The Process of Applying for PACE Funding in Central Florida

PACE (Property Assessed Clean Energy) funding has become a popular financing option for Central Florida homeowners looking to invest in energy-efficient, renewable energy, and storm-resilient upgrades. Whether you’re planning to install solar panels, replace your roof, or upgrade your HVAC system, PACE financing offers a hassle-free way to fund these improvements with no upfront costs. This blog provides a step-by-step guide to applying for PACE funding in Central Florida, ensuring a smooth and successful process.

1. What is PACE Funding?

PACE financing allows homeowners to fund eligible home improvement projects and repay the cost through their property taxes over a period of 10-25 years. Unlike traditional loans, PACE approval is based on your property’s equity rather than your credit score, making it an accessible option for many homeowners.

Key Benefits of PACE Financing:

• No Upfront Costs: Covers 100% of project costs.
• Fixed Interest Rates: Predictable payments added to your annual property tax bill.
• Property-Tied Loan: The loan transfers to the new owner if you sell your home.

Eligible Projects in Central Florida:

• Solar panel installations
• High-efficiency HVAC systems
• Hurricane-resistant windows and doors
• Reflective roofing and insulation

2. Step-by-Step Guide to Applying for PACE Funding

Step 1: Confirm Eligibility

Before applying for PACE funding, ensure you meet the basic eligibility requirements:

• Property Ownership: You must own the property where the improvements will be made.
• Equity Requirement: Your property must have sufficient equity to secure the loan.
• Current on Taxes and Mortgage: You must be up to date on property tax payments and mortgage obligations.
• Location: Your property must be located in a participating PACE district, such as Central Florida.

Tip: Check your local PACE program’s website or consult with an approved contractor to confirm eligibility.

Step 2: Choose an Approved PACE Contractor

• Visit the PACE program’s website for a list of certified contractors.
• Verify that the contractor has experience with your specific project, such as solar installations or roof replacements.

Tip: Choose a contractor with strong reviews and a proven track record in Central Florida.

Step 3: Identify Your Project Scope

Work with your contractor to determine the details of your project, including:

• The type of upgrade(s) you want to complete.
• Estimated costs of materials and labor.
• Expected energy savings and environmental benefits.

Tip: Your contractor can also help you calculate potential savings and determine if the project qualifies for additional incentives, such as the Federal Solar Investment Tax Credit.

Step 4: Submit Your Application

Once your project is outlined, your contractor will assist you in submitting your PACE funding application.

Documents You May Need:

• Proof of property ownership (e.g., deed or mortgage statement).
• Recent property tax statement.
• Proof of income (if required by the local program).

Tip: Complete the application thoroughly and provide all requested documentation to avoid delays.

Step 5: Application Review and Approval

PACE administrators will review your application, verifying:

• Your property’s eligibility.
• The project’s compliance with program guidelines.
• Your ability to repay the loan through property tax payments.

Approval Timeline: Most PACE applications are reviewed and approved within a few days to a few weeks, depending on the project’s complexity.

Step 6: Sign the Agreement

Once approved, you’ll receive a financing agreement outlining:

• The total loan amount.
• Interest rates and repayment terms.
• The addition of payments to your property tax bill.

Tip: Review the agreement carefully and ask questions about anything unclear before signing.

Step 7: Begin the Project

After signing the agreement, your contractor can begin work on your home improvement project.

Key Considerations During the Project:

• Ensure your contractor follows all local building codes and permits.
• Stay in communication with your contractor to monitor progress and address any issues promptly.

Step 8: Repayment Through Property Taxes

PACE financing payments are added to your annual property tax bill.

What to Expect:

• Fixed payments spread over the loan term (10-25 years).
• The first payment typically begins after the next property tax assessment.

Tip: Monitor your property tax statement to ensure payments are accurate.

3. Advantages of PACE Funding for Central Florida Homeowners

A. No Impact on Personal Credit

PACE financing is based on property equity, not credit score, preserving your credit for other needs.

B. Flexible Repayment Terms

Choose a repayment schedule that aligns with your financial goals, ranging from 10 to 25 years.

C. Transferable Loan

If you sell your home, the remaining PACE loan balance transfers to the new owner, allowing you to invest in upgrades without worrying about full repayment upfront.

D. Energy Savings Offset Costs

Many energy-efficient upgrades, such as solar panels and high-efficiency HVAC systems, reduce utility bills significantly, helping offset the cost of repayment.

4. Example: A Successful PACE Project in Central Florida

Scenario: A homeowner in Orlando uses PACE financing to install a solar energy system and replace their aging roof with reflective materials.

Results:

• Total Project Cost: $30,000 (covered by PACE).
• Monthly Utility Savings: $200.
• Payback Period: 15 years through property taxes.
• Increased Home Value: $20,000 due to energy-efficient upgrades.

5. Tips for a Smooth Application Process

1. Work with a Trusted Contractor: Choose an experienced, PACE-approved contractor for guidance throughout the process.
2. Understand Your Repayment Terms: Ensure you’re comfortable with the repayment schedule and interest rates before signing.
3. Combine Incentives: Maximize savings by pairing PACE funding with federal or local rebates and tax credits.
4. Plan Ahead: Gather necessary documents and review eligibility requirements early to avoid delays.

Conclusion

Applying for PACE funding in Central Florida is a straightforward process that allows homeowners to invest in energy-efficient and storm-resilient upgrades without the burden of upfront costs. By following this guide and working with an approved contractor, you can enhance your home’s efficiency, save on utility bills, and increase property value. Ready to start your project? Contact a PACE-approved contractor today to take the first step toward a more efficient and sustainable home.

Want to Learn More?

The PACE program offers an excellent opportunity for Florida homeowners to finance essential energy-efficient upgrades without upfront costs. By partnering with Guardian Home, you can enhance your home’s comfort, safety, and value while contributing to a more sustainable future. Contact us today to schedule your free consultation and start your journey towards an energy-efficient home. Contact us today!