida license in good standing; our guide to checking a solar company shows how.
Compare with other financing. Our solar financing guide lines PACE up against cash, loans and leases.

We don't rate individual PACE companies. If something went wrong, the Florida Attorney General's office takes consumer complaints, and under Florida Statute 163.086 a financing agreement can be declared void if the administrator or contractor obtained it by fraud.

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Common questions

How does PACE financing work in Florida?

A program administrator authorized by your county or city pays for a qualifying improvement, such as solar or a new roof, and you repay it as an assessment on your property tax bill, for up to 20 years. The agreement is recorded as a lien that ranks with property taxes.

What are the requirements for a PACE loan in Florida?

Under Florida Statute 163.081, your total PACE payments can't exceed 10% of household income, all PACE assessments can't exceed 20% of the home's just value without your mortgage holder's consent, your taxes and mortgage must be current, and you can't have involuntary liens, a reverse mortgage, or a bankruptcy in the last 5 years unless it ended more than 2 years before you applied.

Can I cancel a PACE agreement in Florida?

Yes. You can cancel within 3 business days after signing, with no penalty, on the administrator's cancellation form, and a canceled agreement can't be enforced.

How do I pay off a PACE loan in Florida?

Ask the program administrator named on your financing agreement for a payoff amount. Florida requires that you be allowed to repay at any time without a penalty beyond nominal administrative costs. When you sell or refinance, the closing agent usually requests the payoff.

Can I sell my house with a PACE loan in Florida?

Yes, but you must give the buyer a written PACE disclosure at or before signing the sale contract, and FHA, Fannie Mae and Freddie Mac rules generally mean the PACE balance is paid off at closing.

Does PACE affect my mortgage?

It can. The PACE lien ranks with property taxes, so it can take priority over your mortgage, and if your taxes are escrowed your servicer may raise your monthly escrow to cover the assessment. Florida makes clauses that call a mortgage due just because you took PACE unenforceable.

Is PACE a government program?

No. It's financing you repay with interest, collected with your property taxes. Florida law bars administrators and contractors from suggesting PACE is government assistance, free, or doesn't have to be repaid.

This page summarizes Florida and federal rules as of September 2026 and is not legal or financial advice. Program terms vary by administrator and county. Sources: Florida Statutes 163.08 · Florida Statutes 163.081 · Florida Statutes 163.083 · Florida Statutes 163.085 · Florida Statutes 163.086 · CFPB, Residential PACE Financing (Regulation Z) final rule, effective March 1, 2026 · 12 CFR 1026.43(i), ability to repay for PACE transactions · HUD Mortgagee Letter 2017-18 (PDF) · Fannie Mae Selling Guide B5-3.4-01, PACE loans · Freddie Mac, refinancing and energy retrofit programs. Reviewed September 2026.

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