At least 160 Jacksonville homeowners this year have participated in what officials are calling a “predatory” home-improvement loan program. But this week, the Jacksonville City Council took steps to stop that loan program from doing any further business in the city.
Officials also are making strides to help the property owners who have already taken out the loans that, in some cases, threaten to raise the homeowner’s tax bill by 1,000% and possibly risk their homeownership.
The Property Assessed Clean Energy loan program — also known as PACE — began in Florida in the city of Kissimmee and Flagler County as a way to allow property owners to make upgrades to their house for zero down payment and full financing.
The Florida PACE Funding Agency — special districts created under state law to administer the program — is in charge of the loans. But the program is exempt from the federal Truth in Lending Act, which requires lenders to make sure borrowers can knowledgably pay back loans. The program also is a tangle of public and private entities, third-party firms, contractors and salespeople, according to a Tampa Bay Times report on the lack of oversight.
