VOLUSIA COUNTY, Fla. — Volusia County officials are sounding the alarm about a government-approved program that helps homeowners make improvements to their properties.

The Property Assessed Clean Energy (PACE) program allows homeowners to finance home improvements with interest over an extended period. Instead of utilizing a traditional personal loan or other financing option, participants must repay such modifications through their annual property tax bills.

Projects that may qualify under this program include solar panel installation, roofing enhancements, air-conditioning system upgrades, and seawall constructions.

But some officials say they are concerned the program is being abused by some in a way that preys upon those with few financial resources and do not understand its implications.

“It's a way to take advantage of people when they think the money is going to be free," Volusia County Property Appraiser Larry Bartlett said. "It's not going to be free. They're going to pay for it for years in your tax bill."

The Volusia County Council has taken legal action to prevent the Florida PACE Funding Agency from continuing doing business in unincorporated parts of the county.

Leaders say they are concerned about the long-term financial impacts it could have on homeowners.

Orange City resident Clarence Garrard recently completed a few renovations in his home, but he says he did not realize what he was getting himself into.

“It makes me feel some type of way cheated, you know, and used and abused,” he said.

Garrard said he needed to get work done on his roof and windows, when a company called, reaching out to him.

“They said it was a part of PACE,” he said.

The PACE program help homeowners like Garrard finance home improvements with no money down and no minimum credit score. But instead of using a traditional personal loan or other financing option like putting it on a credit card, participants must repay such modifications through their annual property tax bills.

“Everything was good until I got this later in the mail,” Garrard said, referring to a letter from the Volusia County Tax Collector’s Office. “The judge ruled that because there is not an interlocal agreement in your city or county, you will not have the FPFA assessment in the amount of $2,454.24 on the 2023 tax year bill.”

This came as a result of a court ruling on Sept. 28, and the letter proceeded to say that Garrard should contact the Florida PACE Funding Agency vendor directly.

Records from the Volusia County Tax Collector’s indicate there have been 260 PACE assessments done so far in 2023. With some properties having more than one assessment done, like Garrard who got windows and the roof done.

“I needed a roof, the wires were coming through," he said. "So, I assumed I needed to get it done, you know, and I got it done."

But the PACE program creates a lien against the property, so people can end up losing their homes if they don't pay.

Garrard told Spectrum News that he was unaware of the negative impacts — and when using the PACE program, he says it wasn't explained clearly to him.

“No, not really," he said. "They did not — they didn't explain it to me at all, really.”

Bartlett said his office has received some questions from residents about the PACE program so far, and some are receiving a flyer in the mail promoting the program.  

“It says government-approved program. And right here, it says thousands of dollars in tax credits," Bartlett said. "Well, it's not thousands of dollars in tax credits. It's thousands of dollars on your tax bill. And a lot of folks, if they're selling this stuff, they don't understand that."

Leaders with the Volusia County Tax Collector’s office say they do not have a record of complaints to their office as the property tax bills will be mailed out to residents on Oct. 31.

They said it's too soon for the calls from people who will see a PACE assessment on their bill for the first time since they haven't gotten their bill yet, but they said they will document calls received on or after Nov. 1 once property owners receive the bills.

FPFA's Executive Director, Mike Moran, sent out a statement saying: 

"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."