Palmetto Bay Expands Home Upgrade Financing Amid New State Safeguards

PALMETTO BAY, Fla. – March 18, 2026 – Homeowners in the Village of Palmetto Bay now have another option to finance critical home improvements, from hurricane hardening to energy efficiency upgrades. The village council has unanimously approved Home Run Financing to offer its Property Assessed Clean Energy (PACE) program, a decision that reflects a growing trend across Florida to bolster community resilience against climate change while navigating a newly reformed regulatory landscape.

The approval, spurred by a resident's request, positions Home Run Financing as one of several PACE providers operating in the village. This expansion of choice allows property owners to seek financing for a host of crucial projects, including storm-resistant windows, reinforced roofing, high-efficiency air conditioning, and, significantly for the region, septic-to-sewer conversions and flood protection measures like seawalls.

"In Palmetto Bay, we believe that strong communities are built by empowering residents to shape the future of their own homes," said Mayor Karyn Cunningham in a statement. "By expanding PACE to include Home Run Financing, we are opening the door to a new generation of sustainable, resilient, and energy-smart living."

For providers, the approval marks a strategic expansion. "Having options of several PACE providers is good for the community, because when providers compete, homeowners get to choose the best fit for them," noted Robert Giles, CEO of Home Run Financing. The company now serves 24 municipalities in Miami-Dade County and over 180 statewide.

A Tool for Resilience with a Complex Past

At its core, PACE is a unique financing tool. It allows homeowners to fund 100% of an eligible project's cost with no money down. Instead of a traditional bank loan, the financing is repaid over a long-term period—typically up to 20 years—through a special assessment added to the property's annual tax bill. Eligibility is based primarily on home equity and a history of timely tax payments, not personal credit scores, a feature that proponents argue democratizes access to capital.

A 2024 study by Yale University and the University of North Carolina, cited by Home Run Financing, concluded that PACE financing in Florida does indeed help "democratize access to credit," particularly for middle- and moderate-income households who may struggle to secure traditional loans for essential upgrades.

However, the program's history is not without controversy. For years, consumer advocates and financial watchdogs have raised red flags about the PACE model. The financing is secured by a lien on the property that holds a superior position to a homeowner's primary mortgage. This "super-priority lien" means that in a foreclosure, the PACE debt is paid off before the mortgage lender, a fact that has made major lenders like Fannie Mae and Freddie Mac hesitant to back mortgages on homes with outstanding PACE assessments. This has created significant hurdles for homeowners attempting to sell or refinance their properties, often forcing them to pay off the entire PACE balance prematurely.

Furthermore, the industry has been plagued by reports of aggressive or deceptive sales tactics by some contractors, leaving some homeowners with high-interest loans and a larger-than-expected tax bill they were unprepared to pay, increasing their risk of tax delinquency and foreclosure.

A New Era of Regulation and Consumer Protection

The decision in Palmetto Bay comes as the entire PACE industry in Florida operates under a completely overhauled regulatory framework. Acknowledging the program's past pitfalls, the Florida Legislature passed sweeping reforms in 2024 (SB 770) designed to erect a wall of consumer protections.

Under the new law, PACE providers are now mandated to perform a rigorous ability-to-pay analysis, ensuring homeowners can truly afford the additional assessment. This includes verifying that the homeowner is current on their mortgage and property taxes and has no recent history of involuntary liens or bankruptcy. The maximum financing term was also shortened from 30 to 20 years, and the total financing cannot exceed 20% of the property's value.

Perhaps most importantly, the legislation mandated enhanced transparency. Providers must now obtain written consent on detailed disclosures and record a phone call with the homeowner to verbally confirm their understanding of the total cost, interest rate, annual payment, and the serious consequences of non-payment, including the potential loss of their home. A three-day "right to cancel" period also gives homeowners a window to reconsider.

Oversight has been significantly bolstered, with the state's Auditor General now appointed as the official regulator, tasked with auditing the program every three years. This state-level action is complemented by a new federal rule from the Consumer Financial Protection Bureau (CFPB), which took effect this month, extending federal mortgage-lending protections to PACE financing nationwide.

Investing in a Stronger Florida

With these new guardrails in place, proponents argue PACE is better positioned than ever to fulfill its promise of strengthening communities. The economic impact is significant. Home Run Financing alone states it has facilitated a $376 million investment of private capital into Florida, creating nearly 3,400 jobs. Statewide, PACE projects represent billions in economic activity and, crucially, an investment in resilience.

In a state on the front lines of climate change, the ability to finance hurricane hardening and flood mitigation is not a luxury but a necessity for many. Upgrades funded through PACE can lead to lower homeowner's insurance premiums and reduced energy bills, providing long-term financial relief that can offset the cost of the financing.

The expansion into Palmetto Bay underscores a broader trend: local governments are embracing the reformed PACE program as a key public-private partnership. By enabling private capital to fund public-good projects on a house-by-house basis, municipalities hope to build a more resilient and sustainable infrastructure without direct cost to taxpayers, empowering homeowners to invest in the safety and efficiency of their own properties.