PACE loans explained by Bay County commissioner

BAY COUNTY, Fla. (WMBB) — Bay County commissioners made a move this week they say will protect consumers from predatory home improvement loans called PACE loans.

The state legislature passed the legislation that created Florida’s Private Assessment Energy Funding Agency several years ago. PACE loans help property owners make energy-efficient improvements, like solar panels.

It’s considered a property tax, meaning you can’t sell your property unless you’ve paid off the loan.

“And the way the law was originally drafted, it was a requirement that there needs to be an agreement between the county commission and this provider, this financier,” Bay County Commissioner Doug Moore said.

But a Leon County judge recently ruled that the PACE loan agency no longer needs approval from local counties to conduct business with residents.

“This company to issue loans in every county throughout the state of Florida, whether we have entered into an actual agreement with these parties or not,” Moore said.

Even before the judge’s ruling, Moore said he was already leery of the program.

“Lack of oversight and the lack of protection, I’ve heard of stories throughout the state and worked to verify several of them, but there are a lot of people that buy something that costs way more than what the value of their property or they buy something and then the amount of the interest payments are as much as what they just bought, and they’re going to be paying for it for many, many, many years,” Moore said.

Saying they were concerned about the risks for property owners, Bay County commissioners voted to support the tax collector if he decides against cooperating on the pace loans.

“It won’t be approved, it is not allowable in Bay County because we, the commission have not voted to authorize any of these any of these entities to operate, to do either residential or commercial pay lending programs,” Moore said.

Moore said the commission’s decision Tuesday was a preemptive action. He said he hasn’t heard of anyone locally who was adversely impacted by a pace loan.