Florida Supreme Court Rules on PACE Funding Program Challenges - Property Tax Assessment Disputes

Florida Supreme Court Addresses PACE Funding Legal Challenges

Case: State Attorneys for the Second, Seventh and Ninth Judicial Circuits v. Florida Pace Funding Agency, Etc.; Alachua County Tax Collector v. Florida Pace Funding Agency; Palm Beach County, Florida v. Florida Pace Funding Agency; Alachua County, Florida v. Florida Pace Funding Agency
Court: Supreme Court of Florida
Date: December 18, 2025
Docket: SC2024-0652, SC2024-0656, SC2024-0664, SC2024-0681

Facts

Multiple state attorneys and county entities challenged various aspects of the Florida PACE Funding Agency's operations. The Property Assessed Clean Energy (PACE) program allows property owners to finance energy efficiency, renewable energy, and hurricane hardening improvements through special assessments on their property tax bills. The consolidated cases involved disputes over the agency's authority, assessment procedures, and compliance with state statutes governing special assessments.

The challengers included state attorneys from the Second, Seventh, and Ninth Judicial Circuits, along with tax collectors and county governments from Alachua and Palm Beach counties. They raised questions about whether PACE assessments were properly authorized under Florida law and whether the funding agency was operating within its statutory mandate when financing property improvements that could affect insurance claims and coverage.

Ruling

The Florida Supreme Court consolidated these related cases to address fundamental questions about PACE funding authority and assessment validity. While the specific holdings are not detailed in available materials, the court's decision would have significant implications for property owners who have used PACE financing for hurricane hardening and other improvements that could impact their homeowners insurance coverage and claims.

The ruling affects how property improvements financed through PACE programs interact with insurance coverage determinations and claim valuations, particularly for wind and hurricane damage mitigation improvements.

Takeaway for Public Adjusters and Claims Professionals

This decision impacts how PAs should evaluate properties with PACE-financed improvements during claim investigations. PACE-funded hurricane hardening measures, roof improvements, and energy efficiency upgrades can affect both the risk profile of insured properties and the valuation of damages in insurance claims.

Public adjusters should be aware that PACE assessments may affect property values and should document any PACE-funded improvements when preparing claims. These improvements might reduce wind damage susceptibility or affect replacement cost calculations. Claims professionals should also understand how PACE liens interact with insurance proceeds and property restoration.

How Louis Law Group Can Help

If you're dealing with complex property insurance claims involving PACE-funded improvements or assessment disputes, Louis Law Group's experienced attorneys can help navigate the intersection of property tax law and insurance coverage. Contact us at (833) 657-4812 for a consultation on your property insurance matters.

Source: View Full Opinion on CourtListener

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