Selling a Tampa Bay Home With a PACE Assessment: How the Lien Works and How to Clear It at Closing

Can You Sell a Tampa Bay Home With a PACE Assessment?

Yes — but in most sales, the PACE balance gets paid off at closing from your proceeds. A PACE assessment is collected on your property tax bill and carries a lien of equal dignity to county taxes under Florida's PACE statute (F.S. 163.081, formerly 163.08), which puts it ahead of nearly every mortgage. Fannie Mae, Freddie Mac, and FHA all require the PACE obligation to be cleared before or at closing, so unless your buyer pays cash and knowingly agrees to take over the payments, plan on a payoff. You'll also owe the buyer a specific written disclosure required by Florida law.

PACE — Property Assessed Clean Energy — financed a lot of Tampa Bay roofs, impact windows, HVAC systems, and solar arrays over the past decade. The pitch was simple: no money down, approval based largely on home equity rather than credit score, and repayment through your property tax bill.

The part that surprises sellers is what that repayment structure means when you list. You didn't take out a loan in the traditional sense. You agreed to a non-ad valorem assessment — a special assessment attached to the property itself, collected by the tax collector alongside your regular property taxes.

That distinction matters enormously at the closing table.

Why a PACE Assessment Complicates Your Sale

Under Florida's PACE statute — F.S. 163.081(7) as of the 2024 rewrite, F.S. 163.08 for older agreements — a recorded PACE financing agreement creates a lien of equal dignity to county taxes and assessments. In practice, that means it sits senior to your mortgage — even a mortgage recorded years earlier. Title professionals call this super-priority.

Mortgage investors do not accept standing behind a PACE lien:

• Fannie Mae will not purchase a mortgage on a property with an outstanding PACE obligation that takes priority over the first mortgage, and requires payoff of the existing PACE balance as a condition of new financing (Selling Guide B5-3.4-01).
• Freddie Mac requires every mortgage it buys to hold first-lien position for the life of the loan — a property carrying a priority PACE obligation isn't eligible.
• FHA requires the PACE obligation to be paid in full at or before closing. A property that stays encumbered by PACE after closing can't get FHA insurance.

Here's what that means in plain terms: if your buyer is financing with a conventional, FHA, or VA loan — which covers the overwhelming majority of buyers, even in the premium segment — their lender will require your PACE assessment to be paid off before the deal can close.

In theory, PACE is designed to transfer with the property, and a cash buyer could agree to take over the remaining payments on the tax bill. In practice, that's rare. Most cash buyers in the Tampa Bay market treat an inherited PACE assessment as a price negotiation item, not a convenience — and their attorneys usually advise a payoff anyway.

So the working assumption for almost every seller: the PACE balance comes out of your proceeds at closing, just like a mortgage payoff.

The Disclosure Florida Law Requires You to Make

Before your buyer signs a contract, Florida law (F.S. 163.081(8)) requires you to give them a specific written disclosure — either inside the contract or as a separate document — under a statutory "Qualifying Improvements" heading. (Contracts written before the July 2024 statute rewrite used a longer heading under former F.S. 163.08: "Qualifying Improvements for Energy Efficiency, Renewable Energy, or Wind Resistance.")

The disclosure tells the buyer the property carries an assessment levied under the PACE statute, that the assessment funds an improvement relating to energy efficiency, renewable energy, or wind resistance, and that it isn't based on the property's value.

This is not optional, and it's not the same as your Seller's Property Disclosure. If you financed a roof, windows, solar, or an HVAC system through a PACE program — providers you might remember include Ygrene, Home Run Financing (PACE Funding), Renew Financial (RenewPACE), and the Florida PACE Funding Agency — that disclosure obligation attaches the moment there's an unpaid balance. I flag this early with every seller because a missed statutory disclosure is exactly the kind of loose thread that unravels a deal in the inspection period, or worse, after closing.

Not sure whether an old improvement was PACE-financed? Check your property tax bill. PACE appears as a line item in the non-ad valorem assessments section. Your Hillsborough or Pinellas tax bill will show the program name and the annual installment.

How the Payoff Actually Works

Clearing a PACE assessment at closing follows a familiar sequence, with a few wrinkles specific to how tax assessments behave.

1. Order the payoff quote early. Your title company requests a payoff statement from the PACE administrator, the same way it orders your mortgage payoff. Ask your agent to start this the week you go under contract. Some administrators turn quotes around quickly; others take longer than a mortgage servicer would, and a stale quote can force a re-order right before closing.
2. Expect the payoff to exceed the remaining principal. The payoff typically includes accrued interest to the payoff date and administrative fees. Get the all-in number in writing rather than estimating from your annual installment.
3. Watch the current tax year. PACE installments are certified to the tax roll in advance. Depending on timing, the current year's installment may already be baked into your November tax bill even after the payoff is ordered. Your title company will reconcile this — who pays what gets prorated on the settlement statement — but it's the line item most likely to cause a last-minute question, so ask about it before closing day.
4. Confirm the release gets recorded. After payoff, the administrator records documentation releasing the assessment. Your title company tracks this, but keep your payoff confirmation with your closing records.

If your sale proceeds comfortably cover the mortgage and the PACE balance, this is mechanical. Where it needs real planning is a thin-equity sale, or an estate-caliber property with a large solar-plus-roof PACE package — I've seen six-figure PACE balances on high-end waterfront improvements. Run the full net sheet before you set your list price, not after you're under contract. The math on your bottom line works the same way as any other payoff, and it belongs in the same conversation as your mortgage payoff and closing costs when you sell.

The Ground Has Shifted: 2024–2026 PACE Changes Worth Knowing

If your PACE agreement dates from the program's aggressive-marketing era, the rules around you have changed substantially.

Florida's 2024 reform law (Senate Bill 770, effective July 1, 2024) rewrote the consumer side of the program: financing terms are now capped at 20 years, administrators must verify a homeowner's ability to repay — annual PACE payments can't exceed 10% of household income — projects of $10,000 or more come with a written advisory to get estimates from more than one unaffiliated contractor, and homeowners get a three-business-day window to cancel. The law also made clear that a county or municipality must authorize PACE before it can operate in that community, and it kept the longstanding cap tying total PACE debt to a percentage of the home's value.

At the federal level, the Consumer Financial Protection Bureau's PACE rule took effect March 1, 2026, treating residential PACE as consumer credit under the Truth in Lending Act — with ability-to-repay requirements and mortgage-style disclosures.

Locally, the map is uneven. Hillsborough County re-approved residential PACE financing in 2025 for unincorporated areas after several years without it. Pinellas County, by contrast, has stated there has never been an authorized residential PACE program in the county and has issued consumer alerts about PACE solicitations. If a contractor pitches you PACE financing for pre-sale improvements — new roof, impact windows — verify the program is actually authorized for your address before signing anything, and think hard before adding a super-priority lien to a home you're about to list.

None of these changes retroactively alter an existing assessment. If you signed in 2019, your payoff works under the terms of your agreement. But the shifting landscape is one more reason to pull your documents early and get precise numbers rather than assumptions.

Frequently Asked Questions

Does a PACE assessment have to be paid off when I sell my Tampa Bay home?

Almost always, yes. Fannie Mae, Freddie Mac, and FHA all require the PACE obligation to be cleared before or at closing, so any buyer using mainstream financing will need it paid off. Only a cash buyer who explicitly agrees to assume the assessment can take the property subject to it — and that's uncommon.

How do I find out my PACE payoff amount?

Request a payoff statement from your PACE administrator — the company named on the non-ad valorem line of your property tax bill. The payoff generally includes remaining principal, accrued interest, and administrative fees, so it will run higher than the sum of your remaining installments' principal. Your title company orders this as part of the closing process, but starting early avoids delays.

Do I have to tell the buyer about a PACE assessment?

Yes. Florida Statute 163.081(8) requires a specific written disclosure — in the contract or a separate document — whenever you sell a property with an unpaid PACE balance. It's separate from your Seller's Property Disclosure, and skipping it creates real legal exposure.

Can the buyer just take over my PACE payments?

The assessment technically runs with the property, so a cash buyer could agree to keep paying it through the tax bill. But any buyer financing the purchase will be blocked by their lender, and most cash buyers will demand a payoff or an equivalent price concession. Treat assumption as the exception, not the plan.

Will a PACE-financed improvement raise my sale price?

A newer roof, impact windows, or an efficient HVAC system can absolutely strengthen your position with buyers and insurers — wind mitigation credits are a real selling point in Tampa Bay. But the improvement's value and the assessment's payoff are separate numbers. Price the home on its merits, and budget the payoff as a closing cost.

If you're getting ready to sell a Tampa Bay home with a PACE assessment on the tax bill — or you're just trying to figure out what your real net looks like after the payoff — a direct conversation usually clears more up than another search.

About Shane Vanderson