PACE stands for Property Assessed Clean Energy. In Florida it can pay for certain roof work, and you repay it as a line on your annual property tax bill rather than as a monthly loan payment. In 2024 the Legislature rewrote the residential rules, adding underwriting limits and disclosures that apply to every program. PACE suits some homeowners and costs others more than they expected. This guide lays out both sides, based on the statutes as of 2026.
| Feature | What Florida law says |
|---|---|
| How you repay | Non-ad valorem assessment collected with property taxes |
| Roof work that qualifies | Wind-resistant shingles or gable-end bracing |
| Longest term | Useful life of the improvement, never more than 20 years |
| Funding cap | 20 percent of the home's just value, unless mortgage holders consent |
| Income test | All PACE payments under 10 percent of household income |
| Right to cancel | 3 business days after signing |
| Lien | Equal in standing to county taxes, from recording |
| On sale | Seller must disclose it to the buyer |
How does roof PACE financing work?
A program administrator, which can be a county, a city or a separate legal entity set up for this purpose, pays for the improvement. It then levies a non-ad valorem assessment on your property to recover the cost, interest and fees. The tax collector bills that assessment with your property taxes. Section 163.08, Florida Statutes, lists roof work that installs wind-resistant shingles or gable-end bracing among the residential improvements that qualify.
The assessment is tied to the property, not to your credit card or a personal loan account. That is the main difference from other roof financing, and it is the source of both the appeal and the risk.
Who qualifies?
Before approving you, section 163.081, Florida Statutes, requires the administrator to find, among other things, that:
- Your property taxes and assessments have been current for the past 3 years, or for as long as you have owned the home
- You are current on all mortgage debt on the home
- No construction liens or other involuntary liens are recorded on the property
- You have had no bankruptcy in the past 5 years, unless it was discharged or dismissed more than 2 years before you applied
- There is no reverse mortgage on the home
- Total annual PACE payments will not exceed 10 percent of your household income, verified with more than your own statement
PACE cannot be used for a project under $2,500, including fees and interest.
What protections apply before you sign?
- A written disclosure that you acknowledge item by item. It covers the amount financed, the estimated annual assessment, the term, the interest rate and estimated APR, the first payment date and what happens if you do not pay.
- A recorded phone call in which the administrator confirms the disclosures with you.
- Notice to your mortgage holder at least 5 business days before signing.
- A 3-business-day cancellation period after you sign.
- Advice to get more than one estimate from unaffiliated contractors when the financing is $10,000 or more.
Contractors face limits too. Under section 163.085, Florida Statutes, a contractor may not charge a different price because you use PACE, may not give you cash or anything of material value for signing, and may not call the financing free, a government program or tax-deductible.
What are the risks?
- The lien has the standing of a tax. Florida says a recorded PACE assessment is a lien of equal dignity to county taxes and assessments.
- Missing a payment is serious. The required disclosure warns that nonpayment can bring penalties, attorney fees and court costs, and can lead to a tax certificate that could result in losing the property.
- Your housing payment can rise. If you escrow taxes, your lender may raise your escrow payment to cover the assessment.
- Savings are not guaranteed. The disclosure must tell you that utility or insurance savings are not guaranteed. Do not count on a wind mitigation discount to cover the payment until you know your insurer's numbers.
- The total cost includes interest and fees. Compare the APR in the disclosure with any other offer you have.
What happens when you sell or refinance?
Florida requires the seller to give the buyer written disclosure that the property is subject to a PACE assessment, at or before signing the sale contract. The statute supplies the wording, which notes that the assessment is for an improvement and is not based on the property's value. The required pre-signing disclosure also warns that a mortgage lender may require you to pay off the full balance when you sell or refinance. Because the agreement is recorded in the county records, it is public notice to buyers and their lenders. Talk to your real estate attorney or closing agent before you list.
Is PACE the right way to pay for a roof?
PACE fits best when you plan to stay in the home for years, cannot easily qualify for other credit and have compared the APR with alternatives. It fits poorly if you may sell soon, already struggle with the tax bill or are counting on insurance savings to cover the payment. Before you decide, check whether you qualify for a My Safe Florida Home grant, compare prices in our Orlando roof replacement cost guide, and read how a new roof affects your tax bill in new roof property taxes in Orange County. Before paying the contractor in full, the administrator must confirm the work is complete or the final permit is closed, so keep your roof permit records handy.
For a written price you can compare against any financing offer, book a free roof inspection.
