Realtors in San Diego think an increasingly popular tool to finance solar power in homes presents a ticking time bomb.
Property Assessed Clean Energy, or PACE, programs make pricey energy efficiency projects – including solar panels and drought-friendly landscaping – possible for homeowners with bad credit. But they can also make moving or refinancing a home a lot more complicated.
PACE, which is administered by three companies in San Diego County, lets homeowners repay the cost of going solar through their property tax bills.
That means PACE loans, like taxes, must be paid off before mortgage collectors get what they’re owed if there’s a foreclosure.