Expanding PACE loans for energy efficiency and wind-resistant homes

As hurricane season approaches, a low-cost loan program has been expanded to allow property owners to better prepare their homes for storms.

Acting on one of the last bills on his desk from the 2024 legislative session, Gov. Ron DeSantis signed SB770 modernization of Clean Energy Rated Properties program (PACE).PACE loans allow property owners to make improvements to their homes and finance the costs through property tax assessments.

From July, loans will be available for sealing, replacing windows and modifying buildings to increase the use of daylight.

Loans will also be able to cover the installation of insulation, electric vehicle charging equipment, efficient lighting equipment, energy controls and energy recovery systems. Renewable energy products, including electrical, mechanical or thermal energy generated using hydrogen, solar energy, geothermal energy, bioenergy or wind energy, can now also be covered.

Wind resistance improvements will also be eligible for PACE loans, including improving the strength of roof deck attachments, creating a secondary water barrier to prevent water ingress, and strengthening roof-to-wall connections. Loans can now also include the installation of wind-resistant shingles or gable stiffeners, storm shutters or opening protection. However, wind resistance improvements will also be available as improvements to existing homes rather than new construction.

The legislation was supported by the senator. Jonathan Martin, Republican from Fort Myers, Senate and Rep. Dana Trabulsy, Republican from Fort Pierce, in the House of Representatives.

He was promoted as answer to the rising costs of home insurance. Improvements that are now eligible for insurance often lower your homeowner’s insurance premiums by making your property more resistant to hurricane winds.

The bill was popular in the Legislature. It passed the House of Representatives by a vote of 87 to 24. It drew opposition from a number of lawmakers who believe PACE loans enable predatory lending practices.

“Why would anyone use PACE? Their insurance company says they have to have a new roof to keep their insurance. The contractor uses this financing method where you’ll have to pay over 20 years on a tax bill at 10% interest,” Rep. said. Hillary CasselDemocrat from Dania Beach.

House Democrats overwhelmingly opposed the initiative, but they were joined by some Republicans from areas recently hit by storms, including Rep. Mike GiallombardoRepublican from Cape Coral.

In the Senate, the bill passed by a vote of 34 to 2, with Republican senators being the only opposing votes. Erin Grall AND Blaise Ingoglia.

Trabulsy said the PACE insurance program has flaws, but the bill improves it while solving a critical problem. By increasing the number of people who can benefit from the program, it will give many struggling and negatively criticized people a way to protect the most valuable asset they have.

“If you haven’t noticed, we have an insurance crisis right now,” she said.

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