Citrus County hears PACE program update and SB 770 consumer protections

Commissioner Rebecca Bays and the Citrus County Board of County Commissioners on March 25 heard a detailed presentation about Property Assessed Clean Energy, or PACE, financing and how recent state law changes affect how companies offer assessments tied to property tax bills.

The presentation explained that PACE is a voluntary financing option for property owners to fund home improvements such as roofing, impact windows and doors, and high-efficiency HVAC systems. Ryan (HomeRun), a HomeRun representative, and Chris (Fortify), a Fortify representative, and other PACE providers told the board the program attaches a fixed, amortizing special assessment to the tax bill and that the assessment is tied to the property rather than the owner's credit.

Why it matters: PACE financing has been offered in Florida and other states for years, but SB 770 and related changes have added underwriting and consumer-protection requirements that local governments and financers must follow. Commissioners asked about contractor oversight, pricing, income verification and how assessments affect future refinances or sales.

Officials said the major consumer-protection changes set by SB 770 include a 20-year maximum term for financing, a cap that the assessment cannot exceed 20% of the property's just value as set by the property appraiser, and a residential annual-payment limit of 10% of household income. Presenters described other statutory limits: no negative amortization, no balloon payments and no prepayment penalties in financed agreements. The presenters also described a mandatory "confirmation-of-terms" call, identity verification (Onfido-style selfie/ID checks), and a requirement that contractors be registered and vetted before work begins.

"This is an option, a voluntary option," said Chris (Fortify representative). "It is repaid on the tax bill, as a special assessment, and is treated just like any other local public-benefit assessment." He added that providers withhold payment to contractors until a certificate of completion is signed by the homeowner and contractor.

Commissioner Holly Davis and other board members asked how PACE providers verify that a contractor's price is reasonable. Ryan (HomeRun) said companies use internal pricing guidelines and will ask for additional documentation (invoices, photos) if a price is outside normal ranges; he said projects have been declined when they exceed guidelines. Fortify added that confirmed-terms calls often surface contractor misrepresentations and give the homeowner a final chance to cancel before funding.

Presenters summarized interest-rate mechanics and refinancing: PACE rates are fixed for each contract and tied to the bond market; the panel cited recent pricing in the 8.4% to 8.9% range and said homeowners can refinance if rates decline. They also noted the practical interaction with conventional mortgage markets: many mortgage buyers such as Fannie Mae or Freddie Mac will not accept a new first mortgage on a property that has an outstanding PACE assessment, meaning typical refinances will require the assessment be paid off at closing unless a lender elects to hold the loan on its own balance sheet.

Presenters described eligible improvements under SB 770 that were added or clarified: septic-to-sewer connections, septic replacements, flood and water-damage mitigation, backup generators, energy-efficient pool pumps and certain solar projects, in addition to roofing, windows, doors and HVAC.

The providers said they run dispute-resolution processes and cited internal compliance metrics: in their experience most contractor/homeowner disputes are resolved within 30 days and funds are released only after homeowner sign-off. They also pointed to research that they say shows low foreclosure incidence for properties with PACE assessments and, in some studies, positive effects on property values.

Board reaction and next steps: Commissioners asked for more written information on local implementation details, contractor registration rules and any county-level options to restrict or specify what improvements may be offered under a county program. Several commissioners said they value the program as an option for homeowners who cannot access traditional financing and for resilience work; others pressed for clarity on consumer protections and impacts on future mortgage financing.

The presentation was informational; no county action on adopting or changing a PACE program was taken at the meeting. Presenters said they are available to provide further documentation and to work with county staff on any local registration or oversight steps.

Ending: County staff and PACE providers will supply requested written materials to the board; commissioners signaled interest in follow-up briefings before making any county-level policy or registration decisions.