Rogue tax collectors are in direct violation of judicial orders
Program stands to lose tens of millions of dollars in funding for burdened Florida families using PACE for its low-interest financing, efficiency, and protections
Small businesses and independent contractors face nonpayment for completed work
Consumers are at greater risk of future insurance loss
The Florida PACE Funding Agency (PACE), a trusted public entity established under Florida law that provides homeowners with financing options for energy-efficient and hurricane-resistant home improvements, is facing risk of a critical funding crisis due to noncompliance by elected tax collectors notably, Volusia County Tax Collector Will Roberts, Duval County Tax Collector Jim Overton, Alachua County Tax Collector John Power, Pasco County Tax Collector Mike Fasano, Palm Beach County Tax Collector Anne Gannon, and Hillsborough County Tax Collector Nancy Millan.
This situation threatens to disrupt ongoing renovation projects and put a substantial financial burden on Florida families who sought out PACE for its low-interest financing, efficiency, and consumer protection.
The Florida PACE Funding Agency operates as an Independent Special District established under Florida law with a judicial validation, overseeing program administrators who work closely with homeowners and businesses to finance their projects using long-term, fixed-rate assessments that are added to their property tax bills.
This financing model is highly effective, tapping into large sources of private capital to secure financing for construction projects over an extended period. It makes more projects financially viable, spreads repayments across many years, eliminates the need for upfront payments, and removes the requirement for debt repayment during property sale or refinancing. This model results in significantly lower interest rates due to the high repayment security associated with property tax bills: current PACE interest rates are approximately 9% where credit cards can be in excess of 29%.
The crisis stems from political tax collectors refusing to put the repayments to bondholders on the property tax bills a clear violation of Florida law. This omission has caused bondholders and private investors who fund the PACE programs to withdraw their funding from Florida.
The consequences of this withdrawal are far-reaching, impacting tens of millions of dollars that were to be used to pay contractors who have recently completed or are currently working on renovation projects. Furthermore, many ongoing projects face uncertainty, potentially leaving homeowners in a precarious financial situation.
It is essential to emphasize that the actions of these tax collectors directly contradict a judicial validation put in place by The Honorable Lee Marsh of Leon County in November 2022, said Mike Moran, the Executive Director of the Florida PACE Funding Agency. This is one more example of politicians thinking they know better than the free marketplace. These are elected officials trying to take away a voluntary financing option for Florida families. This disregard for the law creates a looming housing crisis in the state and we are committed to taking it to the Supreme Court to protect the rights of these businesses and homeowners. he added.
PACE has been instrumental in making homes across the state safer, more energy-efficient, and protected from natural disasters. However, the failure of tax collectors to adhere to the law threatens the financial stability of Florida residents.
Moran will hold a virtual press conference on Monday, October 30, 2023, at 2p.m. ET to provide a statement and address any questions from the media and concerned parties.
The general public can access the press conference call by dialing the following number (US) +1 646-931-3860 and the passcode is 613024. The press conference can also be accessed online at Zoom.com/Meeting by inputting the following meeting ID: 876 8938 1340.
For media inquiries and registration for the virtual press conference, please contact:
Florida PACE is a public entity that provides homeowners with financing options for energy-efficient and hurricane-resistant home improvements. As an interlocal agreement established under Florida law, Florida PACE oversees program administrators who work with homeowners like you to finance their projects through long-term, fixed-rate assessments added to their property tax bills. By partnering with Florida PACE, you can improve your homes safety, value, and energy efficiency while investing in a funding plan you feel confident in. For more information, visit: https://floridapace.gov/
View source version on newsdirect.com: https://newsdirect.com/news/florida-pace-to-take-tax-collectors-to-supreme-court-for-jeopardizing-program-funding-495157847
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