Seniors Targeted by Predatory PACE Loan Practices

In a recent government meeting, officials raised serious concerns regarding the Property Assessed Clean Energy (PACE) program, particularly its impact on vulnerable populations, including seniors and low-income residents. The discussions highlighted troubling practices by salespeople who target these communities, often using aggressive door-to-door tactics and misleading claims about the program's benefits.

Commissioner Kemp emphasized that many residents, particularly the elderly and Spanish-speaking individuals, are often unaware of the implications of signing up for PACE financing, which is linked to property tax bills. The use of iPads for signatures has raised alarms, as some individuals reportedly did not receive necessary documentation, leading to a pattern of complaints that suggests a lack of transparency and oversight.

Mike Fasano, the tax collector for Pasco County, shared his long-standing opposition to the PACE program, citing numerous instances of seniors being misled into taking on financial burdens they cannot sustain. He urged for stronger oversight and accountability measures, suggesting that contracts with tax collectors should include provisions allowing for cancellation if the program administrators fail to comply with regulations.

Nancy Milan, Hillsborough County's tax collector, echoed these sentiments, stressing the need for consumer protection and clear communication about the financial obligations associated with PACE assessments. She noted that 49 homes currently enrolled in the program are tax delinquent, raising concerns about potential foreclosures and the burden on her office to assist distressed homeowners.

The Mortgage Bankers Association also weighed in, supporting the PACE program under the condition that it adheres to strict consumer protection standards. They called for regulatory reforms to ensure that PACE lenders are held to the same educational and licensing requirements as traditional mortgage lenders.

As discussions continue, officials are urged to consider implementing safeguards to protect homeowners from predatory practices associated with the PACE program, ensuring that residents are fully informed of their financial commitments before enrolling.